Journal of Sustainable Community Development Vol.
8 No.
1 (May, 2.
e-ISSN: 2747-0040 | p-ISSN: 2715-5080 Vol.
8 | No.
1 (May, 2.
The Presence of CPM (Asi.
in the Indonesian MSMEs: A Qualitative Study for Firm.
Macroeconomic.
Market vs MSME Growth DC Ethan SamuelA*.
Irma M NawangwulanA.
Samuel PD AnantadjayaA.
Timotius Agus RachmatA.
Brian McNerneyAA.
Daniella Christy Eryn SamuelA.
Karen McNerneyA ASelasar-Padepokan Kalisoga.
Brebes.
Indonesia.
AAIPMI Institute.
Kalibata.
Jakarta.
Indonesia.
AUniversitas Agung Podomoro.
Jakarta.
Indonesia.
AACIBM Bank.
Elm Groove.
USA.
AUniversitas Bunda Mulia.
Alam Sutera.
Tangerang.
Indonesia.
AUnited Healthcare.
Milwaukee.
USA" ABSTRACT
ARTICLEINFO
Indonesian Micro Small and Medium Enterprises (MSME.
contribute more than 60% to national GDP but still have persistent structural Article History:
barriers that slow down sustainable growth.
In many cases, limited marketing knowledge, weak brand execution, and distribution Revised : 21 Ae 02 Ae 2026 networks that stay fragmented really make it hard for these smaller businesses to plug into modern retail ecosystems.
This qualitative Published : 29 Ae 05 Ae 2026 research looks at how partnering with CPM (Asi.
, a regional leader in outsourced sales and marketing, can help bridge those micro level Keywords:
capability gaps in a more direct way.
By using field salesforces, applying standardized merchandising practices, and bringing data driven insights.
CPM (Asi.
provides MSMEs a kind of strategic route Received : 10 Ae 12 - 2025
Accepted : 22 Ae 04 Ae 2026
MSME,
Competitiveness.
Digital Transformation.
Employee Creation.
Policy.
CPM (Asi.
to improve market visibility and consumer trust, while not forcing them to spend heavily on internal infrastructure costs.
The study also shows that bringing in external professional expertise produces important results across multiple layers.
On the firm side.
MSMEs tend to gain better operational efficiency, more professional brand execution, and steadier revenue performance.
On the bigger macro JEL: L25.
M21.
O12
*Corresponding Author E-mail:
samuel@gmail.
side, these collaborations strengthen IndonesiaAos broader policy directions by supporting national digital transformation, encouraging inclusive economic growth, and helping generate solid employment This case suggests that strategic outsourcing can work as a strong lever for innovation and competitiveness, turning emerging market firms from simple survival models into more adaptive, resilient competitors.
Copyright A 2026 Authors.
This is an open access article distributed under the Creative Commons Attribution License (CC-BY-SA 4.
which permits use, distribution and reproduction in any medium, provided the original work is properly cited & ShareAlike terms followed.
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Samuel et al.
, / The Presence of CPM (Asi.
in the Indonesian MSMEs: A Qualitative Study for Firm.
Macroeconomic.
Market vs MSME Growth / 1 - 19
INTRODUCTION
customer engagement (Moreira, 2025.
Tabas et al.
A key limitation lies in their restricted capacity to conduct systematic market research and implement structured sales strategies.
As a result, many MSMEs operate reactively, responding to short-term market shifts without the ability to develop long-term adaptive strategies.
collaborating with CPM (Asi.
MSMEs can access infrastructures that would otherwise be beyond their financial or organizational reach.
CPM
(Asi.
Aos services in field sales deployment, in-store activation, and retail merchandising allow MSMEs to enhance product visibility and consumer access while simultaneously building operational MSMEs partnerships contributes directly to national Strengthening MSME competitiveness supports IndonesiaAos vision of inclusive economic growth by enabling broader participation in the formal economy.
Increased market penetration by MSMEs generates multiplier effects across supply chains, from raw material suppliers to logistics providers.
Moreover, the scaling up of MSMEs through structured brand execution and adaptive strategies fosters job creation, reduces regional inequality, and enhances IndonesiaAos resilience to global economic In this sense, the role of CPM (Asi.
in MSME development transcends individual business performance, contributing to broader economic and social outcomes.
