The strategy for combining online and offline business model for MSMEs

Digital transformation has created an information revolution, eliminated boundaries, created a knowledge-based global market, and in MSMEs finding new business models, conducting business transactions and collaborating in all fields to form economic strength. Activities that are completely digital, even transaction activities are carried out digitally because they are faster, more effective and efficient. Therefore, MSMEs can apply a business model strategy that can combine online and offline activities. To increase their capability, MSMEs start with developing strategies to become hybrid businesses and combined online and offline business models. In this case, the authors conducted research on MSMEs that use strategies to combine online and offline business, this study offers guidance for MSMEs on what strategies should be used in achieving a business hybrid so that online and offline business models can be combined. In the formation of a business hybrid, there are five capabilities, namely, assimilative capability, ambidextrous capability, environmental capability, autonomous capability and digital and non-digital competitiveness capability. The ability of assimilative can improve managerial ability in the company, absorb knowledge or resources not only from the external environment, but can come from different business units within a company.