Main Article Content

Abstract

This study explores the pivotal role of Intellectual Property Rights (IPR) in shaping the growth dynamics of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Utilizing Structural Equation Modelling with Partial Least Squares (SEM-PLS), the research analyzes the relationships between intellectual property awareness, utilization, innovation, and competitiveness among 110 MSMEs. The findings highlight a significant positive relationship between intellectual property awareness and utilization, a strong link between intellectual property protection and innovation, and a notable impact on competitiveness. Furthermore, the study identifies intellectual property as a partial mediator, providing a nuanced understanding of its role in MSME growth. Practical implications include the need for educational initiatives to enhance IPR awareness, simplified registration processes, and strategic intellectual property management to foster innovation and competitiveness. These insights are crucial for policymakers and MSMEs striving for sustainable growth and a competitive edge in the global market.

Keywords

IPRs MSMEs Ecosystem Indonesia Economic Law

Article Details

How to Cite
Jaman, U. B. (2024). Intellectual Property Rights in the Growth of MSMEs Ecosystem in Indonesia . Ilomata International Journal of Social Science, 5(2), 569-584. https://doi.org/10.61194/ijss.v5i2.1190

References

  1. Amalia, S., Kesuma, A. I., & Pramono, A. T. (n.d.). Which is more important for Indonesia: Foreign Investment, Effective Exchange Rates, or Inflation? (Study on Indonesia’s workforce over the past three decades). International Journal of Social Science And Human Research. https://doi.org/10.47191/ijsshr/v6-i5-72
  2. Atichasari, A. S., & Marfu, A. (2023). The Influence of Tax Policies on Investment Decisions and Business Development of Micro, Small, and Medium-Sized Enterprises (MSMEs) and its Implications for Economic Growth in Indonesia. Journal of Economics, Finance and Management Studies, 06(07), 3290–3296. https://doi.org/10.47191/jefms/v6-i7-32
  3. Atikah, I., Zaini, A., & Sumirat, I. R. (2022). Intellectual Property Rights as The Resource for Creative Economic in Indonesia. Jurnal Penelitian Hukum De Jure, 22(4), 451. https://doi.org/10.30641/dejure.2022.v22.451-464
  4. Bawono, I. R., Naufalin, R., Gunawan, D. S., Novandari, W., Maryani, S., & Rahmajati, E. S. (n.d.). Proceeding ICMA-SURE-2023 The 5 th International Conference on Multidisciplinary Approaches for Sustainable Rural Development National Economic Recovery (PEN) Through Data Strengthening and Digitization of General Trade in Micro, Small, and Medium Enterprises (UMKM) in Indonesia.
  5. Bunyamin, F. (2023). THE IMPACT OF PHYSICAL CAPITAL AND HUMAN CAPITAL (LEVEL OF EDUCATION) ON GROWTH IN INDONESIA. Jurnal Ekonomi Dan Pembangunan, 30(2), 115–130. https://doi.org/10.14203/jep.30.2.2022.115-130
  6. Busroh, F. F. (2018). Assessing the Role of IPR Legislations for Technology, Innovation and Economic Growth in Indonesia. In Int. J. Manag. Bus. Res (Vol. 8).
  7. Disemadi, H. S. (n.d.). Contextualization of Legal Protection of Intellectual Property in Micro Small and Medium Enterprises in Indonesia (Vol. 18).
  8. Grønneberg, S., & Foldnes, N. (2019). Testing Model Fit by Bootstrap Selection. Structural Equation Modeling, 26(2), 182–190. https://doi.org/10.1080/10705511.2018.1503543
  9. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019, January 14). When to use and how to report the results of PLS-SEM. European Business Review, Vol. 31, pp. 2–24. Emerald Group Publishing Ltd. https://doi.org/10.1108/EBR-11-2018-0203
  10. Hasan Wahid, S., & Author, C. (2023). International Journal of Arts and Humanities Studies Formulation of a Risk-Based Online Dispute Resolution Model for E-Commerce in Indonesia: Legal Framework and its Application. https://doi.org/10.32996/bjahs
  11. Hukum, J. P., Sudirman, L., & Disemadi, H. S. (2023). THE ROLE OF INDONESIAN ONLINE MARKETPLACES IN INTELLECTUAL THE ROLE OF INDONESIAN ONLINE MARKETPLACES IN INTELLECTUAL PROPERTY RIGHTS INFRINGEMENTS: A COMPARATIVE ANALYSIS. In JPH: Jurnal Pembaharuan Hukum (Vol. 10).
