Utilization of Artificial Intelligence through Value Co-Creation in increasing MSME Sales based on Local product advantages
Abstract
Micro, Small, and Medium-Sized Enterprises (MSMEs) constitute a significant economic sector in Indonesia, accounting for 97% of the country's workforce and contributing 61.07% of the country's GDP (BPS, 2023). In Lamongan Regency, there are 120,235 MSMEs that contribute to 55.27% of GDP and 78.49% of the workforce. The objectives of this study are to comprehend the role that AI plays in value co-creation in MSMEs, to pinpoint and examine the ways in which AI supports value co-creation, and to create a thorough framework for examining the effects of AI on value co-creation in MSMEs. This study employs an explanatory research paradigm in conjunction with a quantitative technique. The sample studied was 120 respondents and quantitative data sampling using simple random sampling then processed using SEM PLS 3.0. The study's findings support the first hypothesis, which states that artificial intelligence improves sales performance. According to the second hypothesis, Value Co-creation can act as a mediator between artificial intelligence and sales performance. According to the third hypothesis, Value Co-Creation improves sales performance. The fourth hypothesis then demonstrates that the relationship between Value Co-Creation and Sales Performance can be moderated by Product Excellence.
References
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Peltier, J.W., Dahl, A.J. and Schibrowsky, J.A. (2024), "Artificial intelligence in interactive marketing: a conceptual framework and research agenda", Journal of Research in Interactive Marketing, Vol. 18 No. 1, pp. 54-90. https://doi.org/10.1108/JRIM-01-2023-0030
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Ranjan, K. R., & Read, S. (2016). Value co-creation: Concept and measurement. Journal of the Academy of Marketing Science, 44(3), 290–315 https://doi.org/10.1007/s11747-014-0397-2
Saha, V., Goyal, P. and Jebarajakirthy, C. (2022), "Value co-creation: a review of literature and future research agenda", Journal of Business & Industrial Marketing, Vol. 37 No. 3, pp. 612-628. https://doi.org/10.1108/JBIM-01-2020-0017
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Solakis, K., Katsoni, V., Mahmoud, A.B. and Grigoriou, N. (2022), "Factors affecting value co-creation through artificial intelligence in tourism: a general literature review", Journal of Tourism Futures, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JTF-06-2021-0157
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Swan, E.L., Peltier, J.W. and Dahl, A.J. (2024), "Artificial intelligence in healthcare: the value co-creation process and influence of other digital health transformations", Journal of Research in Interactive Marketing, Vol. 18 No. 1, pp. 109-126. https://doi.org/10.1108/JRIM-09-2022-0293
Wirdiyanti, R., Yusgiantoro, I., Sugiarto, A. et al. (2023). How does e-commerce adoption impact micro, small, and medium enterprises’ performance and financial inclusion? Evidence from Indonesia. Electron Commer Res 23, 2485–2515. https://doi.org/10.1007/s10660-022-09547-7
Yang, X. (2023), "The effects of AI service quality and AI function-customer ability fit on customer's overall co-creation experience", Industrial Management & Data Systems, Vol. 123 No. 6, pp. 1717-1735. https://doi.org/10.1108/IMDS-08-2022-0500
Yetna Kadeli W, Hasanah M. (2023). ANALISIS POTENSI PERTUMBUHAN PASAR E-COMMERCE DI DAERAH PEDESAAN. Jurnal Ekonomi Manajemen dan Bisnis.
