Incorporating the five pillars of pancasila for enhancing anti-fragility in sustainable umkm development

Diah Ayu Septi Fauji; Heri Pratikto; Agung Winarno; Puji Handayati

doi:10.29210/020244570

Incorporating the five pillars of pancasila for enhancing anti-fragility in sustainable umkm development

Diah Ayu Septi Fauji

⁽¹⁾, Heri Pratikto ⁽²⁾, Agung Winarno ⁽³⁾, Puji Handayati ⁽⁴⁾,
(1) Universitas Nusantara PGRI Kediri

Indonesia
(2) Universitas Negeri Malang

Indonesia
(3) Universitas Negeri Malang

Indonesia
(4) Universitas Negeri Malang

Indonesia

Corresponding Author

DOI : https://doi.org/10.29210/020244570

Full Text:

Language : en

Abstract

Micro, Small, and Medium Enterprises (UMKM) play a vital role in the global economy, including in Indonesia, where their functions and definitions may vary across different countries. This research explores the integration of Pancasila values in fostering the sustainable development of UMKM in Indonesia, emphasizing ethical business practices and inclusivity. Conducted in East Java, the study involved 220 UMKM actors and focused on analyzing the influence of Pancasila-based performance factors on UMKM resilience. Using factor analysis, the study examines the effects of Pancasila values on UMKM resilience, demonstrating the high validity and reliability of the instruments used. The findings highlight that the adoption of Pancasila values significantly enhances the resilience of UMKM, particularly in terms of their ability to adapt and thrive in challenging conditions. The results also underscore the importance of integrating ethical, social, and cultural values into business practices to ensure long-term economic sustainability. These insights can inform practical strategies for managing UMKM and shaping policies that foster their growth and resilience.

Keywords

Five Pillars of Pancasila, Sustainable UMKM Development

References

Achmad, G. N., Yulianti, S. D., Sharaha, M., Priandana, M. A., Khatimah, N., Hidayat, A. N., Handayani, Y. T., Aditya, D. F., & Dary, R. W. (2023). Pengembangan Usaha Mikro, Kecil Dan Menengah Dalam Rangka Pertumbuhan Ekonomi Di Desa Sekitar Ibu Kota Nusantara. Jurnal Riset Pembangunan, 6(1), 51–65.

Agustina, Y., Winarno, A., Pratikto, H., Narmaditya, B. S., & Filianti, F. (2020). A Creative Economy Development Strategy: The Case of Trenggalek Creative Network for Trenggalek Regency, Indonesia. Journal of Asian Finance, Economics and Business, 7(12), 1111–1122. https://doi.org/10.13106/JAFEB.2020.VOL7.NO12.1111

Alsaid, L. A. Z. A., & Ambilichu, C. A. (2021). The influence of institutional pressures on the implementation of a performance measurement system in an Egyptian social enterprise. Qualitative Research in Accounting & Management, 18(1), 53–83.

Arjang, A., Sutrisno, S., Permana, R. M., Kusumastuti, R., & Ausat, A. M. A. (2023). Strategies for Improving the Competitiveness of MSMEs through the Utilisation of Information and Communication Technology. Al-Buhuts, 19(1), 462–478.

Ashrafi, M., Magnan, G. M., Adams, M., & Walker, T. R. (2020). Understanding the conceptual evolutionary path and theoretical underpinnings of corporate social responsibility and corporate sustainability. Sustainability, 12(3), 760.

Asian Development Bank (ADB). (2022). Financing Small and Medium-Sized Enterprises in Asia and the Pacific: Credit Guarantee Schemes.

Astuti, W., Nidar, S. R., & Faisal, Y. A. (2024). Analysis of 4C Principles and Credit Eligibility of People’s Businesses (Case Study on MSMEs Built by Mandiri BUMN House, Bogor). Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 7(1), 1421–1445.

Bibri, S. E. (2021). Data-driven smart sustainable cities of the future: An evidence synthesis approach to a comprehensive state-of-the-art literature review. Sustainable Futures, 3, 100047.

Castañer, X., & Oliveira, N. (2020). Collaboration, coordination, and cooperation among organizations: Establishing the distinctive meanings of these terms through a systematic literature review. Journal of Management, 46(6), 965–1001.

