IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i14p8462-d859965.html
   My bibliography  Save this article

The Evaluation of Technology Startup Role on Indonesian SMEs Industry 4.0 Adoption Using CLD-ABM Integrated Model

Author

Listed:
  • Ishardita Pambudi Tama

    (Department of Industrial Engineering, Brawijaya University, Malang 65145, Indonesia)

  • Willy Satrio Nugroho

    (Department of Industrial Engineering, Brawijaya University, Malang 65145, Indonesia)

  • Wayan Firdaus Mahmudy

    (Department of Computer Science, Brawijaya University, Malang 65145, Indonesia)

  • Purnami Purnami

    (Department of Mechanical Engineering, Brawijaya University, Malang 65145, Indonesia)

Abstract

The role of the Association of Southeast Asia Nations (ASEAN) small and medium enterprises (SMEs) as the regional socioeconomic stabilizer is inseparable from endogenous multisector collaboration. Indonesian SMEs struggled with Industry 4.0 adoption due to the lower digital infrastructure (DI) and digital literacy (DL) index. This study aims to develop a provisional model to explore the role of technology startups (TS) in covering the DI and DL of SMEs. The evaluation was through a simulation model of Indonesian SMEs’ collaboration with the government and TS. The developed model is a concurrent real-time integration of an agent-based model (ABM) with a causal loop diagram (CLD). The simulation results imply that SMEs’ collaboration with TS leads to the early adoption of Industry 4.0 that balances the business competition environment. The model also shows that exponentially rising government aid can help the SMEs into late adoption of Industry 4.0. However, SMEs are still unable to sustain the business competition. Thus, the integrative simulation model is a state-action planning model with each state result bounded to the previous state result. The initial input parameters determine the model behavior. Thus, the model is a good resiliency planner for SMEs’ Industry 4.0 adoption.

