European Journal of Molecular & Clinical Medicine

SME development is an important pillar of regional integration efforts. Micro, small and medium-sized enterprises represent around 97 to 99% of the enterprise population in most ASEAN countries. In Indonesia, small and medium-sized enterprises made up 99.99% of total businesses and employ 97% of the workforce. Based on data from small and medium-sized enterprises that are already using the internet in Indonesia, the use of e-commerce is still between 9 and 15%. One of the innovation types was frugal innovation, which can be defined as products, services, or solutions that arise regardless of financial, human, technological or other resource constraints, and where the end result is cheaper than competitive offers and meets the needs of customers who have not yet been served otherwise. The objective of this research is to investigate the impact of digital business adoption, frugal innovation, and organizational innovation on firm performance. The study was conducted using a descriptive quantitative method in Indonesia. A structured research questionnaire was developed using a Likert scale-four. Data from a total of 100 returned questionnaires was analysed with SEM-PLS. The results of this research show how the performance of small and medium-sized enterprises (SMEs) is affected by digital business adoption, frugal innovation and organisational innovation.

Indonesia is the only South-East Asian nation to participate in the G20. Based on data from 'The Role of SMEs in Asia and Their Difficulties in Accessing Finance', one of the four countries in Asia with the largest percentage of SMEs is Indonesia (99.9%). The authors will conduct this particular investigation on SMEs as they play a vital role and have a huge impact on the economic development of Indonesia. According to survey results from Price Waterhouse Coopers in 2014 regarding family businesses, 95% of businesses in Indonesia are owned or managed by families. Previous findings from family enterprise research show how family engagement as a function of family business positively affects the relationship between innovation and enterprise success. More than 1.022.213 publications released between 2014 and 2019 were screened using the keywords: digital business adoption, e-business adoption, e-commerce adoption, family commitment, family firms, SME innovation, and SME performance. Eventually, for this study, 21 journals were selected based on this analysis, the conceptual model has four possible connections: the good relationship between digital business adoption and SME achievements; the positive relationship between the adoption of digital business and innovativeness; the positive direct impacts of innovativeness on family-firm performance; and a good relationship between SME performance and family commitment and innovativeness. This research refers to a conceptual framework that could play a major part in the success of SMEs through digital business, family commitment, and innovativeness.