Chang, M.-C., Chen, P.-F., Lee, T.-H., Lin, C.-C., Chiang, K.-T., Tsai, M.-F., Kuo, H.-F., & Lung, F.-W. (2021). The effect of religion on psychological resilience in healthcare workers during the coronavirus disease 2019 pandemic. Frontiers in Psychology, 12, 628894.

Corvello, V., Verteramo, S., Nocella, I., & Ammirato, S. (2023). Thrive during a crisis: the role of digital technologies in fostering antifragility in small and medium-sized enterprises. Journal of Ambient Intelligence and Humanized Computing, 14(11), 14681–14693.

Dash, A., Bagarty, D. P., Hota, P. K., Muduli, U. R., Al Hosani, K., & Behera, R. K. (2021). Performance evaluation of three-phase grid-tied SPV-DSTATCOM with DC-offset compensation under dynamic load condition. IEEE Access, 9, 161395–161406.

de Souza, D. F., Salotti, F. A. M., Sauer, I. L., Tatizawa, H., de Almeida, A. T., & Kanashiro, A. G. (2022). A performance evaluation of three-phase induction electric motors between 1945 and 2020. Energies, 15(6), 2002.

Dimyati, K., Nashir, H., Elviandri, E., Absori, A., Wardiono, K., & Budiono, A. (2021). Indonesia as a legal welfare state: A prophetic-transcendental basis. Heliyon, 7(8), e07865. https://doi.org/10.1016/j.heliyon.2021.e07865

Etty Indriani, E., Agus Utomo, A., & Irwan Christanto Edy, I. (2020). Model strategi penguatan daya saing industri kreatif pariwisata bernilai kearifan lokal. Deepublish.

Fauji, D. A. S., Pratikto, H., & Handayati, P. (2022). Exploratory Factor Analysis MSMEs Anti-Fragile. International Journal of Science, Technology & Management, 3(4), 1261–1267.

Gruenbichler, R., Klucka, J., Haviernikova, K., & Strelcova, S. (2021). Business Performance Management in Small and Medium-Sized Enterprises in the Slovak Republic: An Integrated Three-Phase-Framework for Implementation. Journal of Competitiveness, 1.

Imama, D. D., Irianti, A. H. S., & Kusumawardani, H. (2024). Exploration Study of Contemporary Batik Motif at The Handayani Community Learning Center Kemirian Village Tamanan District Bondowoso Regency. International Journal of Multidisciplinary: Applied Business and Education Research, 5(4), 1448–1467.

Janah, U. R. N., & Tampubolon, F. R. S. (2024). Peran usaha mikro, kecil, dan menengah dalam pertumbuhan ekonomi: Analisis kontribusi sektor umkm terhadap pendapatan nasional di indonesia. PENG: Jurnal Ekonomi Dan Manajemen, 1(2), 739–746.

Jia, X., Chowdhury, M., Prayag, G., & Chowdhury, M. M. H. (2020). The role of social capital on proactive and reactive resilience of organizations post-disaster. International Journal of Disaster Risk Reduction, 48, 101614.

Khairunnisa, D. A., & Nofrianto, N. (2023). Pembiayaan Dan Keuangan Syariah: Menopang UMKM Dalam Fase Pemulihan Perekonomian (Economic Recovery) Indonesia. Jurnal Ilmiah Ekonomi Islam, 9(3), 3985–3992.

Kusumastuti, H., Pranita, D., Viendyasari, M., Rasul, M. S., & Sarjana, S. (2024). Leveraging Local Value in a Post-Smart Tourism Village to Encourage Sustainable Tourism. Sustainability, 16(2), 873.

Lestari, E. D., Abd Hamid, N., Shamsuddin, R., Kurniasari, F., & Yaacob, Z. (2024). Investigating the factors of SMEs’ business resilience in the post-pandemic crisis of COVID-19 with technology adoption as a quasi-moderator: a multigroup analysis of Indonesian and Malaysian SMEs. Cogent Business & Management, 11(1), 2301135.

Liu, C.-H., Chang, A. Y.-P., & Fang, Y.-P. (2020). Network activities as critical sources of creating capability and competitive advantage: The mediating role of innovation capability and human capital. Management Decision, 58(3), 544–568.

Mutrofin, K., & Muhammad, A. N. (2021). Peran UMKM dalam mempertahankan ekonomi Jawa Timur selama pandemic Covid–19. El-Idaarah, 1(2).