Aulia Azizah, A. (2024). Kesenjangan Digital di Kalangan Pengelola Usaha Mikro Kecil Menengah (UMKM) Surabaya. Indonesia Onesearch. Retrieved March 31, 2024, from https://onesearch.id/Record/IOS3215.88476
Badghish, Saeed, and Yasir Ali Soomro. 2024. "Artificial Intelligence Adoption by SMEs to Achieve Sustainable Business Performance: Application of Technology–Organization–Environment Framework" Sustainability 16, no. 5: 1864. https://doi.org/10.3390/su16051864
Barile, S., Bassano, C., Piciocchi, P., Saviano, M. and Spohrer, J.C. (2021), "Empowering value co-creation in the digital age", Journal of Business & Industrial Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JBIM-12-2019-0553
Chandra, B., & Rahman, Z. (2023). Artificial intelligence and value co-creation: a review, conceptual framework and directions for future research. Journal of Service Theory and Practice, 1, 7–32. https://doi.org/10.1108/jstp-03-2023-0097
Creswell, J. W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (4th ed.). Thousand Oaks, CA: Sage.
Drydakis, N. (2022). Artificial Intelligence and Reduced SMEs’ Business Risks. A Dynamic Capabilities Analysis During the COVID-19 Pandemic. Inf Syst Front 24, 1223–1247. https://doi.org/10.1007/s10796-022-10249-6
Edgar Kedi, W., Ejimuda, C., Idemudia, C., & Ignatius Ijomah, T. (2024). AI software for personalized marketing automation in SMEs: Enhancing customer experience and sales. World Journal of Advanced Research and Reviews, 1, 1981–1990. https://doi.org/10.30574/wjarr.2024.23.1.2159
Gao, L., Li, G., Tsai, F., Gao, C., Zhu, M. and Qu, X. (2023), "The impact of artificial intelligence stimuli on customer engagement and value co-creation: the moderating role of customer ability readiness", Journal of Research in Interactive Marketing, Vol. 17 No. 2, pp. 317-333. https://doi.org/10.1108/JRIM-10-2021-0260
Hair, J.F., Risher, J.J., Sarstedt, M. and Ringle, C.M. (2019), "When to use and how to report the results of PLS-SEM", European Business Review, Vol. 31 No. 1, pp. 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hair, J.F., Hult, G.T.M., Ringle, C.M. and Sarstedt, M. (2017) A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 2nd Edition, Sage Publications Inc., Thousand Oaks, CA.
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Springer Nature.
Huang, M.-H., & Rust, R. T. (2018). Artificial intelligence in service. Journal of Service Research, 21(2), 155–172. https://doi.org/10.1177/1094670517752459
Kopka, A., Fornahl, D. (2024). Artificial intelligence and firm growth — catch-up processes of SMEs through integrating AI into their knowledge bases. Small Bus Econ 62, 63–85. https://doi.org/10.1007/s11187-023-00754-6
Leclercq, T., Hammedi, W., & Poncin, I. (2016). Ten years of value cocreation: An integrative review. Recherche et Applications En Marketing (English Edition), 31(3), 26-60. https://doi.org/10.1177/2051570716650172
Manser Payne, E.H., Dahl, A.J. and Peltier, J. (2021), "Digital servitization value co-creation framework for AI services: a research agenda for digital transformation in financial service ecosystems", Journal of Research in Interactive Marketing, Vol. 15 No. 2, pp. 200-222. https://doi.org/10.1108/JRIM-12-2020-0252
Mathibe, M.S., Chinyamurindi, W.T. and Hove-Sibanda, P. (2023), "Value co-creation as a mediator between strategic planning and social enterprise performance", Social Enterprise Journal, Vol. 19 No. 1, pp. 23-39. https://doi.org/10.1108/SEJ-08-2021-0062
Nur Fauzi M, Mahmudah A, Maysaroh D, Belinda P, Afif A. PENERAPAN DIGITAL MARKETING SEBAGAI UPAYA PENINGKATAN PENJUALAN PADA UMKM DI DESA WARUK. JURNAL PENGABDIAN MASYARAKAT AKADEMISI [Internet]. 2023 Apr 13 [cited 2024 Jun 25];(2):30–5. Available from: http://dx.doi.org/10.59024/jpma.v1i2.143
