Audit of less-complex entities: challenges and opportunities in increasing good corporate governance in Indonesian SMEs

SMEs (Small and Medium Enterprises) in Indonesia are increasing. Digital technology development has changed market dynamics and how SMEs interact with consumers. Indonesian SMEs must adopt social media marketing as a promotional or sales instrument. The capabilities of Facebook, WhatsApp, Instagram, and TikTok in social media marketing are both opportunities and challenges for SMEs to take advantage of because of the differences in the suitability of their technological characteristics with the preferences and digital behavior of SME owners. 219 Indonesian SME data were used to create a decision tree model of a social media marketing mix for SMEs with the help of Orange Datamining software. The model testing parameters, especially Area Under Curve/ AUC (0.8070-0.9192) and Classification Accuracy/ CA (0.7231-0.8615) recommend the decision tree model in this study as a reference for SMEs in Indonesia in choosing a combination of social media for promotion and sales. This study also shows that the natural characteristics of Gen X, Y, and Z reflect the preferences and digital technology behavior of each generation in choosing a combination of various social media as a technology in doing business, with the note that the combination does not reflect proportions or priorities, and needs to consider the age of the business. In particular, the impact of new social media, such as TikTok, and its technological developments on generational preferences is an opportunity for future research.

Small and Medium Enterprises (SMEs) in Indonesia need to enhance their ability to face a global market. E-commerce provides potential benefits for SMEs. This study proposed a number of Indonesian SMEs' e-commerce adoption levels and their ranks based on customer-oriented benefits. The levels and ranks are determined based k-means clustering. Analysis result shows that Indonesian SMEs can be classified into four levels of e-commerce adoption based on customer-oriented benefits. The result of this study will be used as a metric in Indonesian SMEs' e-commerce adoption framework

Many small and medium enterprises (SMEs) in Indonesia have not yet realized the importance of financial records and accounting to identifying potential growth as well as company wellness. Cloud accounting is sure to have a significant impact on the growth of SMEs and can be highly beneficial for SMEs as it offers efficient technology, high security, ease of use, cost efficiency, etc. Nevertheless, the factors that indicate Indonesian SMEs' intention to use cloud accounting are not well understood. Therefore, this study undertook a literature review and interviews with 15 SMEs in Indonesia and suggests modified UTAUT2 as the model. Thus, this study proposed performance expectancy, effort expectancy, social influence, facilitating condition, price value, and perceived security & risk as independent variables influencing Indonesian SMEs' behavioral intention in adopting cloud accounting. Age and scale of business are proposed as moderating variables.

Purpose The Indonesian Government has taken many measures to support the development of small and medium enterprises (SMEs), which are expected to play a crucial role in employment creation, gross domestic product growth, and non-oil and gas export development. The purpose of this paper is to examine recent developments of SMEs in Indonesia. More specifically, it aims to address the following research questions: How important are SMEs in Indonesia? What are their main constraints? What is the impact of women entrepreneurs on SME development? and Can Indonesian SMEs be sources of innovation? Design/methodology/approach The paper analyzes data from Indonesia's National Agency of Statistics and reviews key literature and secondary data on Indonesian SMEs. Findings First, SMEs have been the main player in domestic economic activities as they account for more than 99.9 percent of all firms and employ 96.2 percent of the workforce. Second, key SME constraints include lack of finance and marketing difficulties. Third, representation of women entrepreneurs is still relatively low and can be attributed to low level of education and cultural/religious constraints. Finally, SME innovation capability is low for several key reasons. Originality/value The paper considers the involvement of women in SMEs in a Muslim-majority country and contributes to the literature on the innovation capability of SMEs.

Small and medium enterprises (SMEs) have a large contribution to Indonesia's economic growth, however, the productivity of Indonesian SMEs is still relatively low. One of the causes of the low productivity of SMEs in Indonesia is the ergonomics analysis has not yet been applied, especially environmental ergonomics. The owner or company management often does not pay attention to the conditions of the work environment. Besides, there is still very little research in this field. This study is intended to provide an overview of the working conditions of SMEs in Indonesia over the past decade. For this purpose, it was searched for research articles related to environmental ergonomics in Indonesian SMEs published from 2008 to 2018. The search results show that the working environment conditions in SMEs, such as temperature, lighting, noise, relative humidity, air quality, air velocity, and vibration, are almost all outside the specified threshold value. Various efforts need to be made to improve the working conditions of SMEs in Indonesia and encourage SME management to pay more attention to the environmental ergonomics aspects so that the conditions in the workspace of SMEs become healthier, more comfortable, and more productive.