MSMEs play a pivotal role in IndonesiaAos economic landscape, functioning as both the backbone of domestic production and the largest generator of According to government statistics.
MSMEs contribute more than 60 % to national GDP and absorb over 90 % of the labor force (Arif, 2024.
Hidayat et al.
, 2.
Beyond their quantitative significance.
MSMEs are also vital to inclusive (Anantadjaya.
Anantadjaya.
Djuaeriah, et al.
, 2011.
Anantadjaya.
Finardi, et al.
Shakina & Barajas, 2020.
Siregar et al.
, poverty reduction (Dwijendra et al.
, 2020.
JagustoviN et al.
, 2.
, and social mobility (Fagundes et al.
, 2020.
Naruetharadhol & Gebsombut, 2020.
Sobir, 2.
Yet, despite their central role in national development.
Indonesian MSMEs face persistent challenges that hinder their ability to compete with larger enterprises and to fully integrate into global value chains.
Issues such as limited access to finance (Sasongko & Anantadjaya, 2.
, weak marketing capabilities (McKinsey & Corporation, 2024.
Zhang et al.
, low adoption of digital technologies (Deepu & Ravi, 2021.
Winata et al.
, 2.
, and fragmented indistribution networks remain barriers to longterm competitiveness and sustainability (Bahtiar et al.
, 2025.
Fagundes et al.
, 2020.
Rizkita et al.
In this context, the role of professional partners such as CPM (Asi.
becomes highly As a leading regional provider of outsourced sales, marketing, and merchandising services.
CPM (Asi.
offers a model through which MSMEs in Indonesia can overcome structural By professionalizing brand execution, implementing adaptive go-to-market strategies, and introducing data-driven insights.
CPM (Asi.
has the capacity to bridge the gap between small enterprises and rapidly evolving consumer Importantly, the integration of CPM (Asi.
Aos expertise with MSME development agendas yields not only firm-level benefits, such as, improved sales performance and efficiency, but also broader macroeconomic outcomes, including digital transformation, employment creation, and strengthened national competitiveness (Bhatti & Akhtar, 2025.
Lazzarotti et al.
, 2.
Brand execution is a critical challenge for Indonesian MSMEs (Aghilar et al.
, 2.
Many enterprises have strong products but lack the capacity to communicate brand value effectively or to maintain consistency in customer experience.
Weak branding and irregular market presence often prevent MSMEs from differentiating themselves in crowded marketplaces.
CPM (Asi.
addresses this gap by implementing standardized merchandising practices, ensuring product placement in competitive retail environments, and designing tailored marketing activations that reflect both local cultural preferences and broader market trends.
Adaptive strategies are equally characterized by rapid change (Aghilar et al.
Indonesian markets are increasingly shaped At the firm level.
MSMEs often struggle to establish efficient operational systems and consistent -2- Journal of Sustainable Community Development Vol.
8 No.
1 (May, 2.
by urbanization, demographic shifts, and digital consumption patterns.
MSMEs require the ability to adapt product offerings, pricing models, and promotional tactics in response to these evolving With CPM (Asi.
Aos data-driven insights and real-time performance tracking.
MSMEs can adopt more agile approaches, continuously adjusting strategies to align with shifting consumer This adaptability not only sustains competitiveness but also enables MSMEs to anticipate future trends, positioning them as proactive rather than reactive market players.
Figure 1.
CPM (Asi.
Event Digital transformation (Bahtiar et al.
, 2.
is a central theme in IndonesiaAos economic agenda, particularly in relation to MSME development.
While e-commerce and digital payments have expanded significantly, many MSMEs remain slow to adopt digital tools for marketing, supply chain management, and customer engagement.
CPM
(Asi.
Aos integration of technology into its service portfolio provides MSMEs with access to advanced analytics, digital activation platforms, and omnichannel marketing solutions.
By leveraging these tools.
MSMEs can extend their reach beyond local markets, enhance consumer targeting, and build stronger relationships through online and offline integration.
At the same time.
MSME employment creation.
By scaling operations through improved sales and marketing execution.
MSMEs generate demand for additional labor across production, distribution, and service CPM (Asi.