Suggested Citation

  • Ishardita Pambudi Tama & Willy Satrio Nugroho & Wayan Firdaus Mahmudy & Purnami Purnami, 2022. "The Evaluation of Technology Startup Role on Indonesian SMEs Industry 4.0 Adoption Using CLD-ABM Integrated Model," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8462-:d:859965
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/14/8462/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/14/8462/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. J Swanson, 2002. "Business Dynamics—Systems Thinking and Modeling for a Complex World," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(4), pages 472-473, April.
    2. Nuria Calvo & Laura Varela-Candamio & Isabel Novo-Corti, 2014. "A Dynamic Model for Construction and Demolition (C&D) Waste Management in Spain: Driving Policies Based on Economic Incentives and Tax Penalties," Sustainability, MDPI, vol. 6(1), pages 1-20, January.
    3. Mukhamad Najib & Abdul Aziz Abdul Rahman & Farah Fahma, 2021. "Business Survival of Small and Medium-Sized Restaurants through a Crisis: The Role of Government Support and Innovation," Sustainability, MDPI, vol. 13(19), pages 1-16, September.
    4. Barry Bozeman & Monica Gaughan & Jan Youtie & Catherine P. Slade & Heather Rimes, 2016. "Research collaboration experiences, good and bad: Dispatches from the front lines," Science and Public Policy, Oxford University Press, vol. 43(2), pages 226-244.
    5. Ha Le Nhu Ngoc Thanh & Mai The Vu & Nguyen Xuan Mung & Ngoc Phi Nguyen & Nguyen Thanh Phuong, 2020. "Perturbation Observer-Based Robust Control Using a Multiple Sliding Surfaces for Nonlinear Systems with Influences of Matched and Unmatched Uncertainties," Mathematics, MDPI, vol. 8(8), pages 1-14, August.
    6. Fabiane Tubino Garcia & Carla Schwengber ten Caten & Elaine Aparecida Regiani de Campos & Aline Marian Callegaro & Diego Augusto de Jesus Pacheco, 2022. "Mortality Risk Factors in Micro and Small Businesses: Systematic Literature Review and Research Agenda," Sustainability, MDPI, vol. 14(5), pages 1-37, February.
    7. Niloofar Kazemargi & Paolo Spagnoletti, 2020. "IT Investment Decisions in Industry 4.0: Evidences from SMEs," Lecture Notes in Information Systems and Organization, in: Rocco Agrifoglio & Rita Lamboglia & Daniela Mancini & Francesca Ricciardi (ed.), Digital Business Transformation, pages 77-92, Springer.
    8. Ahmad, Salman & Mat Tahar, Razman & Muhammad-Sukki, Firdaus & Munir, Abu Bakar & Abdul Rahim, Ruzairi, 2016. "Application of system dynamics approach in electricity sector modelling: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 29-37.
    9. Zhikun Ding & Wenyan Gong & Shenghan Li & Zezhou Wu, 2018. "System Dynamics versus Agent-Based Modeling: A Review of Complexity Simulation in Construction Waste Management," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    10. Walrave, Bob & Raven, Rob, 2016. "Modelling the dynamics of technological innovation systems," Research Policy, Elsevier, vol. 45(9), pages 1833-1844.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhikun Ding & Wenyan Gong & Shenghan Li & Zezhou Wu, 2018. "System Dynamics versus Agent-Based Modeling: A Review of Complexity Simulation in Construction Waste Management," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    2. Noushin Islam & Malindu Sandanayake & Shobha Muthukumaran & Dimuth Navaratna, 2024. "Review on Sustainable Construction and Demolition Waste Management—Challenges and Research Prospects," Sustainability, MDPI, vol. 16(8), pages 1-30, April.
    3. Dehghan, Hamed & Amin-Naseri, Mohammad Reza & Nahavandi, Nasim, 2021. "A system dynamics model to analyze future electricity supply and demand in Iran under alternative pricing policies," Utilities Policy, Elsevier, vol. 69(C).
    4. Lu, Jinfeng & Dimov, Dimo, 2023. "A system dynamics modelling of entrepreneurship and growth within firms," Journal of Business Venturing, Elsevier, vol. 38(3).
    5. Hua Tang, 2022. "The Effect of ESG Performance on Corporate Innovation in China: The Mediating Role of Financial Constraints and Agency Cost," Sustainability, MDPI, vol. 14(7), pages 1-21, March.
    6. McGill, Elizabeth & Er, Vanessa & Penney, Tarra & Egan, Matt & White, Martin & Meier, Petra & Whitehead, Margaret & Lock, Karen & Anderson de Cuevas, Rachel & Smith, Richard & Savona, Natalie & Rutter, 2021. "Evaluation of public health interventions from a complex systems perspective: A research methods review," Social Science & Medicine, Elsevier, vol. 272(C).
    7. Aktar, Asikha & Alam, Md. Mahmudul & Harun, Mukaramah, 2022. "Energy Efficiency Policies in Malaysia: A Critical Evaluation from the Sustainable Development Perspective," OSF Preprints 9cf3a, Center for Open Science.
    8. Wang, Ning & Tang, Linhao & Zhang, Wenjian & Guo, Jiahui, 2019. "How to face the challenges caused by the abolishment of subsidies for electric vehicles in China?," Energy, Elsevier, vol. 166(C), pages 359-372.
    9. Liu, Huan & Tatano, Hirokazu & Pflug, Georg & Hochrainer-Stigler, Stefan, 2021. "Post-disaster recovery in industrial sectors: A Markov process analysis of multiple lifeline disruptions," Reliability Engineering and System Safety, Elsevier, vol. 206(C).
    10. Lei Xu & Ronggui Ding & Lei Wang, 2022. "How to facilitate knowledge diffusion in collaborative innovation projects by adjusting network density and project roles," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(3), pages 1353-1379, March.
    11. Gerard Olivar-Tost & Johnny Valencia-Calvo & Julián Andrés Castrillón-Gómez, 2020. "Towards Decision-Making for the Assessment and Prioritization of Green Projects: An Integration between System Dynamics and Participatory Modeling," Sustainability, MDPI, vol. 12(24), pages 1-23, December.
    12. Asmamaw A. Gebrehiwot & Leila Hashemi-Beni & Lyubov A. Kurkalova & Chyi L. Liang & Manoj K. Jha, 2022. "Using ABM to Study the Potential of Land Use Change for Mitigation of Food Deserts," Sustainability, MDPI, vol. 14(15), pages 1-23, August.
    13. Jung, Jiwon & Bozeman, Barry & Gaughan, Monica, 2017. "Impact of research collaboration cosmopolitanism on job satisfaction," Research Policy, Elsevier, vol. 46(10), pages 1863-1872.
    14. Chung-Yen Yu & Yung-Ting Chuang & Hsi-Peng Kuan, 2017. "Understanding Faculty Collaboration and Productivity: A Case Study," Asian Social Science, Canadian Center of Science and Education, vol. 13(3), pages 1-1, March.
    15. Radu Ciobanu & Drago? Huru & George ?tefan & Margareta Florescu & Danut Mihai & Florin Dobre, 2023. "Investigating Determining Factors Affecting the Waste Collection Rate From Electrical and Electronic Equipment," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(62), pages 134-134, February.
    16. Stephan Peter & Matthias Schirmer & Philippe Lathan & Georg Stimpfl & Bashar Ibrahim, 2022. "Performance Analysis of a Solar-Powered Multi-Purpose Supply Container," Sustainability, MDPI, vol. 14(9), pages 1-13, May.
    17. Carayannis, Elias G. & Grigoroudis, Evangelos & Wurth, Bernd, 2022. "OR for entrepreneurial ecosystems: A problem-oriented review and agenda," European Journal of Operational Research, Elsevier, vol. 300(3), pages 791-808.
    18. Raven, Rob & Walrave, Bob, 2020. "Overcoming transformational failures through policy mixes in the dynamics of technological innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    19. Khamdamov, T., 2022. "A brief overview of the evolution of computer simulations in economic research," Journal of the New Economic Association, New Economic Association, vol. 54(2), pages 189-207.
    20. Thanos Fragkandreas, 2023. "Case study research on innovation systems: paradox, dialectical analysis and resolution," Working Papers 65, Birkbeck Centre for Innovation Management Research, revised 15 May 2023.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8462-:d:859965. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.