Small and medium enterprises (SMEs) are crucial to a nation's economy, especially in developing countries; nevertheless, their involvement in international trade, particularly exports, is minimal, with SMEs representing merely 15% of Indonesia's total non-oil and gas exports in 2024. Women manage Indonesian SMEs more than men, yet they encounter difficulties doing foreign activities. This study aims to analyze the elements influencing the internationalization of SMEs and gender-specific roles. The research sample consisted of 190 SMEs, with 137 operated by women and 53 by males. The data analysis employs moderating regression analysis (MRA) with Smart PLS. The study's findings reveal that the critical determinants for the internationalization of SMEs in Indonesia encompass entrepreneurial characteristics (age and experience), SME characteristics, entrepreneurial orientation, and environmental factors. A significant disparity exists between male-managed and female-managed SMEs concerning their characteristics, environmental factors, and regulatory structures. Female SMEs exhibit enhanced agility and compliance with regulations. The characteristics of SMEs and the environmental factors have a more significant impact on the internationalization of male SMEs than female SMEs. This study's novelty is in the elements that facilitate successful internationalization and the contribution of women-led SMEs to enhancing internationalization efforts. Although the study's sample included Indonesian SMEs, the findings may yield more significant implications for the success factors of SME internationalization worldwide concerning gender diversity. This study offers insights for policymakers to enhance SME internationalization by incorporating SMEs into extensive industrial ecosystems and fostering a collaborative environment among industry stakeholders and SMEs within the export product supply chain.

The discussion of internationalization small and medium enterprises (SMEs) internationalization is salient in international business literature. In entering and performing in distant international markets, SMEs face more significant challenges than larger firms. This research aims to analyze the effects of psychic distance, international experience, and risk-taking ability among Indonesian SMEs internationalization in a distant market. This research was carried out with a survey involving 76 SMEs in Indonesia, and then the data were analyzed using multiple regression. The result shows that although the regression model is a good fit for the data, only international experience has a significant effect. This paper contributes by providing empirical evidence of (a) factors affecting the internationalization of SMEs of an emerging market in a distant market and (b) the role of psychic distance on internationalization in the context of SMEs.

Background: Innovation in Small and Medium Enterprises (SMEs) in Indonesia is essential for business development, requiring SMEs to foster innovative work behavior. However, some Indonesian SMEs still struggle to implement innovative work behavior, especially in utilizing digital technology for innovation in this digital era.Purpose: This study aims to explore the role of digital readiness in mediating organizational culture’s impact on the innovative work behavior of SME employees in Indonesia. Design/methodology/approach: The research employed a quantitative approach using Structural Equation Modeling - Partial Least Squares (SEM-PLS) analysis. The survey was distributed to SME employees in Indonesia. This research used 185 respondents for further data analyzing.Findings/results: The results reveal that digital readiness only mediates the relationship between market culture and innovative work behavior. On the other hand, digital readiness does not mediate adhocracy and clan culture to innovative work behavior. Conclusion: Results interestingly suggest that digital readiness significantly mediates market culture to innovative work behavior. Adhocracy and clan cultures may directly instill innovative work behavior, as confirmed by previous studies.Originality/value (State of the art): This is the first study to investigate how types of culture are associated with innovative work behavior mediated by digital readiness. Keywords: Innovation, innovative work behavior, organizational culture, digital readiness, SME

Many SMEs (Small and Medium Enterprises) owners still does not understand the importance of Information and Communication Technology (ICT). IT is used in variated field. Nearly all of the SMEs using IT for the administration processes. The government believes that the success of the SMEs development will strengthen the foundation of people's economy, because what is done by the SMEs until today is generally based on local resources, it does not depend on the imported resources. Weaving, in several regions of Indonesia, is flourishing to fulfil the national fashion material demand. The problems from this study are (1) To identify Information and Technology adoption and reviewing the information technology adoption variables on woven fabric SMEs in Indonesia (2) To analyse the connection between information technology adoption variables on woven fabric SMEs in Indonesia (3) To recommend the technology adoption model to the woven fabric SMEs in Indonesia including the implementation. The aims of this study is to give a recommendation through technology information adoption model which moderated by the Cloud SaaS to encourage the competitiveness of woven fabric SMEs in Indonesia. The total sample from all the woven fabric SMEs in Indonesia is 83 units as measured with census sampling technique because not all province had woven fabric SMEs.

