International Journal of Engineering Business
and Social Science
Vol. 1 No. 04, April 2023, pages: 321-330
e-ISSN: 2980-4108, p-ISSN: 2980-4272
https://ijebss.ph/index.php/ijebss
321
Hybrid Process ; Defense Strategies For Micro, Small and Medium
Enterprises In The Pandemic
Nurdiana Mulyatini
1
, Elin Herlina
2
, Yusup Iskandar
3
1,2,3
Faculty of Economics Galuh University, Ciamis-West Java
E-mail: dianamulya@ymail.com
Submitted: 08-04-2023 Revised: 12-04-2023, Publication: 23-04-2023
Keywords Abstract
Hybrid Process,
Marketing Strategy,
Micro, Small and
Medium Enterprises
(MSMEs)
Covid Pandemic -19 has destroyed all sectors, including the economic sector,
especially micro, small and medium enterprises (MSMEs). In the midst of
economic uncertainty, digitalization plays a very important role for MSMEs
players to survive and grow significantly. This research is intended to see the
extent to which business actors design and run online and offline business
processes (Hybrid Processes) to survive in the midst of a pandemic. The research
approach uses a quantitative approach with an explanatory survey of 100 small
business actors in Ciamis district, West Java province. The data analysis
technique used is regression analysis with the help of SPSS data processing
software. The results show that business actors who combine online and offline
strategies (Hybrid Strategy) are proven to be able to survive and achieve
significant business growth, besides that this strategy is able to create a new
ecosystem that supports MSMEs growth and economic growth.
© 2023 by the authors. Submitted
for possible open access publication
under the terms and conditions of the Creative Commons Attribution (CC BY SA)
license (https://creativecommons.org/licenses/by-sa/4.0/).
1. Introduction
Micro, Small and Medium Enterprises (MSMEs) play a crucial role in the economic development of
Indonesia by contributing to job creation, GDP growth, social safety nets, exports, and investments (Sofyan,
2017)(Sarfiah et al., 2019)(Raharja & Natari, 2021)). They are recognized as a part of the national economy with the
potential to improve the welfare of the community, as stated in the 1945 Constitution. According to the Ministry of
Cooperatives and Small and Medium Enterprises, there are currently 64.2 million MSMEs in Indonesia, accounting
for 61.07% of the GDP or Rp. 8,573.89 trillion. MSMEs are able to absorb and employing 97% of the workforce,
and can collect up to 60.42 percent of the total investment in Indonesia. (Tambunan, 2020)However, the Covid-19
pandemic has negatively impacted the sustainability of MSMEs, resulting in layoffs and financial difficulties. Unlike
the 1998 monetary crisis, where MSMEs helped boost the economy, they are now struggling. Digitalization is seen
as the primary solution for economic recovery (Juliyanti & Wibowo, 2021). Moreover, the impact of the pandemic
has caused a decrease in the mobility of goods and people, thereby triggering a decrease in demand for goods and
services. (Arianto, 2020); (Farhani & Chaniago, 2021).
People's consumption patterns of products and services shifted from offline to online during the pandemic.
All digital operations, including transactions, are done digitally because they are faster, more effective, more efficient
(kusmiyati, 2021). Due to activity constraints, the business rivalry map that company actors must anticipate is
distinguished by changes in the industrial environment with four business characteristics, namely Hygiene, Low-
Touch, Less-Crowd, and Low-Mobility (Hapke et al., 2021). Businesses that can adapt to these four traits will be
successful in the pandemic era (2021, Bahtiar). Consumer wants are met by digital platforms during a pandemic,
which compels people to stay at home and keep their distance.. MSMEs are aware of the trend of consumer shifting
to digital shopping. MSMEs must be able to develop strategic business models that are able to combine online and
offline activities. ((Mubarok et al., 2021), Dinantara, Pamulang, & Pabuaran, nd) . The big challenge faced by SMEs