BUSINESS PERFORMANCE OF MSMES AMIDST THE COVID-19 PANDEMIC LOCKDOWN: A CASE STUDY OF THE FOOD AND BEVERAGE SECTOR

The Covid-19 pandemic and the lockdown associated with it have shown how turbulent the business environment could be. The resources (tangible or intangible) become very crucial to the survival of firms during this period. Innovation has theoretically been documented as a valuable resource which could foster firm performance. The aim of this paper is to empirically examine the relationship between innovation efforts, technology innovation and the financial performance of micro, small and medium enterprises (MSMEs) in food and beverage sector in Dammam area of Saudi Arabia. The results of structural equation model reveal that innovation efforts contribute positively and significantly to product and process innovations. Meanwhile, process innovation is positively significant in influencing the MSMEs' financial performance whereas product innovation though positive but not significant. This implies that top management in this sector should concentrate more on process innovation as this improve their financial performance during the lockdown in Dammam.

This article investigates the relationship between leadership styles and business financial performance of Small and Medium Enterprises (SMEs) in Tanzania. Previous empirical studies mainly focused on a direct influence of a single leadership style. However, there is a possibility that the combined leadership styles moderated by firm characteristics to have more influence on business performance especially in the SMEs setting. Specifically, the article analyses the relationship between four leadership styles (i.e. transactional, transformational, combination of transactional and transformational leadership and, passive-avoidant) and Business financial performance of SMEs considering the moderating effect of firm characteristics. Cross sectional survey design was adopted to carry out the research. The article is guided by Transactional leadership theory, transformational leadership theory and Contingency theory while Mean and multiple regressions were used to analyze data elicited from one hundred and ten (110) randomly selected SMEs. The results revealed that transformational leadership style and, combined transformational and transactional leadership styles had significant positive influence on SMEs’ financial performance. On the other hand, transactional leadership style had significant negative influence on SMEs’ financial performance. Passive- avoidant leadership style was found to have insignificant influence on SMEs’ financial performance. Furthermore, the results revealed that ownership structure and firm age moderated the influence of transactional leadership style, passive-avoidant leadership style and the combination of transformational and transactional leadership styles on SMEs’ financial performance. Among others, the article recommends that SMEs’ leaders have to apply the combination of transformational and transactional leadership styles if they want to realise relatively high SMEs’ financial performance.

The purpose of this study is to analyze the effects of digital marketing (DM), e-commerce (EC), business sustainability (BS) and financial performance (FP) of Micro, Small and Medium Enterprises (MSMEs) during Pandemic Covid19 in Indonesia. The relationships between digital marketing and business sustainability, e-commerce and business sustainability, digital marketing and financial performance, e-commerce and financial performance, financial performance and business sustainability are investigated. This research is quantitative research with a questionnaire approach. Data processing tools use the SmartPLS 3.3.3 software. The primary data collection method was accomplished by distributing online questionnaires to 120 MSMEs in Banten Indonesia who had experienced the pandemic. The results show that digital marketing had significant effect on business sustainability, e-commerce had significant effect on business sustainability, digital marketing had significant effect on financial performance. However, e-commerce had no significant effect on financial performance, financial performance had no significant effect on business sustainability, digital marketing had no significant effect on business sustainability through financial performance, e-commerce had no significant effect on business sustainability through financial performance. The use of digital marketing has been carried out to increase customer awareness. Marketplace as a manifestation of e-commerce is used as an innovation or change in sales methods.

This research aimed to analyze the influence of the nine components of Business Model Canvas (BMC) on financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Kudus Regency. BMC components included Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure. In addition, the data was collected from 393 MSMEs selected through purposive sampling using a quantitative method. The analysis was performed using Structural Equation Modeling (SEM) and SmartPLS 3 software. The results showed that Cost Structure had a positive and significant impact on financial performance of MSMEs out of the nine BMC components. In this context, the efficiency in cost management significantly contributed to the improvement of financial performance. Other components such as Channels, Customer Relationships, Customer Segments, Key Activities, Key Partnerships, Key Resources, Revenue Streams, and Value Propositions did not have a significant impact on financial performance. Therefore, MSMEs in Kudus Regency were expected to optimize the implementation of the components to have a greater impact on financial performance. The practical implications were that MSMEs should focus more on efficient Cost Structure management as a primary strategy to enhance financial performance.

