Network Perspective In The Internationalization Of Indonesian Smes In The Era Of Industrial Revolution 4.0

The level of globalization that goes hand in hand with the 4.0 industrial revolution demands the fighting power of companies both in large and small and medium scales to determine dynamic strategies in anticipating competition and expansion targets through international markets. SMEs in Indonesia as the spearhead and pillars of Indonesia's economic strength are also required to be able to improve their performance, especially in promoting their business on an international scale. Indonesian product SMEs for export competitiveness are mostly based on local wisdom-based products, therefore innovation is needed in developing products with local wisdom. Various obstacles faced by SMEs in managing their businesses, especially related to limitations in implementing production management activities, human resource management and marketing management. The solution to the various limitations that have become problems for SMEs in facing the internationalization process is to establish a network that involves various stakeholders. The networkQuality and integrated with the support of government programs will be able to support the competence and capabilities of SMEs in facing the internationalization process in the industrial revolution 4.0. This study examines the role of networks in enhancing the internationalization strategy of Indonesian SMEs.


INTRODUCTION
The level of competition and challenges of companies in the era of globalization and in the ASEAN market demands the ability of companies to determine dynamic strategies in anticipating global competition. Indonesia as a country whose growth and development is largely determined by the growth of businesses with a small and micro scalemMedium (UKM), must also be able to increase competitiveness in dealing with countries in ASEAN. SMEs as the spearhead of Indonesia's economic competitiveness must be able to improve their performance, especially because they play a role as a driver of economic activity in the community.
Data from the Ministry of Cooperatives and SMEs of the Republic of Indonesia in 2018 shows: the share of SMEs is around 99.99% or 64,194,057 units. Meanwhile, the share of large businesses is 0.01% or around 5,550 units. Absorption of labor for Micro businesses was 107,376,540 people (89.04%), absorption of labor in Small Businesses was 5,831,256 workers (4.84%), and Medium Enterprises amounted to 3,770,835 workers (3.13%). ); and employment of large enterprises of 3,619,507 workers. This clarifies the role of small and medium enterprises in the Indonesian economy.
The Minister of Cooperatives and SMEs set a target of 6% of small and medium enterprises (SMEs) in Indonesia to upgrade from small to medium enterprises and from medium to large enterprises. the number of small businesses amounting to 700,000. This means that 6% of the total 42,000 must go to class. Meanwhile, the medium-sized businesses to date have reached 60,000. This means that 6% of this amount of 6,000 must be promoted. "So the target to go up to grade in the next five years is 48,000 small and medium enterprises,". Micro, small and medium enterprises (UKM) must be the backbone of the national economy as well as the spearhead of the domestic economic turnover. However, the facts faced are that SMEs still face various challenges to be more competitive internationally.
The development of Indonesian SMEs towards the era of global markets or international markets is still relatively lagging behind. Most research on SMEs from developing countries states that the challenges faced ISSN: 2722-4015 https://ijstm.inarah.co.id by local SMEs are in their size and ability or capability, while studies on the efforts of SMEs in Indonesia to face internationalization are still limited. As a result, little is known about efforts to prepare SMEs for global markets. Therefore this article attempts to analyze the various problems faced by Indonesian SMEs in the internationalization process. Especially regarding the involvement of Indonesian SMEs in the international market is still relatively low compared to SMEs from other countries in Asia, thoughThe commitment of the Indonesian government to SMEs is quite high, but the level of internationalization of SMEs is still low, and recommendations for SMEs in the midst of the Indonesian government's efforts to develop SMEs to face the 2015 AEC.
Networkor networking is one strategy that allows SMEs to penetrate the international market. Network provides a different view on the efforts of SMEs to enter international markets. With a network, the market is a network of relationships between business people. Internationalization that utilizes networks as a strategy, focuses attention on the efforts of companies to build, cultivate, maintain and change relationships for the benefit of the company's presence in the international market. According to the network concept, internationalization is influenced by the relationships established between networks rather than company advantages. Network members influence the decisions and activities of companies in the network. This study aims to understand the small business networking process to work on the international market and the negative impact of the network itself on international business. To achieve this, a qualitative research approach will be used.
Previous research has revealed that networks have succeeded in facilitating small companies, especially in reducing losses in international operations (Coviello and Mcauley, 1999 The results of this study will focus on understanding how the role of networks in improving the capabilities and behavior of SMEs in the internationalization strategy, and the networks discussed emphasize cooperation in technology so that SMEs are able to increase their business scale internationally.

II. METHOD
This article is part of a qualitative study conducted through a conceptual study through a literature review. The purpose of this study is to determine the role of networks in strengthening the competence of SMEs towards the global market in the era of the al revolution 4.0. To get an in-depth answer, it is necessary to discuss the cases of 2 SMEs that have gone through the internationalization process. The information obtained was obtained through semi-structured interviews.
The results of data collection were analyzed using content analysis method. then compared with the theoretical framework where an understanding of various empirical data and the content of communication messages conveyed by the object of research will be obtained. Data from the research objects of SMEs show that they are able to produce export-quality products and have potential in the internationalization process.

