Technological Capabilities as Enablers for Sustainable Open Innovation Activities: A Case of Small and Medium Enterprises in Uganda

Purpose The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability and small and medium enterprises (SMEs) performance in developing economy of Africa. Design/methodology/approach A quantitative survey design was employed to collect the data from owner/manager of manufacturing SMEs in Nigeria. Partial least square structural equation model was used in the evaluation of both the measurement and structural models to determine the reliability and validity of the measurement and test the hypotheses, respectively. Findings The statistical result indicates a positive relationship between technological capability, learning capability and SMEs performance. Equally, relational capability significantly and positively relates to SMEs learning capability. However, relational capability negatively relates to SMEs performance, while technological capability also negatively relates to learning capability. Furthermore, learning capability mediates the negative relationship of relational capability and SMEs performance to significant positive relationship, while it does not mediate the relationship of technological capability and performance. Research limitations/implications The analysis of this study is restricted to only resource-based view and dynamic capability theory. Data of the study were collected once a time on a self-reported technique. The study contributed significantly to the body literature on technological and relational capabilities and performance. It also demonstrated the need for SMEs manager to recognize and appreciate the roles of these strategic capabilities in achieving sustainable competitive position. Practical implications Through relational capability SMEs develops efficient collaborative relationship to acquire new techniques, knowledge. This is specifically, essential for SMEs firms from less developing and emerging economies as they are lagging behind at the global competitive platform, and that the possession of specific advantage locally may not be adequately enough to help penetrate the global markets. Similarly, technological capability enable firms to identify acquire and apply new external knowledge to develop operational competencies which may lead to the attainment of superior performance. Social implications Government policies and programs designed to support technological development and innovation must be adjusted to consider the peculiar nature of SMEs firms in terms of technology and innovativeness that enhances competitive position and performance. Originality/value This study empirically examined the relationship of technological and relational capabilities and the SMEs learning capability and performance.

The purpose of this study was to investigate factors affecting the innovativeness of Small and Medium Enterprises (SMEs) in Benishangul Gumuz regional state of Ethiopia and it aims to contribute to innovation literature mostly in emerging nations. The study used both descriptive and explanatory research designs, along with quantitative and qualitative approaches. The sample size of the study consisted of 354 managers of enterprises who were selected using a simple random sampling technique. Data was collected through a questionnaire from managers and interviews with officials from the small and medium enterprises agency. The collected data was analyzed using descriptive, independent samples t-test, correlation, and regression analysis. The descriptive finding indicated that lack of access to finance; weak government support, poor organizational innovation culture, technological incapability, inadequate research and development centers, and shortage of skilled personnel are the major barriers for enterprises to engage in innovation. The study also revealed that there was no significant difference in the level of innovativeness of small and medium enterprises between male and female innovators. Additionally, the correlation analysis revealed that there is a significant relationship between technological capability, government support, organizational innovation culture, access to finance, research & development, skilled personnel, and innovation of enterprises. Furthermore, the regression analysis showed that access to finance had the most significant impact on the innovativeness of SMEs in the Benishangul Gumuz regional state of Ethiopia. This study assessed the factors affecting the innovativeness of SMEs in BGRS of Ethiopia. It was found that there is a lack of existing literature on this specific topic. Though there are studies in Ethiopia that focus on factors affecting the growth and performance of SMEs, there is inadequate literature on the factors of innovativeness of SMEs, which is a constraint for this study. This makes it difficult to compare the results of the current study with previous studies conducted in Ethiopia in general and BGRS in particular. Moreover, the study included seven factors that affect the innovativeness of SMEs. Although there may be other relevant factors affecting SMEs’ innovativeness, they were not considered in this study. Future research should consider additional factors such as entrepreneurial training, networks & collaborations, access to infrastructure, & leadership entrepreneurial competency, which could also impact SMEs’ innovativeness. Additionally, the study was conducted using a sample from only one region, which may limit the generalizability of the findings. Future research should involve multiple regions of Ethiopia to increase the sample size and improve the generalizability of the findings. Furthermore, the study used a cross-sectional survey design. Future research should consider using a longitudinal survey design to identify potential variations in the factors affecting enterprise innovativeness over time. Despite these limitations, the study's results can provide valuable input for further research and policymakers in Ethiopia, especially in the BGRS region, regarding SMEs’ innovativeness. The findings of this study would provide valuable input for managers of SMEs to consider various factors that inspire enterprises to become more innovative. Additionally, the result of this study can help business owners identify and address the elements that affect their ability to innovate, enabling them to take proactive steps to enhance their innovative capabilities. This, in turn, can contribute to economic growth, poverty reduction, and sustainable development in Ethiopia. Innovative SMEs can contribute to sustainable development goals in several ways. They can design new business models that take environmental and social impacts into account, such as using cleaner technologies and reducing resource inputs. Moreover, innovative enterprises can incorporate sustainable development goals into their strategies by considering their business models, supply chains, procurement practices, and research and development processes. Furthermore, these enterprises can promote responsible consumption and production by minimizing waste, selecting environmentally friendly materials and packaging, and implementing recycling and waste management initiatives. Additionally, innovative enterprises can use the sustainable development goals as a framework to communicate their performance targets and actions while engaging with stakeholders. In general, innovations can significantly reduce costs associated with progress, offering opportunities to develop new solutions, approaches, and environmental actions that contribute to the sustainable development of Ethiopia. Therefore, providing adequate credit facilities, government support, utilizing up-to-date technology, promoting an innovative organizational culture, establishing research and development centers, employing hard-working and skilled personnel are essential for enhancing the engagement of small and medium enterprises in innovative activities. This study makes a valuable contribution to the existing literature on the factors of innovativeness in small and medium enterprises. The study aims to assess the influence of various factors such as technological capability, government support, access to finance, research & development, organizational innovation culture, gender, skilled personnel on the innovation of Small and Medium Enterprises.