Purpose: The purpose of this research is to empirically examine the relationship between human capital and the financial performance of Micro, Small, and Medium Enterprises (MSMEs), with payment gateways serving as a potential mediator. Given the significant contribution of MSMEs to economic growth and the challenges they face in financial management, this study aims to explore the role of human capital and payment gateways in enhancing the financial performance of MSMEs, thereby providing insights into strategies for improving the economic viability of this sector. Methods: The research employs a descriptive quantitative approach utilizing primary data. Hypothesis testing is conducted using WarpPLS 7.0 software. The study population consists of all MSMEs in the city of Surabaya, with a total of 100 respondents selected through random sampling. Data are collected to analyze the influence of human capital on financial performance, the impact of payment gateways on financial performance, and the potential mediating role of payment gateways in the relationship between human capital and financial performance. Results and Discussion: The test results indicate that human capital has a positive and significant effect on both the financial performance of MSMEs and the utilization of payment gateways. Additionally, payment gateways demonstrate a positive and significant impact on the financial performance of MSMEs. Furthermore, the findings suggest that payment gateways mediate the relationship between human capital and financial performance, indicating that the adoption of payment gateways enhances the link between human capital and financial outcomes in MSMEs. Implications of the Research: The research findings hold several implications for policymakers, MSMEs, and stakeholders involved in economic development. By highlighting the importance of human capital and payment gateways in improving the financial performance of MSMEs, this study underscores the significance of investing in workforce development and adopting digital payment solutions. Encouraging the use of payment gateways among MSMEs can mitigate financial management risks and enhance financial performance, thereby contributing to the overall economic growth and sustainability of the MSME sector. Originality/Value: This research contributes to the literature by examining the interplay between human capital, payment gateways, and financial performance in the context of MSMEs. By empirically testing the mediating effect of payment gateways, this study offers new insights into the mechanisms through which digital payment technologies can facilitate financial management and improve the economic viability of MSMEs. The findings provide practical implications for policymakers and MSME stakeholders seeking to leverage human capital and digital innovation to foster sustainable economic development.

The study examined the effect of each of the dimensions of innovation on the performance of small and medium enterprises (SMEs) in Harare, Zimbabwe. It also examined the moderating effect of a firm’s age and size on the innovation-performance relationship of SMEs. A cross-section of 330 SMEs was taken from Harare using a structured questionnaire which was randomly distributed to the respondents. Structural equation modeling and moderated regression analyses were performed to test the research hypotheses. Results show that, aggregately innovation does not significantly influence both financial and non-financial performance of a firm. Out of the four dimensions of innovation, only marketing innovation significantly influences the firm’s financial and non-financial performance. Results also show that the effect of marketing innovation on the firm’s financial performance is stronger in younger than older firms. Similarly, results reveal that the effect of marketing innovation on the firm’s financial performance is stronger in bigger than smaller firms. Therefore, younger and bigger firms are advised to take advantage of innovation as a tool to improve their performance. On the contrary, older and smaller firms are advised to be cautious when attempting to boost their performance through innovation.

This research was conducted to search the financial performance of local small and medium enterprises (SMEs) of coastal area of Belawan in Medan city. This study used 60 respondents to see the effect of the behavior of financial management such as habits, field and capital on financial performance. This research used dummy variable-gender to find the level of financial performance between men and women. This test used descriptive and regression analysis as the research methods and SPSS as the analysis tools. The result showed that simultaneously habits, field, capital and gender have significant effect on financial performance. While partially, habits have significantly positive effect on financial performance. Field has no significant effect on the financial performance. Capital has no significant effect on financial performance and dummy variable explains that men have smaller financial performance than women do. The implication of the research explains that the owner of SMEs can manage their financial behaviour which consists of habits, field and capital.

