Enhancing Business Decision-Making of Purwakarta MSMEs through AI-Based Market Analysis
DOI:
https://doi.org/10.51601/ijcs.v6i2.988Abstract
Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in economic development; however, they face increasing challenges in making effective business decisions due to rapidly evolving market dynamics. Artificial Intelligence (AI) has emerged as a strategic tool to enhance decision-making processes through data-driven insights. This study aims to analyze the effect of AI-based market analysis on decision-making quality and its impact on business performance among MSMEs in Purwakarta. A quantitative approach was employed using survey data from 165 MSME owners, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that AI-based market analysis significantly improves decision-making quality (β = 0.66, p < 0.001), which subsequently enhances business performance (β = 0.61, p < 0.001). Furthermore, data readiness strengthens the effectiveness of AI utilization. These findings contribute to the literature on digital transformation and provide practical insights for MSMEs in adopting AI-driven strategies.
Downloads
References
[1] Y. Yesuf and Z. Fields, “Artificial Intelligence Adoption as a Driver of Innovation and Competitiveness in SMEs,” F1000Research, 2025.
[2] L. I. Fitriastuti, “The Role of Artificial Intelligence in SMEs Decision Making,” Jurnal Riset Manajemen, 2025.
[3] M. Usman and P. Harto, “Artificial Intelligence for Sustainable Development in MSMEs,” Research Horizon, 2024.
[4] R. Hidayat et al., “Peran AI dalam Pengambilan Keputusan Bisnis,” Sosial Simbiosis, 2024.
[5] Y. Manza, “AI for MSMEs: Smart Solutions to Optimize Operations and Marketing,” Journal of Technology and Computer, 2025.
[6] E. S. Hamid and B. Artha, “AI Adoption in MSMEs: Evidence and Barriers,” Journal of Islamic Economics, 2025.
[7] M. T. Arsyianto and B. E. Soetjipto, “Machine Learning Driven Market Analysis for SMEs,” IJEMA, 2025.
[8] PwC, “AI Value Creation for MSMEs,” 2026.
[9] M. Rozaq et al., “Digital Innovation in SMEs,” Frontiers in Communication, 2025.
[10] J. Hair et al., “PLS-SEM Methodology,” Structural Equation Modeling Review, 2021.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Warsono sudiro, Suhendri; Arlen Nawang Rachelia Arlen, Indri Yani Lasmini Indri

This work is licensed under a Creative Commons Attribution 4.0 International License.





