Aos role in structuring salesforces and enhancing operational efficiency indirectly stimulates labor absorption, thereby reinforcing the role of MSMEs as key drivers of job creation (Barba-Synchez & Atienza-Sahuquillo, 2.
Moreover, by professionalizing workforce practices.
CPM (Asi.
contributes to skill upgrading, preparing workers for more advanced roles in digital and customer-centric industries.
The pursuit of innovation is essential for MSMEs seeking to move beyond survival mode and toward sustainable growth.
Yet innovation requires not only creative product development but also supportive ecosystems for commercialization, branding, and market access (Rizkita et al.
, 2.
CPM (Asi.
provides the enabling conditions for MSMEs to innovate by ensuring that new products can be effectively launched, promoted, and This environment reduces the risk associated with innovation and encourages MSMEs to experiment with new ideas and business models.
Competitiveness, in turn, is achieved through a combination of innovation, market access, and efficiency (Rizkita et al.
, 2.
By outsourcing critical but resource-intensive functions such as sales execution and merchandising.
MSMEs can achieve operational efficiency while maintaining focus on their core competencies (Fauzan & Sudrajat, 2025.
Hwititi & Dumbu, 2.
CPM
(Asi.
Aos structured systems and performance monitoring tools enhance transparency and accountability, ensuring that growth strategies are both cost-effective and results-driven.
This efficiency contributes not only to firm-level sector-wide competitiveness, reinforcing the role of MSMEs as a cornerstone of IndonesiaAos economic resilience.
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Samuel et al.
, / The Presence of CPM (Asi.
in the Indonesian MSMEs: A Qualitative Study for Firm.
Macroeconomic.
Market vs MSME Growth / 1 - 19 Figure 2.
The Audience & The Committee Members for CPM (Asi.
LITERATURE STUDY their competitiveness and innovation capacity (Hermawati et al.
, 2025.
Shardzad et al.
, 2.
Theoretical Perspectives MSME DevelopmentAos Macroeconomic Outcomes MSMEs constitute the backbone of IndonesiaAos economy, contributing over 60% of national GDP and employing more than 95% of the workforce (Indonesia Investment, 2022.
Sinaga et al.
, 2025.
Sinha et al.
, 2024.
Wijaya, 2.
They are critical to achieving inclusive economic development, poverty alleviation, and regional integration.
However.
MSMEs face structural barriers in scaling their operations, including limited access to financing, inadequate managerial capacity, weak technological adoption (Bandyopadhyay, 2024.
Sarangal & Taneja, 2.
These challenges prevent many MSMEs from moving beyond subsistence-level operations and restrict their ability to compete with larger firms in domestic and global markets.
From a theoretical standpoint, the Resource-Based View underscores the importance of internal capabilities, such as knowledge, skills, and innovation, for achieving sustainable competitive advantage (Chatterjee et , 2025.
El Nemar et al.
, 2.
However.
MSMEs typically operate with constrained resources and lack access to strategic assets such as advanced data analytics, professionalized marketing, and efficient distribution networks.
Here, external partnerships with specialized service providers, such as CPM (Asi.
, can provide complementary capabilities, enabling MSMEs to overcome resource deficiencies .
an Criekingen et al.
, 2025.
Wang et , 2.
Similarly, the concept of value cocreation (Nibras et al.
, 2025.
Omland et al.
, 2.
highlights the potential of collaborative arrangements to generate mutual benefits.
MSMEs, when integrated into service ecosystems led by expertise, technology, and networks to enhance Firm-Level At the firm level.
MSME development often revolves around enhancing operational efficiency, improving market access, and increasing revenue Studies emphasize that MSMEs benefit most when external support focuses on capacitybuilding in marketing, supply chain integration, and technology adoption (Fajarika et al.
, 2024.
Satpathy et al.
, 2.
Collaborating with external providers such as CPM (Asi.
can help MSMEs achieve these objectives by granting them access to professional salesforces, consumer data analytics, and systematic brand execution models.
This reduces the need for MSMEs to make heavy fixed investments in capabilities that can be more efficiently outsourced.
At the macroeconomic level.
MSME development contributes to employment creation, poverty reduction, and regional equality.
A growing body of research demonstrates that MSMEs are crucial for absorbing semi-skilled labor and generating livelihoods in both urban and rural settings (Endris & Kassegn, 2022.
Satpathy et al.