The complex relationship between tax policy components and the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia is examined in this study. A survey was conducted with a sample of 250 MSMEs to capture different industry types, firm sizes, and geographical regions. The study assessed the relationship between tax rates, tax incentives, firm size, industry type, and financial performance indicators using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The structural model yielded important insights, while the measurement model demonstrated good validity and reliability. As lower profitability correlates with higher tax rates, policymakers should consider the tax burden of MSMEs. On the other hand, tax incentives show a good correlation with financial performance, suggesting that they may be useful in encouraging MSME expansion. The complex interaction between firm size industry type and financial performance is highlighted. The SEM-PLS model fits the data well, according to the model fit assessment. To support the sustainable expansion of MSMEs in Indonesia, policymakers and MSME owners can benefit from the results of this study, which has practical implications such as for the Government is the present policies need to be evaluated in order to improve MSME compliance. Meanwhile, it is important for MSMEs to improve their competencies such as financial literacy.

This study aims to examine the influence of financial literacy, financial inclusion, and financial management on the quality of financial reporting and the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Surakarta. Using a quantitative approach, data were collected through questionnaires distributed to MSME actors who met certain criteria. The analysis was conducted using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method. The findings show that financial literacy, inclusion, and management have a significant effect on the quality of financial reporting, which in turn positively affects financial performance. The quality of financial reporting also acts as a mediating variable in the relationship between financial behavior and MSME performance. This research contributes to the development of MSME financial practices and provides insight for policy makers in enhancing financial capability and reporting standards among MSMEs

This study analyzes the effectiveness of sharing economy platforms and management accounting systems (MAS) on the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Malang City, Indonesia, by considering the moderating effect of demographic factors such as gender, age, and business tenure. The investigation also examines the impact of formal and informal education on financial performance, positing that practical training yields greater financial improvement than theoretical schooling. This research examines 234 MSMEs using structural equation modeling (SEM) with SmartPLS and employs path analysis to investigate the impact of sharing economy platforms on MAS, as well as its consequences for financial performance. The results indicate that sharing economy platforms and MAS have a significant effect on financial performance. Informal education has a significant effect on sharing economy platforms and MAS, whereas formal education has a negative effect on financial performance. Demographic factors were observed to have a significant moderating effect on the path from MAS to financial performance. This study introduces the Adaptive Financial Capability Model (AFCM), a novel framework that uniquely integrates adaptive learning derived from informal education with demographic factors. By bridging practical training with contextual variables, such as gender, age, and business tenure, the AFCM provides an original perspective on enhancing financial management and technology adoption within MSMEs.

The COVID-19 pandemic has lasted almost two years. This has an impact on the sustainability of micro, small and medium enterprises (SMEs). Various efforts have been made to maintain the sustainability of SMEs, one of which is by adopting information technology in their marketing. This study aims to determine the effect of digital marketing, and knowledge of information technology on the financial performance of micro, small and medium enterprises (SMEs)This research is quantitative research. Data was obtained by using a questionnaire. The respondents in this study were SMEs actors in Kapanewon Tempel Sleman Yogyakarta. From the number of SMEs actors who are members of the SMEs Forkom as many as 110 respondents, data is obtained as many as 60 respondents. This study was analyzed using multiple linear regression analysis. Based on the results of data processing, it is known that the use of digital marketing by SMEs actors and SMEs actors' knowledge of information technology affects financial performance.

Purpose The adoption of activity-based costing (ABC) and its performance implications within the small- and medium-sized enterprise (SME) context has received limited attention. Since its development in the1980s, the literature on the ABC-performance nexus has been inconclusive, diverging and has produced conflicting results. Whether specific attributes of innovation influence ABC’s adoption to enhance SME performance is largely unknown in emerging economies. The purpose of this study is twofold: first, to examine the impact of innovative attributes on ABC’s adoption in emerging countries, and second, to ascertain the performance implications of ABC’s adoption. Design/methodology/approach A survey of 443 SME managers was conducted using SmartPLS structural equations modeling. Findings The results show that although ABC’s adoption is relatively low, both observability and trialability are positively related to ABC’s adoption, which in turn impacts operational and financial performance; hence, they are determinants of ABC’s adoption in the Ghanaian context. Operational performance has a positive relationship with financial performance, which suggests that operational performance partially mediates the relationship between ABC’s adoption and financial performance. Practical implications The results suggest that Ghanaian SMEs have a higher tendency to adopt the ABC concept if they experiment with ABC themselves. In addition, SMEs that adopt the ABC methodology are likely to improve their financial performance by enhancing the accuracy of their cost performance indicators. In this regard, SMEs with no ABC systems can consider ABC adoption as a managerial intervention aimed at improving operational performance. Originality/value This study provides preliminary empirical evidence on innovation attributes that influence ABC’s adoption among SMEs to enhance their operational and financial performance in the Ghanaian context. Research examining ABC’s adoption among SMEs in developing countries and the factors affecting their adoption are largely underdeveloped.