Micro, Small, And Medium Enterprises (MSMEs) play a crucial role in contemporary environmental issues. This research examines the role of digital transformation, technological capability, and innovation in driving the sustainable performance of Using data from 136 MSMEs across various sectors, the study employs Structural Equation Modelling (SEM) to evaluate relationships among variables. Results indicate that technological capability significantly enhances digital transformation and innovation, which in turn have a positive and direct impact on sustainable performance. However, technological capability does not directly influence sustainable performance, highlighting the critical mediating roles of digital transformation and innovation. Despite its contributions, this study is limited to the Solo Raya region, and the use of cross-sectional data restricts long-term causal inferences. Nevertheless, the findings offer valuable insights for policymakers and MSME leaders, emphasizing the need for strategic investments in IT infrastructure, digital skills training, and innovation processes to sustain growth. Future research should adopt a longitudinal approach and explore additional regions to validate these results. This study establishes a critical framework for understanding how technology and innovation drive sustainable MSMEs performance in a rapidly digitalizing world.

Impact of Lean and Sustainability Oriented Innovation on Sustainability Performance of Small and Medium Sized Enterprises: A Data Envelopment Analysis-based framework

The purpose of this study was to identify the role of technology and innovation capabilities in the resilience of Micro, Small and Medium Enterprises (MSMEs) during the Covid-19 pandemic. In addition, it examined the mediating role of innovation capability on the relationship between technology capability and business resilience. This quantitative study used a causality approach and a structural equation model to examine, predict and estimate the relationships between the variables. For this reason, as many as 400 MSME owners in Jakarta, Indonesia were surveyed using a random sampling technique. The results indicated that technology and innovation capabilities have a positive and significant effect on the business resilience of MSMEs during the Covid-19 pandemic. Besides, innovation capability was also proven to play a significant role as the mediator in the relationship between technology capability and business resilience. This study emphasizes the importance of the business resilience concept as well as increasing technology and innovation capabilities of MSMEs in dealing with the Covid-19 pandemic.

This study examines the financial management of Micro Small and Medium Enterprises (MSMEs) in Indonesia and Malaysia which are the drivers of the economy in both countries, but this sector has not been able to become an independent sector and become the foundation of the national economy in both countries. The problem is that financial management in Micro Small and Medium Enterprises (MSMEs) ignores the importance of financial management standards, the problem is that poor financial management makes Micro Small and Medium Enterprises (MSMEs) insignificant in advancing the economy. The method used is descriptive qualitative with a case study approach. Data were obtained from MSME actors by distributing questionnaires and interviews. The results of this study indicate that MSME financial management in Indonesia is not as good as Micro Small and Medium Enterprises (MSMEs) in Malaysia, meaning that Malaysia has better MSME management, this can be seen from various research indicators, namely: planning indicators, budget use, recording, reporting and controlling. Micro Small and Medium Enterprises (MSMEs) in Indonesia and Malaysia when compared to Indonesian Micro Small and Medium Enterprises (MSMEs) do not have good planning, have not carried out standard records, standardized reporting, are not concerned with standard financial statements, balance sheets, profit and loss, cash flow, do not have or install systems in their business units, such as control of systems and procedures, billing records of sales notes, it is very clear that Micro Small and Medium Enterprises (MSMEs) in Indonesia have not done so. Meanwhile, from the other side, when compared to Indonesian MSME respondents, the level is very small, more so for micro cart businesses, small shops that are not in the form of their own buildings, the context is very small. In Malaysia, micro, small and medium enterprises are not comparable to the conditions in Indonesia, while in Malaysia, the Micro Small and Medium Enterprises (MSMEs) already have a more appropriate place. Thus, it is easier for Micro Small and Medium Enterprises (MSMEs) in Malaysia to get banking support, while Micro Small and Medium Enterprises (MSMEs) in Indonesia are still difficult to upgrade and are still difficult to enter the bank compared to Malaysia.

