This work is licensed under a Creative Commons Attribution 4.0 International License.
The Dynamics of Adaptation and Innovation of MSMEs in Facing Changes in Consumer Behavior Post Pandemic
Corresponding Author(s) : Chandra Lukita
Startupreneur Business Digital (SABDA Journal),
Vol. 5 No. 1 (2026): Startupreneur Business Digital (SABDA)
Abstract
The COVID-19 pandemic has significantly reshaped consumer behavior, particularly in terms of digital engagement, purchasing preferences, and expectations toward products and services. These changes have compelled Micro, Small, and Medium Enterprises (MSMEs) in Indonesia to adopt adaptive and innovative strategies to sustain their businesses in the post pandemic era. This study aims to explore how Indonesian MSMEs adapt and innovate in response to post pandemic changes in consumer behavior. Using a qualitative research approach, data were collected through in depth interviews and observations involving MSME owners from various sectors, including food and beverage, fashion, and creative industries. The findings reveal that MSMEs implemented innovation not only in product development but also in digital marketing practices, customer relationship management, and technology based distribution channels. Post pandemic consumers were perceived as more health conscious, digitally oriented, and value driven, prompting MSMEs to reconfigure their business models and operational routines. From a theoretical perspective, this study contributes to the literature by demonstrating how Dynamic Capabilities and Innovation Diffusion theories explain MSMEs sustained innovation beyond crisis response, particularly in the post pandemic context of an emerging economy. Practically, the findings offer insights for policymakers and support institutions in designing programs that strengthen digital literacy, managerial flexibility, and innovation capacity among MSMEs to support sustainable post pandemic recovery.
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- R. N. Rosyidiana and I. M. Narsa, “Micro, small, and medium sized enterprises (msmes) during the post pandemic economic recovery period: digitalization, literation, innovation, and its impact on financial performance,” Cogent Business & Management, vol. 11, no. 1, p. 2342488, 2024.
- A. Hadi, “Adaptive innovation and business resilience in post pandemic msmes: Southeast asia compara- tive study,” Journal of Economics Management, vol. 1, no. 1, pp. 1–14, 2025.
- T. Lesmana, “Resilience and recovery: Strategies of indonesian msmes in post pandemic economic revival,” Eastasouth Proceeding of Economics and Business, vol. 1, no. 1, pp. 48–55, 2023.
- D. S. S. Wuisan, R. A. Sunardjo, Q. Aini, N. A. Yusuf, and U. Rahardja, “Integrating artificial intelligence in human resource management: A smartpls approach for entrepreneurial success,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 3, pp. 334–345, 2023.
- Hernani, C. Winarti, T. Hidayat, A. Bin Arif, and S. Yuliani, “Physicochemical evaluation of coated ginger during long term storage: Impact of chitosan and beeswax bilayer coatings at different temperatures,” Scientifica, vol. 2024, no. 1, p. 2054943, 2024.
- M. R. Aulia, Z. Lubis, I. Effendi et al., “Leveraging quality management and partnership programs for technopreneurial success: Exploring their impact on msme performance,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2, pp. 157–168, 2023.
- N. Novilia, S. A. Bethari, H. Rusli, and M. B. Amran, “Determination of hydrotreated vegetable oil (hvo) in blended diesel fuel using calibration of isooctane by gcfid measurement,” Scientific Contributions Oil and Gas, vol. 48, no. 3, pp. 259–267, 2025.
- H. Hokmabadi, S. M. Rezvani, and C. A. de Matos, “Business resilience for small and medium enterprises and startups by digital transformation and the role of marketing capabilities a systematic review,” Systems, vol. 12, no. 6, p. 220, 2024.
- G. A. Pangilinan, S. Audiah, M. R. Shauqy, and O. F. P. Wahyudi, “Entrepreneurial marketing mindset as a determining factor for digital startup success,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 1, pp. 34–46, 2025.
- O. Neumann, K. Guirguis, and R. Steiner, “Exploring artificial intelligence adoption in public organizations: a comparative case study,” Public Management Review, vol. 26, no. 1, pp. 114–141, 2024.
