The Influence of Innovation Models, Micro Small and Medium Enterprises, and Development Strategies Towards Cooperatives in Industrial Era 4.0

53 | Indonesian Journal of Entrepreneurship & Technopreneur, 1 (2021) 53-60 Indonesian Journal of Entrepreneurship & Technopreneur 1 (2021) 53-60 International Journal of Entrepreneurship & Technopreneur Journal homepage: https://ojs.unikom.ac.id/index.php/injetech The Influence of Innovation Models, Micro Small and Medium Enterprises, and Development Strategies Towards Cooperatives in Industrial Era 4.0 Arjuna Rizaldi*, Ecie Linasari** *Universitas Komputer Indonesia, Indonesia Hamburg, Germany *Corresponding Email: **Universität ABSTRACTS Cooperatives are Business entities that are driven and owned by members seeking to achieve common needs in various fields, utilizing the Industrial Era 4.0 in order to reach its goals. This paper aims to point out the impacts of innovation models, micro small and medium enterprises, and development strategies towards cooperatives in industrial era 4.0. Research methods outlined that are applied in this paper consists of Qualitative, Quantitative, Descriptive, and secondary research approaches. The results regarding to this paper are as follows. With the innovation model designated for the cooperative’s renovation, it is expected that it has a positive impact on cooperatives and its pupils, creating a healthy and fair transaction process. Furthermore, small, medium and micro businesses as well as cooperatives need to adopt survival strategies and strategic methods, apply modern systems to their business processes, and strive to successfully answer various global challenges in the era of the Industrial Revolution 4.0. Finally, the transformation of the cooperative development strategy needs to be carried out considering that the new challenges of cooperatives are not only related to how to do business in the digital era but also change the overall perspective of the governance found in a cooperative of this modern era. ARTICLEINFO Article History: Received Revised Accepted Available Keywords: Cooperatives, Innovation Models, Micro Small and Medium Enterprises, Development Strategies, Industrial Era 4.0 Arjuna et al. The Influence of Innovation Models, Micro Small and Medium Enterprises...| 54 1. INTRODUCTION This paper would like to present the Industrial Era 4.0 for starters. It is a new technological advancement that integrates the physical, digital and biological environments, where there is a fundamental change in the way that humans work (Hamdan, 2018). Furthermore, Industry 4.0 is related to a group of rapid transformations in the design, manufacture, operation and service of manufacturing systems and products. The 4.0 concept points out that this is the world's fourth industrial revolution, the continuation to three former industrial revolutions that caused quantum leaps in productivity and changed the lives human being (Davies, 2015). Moreover, Angela Merkel, the German Chancellor, viewed Industry 4.0 as 'the comprehensive transformation of the whole sphere of industrial production through the merging of digital technology and the internet with conventional industry. Shortly, everything in and around a manufacturing operation (suppliers, the plant, distributors, even the product itself) is digitally connected, providing a highly integrated value chain. The innovation and strategy designed by the cooperative in the process of renovating its working method benefitted from the Information Communication Technology (ICT) currently in this Industry 4.0 era. Secondly, Micro, small and medium enterprises (MSMEs) have an important role in the economic development sector throughout the world (Sisira Kumara, et al., 2020). To be able to develop the potential of MSMEs in Indonesia in Indonesia's economic development efforts, first efforts must be made to develop cooperative institutions so that they can have a good impact on MSMEs. Especially in the current era of the industrial revolution 4.0, the role of cooperative institutions is needed by MSMEs as financing institutions and providers of capital loans to build and develop their businesses. Therefore, quality human resources must be prepared through HR development programs through empowerment, education, education and training by following industry developments. With this, human resources will be created who are competitive and can face the challenges that exist in the era of the industrial revolution 4.0, especially to increase the role of cooperatives for MSME business entities so that they can develop the potential of these MSMEs to improve the economy in the industrial era 4.0. Thirdly, the rapid development of cooperatives every year and the need for business capital for the small business sector create cooperatives that are required to generate profits in spreading their business and can play a crucial role in the Indonesian economy, namely being a pillar of a teacher. In this case, people who are creative and innovative will be able to adapt more quickly to the cooperative environment. With creative and innovative people, cooperatives can start their transformation to organize 55 | Indonesian Journal of Entrepreneurship & Technopreneur, 1 (2021) 53-60 their organization and business tactics according to the industrial era. In addition, this paper would also like to discuss the views on German Cooperatives, which is very noticeable on improving the Cooperatives in Indonesia. In Germany, “Industrie 4.0” platform launched in 2010 aims at founding with € 1 billion private projects and applied research centres as well to serve tax benefits for investments in technological start-ups (Kagermann et al., 2013). Related to the sufficient funds that the nation has, In Germany’s cooperative system of federalism, the state government bears the responsibility to endow its municipalities with sufficient funds to ensure that they can fully perform their assignments. State funds are formula- based and distributed according to legally codified criteria. In addition, state governments autonomously provide project grants for municipal infrastructure or current expenditure projects. Besides this basic funding by the state, the federal government provides funds to support municipalities in specific fields (Bury, Feld & Koehler ,2020). Yet to be applied in Indonesia, Germany has its own cooperative academy. Academy of German Cooperatives (ADG) offers a highly diverse program of professional qualification measures (trainings, seminars, bachelor and master university degrees, workshops, and forums), whose main aim is to support the development of the next generation of cooperatives employees (Germany Country Report). 2. METHOD There are four types of approaches related to this research paper. First of all is the qualitative method, spoken by Imam Gunawan et. al (2015) in which he defines that the approach is not obtained through statistical procedures and other calculations, seeks to understand an interaction event of certain human behavior according to the researcher’s own perspecti (...truncated)