The study identified the financial performance of Small and Medium Enterprises (SMEs) in Kota Bharu, Kelantan, specifically during the coronavirus disease (COVID-19) outbreak. Financial performance is a new but popular topic in this globalisation era, particularly during the pandemic. The study examined four factors: technology cost, bank credit, employee cost, and economic, focusing on SMEs in Kota Bharu, Kelantan. The main objective is to identify vital factors affecting SMEs’ financial performance in Kota Bharu, Kelantan and the relationship between technology cost, bank credit, employee cost, and economic towards the financial performance. Significantly, the study benefits SME entrepreneurs and upcoming entrepreneurs to identify the factors affecting the financial performance of SMEs. The Trade-Off Theory (TOT) was used to explain the study model. Besides, simple random sampling was used with 66 valid responses from SMEs in Kota Bharu, Kelantan tested and analysed using Google Form questionnaires.

Objective: This study investigates the key factors that encourage employees to participate in knowledge-sharing activities to improve the performance of micro, small, and medium enterprises (MSMEs) in Indonesia. Research Design & Methods: The research employed a quantitative explanatory design with a cross-sectional survey approach. Primary data were collected from 374 MSME owners in the food and beverage sector. The proposed research model and hypothesised relationships were analysed using partial least squares structural equation modelling (PLS-SEM). Findings: The results show that tacit and explicit knowledge sharing are influenced by different determinants and lead to different performance outcomes. Trust and employee attitudes strongly promote tacit knowledge sharing, which positively affects marketing performance. Conversely, explicit knowledge sharing is mainly shaped by trust and organisational structure and has a greater impact on financial performance. Overall, the findings illustrate various mechanisms through which knowledge-sharing practices enhance MSME performance. Implications & Recommendations: The study offers useful insights for policymakers in designing policies that support knowledge-sharing initiatives among MSMEs. These policies may help enterprises improve operational efficiency, reduce costs, and increase profitability. In addition, this research contributes to the knowledge management literature by proposing a model specifically suited to the Indonesian MSME context. Contribution & Value Added: By distinguishing between tacit and explicit knowledge sharing, this study extends existing research through an empirical model that demonstrates how different organisational and individual factors shape knowledge-sharing behaviour and generate varied performance outcomes, thereby reinforcing knowledge management theory in small business settings.

This study examines financial literacy and technology's effect on the financial performance of Micro, Small, and Medium Enterprises (MSMEs), with financial control as a moderating variable. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from 364 MSMEs in Malang City, Batu City, and Malang Regency that target international markets from January to March 2025. The findings reveal that financial literacy, financial technology, and financial control significantly influence the financial performance of MSMEs. Notably, financial control strengthens the relationship between financial literacy and financial performance, but it does not moderate the effect of financial technology on financial performance. These results suggest that while both financial literacy and financial technology are critical for MSME growth, their effectiveness is enhanced when supported by robust financial control systems. The study recommends that MSMEs prioritize building strong financial control mechanisms from the early stages of business operations to maximize the benefits of financial literacy and technology adoption. In addition, as digital transaction methods continue to evolve, MSMEs must select and utilize appropriate financial technologies to improve service delivery and competitiveness in international markets. This research contributes to the growing body of literature on MSME development by providing empirical evidence of the moderating role of financial control and emphasizing the strategic alignment between financial literacy, control, and technology to drive financial performance and international readiness.