- J. A. Putritamara, B. Hartono, H. Toiba, H. N. Utami, M. S. Rahman, and D. Masyithoh, “Do dynamic capabilities and digital transformation improve business resilience during the covid-19 pandemic? insights from beekeeping msmes in indonesia,” Sustainability, vol. 15, no. 3, p. 1760, 2023.
- K. J. Sinha, S. Sinha, and B. J. Sinha, “Micro, small, and medium sized enterprises (msmes): The significant role and challenges in indonesia’s economy,” International Journal For Multidisciplinary Research, vol. 6, no. 3, p. 20824, 2024.
- B. Rawat, A. S. Bist, U. Rahardja, C. Lukita, and D. Apriliasari, “The impact of online system on health during covid 19: A comprehensive study,” ADI J. Recent Innov, vol. 3, no. 2, pp. 195–201, 2022.
- D. S. Wuisan and T. Handra, “Maximizing online marketing strategy with digital advertising,” Startupreneur Business Digital (SABDA Journal), vol. 2, no. 1, pp. 22–30, 2023.
- N. Aprilia, W. T. Subroto, and N. C. Sakti, “The role of small and medium enterprises (smes) in supporting the people’s economy in indonesia,” International Journal of Research and Scientific Innovation, XI (XII), pp. 368–376, 2025.
- S. Yuliani, T. Hidayat, H. Herawaty, and Hernani, “Characteristics of cocoa drinks formulated with nanoencapsulated vitamin and mineral,” in AIP Conference Proceedings, vol. 2957, no. 1. AIP Publishing LLC, 2024, p. 060058
- A. Pinandita, N. Handayani, M. Iqbal, U. Triadhi, R. Rusnadi, S. D. Djajanti, M. B. Amran, and M. A. Zulfikar, “Anthrone-based dummy molecularly imprinted pvdf membrane for monitoring fluorene and phenanthrene in river water,” Molecules, vol. 30, no. 18, p. 3754, 2025. [18] L. Sanbella, I. Van Versie, and S. Audiah, “Online marketing strategy optimization to increase sales and ecommerce development: An integrated approach in the digital age,” Startupreneur Business Digital (SABDA Journal), vol. 3, no. 1, pp. 54–66, 2024.
- R. Sarif, R. M. Susanto, N. R. Retnasih, and S. Segaf, “Revolutionizing resilience: msmes’ journey with digital strategies in post-pandemic recovery,” JMK (Jurnal Manajemen dan Kewirausahaan), vol. 8, no. 3, pp. 203–218, 2023.
- C. K. Wigayha, B. Rolando, and A. J. Wijaya, “A demographic analysis of consumer behavioral patterns on digital e-commerce platforms,” JUMDER: Jurnal Bisnis Digital Dan Ekonomi Kreatif, vol. 1, no. 2, pp. 22–37, 2025.
- U. Rusilowati, U. Narimawati, Y. R. Wijayanti, U. Rahardja, and O. A. Al-Kamari, “Optimizing human resource planning through advanced management information systems: A technological approach,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 1, pp. 72–83, 2024.
- R. C. Turatti, “Application of artificial intelligence in forecasting consumer behavior and trends in e- commerce,” Brazilian Journal of Development, vol. 11, no. 3, pp. e78 434–e78 434, 2025.
- Y. Pambreni and S. A. Sudari, “Msmes resilience during post pandemic through business digitalization mediated by competitive advantage,” Citizen: Jurnal Ilmiah Multidisiplin Indonesia, vol. 5, no. 1, pp. 145–155, 2025.
- K. Kano, L. K. Choi, B. subhan Riza, and R. D. Octavyra, “Implications of digital marketing strategy the competitive advantages of small businesses in indonesia,” Startupreneur Business Digital (SABDA Journal), vol. 1, no. 1, pp. 44–62, 2022.
- J. M. Panjaitan, M. Darwin, S. Sumiyana, W. Wiva, and S. M. Setyowati, “Measuring the indonesian smes’ capabilities for sociodynamic and disruptive innovation: the case for gaining resilience and sustainability,” Journal of Innovation and Entrepreneurship, vol. 14, no. 1, p. 130, 2025.