By expanding market reach and strengthening competitiveness.
MSMEs not only create new jobs but also stimulate supply chains and generate multiplier effects across the wider The involvement of service providers such as CPM (Asi.
further amplifies these outcomes, as their structured processes and digital systems accelerate MSME integration into the formal economy.
This, in turn, supports IndonesiaAos national development agenda, which prioritizes inclusive growth and digital transformation as pillars of long-term competitiveness (Coulibaly & Qureshi, 2.
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Journal of Sustainable Community Development Vol.
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Brand Execution and the Importance of Market Presence systems, can shift from reactive decision-making to proactive market positioning.
In practice, this means being able to anticipate consumer trends, redesign marketing campaigns, or reallocate resources swiftly, ensuring resilience in volatile Brand execution remains one of the weakest aspects of MSME performance in Indonesia.
Many MSMEs develop innovative products but fail to establish brand identity and consumer recognition.
Research indicates that consistent brand execution is strongly correlated with market share growth and consumer loyalty, particularly in competitive retail sectors (Shams et al.
, 2.
Yet MSMEs often lack the managerial skills and financial resources to invest in branding strategies (Malesu & Syrovatka.
Digital Transformation Creation Dynamic Employment Digital transformation has been identified as a key driver of MSME competitiveness in emerging E-commerce platforms, digital payments, and online marketing are expanding rapidly in Indonesia, yet many MSMEs remain digitally excluded due to skill gaps, cost barriers, and low awareness (Creely & Blannin, 2025.
HRM
Handbook, 2021.
Pranic et al.
, 2025.
QDA Training.
Weng et al.
, 2.
Integrating MSMEs into digital ecosystems requires both infrastructural support and capability development.
CPM (Asi.
Aos digital tools, ranging from sales performance platforms, offer MSMEs access to technologies they would not otherwise afford.
Academic literature emphasizes that digital adoption by MSMEs not only improves efficiency but also expands market access, enabling firms to reach wider and more diverse consumer bases.
Importantly, digital transformation also has significant implications for While automation may reduce some traditional roles, the overall expansion of MSME capacity generates new jobs in logistics, customer service, and digital marketing.
Thus, partnerships with organizations like CPM (Asi.
can enhance both enterprise-level digital readiness and broader labor market dynamism.
CPM (Asi.
addresses this gap by offering professionalized merchandising, retail activation, and customer engagement strategies.
Studies of outsourced marketing show that external providers are effective in enhancing visibility and standardizing execution across diverse markets.
leveraging CPM (Asi.
Aos expertise.
MSMEs can ensure consistency in brand presentation while tailoring strategies to local consumer contexts (Okonkwo et al.
, 2.
This balance of standardization and adaptation is essential for enterprises seeking to grow in fragmented markets like Indonesia, where consumer behaviors vary widely across regions and income levels.
Adaptive Strategies Environments Market The concept of dynamic capabilities (Cahaya et al.
Faccin et al.
, 2025.
Teece et al.
, 1997.
Teece, 2.
is central to understanding how firms navigate uncertainty and adapt to change.
For MSMEs in Indonesia, dynamic capabilities are often underdeveloped due to limited managerial training and weak exposure to global trends.
Yet in environments characterized by rapid technological disruption and evolving consumer preferences, adaptability is critical for survival.
CPM (Asi.
provides MSMEs with mechanisms for adaptive strategy through real-time data collection, consumer insights, and performance monitoring.
Literature on market responsiveness suggests that data-driven decision-making enhances a firmAos ability to adjust product offerings, pricing strategies, and distribution methods (Szukits & Moricz, 2.
MSMEs, when supported by such Innovation.
Competitiveness, and Efficiency Toward Growth Innovation is widely recognized as a cornerstone of MSME growth (Suardana et al.
, 2.
However, innovation must be complemented by supportive ecosystems for commercialization, market access, and consumer adoption.
In Indonesia.
MSMEs often innovate at the product level but fail to commercialize effectively due to weak branding and poor distribution (Tan et al.
, 2.
CPM (Asi.
contributes to this ecosystem by reducing the risks of innovation.
By ensuring market visibility and -5- Samuel et al.
, / The Presence of CPM (Asi.
in the Indonesian MSMEs: A Qualitative Study for Firm.