  12. Joseph, C., Rahmat, M., Syed Yusuf, S. N., Janang, J. T., & Madi, N. (2023). The ethical value disclosure index from the lens of SDG 16 and institutional theory. International Journal of Ethics and Systems, 39(3), 612–628. https://doi.org/10.1108/IJOES-05-2021-0109
  13. KILIÇLI, Y. (2022). The Relationship Between Intellectual Capital and Competitive Advantage: A Meta-Analysis Study. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD), 14(27), 335–360. https://doi.org/10.20990/kilisiibfakademik.1149041
  14. Kumar, P., & Al-Ausi, A. S. A. (2022). Protection and Promotion of Intellectual Property Rights (IPR) for Economic Competitiveness and Growth. In Transitioning From Globalized to Localized and Self-Reliant Economies (pp. 147–156). IGI Global.
  15. Li, Z., Zhang, X., He, X., & Mao, H. (2023). Intellectual Property Rights Protection, Science and Technology Intensity and Enterprise Innovation Investment. Advances in Economics and Management Research, 1(3), 150. https://doi.org/10.56028/aemr.3.1.150
  16. Liu, X., Zheng, Y., & Yu, W. (2023). The Nonlinear Relationship between Intellectual Property Protection and Farmers’ Entrepreneurship: An Empirical Analysis Based on CHFS Data. Sustainability (Switzerland), 15(7). https://doi.org/10.3390/su15076071
  17. Luo, Y., Xu, L., & Wu, C. (n.d.). Internet development and regional innovation efficiency: the moderating effect of intellectual property protection. Technology Analysis & Strategic Management, 1–19. https://doi.org/10.1080/09537325.2023.2196350
  18. Mahajan, D. (2023). Technological Upgradation in MSMEs: Moving Towards Innovation and Technology-Driven Marketing Research and Quality Management Standards. In S. Grima, K. Sood, & E. Özen (Eds.), Contemporary Studies of Risks in Emerging Technology, Part B (pp. 313–326). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80455-566-820231017
  19. Malele, V., Mafu, M., Akaliza, A., & Bomani, M. (2022). THE ROLE OF INNOVATION AND INTELLECTUAL PROPERTY RIGHTS IN ACHIEVING SUSTAINABLE DEVELOPMENT THROUGH THE INFORMAL SECTOR. ICTACT Journal on Management Studies, 8, 1599–1604. https://doi.org/10.21917/ijms.2022.0235
  20. Mulyani, S., Janni, A. M., & Khamimah, D. (n.d.). POLICY ON ENTRY IN THE USE OF INTELLECTUAL PROPERTY RIGHTS (MARK) DENOTES INTANGIBLE ASSET AS FIDUCIARY SECURITY OBJECT EFFORTS TO SUPPORT ECONOMIC DEVELOPMENT IN INDONESIA 1. International Journal of Business, Economics and Law, 5(4). Retrieved from http://www.wipo.int/edocs/mdocs/sme/en/wipo,
  21. Nguyen, T. P. T., Huang, F., & Tian, X. (2023). Intellectual property protection need as a driver for open innovation: Empirical evidence from Vietnam. Technovation, 123, 102714. https://doi.org/https://doi.org/10.1016/j.technovation.2023.102714
  22. Pan, H., Gao, F., Dong, J., & Du, Q. (2023). Multiscale adaptive fusion network for hyperspectral image denoising. IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing, 16, 3045–3059.
  23. PANDEY, S. K. (2023). An analysis of Property Right using the Public Private Law Divide. International Scientific Journal of Engineering and Management, 02(04). https://doi.org/10.55041/isjem00417
  24. Persakis, A., Fassas, A., & Koutoupis, A. (2024). How does world economic policy uncertainty influence the carbon dioxide emission reporting and performance? Study of Fortune Global 500 firms. Environmental Science and Pollution Research, 1–28.
  25. Peter, K. Y. (2023). The changing chemistry between intellectual property and investment law. In Improving Intellectual Property (pp. 405–415). Edward Elgar Publishing.
  26. Praningrum, Sari, A. P., & Hayadi, I. (2022). Efikasi Diri Kreatif Memediasi Intelegensi terhadap Perilaku Kerja Inovatif pada UMKM di Kota Bengkulu. Jurnal Manajemen Dan Organisasi, 13(2), 166–179. https://doi.org/10.29244/jmo.v13i2.40634
  27. Prasad, V., Dangi, A. K., Tripathi, R., & Kumar, N. (2023). EDUCATIONAL PERSPECTIVE OF INTELLECTUAL PROPERTY RIGHTS. Russian Law Journal, 11(2S), 257–268.