- S. Y. Rani, R. Riya, S. Poddar, and B. S. Priya, “Leveraging climate change for business innovation and resilience: Strategic adaptation,” in Community Resilience and Climate Change Challenges: Pursuit of Sustainable Development Goals (SDGs). IGI Global Scientific Publishing, 2025, pp. 339–354.
- A. Yani, M. W. N. Manafe, and S. Santosa, “Analysis of the role of digital technology in driving business model innovation in msmes: Implications for enhancing operational efficiency and sustainable economic growth,” Technology and Society Perspectives (TACIT), vol. 3, no. 1, pp. 306–313, 2025.
- J. Wilson and E. Erika, “Empowering eco-innovation through digitalization in startup enterprises,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 2, pp. 146–154, 2025.
- B. ISRAEL and V. RUTAINURWA, “Dynamic skills for achieving profitability and long-term sustainability of start-up msmes,” Management Dynamics in the Knowledge Economy, vol. 13, no. 1, pp. 85–104, 2025.
- N. Kurnia, Liliasari, D. R. Adawiyah, and F. M. T. Supriyanti, “Determination of carbohydrates content in red dragon fruit for food chemistry laboratory,” in AIP Conference Proceedings, vol. 2330, no. 1. AIP Publishing LLC, 2021, p. 020032.
- R. Tarmizi, N. Septiani, P. A. Sunarya, and Y. P. A. Sanjaya, “Harnessing digital platforms for entrepreneurial success: A study of technopreneurship trends and practices,” Aptisi Transactions on Techno- preneurship (ATT), vol. 5, no. 3, pp. 278–290, 2023.
- N. Sipos, A. Rideg, A. S. Al Najjar, and L. Lukovszki, “Resource-based view of marketing innovation in smes: a multi-country empirical analysis based on the global competitiveness project,” Journal of Innovation and Entrepreneurship, vol. 14, no. 1, p. 94, 2025.
- A. Wiweko and A. W. Anggara, “A review of digital marketing practices among smes in indonesia: Trends, challenges, and opportunities,” International Research Journal of Economics and Management Studies IRJEMS, vol. 4, no. 5, 2025.
- R. Aprianto, E. P. Lestari, E. Fletcher et al., “Harnessing artificial intelligence in higher education: Balancing innovation and ethical challenges,” International Transactions on Education Technology (ITEE), vol. 3, no. 1, pp. 84–93, 2024.
- A. U. Hasanah, Y. Shino, and S. Kosasih, “The role of information technology in improving the competitiveness of small and sme enterprises,” IAIC Transactions on Sustainable Digital Innovation (ITSDI) vol. 3, no. 2, pp. 168–174, 2022.
- A. Prayitno et al., “Micro-scale strategy management: A study on the effectiveness of smallscale actions in msmes and startups,” American Journal of Economic and Management Business (AJEMB), vol. 4, no. 6, pp. 725–737, 2025.
- A. de la Calle, I. Freije, and M. A. Larrinaga, “Digital service innovation in smes: identifying the barriers for business model evolution,” Journal of Enterprise Information Management, 2025.
- A. Pambudi, N. Lutfiani, M. Hardini, A. R. A. Zahra, and U. Rahardja, “The digital revolution of startup matchmaking: Ai and computer science synergies,” in 2023 Eighth International Conference on Infor- matics and Computing (ICIC). IEEE, 2023, pp. 1–6.
- A. Williams and C. S. Bangun, “Artificial intelligence system framework in improving the competence of indonesian human resources,” International Journal of Cyber and IT Service Management, vol. 2, no. 1, pp. 82–87, 2022.
- R. A. Sunarjo, M. H. R. Chakim, S. Maulana, and G. Fitriani, “Management of educational institutions through information systems for enhanced efficiency and decision-making,” International Transactions on Education Technology (ITEE), vol. 3, no. 1, pp. 47–61, 2024.
- A. C. Pramono and W. Prahiawan, “Effect of training on employee performance with competence and commitment as intervening,” Aptisi Transactions on Management, vol. 6, no. 2, pp. 142–150, 2022.
