Digital readiness of SMEs: An Insight from Indonesia

In the era of industrial revolution 4.0, the role of E-commerce for Micro, Small and Medium Enterprises (MSMEs) is becoming increasingly important as a digital marketing strategy. This research aims to investigate the impact of E-commerce adoption by MSMEs in facing changes in global business dynamics. Through the Systematic Literature Review method, we analyzed relevant academic literature to understand the level of adoption, benefits, digital marketing strategies, and the impact of the industrial revolution 4.0 on MSMEs that adopt E-commerce. The research results show that MSMEs that adopt E-commerce experience increased competitiveness through market expansion, increased operational efficiency, and direct interaction with consumers. Digital marketing strategies, such as the use of social media and online advertising, dominate MSME efforts to increase visibility. The role of E-commerce has also proven vital in helping MSMEs adapt to the industrial revolution 4.0. The conclusions of this research highlight the complexity of the challenges and opportunities facing MSMEs, including technological barriers and the need for digital skills development. Policy implications include government support, digital skills development, facilitation of collaboration between MSMEs, and industry 4.0 awareness campaigns. This research provides in-depth insight into the crucial role of E-commerce for MSMEs in facing the industrial revolution 4.0, with the hope of providing guidance for practitioners, researchers and policies to support the growth and sustainability of MSMEs in this digital era.

The concept of national and regional development strategies for small and medium-sized enterprises (SMEs) are studied for a long time, as small and medium businesses are the foundation of the economy and the basis for effective country functioning. The business development program of the European Union countries is particularly interesting because there are several levels that correspond to each other and give full effect on the SMEs development. The EU standards are higher than in non-EU countries; therefore, it is worth considering legislative documents, as well as statistics showing the indicators of openness and access to the development of small and medium-sized enterprises (SMEs). The complexity and comparative novelty of studying such a problem in Ukraine led to the need to explore sources of information in the original language due to the lack of information in Ukrainian or Russian. All these suggest that the problem of creating strategies at the national and regional level is more relevant and important to study in the West that demonstrates the current state. The subject of the study is to analyse the effectiveness of implementing strategies for the development of small and medium-sized enterprises as well as the impact of national and regional policies on their functioning and development in the European Union countries. Methodology. The authors highlighted the peculiarities and main features of the development strategies implementation for small and medium-sized enterprises in the EU countries through a comparative analysis of the legislative framework, statistical and other data that help assess the performance and effectiveness of the implemented strategies. The content analysis helps to identify peculiarities of the implemented strategies in quantitative and qualitative forms. The thorough analysis using the above-mentioned methods allowed doing a qualitative study of national and regional strategies in the context of the development of small and medium-sized businesses in the EU countries. Practical importance is that the results of this study will lead to a wider acquaintance with progressive strategic methods of management of small and medium-sized enterprises. This will enable the plan development of concrete actions to improve the efficiency of enterprise management in less developed countries. In turn, raising awareness on this issue will reduce the number of inefficient and non-innovative enterprises. Scientific novelty of the article is to determine the theoretical basis of the differences that at the current development stage are increasingly manifested as certain contradictions in the compilation and improvement of small and medium-sized enterprises, development of strategies at the national and regional levels. Small and medium-sized enterprises, in their turn, have a wider access to their development. Conclusions. As a result of the main development strategies of small and medium-sized enterprises of the EU countries, there should be identified the differences and common features of different strategies for innovations of small and medium-sized enterprises. The interaction of the national and regional strategy with actual results and existing strategies is explored.

Expanding Partnerships for Small‐ and Medium‐Sized Enterprises (SMEs) Needed: The Right Kind of Support

This study aims to understand the challenges and opportunities for the development of Micro, Small and Medium Enterprises (MSMEs) in West Java. With a very large number, MSMEs in West Java have great potential to drive economic growth. However, various obstacles such as access to capital, information, and technology are still an obstacle. This research proposes the application of the Service Science framework to map the MSME ecosystem and identify opportunities for service innovation. Thus, it is expected to increase the competitiveness of MSMEs and make a greater contribution to the regional economy. This research reveals that MSMEs in West Java face significant constraints in terms of access to capital, information, and technology. Through in-depth interviews with 8 MSME owners, this research aims to understand in-depth the challenges and opportunities faced by micro, small and medium enterprises. Thematic analysis of the interview data identified a gap between the ideal conditions that MSMEs desire and the actual conditions they experience. Using the Service Quality Gap Model, this study created four action plans to improve MSMEs in West Java. By addressing the identified gaps and encouraging collaboration between MSMEs, government, academia and industry, the Sadulur platform can catalyze the sustainable growth and development of MSMEs in West Java. These gaps, which we refer to as 'customer gaps', are manifested in four main themes: 1) the potential for MSMEs to create innovative products more easily, 2) the need to develop a strong business foundation and build sustainable brand value, 3) the importance of improving business processes and management to increase efficiency, and 4) the need to build good relationships with external parties to expand networks and business opportunities. These findings form the basis for formulating an action plan to improve the quality of services provided to MSMEs.

