The Effect of Creativity, Welfare, Self Efficacy on Performance of UMKM in Kampung Bebek Kebonsari

This study investigates the role of competitive strategy and green supply chain management (GSCM) in the performance of Micro, Small and Medium Enterprises (MSMEs) in West Java. Using a sample of 87 MSMEs, data was collected through questionnaires distributed to various MSMEs in the West Java region, using a Likert scale for response evaluation. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) through the Smart PLS program.The results of this study indicate that both competitive strategy and GSCM have a significant influence on MSME performance. Competitive strategy, which includes product differentiation, cost leadership, and market focus, has improved the operational efficiency, market responsiveness, and competitive advantage of MSMEs. Meanwhile, the implementation of GSCM, which emphasizes environmentally friendly operations and sustainable resource management, not only improves compliance with environmental regulations but also strengthens the reputation and legitimacy of MSMEs in the eyes of stakeholders and consumers. These findings confirm the importance of adopting and integrating innovative and sustainable business practices to improve MSME performance. Consequently, this study suggests the need for more strategic policy interventions and support for MSMEs to develop their capacity in competitive strategy and GSCM, thereby strengthening their position in the market and their contribution to the regional economy and environmental sustainability

The objective of this study is to investigate relationship between organizational structure, innovation and performance in Micro, Small, and Medium Enterprises (MSMEs), with a particular focus on the mediating role of innovation. The research provides a novel lens by examining how distinct dimensions of organizational structure—formalization, flexibility, centralization, complexity, and specialization—interact with stages of innovation to influence multidimensional performance outcomes. This research explores how structural design aligns with environmental contingencies and drives innovation as a dynamic capability in MSMEs. The integration of these theories enables a nuanced understanding of organizational adaptability and performance within resource-constrained settings.The methodology adopted for this research comprises employing a quantitative cross-sectional design, data from 400 MSMEs was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that innovation significantly mediates the relationship between organizational structure and performance. Key structural dimensions such as flexibility and complexity demonstrate a pronounced impact on adaptive capacity and strategic agility in MSMEs. By integrating structural and innovation paradigms, this study provides actionable insights for policymakers and MSMEs leaders who aim to enhance competitiveness and sustainability in a rapidly evolving business landscape. This research adopts a holistic approach by considering the interactive effects of structural dimensions and staged innovation processes on MSMEs performance. This comprehensive perspective addresses critical gaps in understanding how structural design facilitates continuous innovation and sustainable performance

This research investigates the influence of digital transformation based on religious ethics on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the era of Industry 4.0. The variables used in this study include digital transformation as the independent variable, MSME performance as the dependent variable, and religious ethics as a moderating variable. This research aims to analyze the extent to which digital transformation affects MSME performance in Pekalongan City, explore the role of religious ethics as a moderating variable that influences the relationship between digital transformation and MSME performance, and identify the challenges faced by MSMEs in Pekalongan in adopting digital transformation without neglecting the religious, ethical values they adhere to. The population in this study consisted of 180 MSMEs, which met the criteria of implementing digital transformation initiatives and having a clear orientation towards religious ethics in their business practices. This research used a census approach, where the entire population was considered the sample. The analysis tool used was Structural Equation Modeling - Partial Least Squares (SEM-PLS) with WarpPLS 8.0 software. The findings indicate that digital transformation has a positive and significant effect on MSME performance, religious ethics has a positive and significant effect on MSME performance, and religious ethics moderates the relationship between digital transformation and MSME performance. The supporting factors for digital transformation among MSMEs include government support, access to technology, and partnerships with technology companies. Meanwhile, the inhibiting factors are low digital literacy, limited financial access, and inadequate digital infrastructure.

This research investigates the synergistic impact of the work environment and CEO characteristics on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia's clothing industry. The study explores the significance of these factors in enhancing MSME performance and aims to contribute both theoretically and practically to the understanding of these dynamics. Utilizing a quantitative research approach, the study analyzes data from 276 MSMEs in the clothing industry, employing the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The results indicate a positive and significant influence of the work environment and CEO characteristics on MSME performance. The research provides valuable insights for policymakers, business leaders, and industry associations to optimize work environments and select CEOs with specific attributes to improve MSME performance.