- J. Ceicyte-Pranskune, “Sustainability values and strategic innovation in sustainable fashion msmes: the dynamic capabilities perspective,” Engineering Economics, vol. 36, no. 3, pp. 317–333, 2025.
- M. W. Wicaksono, M. B. Hakim, F. H. Wijaya, T. Saleh, E. Sana et al., “Analyzing the influence of arti- ficial intelligence on digital innovation: A smartpls approach,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 5, no. 2, pp. 108–116, 2024.
- A. Jufri and I. Hadiwibowo, “The impact of strategic agility on msmes innovation driven by digital en- trepreneurial leadership,” in E3S Web of Conferences, vol. 622. EDP Sciences, 2025, p. 04001.
- C. Davis, T. Bush, and S. Wood, “Artificial intelligence in education: Enhancing learning experiences through personalized adaptation,” International Journal of Cyber and IT Service Management, vol. 4, no. 1, pp. 26–32, 2024.
References
R. N. Rosyidiana and I. M. Narsa, “Micro, small, and medium sized enterprises (msmes) during the post pandemic economic recovery period: digitalization, literation, innovation, and its impact on financial performance,” Cogent Business & Management, vol. 11, no. 1, p. 2342488, 2024.
A. Hadi, “Adaptive innovation and business resilience in post pandemic msmes: Southeast asia compara- tive study,” Journal of Economics Management, vol. 1, no. 1, pp. 1–14, 2025.
T. Lesmana, “Resilience and recovery: Strategies of indonesian msmes in post pandemic economic revival,” Eastasouth Proceeding of Economics and Business, vol. 1, no. 1, pp. 48–55, 2023.
D. S. S. Wuisan, R. A. Sunardjo, Q. Aini, N. A. Yusuf, and U. Rahardja, “Integrating artificial intelligence in human resource management: A smartpls approach for entrepreneurial success,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 3, pp. 334–345, 2023.
Hernani, C. Winarti, T. Hidayat, A. Bin Arif, and S. Yuliani, “Physicochemical evaluation of coated ginger during long term storage: Impact of chitosan and beeswax bilayer coatings at different temperatures,” Scientifica, vol. 2024, no. 1, p. 2054943, 2024.
M. R. Aulia, Z. Lubis, I. Effendi et al., “Leveraging quality management and partnership programs for technopreneurial success: Exploring their impact on msme performance,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2, pp. 157–168, 2023.
N. Novilia, S. A. Bethari, H. Rusli, and M. B. Amran, “Determination of hydrotreated vegetable oil (hvo) in blended diesel fuel using calibration of isooctane by gcfid measurement,” Scientific Contributions Oil and Gas, vol. 48, no. 3, pp. 259–267, 2025.
H. Hokmabadi, S. M. Rezvani, and C. A. de Matos, “Business resilience for small and medium enterprises and startups by digital transformation and the role of marketing capabilities a systematic review,” Systems, vol. 12, no. 6, p. 220, 2024.
G. A. Pangilinan, S. Audiah, M. R. Shauqy, and O. F. P. Wahyudi, “Entrepreneurial marketing mindset as a determining factor for digital startup success,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 1, pp. 34–46, 2025.
O. Neumann, K. Guirguis, and R. Steiner, “Exploring artificial intelligence adoption in public organizations: a comparative case study,” Public Management Review, vol. 26, no. 1, pp. 114–141, 2024.
J. A. Putritamara, B. Hartono, H. Toiba, H. N. Utami, M. S. Rahman, and D. Masyithoh, “Do dynamic capabilities and digital transformation improve business resilience during the covid-19 pandemic? insights from beekeeping msmes in indonesia,” Sustainability, vol. 15, no. 3, p. 1760, 2023.
K. J. Sinha, S. Sinha, and B. J. Sinha, “Micro, small, and medium sized enterprises (msmes): The significant role and challenges in indonesia’s economy,” International Journal For Multidisciplinary Research, vol. 6, no. 3, p. 20824, 2024.
B. Rawat, A. S. Bist, U. Rahardja, C. Lukita, and D. Apriliasari, “The impact of online system on health during covid 19: A comprehensive study,” ADI J. Recent Innov, vol. 3, no. 2, pp. 195–201, 2022.