II. LITERATURE REVIEW
Internationalization encourages large companies and SMEs to operate on a national scale and compete with other foreign companies (Barkema et al., 2002). Compared to large companies, SMEs have to overcome bigger obstacles. SMEs must be able to take advantage of their advantages and create a niche market to cover their losses (Pleitner et al., 1998).
SMEs must identify and optimize their limited resources to carry out their best activities. The production process must be divided into several stages through linking and networking in order to provide better results in business. Networking as an important factor in entrepreneurship can affect the number of entrepreneurs and start-up businesses (Acs & Szerb, 2010). Networking is a key factor in developing SME export activities, and most SMEs have limitations in building networks and their components (Tambunan, 2011). Another opinion was put forward by Mourougane (2012) and Aldaba (2021) who stated that networks are related to human resource capabilities, because human resources are capable of being a barrier faced by SMEs. In addition to networks and human resources, Based on the research recommendations above which support the argument that networks have a significant influence on the internationalization process related to: speed, pattern, market selection and mode of entry. Mohamed Zain and Siew Imm Ng (2006) from Malaysia analyzed literature from developed countries regarding the relationship between SME networking and internationalization. The formulation of the proposition put forward by the researchers is as follows: 1. Network relationships spark and motivate companies, initial internationalization intentionsnetwork relationships spark knowledge opportunities and motivate firms to enter international markets. In addition, working together can help companies overcome difficulties and lack of motivation. 2. Network relationships influence the company, the decisions the market chooses 3. Network relationships influence companies, fashion decisions enter. Relationships between firms (eg with clients, customers) influence the selection of markets and modes of entry for small firms.
The main partner often guides the selection of foreign markets and provides a mechanism for entry to the market. 4. Network relationships allow enterprises, access to additional relationships and an established channel. Starting a business overseas requires a company to develop distribution channels to market its products. One way to overcome this problem is to develop network relationships with foreign partners -especially those with established distribution channels17). Networks also help companies connect with potential buyers. The use of alliances and cooperation arrangements by SMEs can increase penetration of foreign markets by providing access to additional links. 5. Network links allow companies access to local market knowledge. 6. Network relationships help companies gain initial credibility. Network links help companies to access local market knowledge and obtain business information and contacts. Credibility and trust are developed through collaboration. 7. Network relationships assist companies in lowering costs and minimizing risks of internationalization. Business networks in the form of social capital that are based on interrelated relationships give Asian companies a variety of competitive advantages, for example. reduce transaction and search costs for buyers. When entering a new market, decision makers usually minimize their risk by making use of known contacts and connections. Through collaboration companies can achieve rapid internationalization. 8. Network relationships affect the speed and pattern of corporate internationalization. found that the speed and growth patterns of international markets and the choice of entry modes for small firms were influenced by close customer relationships. Also, Coviello and Munro (1995) found that through network relationships companies can internationalize very quickly by connecting themselves to wide and established networks. 9. Network relationships limit the future scope and market opportunities of the company. Although network relationships facilitate the international growth of SMEs, they also limit the pursuit of other opportunities. Network relationships can hinder product development activities and market diversification due to corporate network ties and high dependability.  The role of networks is evident from the results of research to encourage the internationalization process of SMEs. This support is also evident from the collection of empirical data from interview and observation techniques, carried out in two internationalized SMEs located in Batu, East Java, namely Arjuna Flower and Arjuna 999. The SMEs which are the object of this research have similar characteristics, namely; small and medium sized companies, which have adopted a business-to-customer and business-to-business approach, and have carried out export activities. Sources of data in this study are company owners and company managers related to operational activities and the internationalization process in these SMEs.
sustainable. The market is uncertain, the long-term plan with Japan is definitely 5 years, with local farmers unpredictable, farmers' mindsets are different. Japan, 1998, with Japanese companies. Japan is more about performance.
PT. ARJUNA 999 CV. Arjuna 999 is a shop that is domiciled in Batu City, East Java, which processes various kinds of fruit chips. According to the CEO of CV. Arjuna 999 Anjun Hasiholan, that all the processed food on display comes from local fruits and vegetables, especially those from Malang City, East Java. "Kota Batu Malang is famous for its fruits and vegetables, with the condition that Kota Batu is a producer of vegetables and fruit for processing its agricultural products into something that has a selling value, so that it becomes a processed chip product with a variety of fruit and vegetable flavors." This family business that has been running for 3 years has succeeded in penetrating overseas markets. Even the food that was exported was originally food that was made traditionally, that ispeanut brittleaka peyek. Not only in chips, CV Arjuna 999 has also expanded its business wing by creating a type of cereal that comes from fruits and vegetables, namely "Hapy Chips Cereal." packaged beautifully and suitable for children because it contains vitamins and is rich in fiber. (*). The owner's internationalization process occurs after going through a long process, even after being rejected many times because the product is deemed not meeting quality requirements and similar products already exist in the shop. Finally, with the help of her children marketing online through social media, at that time she immediately got a response from the typical Indonesian souvenir business owner who lives in Hong Kong. This first request cannot be done alone, therefore with the help of local women and borrowing the equipment needed, the owner can fulfill the request. This new demand is also still constrained by packaging, because peanut brittle is easily crushed, so it becomes a challenge in packaging. The next product development is to make various variants of the project. Currently, almost all Asean countries have ordered the project, with an average turnover of 14 thousand packs a month. The marketing area has expanded to the Middle East, and with the current business development, Arjuna 999 is also committed to fostering and accommodating the business results of business actors who are relatively new to go international. All the results of this business are managed professionally and creatively with young, digital-savvy workers. The main product relies on local wisdom, and currently a variety of crispy and frozen chips have been developed. Marketing is done through online IG, FB, Shopee, and Content is managed by a special team as a partner.

