Personal values and SME innovation in a Muslim ethnic group in Indonesia

Abstract

PurposeThis study aims to examine the relationship between personal values and small and medium enterprise (SME) innovation in Minangkabau, a Muslim ethnic group in Indonesia.Design/methodology/approachA quantitative approach was used to survey 400 small business owners. Structural models were estimated using WarpPLS.FindingsThe study established that SME owners had mixed values. This highlights the context of entrepreneurship because it provides an understanding of the links between personal values and some innovation-related constructs.Research limitations/implicationsThe study made a little comparison of personal values in other Muslim societies. It is beneficial as a reference for future studies on comparisons between the Minangkabau and other ethnic Muslim groups.Practical implicationsMinangkabau small enterprise entrepreneurs need reflection on their values and business innovation because integrating these two aspects strengthens business identity.Social implicationsThe entrepreneurs may need to balance personal and socio-cultural values to implement both business innovation and social harmony successfully.Originality/valueTo the best of the authors’ knowledge, this is the first study that takes into account the innovation concept. It examines personal values related to some concepts on innovation. It can partly be explained by the high level of religiosity in the Minangkabau ethnic group.