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Digitalisation and the Performance of Micro and Small Enterprises in Yogyakarta, Indonesia

Author

Listed:
  • Anna T. Falentina
  • Budy P. Resosudarmo
  • Danang Darmawan
  • Eny Sulistyaningrum

Abstract

This study examines the effects of internet use, as part of digitalisation, on the performance of micro and small enterprises (MSEs) in Yogyakarta province. Using primary data on MSEs in Yogyakarta, the paper exploits conceivably exogenous variations in the cellular signal strength that MSEs receive to connect to the internet, once number of local cellular transmitters, location topography, local building and infrastructure development and sectoral characteristics are controlled. The findings show that internet use has enabled MSEs to engage in the digital economy and has improved labour productivity and exports. The associated monetary benefit due to internet use is substantial for local people.

Suggested Citation

  • Anna T. Falentina & Budy P. Resosudarmo & Danang Darmawan & Eny Sulistyaningrum, 2021. "Digitalisation and the Performance of Micro and Small Enterprises in Yogyakarta, Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 57(3), pages 343-369, September.
    • Handle: RePEc:taf:bindes:v:57:y:2021:i:3:p:343-369
    DOI: 10.1080/00074918.2020.1803210
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    Cited by:

    1. Adriana Grigorescu & Elena Pelinescu & Amalia Elena Ion & Monica Florica Dutcas, 2021. "Human Capital in Digital Economy: An Empirical Analysis of Central and Eastern European Countries from the European Union," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    2. Budy P. Resosudarmo & Rus'an Nasrudin & Pyan A. Muchtar & Usep Nugraha & Anna Falentina, 2022. "Problems with recording the spread of COVID-19 in developing countries: Evidence from a phone survey in Indonesia," Departmental Working Papers 2022-08, The Australian National University, Arndt-Corden Department of Economics.
    3. Agus Salim & Jun Wen & Anas Usman Bello & Firsty Ramadhona Amalia Lubis & Rifki Khoirudin & Uswatun Khasanah & Lestari Sukarniati & Muhammad Safar Nasir, 2024. "Does information and communication technology improve labor productivity? Recent evidence from the Southeast Asian emerging economies," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    4. Afriyadi Cahyadi & Taufiq Marwa & István Hágen & Mohammed Nuru Siraj & Parama Santati & József Poór & Katalin Szabó, 2022. "Leadership Styles, High-Involvement Human Resource Management Practices, and Individual Employee Performance in Small and Medium Enterprises in the Digital Era," Economies, MDPI, vol. 10(7), pages 1-18, July.

    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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