In the past decade, market globalization has not only been a threat for small and medium-sized enterprises (SMEs), but also an opportunity to expand their activities in many countries (Murphy and al., 1991). In fact, some of SMEs are worldwide leaders in their sectors (Simon, 1990; Entreprise, 1995). Moreover, few of these worldwide SME leaders started businesses directly on an international level (Christensen, 1991; Brush, 1992; McDougall and al., 1994). This suggests that these SMEs use many processes to overcome resource and competency constraints, which would otherwise impede the success of a transnational business in the new global environment (Barlett and Ghoshal, 1987; Fombrun and Wally, 1992). Some studies have identified co-operation as one of the most powerful means an SME operating across borders can use to overcome its constraints (Olleros and Macdonald, 1988; McDougall and al., 1994; Scully and Fawcett, 1994). To face the complexity, diversity, dynamism and change characterizing the global market, SMEs need to form strong and sustainable ties with other organizations (Forrest, 1990; Harry, 1990). These ties can be made with big, medium-sized or other small enterprises (Shutt and Whittington, 1987; Lorenzoni and Ornati, 1988; Stevens, 1992; Darréon and Faiçal, 1993; Fernandez and Noël, 1994). The balance of power between partners is very important in this kind of inter-firm relationship. SMEs have fewer resources than their partners, and yet their owner-managers prefer autonomy. Then, how do SMEs reconcile the apparent contradictory necessity to cooperate due to resource constraints with their desire for autonomy? What is the ideal quantity of activities that can be devoted to the partnership without threatening the organization itself? The purpose of this paper is to examine propensity of transnational SMEs to subcontract, to outsource (prime contract) or to collaborate on an equivalent basis with other businesses. It is important therefore, to first review the literature related to small business networking. Second, a summary of the methodology and results will follow. Third, propositions will be stated followed by conclusions.

Globally, Small and Medium Size Enterprises (SMEs) are considered the main contributors to economic activities. In the European Union, SMEs account for around 67 percent of the overall employment by the private sector and were considered the cushion that protected the economy during the recent financial crisis in 2008 [2]. While in the USA, and according to the Small Business Administration and Small Business House, SMEs are responsible for more than half of the private sector non-farm GDP of the nation. In the Middle East and North Africa (MENA) region, a recent study by the World Bank revealed that SMEs employ around 40 percent of the workforce in the formal sector (non-agriculture). This number would increase if the informal sector were included. Generally, SMEs are seen as the potential for economic development and a significant source for jobs creation, especially when looking into developing countries. In Egypt, with the declining role of the government being the primary employer until the nineties of last century, and the private sector taking over this role, and the fact that SMEs are the significant portion of the private sector, it is significantly essential to support SMEs for the creation of new jobs, and overall social stability. Constrains facing SMEs are many and are usually different from those facing large businesses. It is also observed that rates of business failure within SMEs are generally higher than with large corporates. This paper aims to seek to identify the reasons behind the failure of SMEs, with a look into the Egyptian and Middle East situations.

Human resource management (HRM) digitisation is now one of the most significant trends in contemporary organisational studies. It is changing the manner in which organisations recruit, nurture, and retain their employees. This is an opportunity as well as a challenge to small and medium-sized enterprises or SMEs, which are the majority of businesses in most parts of the world, and which contribute to economic growth. Electronic applications such as human resource information systems (HRIS), learning management systems (LMS), and even artificial intelligence (AI)-based recruitment software have become unavoidable in larger enterprises, but due to resource shortages, lack of infrastructure, and cultural opposition, are discouraged in smaller enterprises, namely SMEs. As it is reflected in the literature, the COVID-19 pandemic was a catalyst that both accelerated the pace of digital HR adoption in all environments and exposed the differences in preparedness, particularly in developing economies such as Sri Lanka. This paper summarises the process of adoption, resistance and change of HR practices by SMEs in the digital era using the Technology Acceptance Model (TAM), the Technology-Organisation-Environment (TOE) framework and the Unified Theory of Acceptance and Use of Technology (UTAUT2). The article develops a conceptual framework through a narrative review of extant literature and evidences the interaction of technology, organisation and the environment to shape HR digitalisation in SMEs. The findings show that, when ethical issues and contextual considerations are appropriately taken into account, digital HR transformation not only improves efficiency and decision-making but also resilience and competitiveness. The article makes a contribution to the body of scholarship by linking theories of digitalisation with the SME-focused HRM body of literature and offers practical insights into how SME managers and policymakers have tried to grapple with the difficulties of digital HR transformation.

