Developing a Strategic Business Model to Strengthen MSME Readiness for Government Procurement: A Case Study of QRS Travel

Abstract

Micro, small, and medium-sized enterprises (MSMEs) in Indonesia’s travel sector face institutional, administrative, and operational barriers to participating in government procurement. This study develops a strategic business model to strengthen procurement readiness in QRS Travel, a travel-service MSME that has operated for more than five years but has not secured a government contract through formal procurement procedures. Adopting a qualitative single-case study design, the research draws on interviews, observations, document reviews, information from Indonesia’s Electronic Procurement System (LPSE), and selective benchmarking with Bluebird. SWOT analysis was used to assess internal and external conditions, while the TOWS matrix was applied to formulate strategic alternatives, which were subsequently integrated into the Business Model Canvas (BMC). The findings identify several areas requiring improvement, including procurement knowledge, administrative and financial recordkeeping, employee competencies, digital capabilities, and organizational governance. Accordingly, the proposed model comprises three strategic priorities: (1) digital transformation and human resource development; (2) strategic partnerships and collaborative networks; and (3) business infrastructure and governance improvement. Bluebird’s practices provide selective external insights, interpreted in light of differences in organizational scale and resource availability. This study contributes a case-specific approach to integrating strategic management tools and business model development to strengthen MSME procurement readiness. However, implementation and subsequent evaluation are necessary to determine whether the proposed model improves procurement participation or contributes to government contract acquisition.