Peltier, J.W., Dahl, A.J. and Schibrowsky, J.A. (2024), "Artificial intelligence in interactive marketing: a conceptual framework and research agenda", Journal of Research in Interactive Marketing, Vol. 18 No. 1, pp. 54-90. https://doi.org/10.1108/JRIM-01-2023-0030
Rajguru, K. (2024). Artificial Intelligence and the Perspective of Value Creation: Present Research Focus and Future Directions. In The Impact of Digitalization on Current Marketing Strategies (pp. 163–181). Emerald Publishing Limited. http://dx.doi.org/10.1108/978-1-83753-686-320241010
Ranjan, K. R., & Read, S. (2016). Value co-creation: Concept and measurement. Journal of the Academy of Marketing Science, 44(3), 290–315 https://doi.org/10.1007/s11747-014-0397-2
Saha, V., Goyal, P. and Jebarajakirthy, C. (2022), "Value co-creation: a review of literature and future research agenda", Journal of Business & Industrial Marketing, Vol. 37 No. 3, pp. 612-628. https://doi.org/10.1108/JBIM-01-2020-0017
SATU DATA - DINAS KOPERASI DAN UKM JATIM. Selamat Datang - Portal Data Dinas Koperasi Dan UKM Jawa Timur. Retrieved March 31, 2024, from https://data.diskopukm.jatimprov.go.id/satu_data/
Septiano, R., WP, D. A., Fauzi, M. N., Suratman, S., & Chatra, A. (2024). Optimizing Digital Applications To Enhance Operational Efficiency In MSMEs And Accelerate The Digital Economy. Jurnal Ekonomi, 13(03), 709–716. Retrieved from https://www.ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/5116
Solakis, K., Katsoni, V., Mahmoud, A.B. and Grigoriou, N. (2022), "Factors affecting value co-creation through artificial intelligence in tourism: a general literature review", Journal of Tourism Futures, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JTF-06-2021-0157
Sugiyono. Metode penelitian kuantitatif, kualitatif dan kombinasi (mixed methods). Bandung: Alfabeta; 2020. 782 p
Surya, B.; Menne, F.;Sabhan, H.; Suriani, S.; Abubakar, H.;Idris, M. Economic Growth,Increasing Productivity of SMEs, andOpen Innovation. J. Open Innov.Technol. Mark. Complex. 2021,7, 20. https://doi.org/10.3390/joitmc7010020
Swan, E.L., Peltier, J.W. and Dahl, A.J. (2024), "Artificial intelligence in healthcare: the value co-creation process and influence of other digital health transformations", Journal of Research in Interactive Marketing, Vol. 18 No. 1, pp. 109-126. https://doi.org/10.1108/JRIM-09-2022-0293
Wirdiyanti, R., Yusgiantoro, I., Sugiarto, A. et al. (2023). How does e-commerce adoption impact micro, small, and medium enterprises’ performance and financial inclusion? Evidence from Indonesia. Electron Commer Res 23, 2485–2515. https://doi.org/10.1007/s10660-022-09547-7
Yang, X. (2023), "The effects of AI service quality and AI function-customer ability fit on customer's overall co-creation experience", Industrial Management & Data Systems, Vol. 123 No. 6, pp. 1717-1735. https://doi.org/10.1108/IMDS-08-2022-0500
Yetna Kadeli W, Hasanah M. (2023). ANALISIS POTENSI PERTUMBUHAN PASAR E-COMMERCE DI DAERAH PEDESAAN. Jurnal Ekonomi Manajemen dan Bisnis.
Published
2025-05-15
How to Cite
FAUZI, Maulidza Nur et al.
Utilization of Artificial Intelligence through Value Co-Creation in increasing MSME Sales based on Local product advantages.
JMK (Jurnal Manajemen dan Kewirausahaan), [S.l.], v. 10, n. 1, p. 25-37, may 2025.
ISSN 2656-0771.
Available at: <https://ejournal.uniska-kediri.ac.id/index.php/ManajemenKewirausahaan/article/view/6109>. Date accessed: 28 may 2025.
doi: https://doi.org/10.32503/jmk.v10i1.6109.
Section
Artikel Ilmiah
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