The establishment of Hainan Free Trade Port provides a new opportunity for the financing of small and medium-sized enterprises. In the process of the country continuously promoting the development of a free trade port, the financing environment of small and medium-sized enterprises has gradually improved, and the financing environment has been greatly improved. But the small and medium-sized enterprises “financing difficult” “financing expensive” problem still exists. The problems of difficult and expensive financing of small and medium-sized enterprises in Haikou city have their reasons as well as the influence of external environmental factors. Therefore, to better solve the financing problems of small and medium-sized enterprises in Haikou, this paper analyzes the reasons for the difficulty and expensive financing of small and medium-sized enterprises according to the existing research results and summarizes the financing experience of small and medium-sized enterprises at home and abroad. This article finds that the financing systems for small and medium-sized enterprises (SMEs) in developed countries are relatively well-established, and both the government and society offer significant support to SMEs. Therefore, this paper believes that the government should adjust the business strategy to improve the financing ecological environment and enhance the financing ability of SMEs. The government should take the lead in perfecting the guarantee system, continuously improving the credit information system of enterprises and various financial service institutions, promoting the opening and institutionalization of private credit, and developing Internet finance.

Purpose – The basic purpose of this paper is to analyze the debt financing of small and medium-sized enterprises (SMEs) in Pakistan through different modes from conventional and non-conventional (Islamic) institutes.
 Design/Methodology/Approach – Data is publicly available on databases and websites about debt financing of small and medium-sized enterprises (SMEs) of Pakistan, thus data is collected from these databases and websites in the form of articles and handbooks about Pakistan.
 Findings – It is found from the analysis that a lot of financing choices and modes are available for small and medium-sized enterprises (SMEs) in Pakistan. These modes are provided by both conventional and non-conventional (Islamic) financial institutes. All the debt modes are discussed in the paper. In addition, there are some drawbacks of debt financing that arises from conventional and non-conventional (Islamic) financial institutes, which alleviate small and medium-sized enterprises (SMEs) from adopting these modes
 Research Limitations/Implications – Some financial institutes, especially banks, lack knowledge and information about small and medium-sized enterprises (SMEs) in Pakistan. Banks could lessen it by acting as a mediator for small and medium-sized enterprises (SMEs).
 Originality/Value – This review paper's main contribution is to analyze the contribution of financial institutes in debt financing small and medium-sized enterprises (SMEs) in Pakistan. Paper discusses all the modes available for the small and medium-sized enterprises (SMEs) in Pakistan thoroughly through conventional and non-conventional (Islamic) financial institutes.

Involvement and development of the private sector in boosting the economy nationwide is a main objective of the current program of the government, which means that a good cooperation between small and medium companies, private companies and multinationals and public environment including both public institutions and policies implemented and developed by them, becomes more than necessary. The paper summarizes the findings of a quantitative research based on a self-applied questionnaire which was aimed at Romanian small and medium-sized enterprises and also of a qualitative research that gives an overview of the process of elaborating and implementing a public policy. The involvement of small and medium-sized enterprises in the process of designing and implementing a public policy can become indispensable but it is well know that there is, in fact, a lack of initiative at this level, from both parties. One of the main research questions of this paper is to find out how much do representatives of small and medium-sized enterprises get involved in the process of elaborating a public policy and how much do these actions and measures impact the organizational policies of the companies themselves. A good cooperation between the business environment and the public institutions and a strong correlation of their joint efforts, should become a common practice between both parties, being crucial that this form of cooperation to be initiated from the very beginning. The contribution of this paper is a practical one, given the fact that the paper itself entails the direct responses of small and medium-sized enterprises on the current and future public policies that directly targets them, providing as well an analysis on the effects of public policies on small and medium-sized enterprises. Thus being said, the paper can also be a guide for both small and medium-sized enterprises in providing examples and measures of involvement and favorable public policies development, but also for public institutions by analyzing responses based on practice activities of small and medium-sized enterprises; giving them a solution to correct or continue generating positive results of those policies.