Macroeconomic.
Market vs MSME Growth / 1 - 19 consumer reach.
CPM (Asi.
enables MSMEs to experiment with new products and business models while minimizing the risk of failure.
Research on competitiveness underscores the importance of combining innovation with efficiency and resource optimization.
Outsourcing functions such as sales and merchandising to specialized providers allows MSMEs to focus resources on core competencies, such as product development, while achieving efficiency in noncore functions (Kaukonen, 2.
This strategic division of labor enhances overall competitiveness and positions MSMEs for long-term growth.
METHODOLOGY
This study employs a qualitative approach to comprehensively analyze the dynamics of Indonesian Micro.
Small, and Medium Enterprises (MSME.
The research is conducted in collaboration with CPM (Asi.
to ensure broad access to MSMEs and stakeholders across regions.
The design specifically addresses the structural challenges of Indonesian MSMEs, namely: .
low access to financing as many MSMEs face difficulties in obtaining formal credit due to collateral requirements, high interest rates, and limited financial literacy, .
low digital adoption and limited digital marketing as MSMEs often lack resources, skills, and awareness to fully integrate ecommerce, fintech, and digital marketing into their Gaps and Implications from the Literature The literature highlights several important implications for MSME development in Indonesia.
First, while MSMEs are critical drivers of employment and economic growth, their ability to achieve sustainable competitiveness is constrained by resource limitations (Lans et al.
, 2020.
Tirta & Sarti, 2.
Second, external partners such as CPM (Asi.
provide complementary capabilities that can bridge these gaps, especially in branding, adaptive strategies, and digital transformation (Aghilar et , 2025.
Mertens et al.
, 2.
Third, the intersection of MSME development and outsourcing creates a new paradigm in which efficiency and competitiveness are co-created through collaboration (D.
Teece, 2.
However, gaps remain in the academic discourse.
Limited empirical studies have examined the direct impact of outsourcing models like CPM (Asi.
on MSME performance in Indonesia.
Most existing literature focuses on large firms or developed Further research is needed to measure how such collaborations affect firm-level outcomes, such as.
profitability, innovation capacity (Barba-Synchez & Atienza-Sahuquillo.
Indra & Anantadjaya, 2.
, and macroeconomic indicators, such as.
productivity, inclusivity, for instance (Nielsen Consumer Survey Report, 2.
Additionally, the role of cultural factors in shaping the success of outsourced brand execution in Indonesia remains an area for deeper investigation.
These challenges are examined within a multi-level framework that integrates firm-level strategies, macroeconomic conditions, and market-level Data collection proceeds in three phases.
exploratory phase talks about literature review and secondary data collection on MSME financing gaps and digital adoption levels, .
fieldwork phase discusses about surveys and interviews with MSMEs across manufacturing, trade, and creative industries, focusing on financing challenges and digital marketing barriers, and .
validation phase to talk about FGDs with entrepreneurs, financial institutions, and policymakers to validate findings and refine strategic implications.
This stepwise process ensures that both structural constraints and adaptive strategies are systematically The variables are.
firm-level variables to discuss about access to financing .
oan approval rates, collateral requirements, financial literac.
, digital adoption .
se of e-commerce, digital payments, social media marketing.
ERP system.
, innovation .
roduct differentiation, process improvement.
, and efficiency .
roductivity, cost reduction, supply chain optimizatio.
, .
macroeconomic variables to discuss about GDP growth, inflation, credit distribution to MSMEs, government policies supporting MSMEs, such as.
KUR, digitalization programs, and employment -6- Journal of Sustainable Community Development Vol.
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1 (May, 2.
creation by MSMEs, .
market-level variables to discuss about brand execution .
igital branding, customer trust, product positionin.
, market presence .
ocal reach, online visibility, export readines.
, and competitiveness .
ntegration into value chains, market shar.
, .
dependent variable to deal with sustainable MSME growth, measured by revenue, employment, and competitiveness indicators.
Figure 3.
Framework of Thinking In terms of the data analysis techniques is qualitative analysis.
This deals with thematic content analysis of interview and FGD transcripts to identify recurring issues in financing and digital adoption, and comparative case studies contrasting digitally advanced MSMEs with digitally lagging ones to highlight adaptive strategies in dynamic environments.