This research aims to research the effects of innovation, as well as digital and technological capabilities, on the performance of micro, small and medium enterprises (MSME) in Portugal post the initial wave of the COVID-19 pandemic. Leveraging longitudinal data from the 2019 World Bank business surveys and the subsequent 2020 World Bank Covid-19 follow-up business surveys, encompassing a sample of 605 MSME, we delve into the relationships between these variables. We examine the impact of innovation and digital and technological capabilities on performance from two distinct perspectives: one based on necessity and the other on sufficiency. Our analytical approach combines the utilization of partial least squares structural equation modeling (PLS-SEM) with necessary condition analysis (NCA). The findings of our study unequivocally indicate that both technological capabilities and digital capabilities exert a positive influence on MSME performance. Additionally, it is noteworthy that innovation indirectly enhances performance by way of its impact on digital capabilities.

This study investigates the influence of financial technology adoption, owner financial literacy, and risk tolerance on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Amidst the diverse landscape of Indonesian MSMEs, characterized by challenges in accessing formal financial services, the study examines the role of FinTech in overcoming these barriers and fostering business growth. Additionally, it explores the significance of owner financial literacy in facilitating informed decision-making and the strategic importance of risk tolerance in driving business innovation. Through a quantitative research design and Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis, the study offers insights into the nuanced relationships between these factors and MSME performance. The findings provide actionable insights for policymakers, financial institutions, and MSME owners, aiming to promote sustainable MSME development and economic prosperity in Indonesia.

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.

Objective - This study aims to examine the role of Market Learning Orientation (MLO) and Entrepreneurial Orientation (EO) in enhancing Innovation Capability (IC) to sustain the performance of Micro, Small, and Medium Enterprises (MSMEs) in Malaysia, specifically in the Fruits and Vegetables (FFV) contract farming sector. Methodology/Technique - Using a quantitative approach, primary data were collected from 228 FFV MSMEs through structured questionnaires. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationships between MLO, EO, IC, and firm performance. Findings and Novelty – The results reveal that both MLO (β = 0.156, p < 0.05) and EO (β = 0.565, p < 0.01) significantly enhance IC, which, in turn, positively influences firm performance (β = 0.265, p < 0.05). While MLO and EO do not directly impact performance, their mediated effects through IC are significant. This study contributes to the literature by emphasizing the pivotal role of IC as a mediator in translating strategic orientations into measurable business outcomes. It offers practical insights for MSMEs to prioritize innovation and for policymakers to design programs fostering strategic and innovative practices. Type of Paper: Empirical Paper JEL Classification: G21, L26, O16. Keywords: Market Learning Orientation, Entrepreneurial Orientation, Innovation Capability, MSME Performance, Fruits and Vegetables Contract Farming, Malaysia, Business Sustainability. Reference to this paper should be made as follows: Fahim, N.A; Indiran, L. (2024). Strategic Orientations and Innovation Capability for Sustaining MSME Performance: Insights from the Agricultural Sector, J. Mgt. Mkt. Review, 9(4), 183 – 189. https://doi.org/10.35609/jmmr.2024.9.4(4)

This study investigates the effects of financial technology, business innovation, and e-commerce on the performance of Micro, Small, and Medium Enterprises (MSMEs). The study adopts a quantitative approach using data from MSMEs fostered by PT. Bukit Asam Tbk, analyzed through the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The findings demonstrate that the utilization of financial technology, innovative business practices, and e-commerce significantly contributes to improving MSME performance. The study highlights that digital adoption and innovation are vital strategies for sustaining competitiveness in the era of digital transformation.

This study investigates the impact of managerial competence, innovation, and market orientation on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Using a quantitative approach, data were collected from 220 MSMEs and analyzed through Structural Equation Modeling-Partial Least Squares (SEM-PLS). The findings reveal that all three constructs significantly and positively influence MSME performance, with managerial competence demonstrating the strongest effect. Innovation fosters adaptability and competitive advantage, while market orientation enhances customer focus and market responsiveness. The results underscore the importance of strategic leadership, innovative practices, and a market-driven approach in improving MSME performance. These insights provide practical recommendations for MSME stakeholders and policymakers to drive sustainable growth and competitiveness in the sector.