Purpose: the aim of the article is to analyze the existing programs and technologies in the field of financial incentives and credit support of business, as well as justification of qualitatively new methodological tools in the study area for its adaptation in domestic practice. Subject of the article is relevant because it is devoted to description of sources of financial incentives and credit support to small businesses, which are currently the engine of the modern economy. In the first part of the article, an overview of the financial resources and types of funding sources of organizations and small- and medium-sized enterprises (SME) in major developed European countries is provided. Also a description is provided of modern methods of creation of an innovative climate, support innovative ideas and internal business. The second part of the article describes the direction, forms of financing small and medium enterprises (SME) in the major developed European countries, taking into account the peculiarities of the development and functioning. The possibility of using foreign experience in Russia is analyzed. The presented research topic is particularly relevant in connection to an increase in the role of sources of financing for small and medium-sized enterprises (SME). In current economic environment exists the need to address problem of financial support of small and medium-sized enterprises (SME), attraction of new sources of funding, as well as the development of bank credit loans. Processes of market transformation of small and medium-sized businesses have acquired a special importance in relation to the defining role of these enterprises in the system of provision of the economic security of the country. Methods: the methodological bases of this article are the economic and statistical analysis methods, regulatory documents in the field of economic security, publications in the field of economic and financial security, public analyzes in the field of development of financial incentives and credit support to small and medium-sized businesses. Results: to improve the financial incentives and credit support to small enterprises it is necessary to study and use foreign programs in this area, in view of this author has identified and justified current trends of development. Conclusions and Relevance: the practical significance of the work lies in the orientation of the states, conclusions and recommendations aimed at the widespread usage, search and adaptation of sources of financing of small and medium-sized enterprises, which can be used by the legislative and executive authorities of the Russian Federation, in their current activities.

This case study used a technology readiness level (TRL), market attractiveness level (MAL), and customer readiness level (CRL) to measure the prospect of promising products. The TRL, MAL, and CRL were measured using Delphi methods. A TRL is composed of basic research as well as experimental, prototype, practical, and commercial stages. A market attractiveness level is made up of global market size, global market growth rate, and government policy suitability. A customer readiness level was measured using consumer preference. The promising products were mainly selected as information communication and software related products. Among the technologies and products announced by domestic and foreign organizations, products suitable for research and development tasks of small and medium-sized enterprises were selected. The results of this case study are expected to be committed for the enhancement of the success rate of commercialization for small and medium-sized enterprises by being dedicated to the R&D planning of small and medium-sized enterprises in the ICT (Information and Communication Technology)/SW (Software)) field and proposing a direction to pursue the business. The purpose of this paper is to propose an approach to measure the prospect of promising products by using three levels: TRL, MAL, and CRL, which are measured using Delphi methods. This approach aims to enhance the success rate of commercialization for small and medium-sized enterprises (SMEs).

Cybersecurity is vital in ensuring the sustainability of micro, small, and medium enterprises (MSMEs) in today’s digital landscape. While awareness of cybersecurity threats is rising, implementing effective mitigation measures among MSMEs remains relatively low. This study seeks to analyze the discrepancy between awareness and actual implementation of cybersecurity practices in MSMEs and investigate how management accounting approaches can help address these challenges. This study reviews pertinent academic literature and industry reports using narrative review and conceptual analysis methods. The findings reveal that the primary obstacles to implementing cybersecurity within MSMEs include limited financial resources, a shortage of information technology experts, and a low understanding of the long-term benefits of investing in digital security. To navigate these challenges, management accounting techniques such as cost-benefit analysis, cost control, and risk assessment can assist MSMEs in allocating their resources more efficiently to bolster cybersecurity. This research enhances the existing literature by bridging the fields of cybersecurity and management accounting and offering policy recommendations to improve MSMEs' digital readiness. Further research is necessary to empirically validate the proposed model and investigate the impact of regulation on enhancing cybersecurity in the MSME sector.

This paper presents an abstract of the final phase of an on-going research project aiming at investigating the antecedents and consequences of research and innovating within Lebanese small and medium-sized enterprises (SMEs). The role of training personnel and introducing supporting activities in moderating the relationship between R & D and introducing knowledge management systems within Lebanese small- medium –sized innovation in Lebanon still suffer from funding shortages, short of IT personnel training and lack of the ability to adequately use existing knowledge. Ashrafi, and Murtaza suggest that “Large organizations have enough resources to adopt ICT while on the other hand SMEs have limited financial and human resources to adopt ICT” (Ashrafi and Murtaza, 2008 P. 126). Even though, Lebanese government is trying to create a digital economy, Lebanon ranked 94th out of 144 countries on the Network Readiness Index in 2012 and “In the Arab world, Lebanon ranked in 10th position, right behind Morocco (89t...

Sustainable supplier selection for SMEs based on an extended PROMETHEE Ⅱ approach