III. RESULTS AND DISCUSSION
Besides having many functions and benefits, SMEs also still contain various fundamental problems that need to be immediately studied and resolved. Apart from problems in the field of management, small entrepreneurs (SMEs) also face problems: marketing, human resources, capital, technology, partnerships and social, economic, political and cultural problems (Anoraga, 2002). The problem of networking in small businesses can be interpreted in different ways. Network problems can be interpreted as working together between small entrepreneurs or working with medium or large entrepreneurs. Network problems in small businesses, both with fellow small entrepreneurs or with large entrepreneurs, are still lacking and limited.
Paying attention to the current internationalization process of SMEs in Indonesia, in general, the following problems can be found: 1. SMEs in carrying out activities are still running separately, marked by limitations in the use of technology, production quality still requires time and a long process to meet export product requirements. 2. Market Knowledge.
Lack of experience, access and information to introduce SME products to potential international markets is an obstacle for SMEs in the internationalization process, making them reluctant to undertake risky expansion efforts. On the other hand, SMEs have a fairly large orientation towards the domestic market rather than the global market so that brands have less experience in conducting international business practices 3. SMEs have limited knowledge of legal issues, due to a lack of assistance from relevant institutions that can advise them on legal issues, international rules and certain regulations in a country.

Financial constraints.
SMEs often complain about a lack of access to financiers or institutions that can offer financial assistance. The funds that have been obtained are often used for the development of the domestic market and are almost never used to prepare business lines abroad. In addition, funds from venture capital, which can actually be used as initial capital, are still not developed properly. 5. Lack of supporting infrastructure. The main obstacle to the growth of Asian countries is a lack of infrastructure support. Weak transportation connectivity and logistics systems are hampering business growth in Indonesia and this makes it difficult for the government to reduce poverty and inequality. 6. Limitations of technology and innovation. SMEs have limited access to adopting appropriate technology.
Even if SMEs are able to adopt technology, in general they adopt an entry-level level of technology, with a low level of information technology (IT) capability and implementation, and are unable to properly conduct research and product development. IT implementation among Indonesian SMEs is still at a basic level, where computers are only used for word processing and simple calculations or access to social media such as Facebook and Instagram as a means of marketing. 7. Limited human resources. Quality information management plays an important role in creating competitive advantage and adapting to changes in the fast business environment. However, SMEs face major problems in managing information due to their limited human resources. Human resource constraints include lack of motivation, lack of skilled and talented workers and limited ability to transfer knowledge and technology management. As a result, SMEs are not able to increase the efficiency, productivity and quality of their production. 8. Keballow the government.
Another big challenge has to do with public policy. the bureaucratic level in government agencies also contributes to the obstacles faced by SMEs. SMEs face problems from the government if there is no synergy from institutions and programs designed to develop SMEs. The lack of government incentives to support the adoption of new technologies and programs that support the internationalization of SMEs is a weakness in delaying the acceleration of the internationalization of Indonesian SMEs. It is often found in the field that the framework developed for the development of SMEs is not comprehensive. There are also agencies or channels involved, but most of them are unrelated and uncoordinated. In addition, data and information on Indonesian SMEs are inadequate and rarely updated.

Problem Solution
The solution that is able to solve the problems mentioned above which is felt to be more urgent or urgent is action that directs SMEs so that they do not walk alone into areas that are not very well known to them. A strategic step to spur a new or global region is the establishment of a network for SMEs. Networks must be able to bridge the various limitations faced by SMEs. The main objective is that this network is expected to increase competencies which are considered capable of increasing the competitiveness of SMEs in the international market. This is in line with what Chetty and Patterson (2002) stated, namely that the concentration of business networks comes from exchanges on social networks, and the internationalization process of SMEs from this perspective is considered capable of overcoming limited resources, experience and credibility.
The government plays a role by fostering SME actors, especially in the field of production management. This can be seen from the capital or equipment assistance programs for SME actors from local governments through various agencies such as Disperindagkoptan, Disnaker, Social Agency, and others. However, the provision of assistance is less coordinated and integrated, so that the driving force for strengthening SMEs is less than optimal. It is not uncommon for aid to be misused into unproductive expenses, causing bad credit and stagnating business development.