Small and Medium Enterprises (SMEs) play a crucial role in Indonesia's economic growth, yet they often struggle with liquidity constraints due to ineffective cash management. This study employs a literature review method to examine the impact of cash management on liquidity among Indonesian SMEs. The findings reveal that structured financial planning, digital financial adoption, and improved access to funding are essential in mitigating liquidity risks. Additionally, the study identifies a strong correlation between effective cash management and business performance, emphasizing the need for SMEs to adopt sound financial practices. The research highlights gaps in existing literature and suggests further empirical studies to develop practical frameworks tailored to the financial landscape of Indonesian SMEs. The study contributes to the discourse on SME financial resilience and offers policy recommendations to enhance liquidity management.

This study aims to investigate the impact of using a Cloud-Based Accounting Information System (CB-AIS) on digital transformation and its subsequent effect on the sustainability performance of Small and Medium Enterprises (SMEs) in the food and beverage sector in Indonesia. Sustainability performance is measured across three dimensions: economic, social, and environmental. Quantitative research methodology has been adopted, and the survey methodology has been conducted in this paper. Data were collected from 151 SMEs using the convenience sampling method. Structural Equation Modelling-Partial Least Squares (SEM-PLS) was employed for data analysis. The results reveal that CB-AIS has a significant positive effect on digital transformation and sustainability performance. Digital transformation also significantly influences sustainability performance and serves as a partial mediator in the relationship between CB-AIS and sustainability performance. These findings underscore the critical role of CB-AIS implementation in facilitating the digital transformation of SMEs, ultimately enhancing their sustainability across economic, social, and environmental dimensions. This study provides theoretical and practical contributions to the development of digital strategies for SMEs in Indonesia’s food and beverage sector.

Information technology has enormous benefits for small and medium enterprises (SMEs) especially to develop innovations in order to enhance their competitiveness. However, currently only few SMEs in Indonesia have used information technology. This study was conducted to examine the factors that influenced SMEs in utilising information technology as well as the impact of information technology utilisation for innovation and performance of SMEs. Based on survey data collected from 115 Indonesian SMEs, it is concluded that the perceived benefits, organisational readiness, and external encouragement have significant positive influence on the utilisation of information technology, with the most dominant factor being organisational readiness. The results also showed that the utilisation of information technology has a significant positive impact on innovation and performance.

E-commerce provides several advantages for Small and Medium Enterprises (SMEs). E-commerce adoption by Indonesian SMEs is still very low. This study conducts a research to establish a maturity model of e-commerce adoption by Indonesia SMEs. It was carried out in two phases from 2014 until 2015. The result of the first phase recommends four levels of maturity model and 13 e-commerce benefits, 51 functionalities, and 9 non-functionalities that an e-commerce solution must have. The result of the second phase presents a maturity model of e-commerce adoption for SMEs in Indonesia.

In response to growing environmental concerns and global sustainability goals, businesses are increasingly adopting more sustainable practices, a move strongly supported by stakeholders worldwide. However, for companies in Indonesia, a developing country, balancing the need to consider environmental impacts with pursuing profits poses a challenge. Small and Medium Enterprises (SMEs) are vital to Indonesia’s economy and play a crucial role in this context. To address this challenge, this paper aims to examine the sustainability values and practices of certified B Corps SMEs in Indonesia, using secondary data from B Corp. Through thematic analysis, a better understanding of the environmental, social, and governance characteristics of Indonesian SMEs’ practices can be gained.This research provides a comprehensive understanding of sustainability innovation within SMEs. It also offers valuable insights for stakeholders and policymakers seeking to enhance environmental and social impacts in the Small and Medium Enterprises sector, particularly for their practices in Indonesia.

The increasing of contribution of small and medium enterprises (SMEs) toward Indonesia economy stimulates government to provide more attention in promoting SMEs. Numereous studies show that business clustering have been succed in fostering SMEs, therefore many governments including Indonesia tend to benchmark cluster policy. However, the Indonesian SME’s characteristics should be taken into account in formulating cluster policy. This paper aims to propose a cluster model in promoting SMEs in Indonesia, based on literature review of business clustering across the globe.