Adoption of information and digital technologies for sustainable smart manufacturing systems for industry 4.0 in small, medium, and micro enterprises (SMMEs)

Purpose: This study investigates the effect of digital financing, e-commerce marketing, and business location on the performance of micro, small, and medium enterprises (MSMEs) in Malang City. Indicators of MSME performance include sales growth, customer reach, and operational efficiency. Guided by the Resource-Based View (RBV) theory, the study also examines the combined influence of these factors on MSME performance. Design/Methodology/Approach: The research employed a quantitative design with a descriptive approach. Data were collected from 200 MSME actors in Malang City through online (Google Forms) and offline surveys. The sample size was determined using the Malhotra formula. Responses were measured on a five-point Likert scale, and data were analyzed using SmartPLS to assess convergent validity, R², and hypothesis testing (t- and F-tests). Findings: The results show that e-commerce marketing (t = 2.770, p = 0.006) and business location (t = 5.582, p = 0.000) significantly and positively affect MSME performance. However, digital financing access does not have a significant impact (p = 0.282). Together, these three variables explain 30% of the variance in MSME performance. Theoretical Implications: By applying the RBV framework, this study contributes to the understanding of how intangible resources (digital tools and marketing) and tangible resources (location) shape MSME competitiveness and performance. Practical implications: The findings highlight the importance for MSME actors to prioritize e-commerce marketing and strategic business locations to strengthen competitiveness. Policymakers and financial institutions should also improve financial literacy programs and facilitate technology adoption to enhance the effectiveness of digital financing. Originality/Value: This study provides novel insights into MSMEs in Malang City by integrating RBV theory with digital financing, e-commerce, and location factors. Unlike prior research that treats these variables separately, this study tests their individual and combined effects on MSME performance. Research limitations/Implications: The study is limited to MSMEs in Malang City, which may restrict generalizability. Future research could expand the scope to other regions, explore moderating variables such as digital literacy, and apply longitudinal designs to capture performance over time.

This study aims to determine the Determinants of the Performance of Small and Medium Enterprises (SMEs) in Barru Regency. The method used in this study is a quantitative approach and the type of research conducted is survey research. The population used is Small and Medium Enterprises in the manufacturing industry sector in Barru Regency, which is 1672 business units. The number of samples is 94 small and medium enterprises. The data sources used are primary data and secondary data. Analysis of the data used is multiple linear regression analysis. The results of this study indicate that the aspects of finance, environment, marketing, human resources, entrepreneurial ability and economic aspects have a positive and significant effect on the performance of small and medium enterprises in Barru Regency. The greater the equity, loan capital, the level of profits and capital accumulation, the greater the performance of small and medium enterprises. The better the technology and quality control, the availability of business places, government policies, seasons and infrastructure, the better the performance of small and medium enterprises. The more market demand, the better competing pricing, promotion, distribution channels and marketing areas, the better the performance of small and medium enterprises. The better the level of formal education, leadership, experience in business and the amount of motivation and skills in the performance of small and medium enterprises. The greater the desire for achievement, personal responsibility, management ability and innovation ability, the better the performance of small and medium enterprises. the higher the level of income of the community, the availability of jobs, a business climate and good investment and the better the economic growth, the better the performance of small and medium enterprises.