In terms of validity and reliability, this manuscript uses the triangulation of survey, interview, and secondary data ensures accuracy, pilot testing of survey instruments improves reliability and clarity, and expert validation through CPM (Asi.
consultations with financial experts and policymakers strengthens construct validity.
Figure 4.
The Crew of Lecturers & Students of Different Campus
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Samuel et al.
, / The Presence of CPM (Asi.
in the Indonesian MSMEs: A Qualitative Study for Firm.
Macroeconomic.
Market vs MSME Growth / 1 - 19
RESULT AND DISCUSSION
Analytical Orientation This study employs a qualitative interpretive approach to understand how firm-level dynamics, macroeconomic pressures, brand execution, adaptive strategies, and digital transformation shape MSME competitiveness and growth.
Instead of statistical generalizations, the emphasis is on rich descriptions, lived experiences, and thematic patterns derived from the perspectives of entrepreneurs, policymakers, and ecosystem Data Collection Deliverables Qualitative data are collected through.
semistructured interviews with MSME owners, managers, financial providers, and digital enablers.
FGDs with entrepreneurs from diverse sectors .
F&B, creative industries, manufacturin.
, case studies highlighting successful and struggling firms to capture contrasts in adaptation and resilience, document analysis of policy papers, industry reports, and development agency insights.
These multiple sources ensure that findings are grounded, contextual, and triangulated.
The qualitative approach produces action-oriented Analytical Strategy The qualitative analysis is guided by established interpretive techniques designed to capture recurring narrative analysis, which constructs detailed accounts of how firms experience challenges such as low access to finance or limited digital adoption, and how they develop coping mechanisms or adaptive strategies, and triangulation, which involves comparing findings across interviews, focus group discussions, and case studies to ensure reliability and reduce researcher bias.
This multi-pronged strategy ensures that the qualitative analysis not only documents MSME challenges but also uncovers the strategic pathways that firms adopt to achieve innovation, competitiveness, and sustainable Through this qualitative analysis.
CPM (Asi.
generates insights that:
MSME Voices Report Ae a synthesis of lived experiences across financing, branding, and adaptation challenges.
Case Study Collection Ae in-depth firm profiles that illustrate both barriers and innovative Policy Perspective Brief Ae stakeholder insights from regulators, banks, and fintechs on structural enablers and constraints.
Brand & Digital Insights Report Ae qualitative evidence of how MSMEs engage with customers and adopt digital tools.
Adaptive Strategy Playbook Ae practical lessons distilled from entrepreneursAo resilience Employment Narratives Ae stories showing how digital adoption supports or hinders job Strategic Recommendations Ae context-specific suggestions for MSMEs, policymakers, and business support organizations.
Contribution of the Qualitative Review Key Thematic Areas of Analysis The qualitative review interconnected domains:
Firm-Level Experiences Ae how MSMEs deal with financing constraints, limited resources, and efficiency challenges.
Macroeconomic Perceptions Ae entrepreneurs interpret inflation, credit flow, and policy shifts.
Brand Execution & Market Presence Ae how firms build trust, maintain visibility, and differentiate in competitive markets.
Adaptive Strategies in Dynamic Markets Ae how entrepreneurs adjust business models, supply chains, and marketing in uncertain conditions.
Digital Transformation & Employment Ae how adoption of technology affects productivity, workforce skills, and job creation.
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Reveal hidden realities behind MSME struggles with financing and digital adoption.
Journal of Sustainable Community Development Vol.
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Provide depth to understanding brand execution, competitiveness, and adaptation.
Offer practical lessons through real-world cases and narratives.
Bridge research and practice, ensuring findings are not only academic but also actionable for firms and policymakers.
face difficulties in marketing, sales tracking, and customer engagement.
Output:
Digital-ready MSMEs benefit from broader market access and improved revenue CPMAos digital toolsAisuch as mobile reporting systems and visibility platformsAihelp MSMEs strengthen their technological integration and retail presence.
Firm-Level Analysis Managerial Competence and Operational Discipline The findings indicate that MSMEs commonly face deficits in managerial competence, including weaknesses in planning, financial management, and operational control.
These constraints reduce the efficiency of business processes, limit the capacity to scale, and restrict the ability to respond effectively to fluctuations in consumer demand.