Purpose: This study aims to examine the impact of customer orientation, competitor orientation, and brand commitment on the business performance of Micro, Small, and Medium Enterprises (MSMEs), focusing on the moderating role of artificial intelligence (AI) in enhancing strategic responsiveness and competitiveness in the digital transformation era.Method: A quantitative explanatory approach was used, involving structured questionnaires distributed to 373 MSME owners and managers in Lowokwaru District, Malang City. Data analysis was conducted using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS software to assess both direct and moderating effects. Reliability and validity tests were performed through composite reliability and average variance extracted (AVE) analysis.Result: We found that customer orientation, competitor orientation, and brand commitment significantly and positively influenced MSME performance. However, AI did not significantly moderate these relationships, indicating that AI adoption among MSMEs is still in the early stages and has not yet shown measurable effects. Despite this, AI adopters exhibited improved operational efficiency and decision-making accuracy.Practical Implications for Economic Growth and Development: The study highlights the need for MSMEs to strengthen customer focus, competitor awareness, and brand commitment to enhance business performance. Although AI did not show a moderating effect, gradual adoption of AI technologies could improve efficiency, innovation, and competitiveness, fostering regional economic growth.Originality/Value: This research contributes to the literature by integrating AI as a moderating variable in the relationship between marketing orientation and business performance, offering empirical evidence that extends AI-based strategic capability models within the MSME context.

Purpose: This study aims to examine the impact of customer orientation, competitor orientation, and brand commitment on the business performance of Micro, Small, and Medium Enterprises (MSMEs), focusing on the moderating role of artificial intelligence (AI) in enhancing strategic responsiveness and competitiveness in the digital transformation era.Method: A quantitative explanatory approach was used, involving structured questionnaires distributed to 373 MSME owners and managers in Lowokwaru District, Malang City. Data analysis was conducted using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS software to assess both direct and moderating effects. Reliability and validity tests were performed through composite reliability and average variance extracted (AVE) analysis.Result: We found that customer orientation, competitor orientation, and brand commitment significantly and positively influenced MSME performance. However, AI did not significantly moderate these relationships, indicating that AI adoption among MSMEs is still in the early stages and has not yet shown measurable effects. Despite this, AI adopters exhibited improved operational efficiency and decision-making accuracy.Practical Implications for Economic Growth and Development: The study highlights the need for MSMEs to strengthen customer focus, competitor awareness, and brand commitment to enhance business performance. Although AI did not show a moderating effect, gradual adoption of AI technologies could improve efficiency, innovation, and competitiveness, fostering regional economic growth.Originality/Value: This research contributes to the literature by integrating AI as a moderating variable in the relationship between marketing orientation and business performance, offering empirical evidence that extends AI-based strategic capability models within the MSME context.

This study examines the impact of entrepreneurial orientation and Management Control System Packages (MCS Packages) on the performance of Micro, Small, and Medium Enterprises (MSMEs), with a competitive strategy scale as a moderating variable. This study used a mixed approach, which combines quantitative analysis through multiple regression and a qualitative approach through analysis of interview results. The study results indicate that entrepreneurial orientation and MCS packages positively affect MSME performance, with Entrepreneurial Orientation having a more significant influence than the MCS Package. This result confirms the importance of Entrepreneurial Orientation in improving MSME performance. The competitive strategy scale has also proven effective in moderating the influence of both variables. This study has practical implications in helping MSMEs enhance performance by implementing appropriate management control systems and entrepreneurial strategies. Socially, these results can guide stakeholders in designing policies that support the sustainability of MSMEs. The study’s originality lies in developing the entrepreneurial orientation variable by adding the entrepreneurial literacy dimension and the MSME performance variable by adding the business sustainability dimension. This research shows that MSME practices can support sustainability through resource optimization, environmentally friendly product innovation, and improving community welfare, contributing to economic competitiveness and sustainable development goals.

This research examines the mediating role of access to finance, financial risk management, and competitive advantage in the relationship between financial literacy and Micro, Small, and Medium Enterprises (MSME) performance. This research also tests demographic factors such as the owner's gender, company size, company age, and number of employees in moderating the influence of the variables studied. The sample for this research is MSMEs in Jakarta Province, Indonesia. Five hundred and fifty MSMEs participated in the study using a web-based self-administered questionnaire. The data was analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). The research results show that financial literacy positively affects access to finance, financial risk management, competitive advantage, and MSME performance. Access to finance, financial risk management, and competitive advantage positively affect MSME performance and can mediate the relationship between financial literacy and MSME performance. The research also uncovers the moderating role of demographic factors, suggesting that the strength of the connections between financial literacy, access to finance, financial risk attitude, competitive advantage, and MSME performance may vary based on these factors. These findings carry significant implications for owners, managers, and governmental stakeholders, emphasizing the importance of enhancing financial literacy among MSMEs to enhance their performance.

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.