Orientation: This study explored the composite business success index (CBSI), a novel framework designed to enhance small and medium enterprise (SME) competitiveness in South Africa by integrating financial and cultural metrics. Research purpose: The aim was to introduce CBSI as a tool for assessing small and medium enterprise performance, combining financial indicators like the cash conversion cycle (CCC) and Altman Z-score with cultural metrics such as the Configurational Accuracy Score for a more holistic evaluation. Motivation for the study: Small and medium enterprises in South Africa face significant challenges, including financial instability and misalignment of organisational culture. Existing performance models often fail to address these non-financial factors, which CBSI integrates into one evaluative tool to improve both financial health and cultural alignment. Research design, approach and method: A pragmatist research approach integrated quantitative and qualitative methodologies, including financial data from small and medium enterprise statements, semi-structured interviews with small and medium enterprise owners and experts and questionnaires to collect cultural data for insight into the role of culture in small and medium enterprise success. Main findings: Composite Business Success Index proved effective in predicting small and medium enterprise performance. Higher CBSI scores (> 0.65) were associated with successful small and medium enterprises, while lower scores (< 0.50) indicated areas for improvement, highlighting the link between financial stability and organisational alignment. Practical/managerial implications: The CBSI offers small and medium enterprise leaders actionable insights for enhancing financial performance and organisational culture, boosting competitiveness and long-term sustainability. Contribution/value-add: By integrating both financial and cultural metrics into a single framework, the CBSI provides a novel tool for assessing and developing small and medium enterprise performance for the small and medium enterprise managers.

The capability of using Information Technologies (IT) based resources for improving business processes and enhancing the firm economic performance has long been investigated in large firms. Nevertheless, with the decreasing costs of IT solutions, also Small and Medium Enterprises (SMEs) may be able to accumulate and assimilate IT-based resources in order to increase their economic performance. This study applies two conceptual approaches (resource-based view and contingency-based view) to assess the strategic value of IT-based resources in SMEs. Fourteen hypotheses related to these approaches are developed and tested based on survey data collection from the CIOs of 373 SMEs to understand more clearly the entire process from the adoption of IT-based resources to the achievement of higher economic performance, through the development of IT-based capabilities. The influence of internal and environmental factors, and the features of the business environment where SMEs operate are investigated. Results indicate that the resource-based view and the contingency-based approaches provide complementary understanding of the strategic value of IT in SMEs, making five main contributions. First, SMEs that operate under particular environmental (low turbulence and high complexity) and internal conditions (where the IT managerial capabilities are developed) are more likely to adopt earlier IT solutions. Second, SMEs are more likely to develop IT-based capabilities that are internally oriented, rather than the externally oriented. Third, internally oriented IT-based capabilities are developed independently by the environmental conditions where the SME operates, while the externally oriented are developed not uniformly among industry types. Fourth, the features of the business environment in which SMEs operate influence the IT-based resources adopted and the IT-based capabilities developed. Finally, given industry-level differences in competitive environments, the value appropriation of capabilities that firms developed using IT depends on industry type, with SMEs operate in turbulent environments exhibiting lower profit returns, while in munificent environments exhibiting lower or higher profit returns according to the IT-based capability considered

Business sustainability has become obligatory in small and medium enterprises (SMEs). To remain competitive and survive in the market, sustainable innovation is the key. However, SMEs, especially in food processing in emerging markets, still lack resources to become more innovative. The objective of the article is to analyze factors affecting sustainable innovation in food processing SMEs and their impact on business sustainability. Cross-sectional quantitative research builds on a sample of 157 owners of food processing SMEs in Indonesia. The results show that organizational sustainable innovation in food processing SMEs depends on employees’ innovation potential and an organization’s innovation culture; meanwhile, both variables are influenced by leaders’ support of sustainable innovation. Promisingly, organizational sustainable innovation increases business sustainability. Thus, our research highlights the important role of leaders’ support in achieving organizational sustainable innovation and, finally, long term business success. Furthermore, this study uncovers the underlying mediatory mechanisms, which deepen our theoretical understanding and guide practitioners with a concise and comprehensive framework for sustainable innovation in SMEs.