D. S. Wuisan and T. Handra, “Maximizing online marketing strategy with digital advertising,” Startupreneur Business Digital (SABDA Journal), vol. 2, no. 1, pp. 22–30, 2023.
N. Aprilia, W. T. Subroto, and N. C. Sakti, “The role of small and medium enterprises (smes) in supporting the people’s economy in indonesia,” International Journal of Research and Scientific Innovation, XI (XII), pp. 368–376, 2025.
S. Yuliani, T. Hidayat, H. Herawaty, and Hernani, “Characteristics of cocoa drinks formulated with nanoencapsulated vitamin and mineral,” in AIP Conference Proceedings, vol. 2957, no. 1. AIP Publishing LLC, 2024, p. 060058
A. Pinandita, N. Handayani, M. Iqbal, U. Triadhi, R. Rusnadi, S. D. Djajanti, M. B. Amran, and M. A. Zulfikar, “Anthrone-based dummy molecularly imprinted pvdf membrane for monitoring fluorene and phenanthrene in river water,” Molecules, vol. 30, no. 18, p. 3754, 2025. [18] L. Sanbella, I. Van Versie, and S. Audiah, “Online marketing strategy optimization to increase sales and ecommerce development: An integrated approach in the digital age,” Startupreneur Business Digital (SABDA Journal), vol. 3, no. 1, pp. 54–66, 2024.
R. Sarif, R. M. Susanto, N. R. Retnasih, and S. Segaf, “Revolutionizing resilience: msmes’ journey with digital strategies in post-pandemic recovery,” JMK (Jurnal Manajemen dan Kewirausahaan), vol. 8, no. 3, pp. 203–218, 2023.
C. K. Wigayha, B. Rolando, and A. J. Wijaya, “A demographic analysis of consumer behavioral patterns on digital e-commerce platforms,” JUMDER: Jurnal Bisnis Digital Dan Ekonomi Kreatif, vol. 1, no. 2, pp. 22–37, 2025.
U. Rusilowati, U. Narimawati, Y. R. Wijayanti, U. Rahardja, and O. A. Al-Kamari, “Optimizing human resource planning through advanced management information systems: A technological approach,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 1, pp. 72–83, 2024.
R. C. Turatti, “Application of artificial intelligence in forecasting consumer behavior and trends in e- commerce,” Brazilian Journal of Development, vol. 11, no. 3, pp. e78 434–e78 434, 2025.
Y. Pambreni and S. A. Sudari, “Msmes resilience during post pandemic through business digitalization mediated by competitive advantage,” Citizen: Jurnal Ilmiah Multidisiplin Indonesia, vol. 5, no. 1, pp. 145–155, 2025.
K. Kano, L. K. Choi, B. subhan Riza, and R. D. Octavyra, “Implications of digital marketing strategy the competitive advantages of small businesses in indonesia,” Startupreneur Business Digital (SABDA Journal), vol. 1, no. 1, pp. 44–62, 2022.
J. M. Panjaitan, M. Darwin, S. Sumiyana, W. Wiva, and S. M. Setyowati, “Measuring the indonesian smes’ capabilities for sociodynamic and disruptive innovation: the case for gaining resilience and sustainability,” Journal of Innovation and Entrepreneurship, vol. 14, no. 1, p. 130, 2025.
S. Y. Rani, R. Riya, S. Poddar, and B. S. Priya, “Leveraging climate change for business innovation and resilience: Strategic adaptation,” in Community Resilience and Climate Change Challenges: Pursuit of Sustainable Development Goals (SDGs). IGI Global Scientific Publishing, 2025, pp. 339–354.
A. Yani, M. W. N. Manafe, and S. Santosa, “Analysis of the role of digital technology in driving business model innovation in msmes: Implications for enhancing operational efficiency and sustainable economic growth,” Technology and Society Perspectives (TACIT), vol. 3, no. 1, pp. 306–313, 2025.
J. Wilson and E. Erika, “Empowering eco-innovation through digitalization in startup enterprises,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 2, pp. 146–154, 2025.