  28. Putri, A. J., & Ros Bangun, M. Y. (2023). Identifying Environmental, Social, and Governance (ESG) Implementation towards Growth and Sustainability: A Case Study at Assisted Micro, Small, and Medium Enterprise (MSME) by Bank Indonesia. International Journal of Current Science Research and Review, 06(07), 4469–4476. https://doi.org/10.47191/ijcsrr/v6-i7-61
  29. Radjab, E., Tjambolang, T. A., Kajian, B., Dan, E., & Pembangunan, S. (n.d.). The Role of Information Technology in Improving the Competitiveness of Small and Medium Enterprises in Gowa District Media Trend. Enny Radjab & Tjare A Jambolang. MediaTrend, 17(2), 460–470. https://doi.org/10.21107/mediatrend.v17i1.17245
  30. Rafikah, N., & Sari, T. P. (2022). Optimizing The Utilization of E-Commerce-Based Information Technology As A Marketing Media To Increase Sales At Msme Outlets In Lamongan Regency During The Covid-19 Pandemic. Jurnal Sains Sosio Humaniora, 6(1), 446–457.
  31. Risman, A., & Mustaffa, M. (n.d.). Jurnal Abdimas Perbanas Jurnal Pengabdian Kepada Masyarakat Perbanas Institute Jakarta Literasi Keuangan Bagi UMKM: Laporan Keuangan Untuk Pengembangan Usaha UMKM. Retrieved from https://journal.perbanas.id/index.php/JAP/
  32. Saptaria, L., Mukhlis, I., & Murwani, F. D. (2023). Bibliometric Analysis of Internationalization Strategies in Supporting MSME Business Growth in Indonesia. Ilomata International Journal of Management, 4(2), 207–222. https://doi.org/10.52728/ijjm.v4i2.744
  33. Sigalingging, E. D. (2022). Analisis Pengaruh Kualitas Sistem Informasi Akuntansi Terhadap Penerimaan Teknologi Pada Sektor UMKM Medan Tuntungan. Journal of Education, Humaniora and Social Sciences (JEHSS), 5(1), 155–163. https://doi.org/10.34007/jehss.v5i1.1153
  34. Siltaloppi, J., & Ballardini, R. M. (2023). Promoting systemic collaboration for sustainable innovation through intellectual property rights. Journal of Co-Operative Organization and Management, 11(1), 100200. https://doi.org/https://doi.org/10.1016/j.jcom.2023.100200
  35. Song, Q., Zhong, Q., & Zeng, S. (2024). Intellectual Property Protection, Financial Innovation and Corporate Innovation: Evidence from a Quasi-Natural Experiment in China. Emerging Markets Finance and Trade, 60(2), 358–370. https://doi.org/10.1080/1540496X.2023.2216842
  36. Steyerberg, E. W., Harrell, F. E., Borsboom, G. J. J. M., Eijkemans, R., Vergouwe, Y., Dik, J., & Habbema, F. (2001). Internal validation of predictive models: Efficiency of some procedures for logistic regression analysis. In Journal of Clinical Epidemiology (Vol. 54).
  37. Tajuddin, I., Mahmud, A., & Syahnur, M. H. (2023). Determinants of Strategic Factors for Digital Transformation in Micro and Small Enterprises in Makassar City. Signifikan: Jurnal Ilmu Ekonomi, 12(1), 131–144. https://doi.org/10.15408/sjie.v12i1.31070
  38. Tatawu, G., Herman, H., Hasima, R., & Faisal, F. (2022). Legal Protection of Intellectual Property Rights for Micro, Small and Medium Enterprises (MSMEs) Products in Kendari City. Journal of Politics and Law, 15(2), 13. https://doi.org/10.5539/jpl.v15n2p13
  39. Telg, N., Lokshin, B., & Letterie, W. (2023). How formal and informal intellectual property protection matters for firms’ decision to engage in coopetition: The role of environmental dynamism and competition intensity. Technovation, 124, 102751. https://doi.org/https://doi.org/10.1016/j.technovation.2023.102751
  40. Widiarni, S. A., & Mirzanti, I. R. (n.d.). International Journal of Current Science Research and Review Business Model Innovation Strategy for Creative Industry in Indonesia. https://doi.org/10.47191/ijcsrr/V6-i2-10
  41. Winaya, A., Maftuchah, M., Arif, S., Neimane, L., & Ekawati, I. (2023). The Awareness of Intellectual Property Rights (IPRs) Regimes on Small and Medium Enterprises (SMEs) of Agricultural Products Processing at Malang Area, East Java Province, Indonesia. E3S Web of Conferences, 374. EDP Sciences. https://doi.org/10.1051/e3sconf/202337400004
  42. Zeng, Y., Du, J., Xue, Z., & Li, A. (n.d.). Scientific and Technological News Recommendation Based on Knowledge Graph with User Perception.
  43. Zubair Shah Scholar, S., & Zubair Shah, S. (2023). Intellectual Property Rights and Protection: A Comparative Analysis of Pakistan and China. Journal of Social Sciences Review, 3(1), 118–128.