Nafiyyah, F. A. (2022). Pengembangan mutu koperasi terhadap pelaku umkm di kabupaten jombang dinas koperasi dan usaha mikro jombang.

Noerhalifah, R., Hafidhah, H., & Herli, M. (2023). The Role of Local Government in Creating Business Sustainability: Case Study on Keris MSMES in Aeng Tong-Tong Village. Journal of Multiperspectives on Accounting Literature, 1(2), 59–69.

Novitasari, D., Asbari, M., Wijayanti, L. M., Hyun, C. C., & Farhan, M. (2020). The role of religiosity, leadership style, job satisfaction and organizational citizenship behavior mediation on woman teachers’ performance. Solid State Technology, 63(6), 2953–2967.

Putra, A. C. (2022). Pengaruh Pertumbuhan PDRB Usaha Mikro Kecil Menengah (UMKM) Terhadap Pertumbuhan Ekonomi Surabaya. Jurnal Lemhannas RI, 10(2), 134–148.

Rahman, S., & Zainuddin, Y. (2024). Penerapan Strategi Pemasaran Digital Syariah Untuk Meningkatkan Daya Saing UMKM di Provinsi Gorontalo. Journal of Mandalika Literature, 5(4), 616–626.

Rajamani, K., Jan, N. A., Subramani, A. K., & Raj, A. N. (2022). Access to finance: challenges faced by micro, small, and medium enterprises in India. Engineering Economics, 33(1), 73–85.

Rinurwati, R., Widiana, M. E., Widyaningrum, M. E., & Widyaswari, M. S. (2021). Eskalasi daya saing usaha kelompok wanita tani Jawa Timur di Era revolusi industri 4.0 dengan model standardisasi produk. IJECS: Indonesian Journal of Empowerment and Community Services, 2(2), 60–71.

Rofiq, A., Suryadi, N., Anggraeni, R., Makhmut, K. D. I., & Aryati, A. S. (2023). Meningkatkan Daya Saing UKM: Perspektif Strategis. Universitas Brawijaya Press.

Shaikh, D. A. A., Kumar, M. A., Syed, D. A. A., & Shaikh, M. Z. (2021). A two-decade literature review on challenges faced by SMEs in technology adoption. Academy of Marketing Studies Journal, 25(3).

Silva, P., Moreira, A. C., & Mota, J. (2023). Employees’ perception of corporate social responsibility and performance: the mediating roles of job satisfaction, organizational commitment and organizational trust. Journal of Strategy and Management, 16(1), 92–111.

Soetjipto, B. E., Handayati, P., Hanurawan, F., Meldona, Rochayatun, S., & Bidin, R. (2023). Enhancing MSMEs Performance through Innovation: Evidence from East Java, Indonesia. Journal for ReAttach Therapy and Developmental Diversities, 6(3s), 124–145.

Surya, B., Menne, F., Sabhan, H., Suriani, S., Abubakar, H., & Idris, M. (2021). Economic Growth, Increasing Productivity of SMEs, and Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 20. https://doi.org/https://doi.org/10.3390/joitmc7010020

Taşkan, B., Karatop, B., & Kubat, C. (2020). Impacts of industrial revolutions on the enterprise performance management: A literature review. Journal of Business and Management, 26(1), 79–119.

Thekkoote, R. (2024). Factors influencing small and medium-sized enterprise (SME) resilience during the COVID-19 outbreak. The TQM Journal, 36(2), 523–545.

Tjahjadi, B., Soewarno, N., Adibah Wan Ismail, W., Kustiningsih, N., & Nasihatun Nafidah, L. (2023). Community behavioral change and management of COVID-19 Pandemic: Evidence from Indonesia. Journal of King Saud University - Science, 35(2), 102451. https://doi.org/10.1016/j.jksus.2022.102451

Winarno, A., & Wijijayanti, T. (2018). Does entrepreneurial literacy correlate to the small-medium enterprises performance in Batu East Java? Academy of Entrepreneurship Journal, 24(1).

Wulandhari, N. B. I., Gölgeci, I., Mishra, N., Sivarajah, U., & Gupta, S. (2022). Exploring the role of social capital mechanisms in cooperative resilience. Journal of Business Research, 143, 375–386.

Article Metrics

Abstract Views : 303 times

PDF Downloaded : 0 times

Refbacks

There are currently no refbacks.