Macroeconomic Analysis Access to Finance and Policy Frameworks Government financing schemes .
KUR)
offer structural opportunities.
MSMEs often encounter procedural challenges, including documentation requirements and collateral constraints.
Output:
MSMEs with stronger managerial systems demonstrate more stable revenue trajectories and improved workflow clarity.
Those supported by CPM (Asi.
exhibit better performance monitoring, consistent field execution, and higher operational discipline.
Output:
Restricted access to funding contributes to stagnant revenue growth and limited MSMEs adequate financing demonstrate better Workforce Capability and Human Capital Development Human capital limitations remain a recurrent Many MSMEs rely heavily on informal labor arrangements, with minimal exposure to structured training programs.
This affects productivity, service quality, and the ability to adapt to new market requirements.
Inflationary Pressures and Supply Chain Vulnerability Macroeconomic instabilityAiparticularly rising input costs and logistic expensesAi exerts significant pressure on MSME cost Many MSMEs lack the strategic capacity to adjust pricing or reconfigure their supply chain.
Output:
Employment growth is muted in MSMEs In contrast, participation in CPMled coaching and capability-building activities results in more effective task delegation and improved employee performance.
Output:
High-cost sensitivity reduces profitability and Collaboration intermediaries like CPM mitigates these challenges by increasing sales throughput and improving demand stability.
National Digital Transformation Agenda Government initiatives aimed at accelerating digital adoption have created a supportive environment for MSME modernization.
However, disparities in digital literacy limit MSME participation.
Digital Readiness and Technological Integration The qualitative evidence reveals significant disparities in digital readiness across MSMEs.
Enterprises relying solely on manual processes -9- Samuel et al.
, / The Presence of CPM (Asi.
in the Indonesian MSMEs: A Qualitative Study for Firm.
Macroeconomic.
Market vs MSME Growth / 1 - 19 Output:
Digitally integrated MSMEs show higher competitiveness and stronger revenue Enterprises unable to leverage national digital programs exhibit stagnation and reduced adaptive capacity.
to market intelligence are unable to adapt Output:
Inadequate responsiveness results in declining MSMEs leveraging CPMAos data-driven insights exhibit more adaptive promotional strategies and improved market Market-Level Analysis Brand Visibility.
Merchandising, and Consumer Engagement MSMEs face challenges in achieving brand consistency, shelf visibility, and effective retail Without professionalized MSMEs competitive against established brands.
Integrated Impact on MSME Growth Indicators Output:
Weak brand execution negatively affects consumer trust and repeat purchasing MSMEs supported by CPM benefit from standardized merchandising, stronger retail visibility, and enhanced brand Revenue Growth Revenue performance improves when MSMEs combine strong internal capabilities with supportive macroeconomic conditions and effective market-level positioning.
CPMAos interventions amplify revenue by enhancing field execution and distribution effectiveness.
Employment Expansion Employment growth is correlated with operational stability, financial readiness, and market expansion.
MSMEs with structured operational support and clearer performance systems are more likely to hire additional Market Access Distribution Capabilities Gaining entry into modern retail channels remains a structural challenge, as MSMEs often struggle to meet compliance, volume, and quality standards.
Competitiveness Enhancement Competitiveness strengthens when MSMEs successfully differentiate products, integrate digital tools, maintain consistent branding, and adapt to market signals.
CPMAos retail and datadriven support significantly contributes to competitiveness gains.
Output:
MSMEs without organized distribution networks experience slow revenue escalation.
Engagement with CPMAos field activation and distribution support enables more efficient retail penetration and broader market Overall, the evidence suggests that MSME growth is contingent upon the synergistic interplay of firmlevel capabilities, macroeconomic enablers, and market-level mechanisms.
CPM (Asi.
serves as a strategic intermediary that bridges capability gaps and supports MSMEs in enhancing their revenue potential, employment generation capacity, and competitive strength.
Competitive Dynamics and Shifting Consumer Trends Consumer preferences are increasingly shaped by convenience, digital engagement, and product differentiation.
MSMEs lacking access Table 1.