B. ISRAEL and V. RUTAINURWA, “Dynamic skills for achieving profitability and long-term sustainability of start-up msmes,” Management Dynamics in the Knowledge Economy, vol. 13, no. 1, pp. 85–104, 2025.
N. Kurnia, Liliasari, D. R. Adawiyah, and F. M. T. Supriyanti, “Determination of carbohydrates content in red dragon fruit for food chemistry laboratory,” in AIP Conference Proceedings, vol. 2330, no. 1. AIP Publishing LLC, 2021, p. 020032.
R. Tarmizi, N. Septiani, P. A. Sunarya, and Y. P. A. Sanjaya, “Harnessing digital platforms for entrepreneurial success: A study of technopreneurship trends and practices,” Aptisi Transactions on Techno- preneurship (ATT), vol. 5, no. 3, pp. 278–290, 2023.
N. Sipos, A. Rideg, A. S. Al Najjar, and L. Lukovszki, “Resource-based view of marketing innovation in smes: a multi-country empirical analysis based on the global competitiveness project,” Journal of Innovation and Entrepreneurship, vol. 14, no. 1, p. 94, 2025.
A. Wiweko and A. W. Anggara, “A review of digital marketing practices among smes in indonesia: Trends, challenges, and opportunities,” International Research Journal of Economics and Management Studies IRJEMS, vol. 4, no. 5, 2025.
R. Aprianto, E. P. Lestari, E. Fletcher et al., “Harnessing artificial intelligence in higher education: Balancing innovation and ethical challenges,” International Transactions on Education Technology (ITEE), vol. 3, no. 1, pp. 84–93, 2024.
A. U. Hasanah, Y. Shino, and S. Kosasih, “The role of information technology in improving the competitiveness of small and sme enterprises,” IAIC Transactions on Sustainable Digital Innovation (ITSDI) vol. 3, no. 2, pp. 168–174, 2022.
A. Prayitno et al., “Micro-scale strategy management: A study on the effectiveness of smallscale actions in msmes and startups,” American Journal of Economic and Management Business (AJEMB), vol. 4, no. 6, pp. 725–737, 2025.
A. de la Calle, I. Freije, and M. A. Larrinaga, “Digital service innovation in smes: identifying the barriers for business model evolution,” Journal of Enterprise Information Management, 2025.
A. Pambudi, N. Lutfiani, M. Hardini, A. R. A. Zahra, and U. Rahardja, “The digital revolution of startup matchmaking: Ai and computer science synergies,” in 2023 Eighth International Conference on Infor- matics and Computing (ICIC). IEEE, 2023, pp. 1–6.
A. Williams and C. S. Bangun, “Artificial intelligence system framework in improving the competence of indonesian human resources,” International Journal of Cyber and IT Service Management, vol. 2, no. 1, pp. 82–87, 2022.
R. A. Sunarjo, M. H. R. Chakim, S. Maulana, and G. Fitriani, “Management of educational institutions through information systems for enhanced efficiency and decision-making,” International Transactions on Education Technology (ITEE), vol. 3, no. 1, pp. 47–61, 2024.
A. C. Pramono and W. Prahiawan, “Effect of training on employee performance with competence and commitment as intervening,” Aptisi Transactions on Management, vol. 6, no. 2, pp. 142–150, 2022.
J. Ceicyte-Pranskune, “Sustainability values and strategic innovation in sustainable fashion msmes: the dynamic capabilities perspective,” Engineering Economics, vol. 36, no. 3, pp. 317–333, 2025.
M. W. Wicaksono, M. B. Hakim, F. H. Wijaya, T. Saleh, E. Sana et al., “Analyzing the influence of arti- ficial intelligence on digital innovation: A smartpls approach,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 5, no. 2, pp. 108–116, 2024.
A. Jufri and I. Hadiwibowo, “The impact of strategic agility on msmes innovation driven by digital en- trepreneurial leadership,” in E3S Web of Conferences, vol. 622. EDP Sciences, 2025, p. 04001.
C. Davis, T. Bush, and S. Wood, “Artificial intelligence in education: Enhancing learning experiences through personalized adaptation,” International Journal of Cyber and IT Service Management, vol. 4, no. 1, pp. 26–32, 2024.