Public-Private Partnership Strategy to Digitalize Culinary SMEs
Trukan Sri Bahukeling1), Ajeng Siti Anggraeni1), Tahnia Nazmi Rusnandar1), Alwi Salam Makarim1), Ong Chin Wei2), Lokita Rizky Megawati1,a)

1School of Business, IPB University, Bogor, Indonesia
2Universiti Putra Malaysia, Selangor, Malaysia

a)Corresponding author: lokita.rizky[at]apps.ipb.ac.id

Abstract

The food industry sector (40.06%) being the industry most affected by Covid 19 and culinary subsectors of the creative economy contributed 42.9% to the National GDP. Digitization of culinary SMEs has the potential to increase the revenue and competitiveness of SMEs during the pandemic situation. During the pandemic, culinary SMEs have significant growth in the number of orders by 125% and digital sales growth by 116% on the marketplaces in 2020. Moreover, the government and private sector through the Public-Private Partnership scheme has conducted efforts to collaborate digitization programs for the resilience of SMEs during the pandemic covid-19. The sign test (0.039) stated that there was a significant difference in revenue before and after digitization. The chi-square test on the relationship of digitization with revenue (p-value 0.151) and the relationship of digitization with competitiveness (p-value value 0.464) was found to have no significant relationship in the two tests. This encourages the strengthening of public-private partnership digitization of culinary SMEs through eight strategies analyzed through SWOT with SO, ST, WO, WT approaches. This research resulted in an initial hierarchy scheme in best strategy decision making, which can be used in the Analytical Hierarchy Process model of a selection of eight SWOT.

Keywords: food industry, culinary, SMEs, SWOT

Topic: Economics and Management