Summary for the Analytical and MSME Growth Analytical Key Factors Influence on Impact on Impact on Dimension Identified MSMEs Revenue Employment Managerial Many MSMEs Structured Bettercapability.
exhibit weak
Firm-Level
increase sales firms are more limited control
stability and willing to hire
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Analytical Dimension Key Factors Identified Human capital Digital readiness and Access to financing (KUR, bank loan.
MacroEconomic Inflation, cost logistics costs National MarketLevel Brand store execution Market access Influence on MSMEs systems, and CPM-supported firms show Skills gaps CPM-led Low digital skills constrain marketing and sales tracking.
CPMAos tools support digital Procedural barriers limit credit access.
firms with financing show Rising costs MSMEs struggle to adjust pricing Government create enabling but MSME MSMEs often CPM visibility and with retail MSMEs face barriers to Impact on Revenue Impact on Employment Increased efficiency leads to higher sales Training supporting job Skilled labor product/service quality and brand Digital MSMEs achieve wider reach and more Techsupported systems reduce enabling task Digital adoption enhances agility and responsiveness to market changes Increased working capital Additional capital allows firms to take on Access to funds supports product upgrading and Cost pressures slow revenue growth unless offset by increased sales Financial strain limits hiring.
firms prioritize Vulnerability to cost changes weakens market resilience Integrated firms leverage digital markets for higher revenue Digitally engaged firms may expand teams for order Digital strengthens MSME competitiveness in retail channels Better shelf increases sales Enhanced visibility may lead to expansion in sales/logistics Professional strengthens brand Expanded channels directly Broader reach can necessitate larger teams Structured access allows MSMEs to compete alongside - 11 - Impact on Competitiveness Samuel et al.
, / The Presence of CPM (Asi.
in the Indonesian MSMEs: A Qualitative Study for Firm.
Macroeconomic.
Market vs MSME Growth / 1 - 19 Analytical Dimension Key Factors Identified Competitive intensity and Influence on MSMEs modern trade.
CPM provides retail access MSMEs lack real-time market insight.
CPM provides data-driven Impact on Revenue boost revenue Adaptation to demand trends CONCLUSION AND RECOMMENDATIONS Impact on Employment Firms adjusting to trends may expand labor .
Impact on Competitiveness established brands Data-driven enhances strategic The study highlights the fact that when MSMEs are better integrated into formal financial and digital infrastructures, multipliers accrue across sectors as they become more productive and create jobs while becoming resilient.
This study demonstrates that the sustainable growth of Indonesian MSMEsAireflected in increased revenue, strengthened competitiveness, and expanded employmentAiis shaped by the interaction of three critical dimensions: firm-level capabilities, macroeconomic conditions, and market-level dynamics.
Weak brand execution, limited visibility in modern retail, and inconsistency in customer engagement constitute some of the major barriers to competitiveness at the market level.
MSMEs generally compete in economically saturated sectors without having the competency to articulate value communication, merchandising, or consumer confidence.
Elevate MSME market merchandising models, omnichannel retail activation, and digital analytics made available by CPM (Asi.
Better brand executions would not sales but also strengthen competitiveness over the long term in narrowing markets driven more by consumers than by Firm-Level Capabilities: At the micro, among others, identifies financing constraints at the level of MSME's ability to adopt digital technology, all these hurdles keep MSMEs from being able to scale their production or optimize their cost structures or penetrate wider markets.
Collaboration with established intermediaries like CPM (Asi.
gives MSMEs access to professional salesforces, data-driven consumer insights, and standardized brand executionAicapabilities that bring direct value to their market reach and revenue generation.
Enhanced adaptive capacity further enables the MSME to respond actively to emerging changes in consumer demand or increased competition.
Finally, this study may such that Indonesia's trajectory towards the development of MSMEs depends on simultaneous strides at improving positioning in the marketplace.
CPM (Asi.
and other external partnerships function as strategic accelerators within this ecosystem, closing structural gaps that convert MSMEs into primarily surviving entities into those driven by innovation and responsive to market demands.
At the macroeconomic level, the way in which the policy environment affects Indonesia would enable KUR schemes, digital transformation initiatives, and an inclusive growth agenda as an enabling backdrop for MSME development.
However, it continues to have some structural gaps, such as insufficient credit distribution for MSMEs, production costs associated with inflation, and technology exclusion in terms of access to digital.
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Journal of Sustainable Community Development Vol.
8 No.
1 (May, 2.
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