PurposeAs sustainable performance has a central role in the small and medium enterprises (SMEs) performance literature, this study aims to examine the influence of networking capabilities in enhancing sustainable performance through knowledge workers’ productivity and digital innovation. It also examines the sequential mediating role of knowledge workers’ productivity and digital innovation on networking capabilities and SMEs’ sustainable performance relationship.Design/methodology/approachData were collected from 308 knowledge workers in the information technology sector and analyzed using the Hayes Process Macro bootstrapping method to test the proposed hypotheses.FindingsResults indicate that knowledge workers’ productivity and digital innovation individually and sequentially mediate the relationship between networking capabilities and SME’s sustainable (economic and environmental) performance, surprisingly, they do not act as a mediator between networking capability and SME’s social performance. SMEs should prioritize investments in the professional development of their knowledge workers through training and skill enhancement programs. This investment equips knowledge workers with the tools to effectively use the knowledge and resources acquired through networking. Thus, knowledge workers may improve performance by using these resources to tackle challenges.Research limitations/implicationsAlthough this research focused on this specific context, it is prudent to acknowledge that additional factors may also exert influence on sustainable performance within SMEs, factors that managers may consider when making decisions. Methodologically, the cross-sectional design of this research poses a potential limitation, as it does not allow for the complete elimination of endogeneity concerns. However, it is worth noting that scholars have endorsed the use of cross-sectional data in cases where management researchers aim to expand beyond well-documented and longitudinal data sets.Practical implicationsThis research offers practical recommendations for SMEs to improve their sustainable performance through networking. SMEs should seek partnerships with complementary knowledge to improve operations and for other performance-oriented benefits.Originality/valueThis study adds significantly to the literature on sustainable SME performance by studying the interdependent effects of networking capabilities. It also represents the individual and sequential mediation mechanism that links networking capabilities to SME success through knowledge worker productivity and digital innovation.

Research aims: The purpose of this study was to determine the credit distribution level used as working capital assistance for Micro, Small, and Medium Enterprises (MSMEs) during the COVID-19 pandemic.Design/Methodology/Approach: This study used a sample of 8 cities/regencies in East Java. Meanwhile, the Micro, Small, and Medium Enterprises (MSMEs) credit recipients were the population of the sample areas. This research's analysis model was panel data regression (generalized least square) by considering the emergence of heteroscedasticity in cross-section data between regional objects. The control variables outside the COVID-19 were the BI rate, third-party funds (TPF), and inflation.Research findings: This study’s results showed that the COVID-19 pandemic had a significant negative impact only on medium-sized business loans, while micro and small business loans are more resilient. Besides, Micro, Small, and Medium Enterprises (MSMEs) credit was significantly positively influenced by TPF; inflation did not affect credit; the BI rate only negatively affected medium-sized business credit.Theoretical contribution/Originality: Studies on Micro, Small, and Medium Enterprises (MSMEs) credit-related to economic phenomena and monetary policy have been widely carried out. However, the catastrophic virus that causes long-term economic uncertainty and impacts banks and Micro, Small, and Medium Enterprises (MSMEs) still requires in-depth study. Also, this study employed the GLS model that considers heteroscedasticity, which is still rarely used in previous studies.Practitioner/Policy implication: This research can be essential information for the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or OJK) and Bank Indonesia (BI) in policymaking, both regulatory aspects and bank liquidity provision, in stimulating Micro, Small, and Medium Enterprises (MSMEs) credit, especially in the COVID-19 pandemic era.Research limitation/implication: The impact of COVID-19 on Micro, Small, and Medium Enterprises (MSMEs) loans is still classified based on micro, small and medium. It is still not grouped based on the Micro, Small, and Medium Enterprises (MSMEs) business sector in various cities and regencies in East Java. The analysis has not been clustered based on the spatial concentration of the Micro, Small, and Medium Enterprises (MSMEs) recipient areas.

Marketing strategy holds a very important control in the success of product acceptance in the community, but many Small and Medium Enterprise (SME) ignore this. Labels and packaging are one of the keys for Small and Medium Enterprise (SME) to further increase the selling value of their products. Empowerment activities to improve the quality of Small and Medium Enterprise (SME) are carried out through assistance in making labels on packaged products. The object of this activity is Small and Medium Enterprise (SME) actors in Besuk Village, Bantaran District, and Probolinggo Regency. One of the Small and Medium Enterprise (SME) products in this village is banana chips, cassava chips, elephant ears, and lard. The problem with these Small and Medium Enterprise (SME) is the low quality of label and packaging designs for their products, as well as the lack of supporting facilities and infrastructure for designing product packaging labels. So that the products of Small and Medium Enterprise (SME) partners are less attractive than similar competitor products. The Small and Medium Enterprise (SME) products in Besuk Village it self also do not have a broad market share, so they are constrained in increasing the number of products that will be produced. Implementation methods used include: 1) pre-activity; 2) core activities; 3) activity evaluation. Where the problem solving of the Small and Medium Enterprise (SME) constraints above is in the form of assisting in making labels on packaged products so that they can meet the existing label requirements and also look more attractive. The results of the activity are in the form of training on the manufacture of product packaging labels as well as the manufacture of ready to use designs for these Small and Medium Enterprise (SME).