SMALL AND MEDIUM MICRO ENTREPRISES INNOVATION STRATEGIES IN EFFORTS TO FACE THE INDUSTRY REVOLUTION 4.0

Abstract

Micro, small and medium enterprises still rely on conventional ways of
doing business. On the other hand, rapid digitalization is integrated with the
economy and trade, giving birth to the industrial revolution 4.0. If micro, small
and medium enterprises do not want to innovate, they will be disrupted. The
research objectives are to describe the innovation strategies of micro, small and
medium enterprises in increasing competitiveness in facing the industrial
revolution 4.0; and also identify factors that hinder the innovation of micro, small
and medium enterprises in increasing competitiveness in facing the industrial
revolution 4.0. The method used in this research is qualitative. The research
location is in the area of ​​micro, small and medium enterprises in Gresik Regency
and Sidoarjo Regency. The conclusion of this research is(a) innovation strategies
for micro, small and medium enterprises in increasing competitiveness in facing
the industrial revolution 4.0 through marketing with e-commerce marketing
through social networking media. One of the strategies is product innovation.(b)
Furthermore, the factors that hinder innovation are human resources, capital to
innovate, a narrow owner's mindset, and the use of technology that is still simple.
lack of strategic partners for innovation, managementmicro small and Medium
Enterprises who are kinship and less professional, and lack of permits micro small
and Medium Enterprises.