The role of market uncertainty in fostering innovation and green supply chain management on the performance of tourism SMEs

PurposeThe purpose of this paper is to find out how absorptive capacity (AC), leadership capacity (LC) and government support (GS) affect small and medium enterprises (SMEs) innovation (product innovation [PDI], process innovation [PCI] and distribution channel innovation [DCI]), taking into consideration the role of innovation (PDI, PCI and DCI) on competitive advantage and SMEs performance and the moderating role of customer orientation (CO).Design/methodology/approachThis study gives a theoretical model tested using structural equation modeling. The information used to test the hypotheses came from interviews with the top managers of Vietnam’s SMEs. The 633 survey respondents from the southern part of Vietnam were chosen for the study. The goal of the 47-item questionnaire is to look at how all variables relate to each other.FindingsThe results show that a firm’s LC has the most significant impact on innovation, followed by its AC and GS. According to the study, DCI does not lead to competitive advantage but improves SMEs’ performance. In addition, the study’s findings indicate that CO moderates the relationship between PDI – SMEs performance and DCI – SMEs performance.Research limitations/implicationsThe classification of only three types of innovation (PDI, PCI and DCI) restricted the applicability of the research to other kinds of innovation in SMEs. Second, only AC, LC and GS are identified in this study as external factors that influence business innovation. In this study, the authors have not studied different business industries; the authors recommend that the research in the back on SMEs should investigate their classification into distinct industry groups, including agricultural, forestry and marine products; industry and construction; and commerce and services.Practical implicationsThis study shows the importance of innovation senior management for innovation in SMEs. This study found that innovation, especially continuous innovation, increased competitive advantage and SMEs performance. Companies that wish to innovate must have access to external resources and support. Moreover, enterprises must comprehend their consumers’ wants to achieve innovation and better SMEs’ performance.Social implicationsThis research significantly contributes to enterprise innovation and operational efficiency for the sustainable development of SMEs in Vietnam. It is expected to enhance employment opportunities, maintain social stability and expand Vietnam’s gross domestic product.Originality/valueThis study contributes to the growing knowledge of the indirect and direct effects, the mediating function of innovation (PDI, PCI and DCI) on competitive advantage and SMEs performance and the moderating effect of CO.

Big data driven innovation for sustaining SME supply chain operation in post COVID-19 scenario: Moderating role of SME technology leadership

This study examines the impact of digital capabilities and digital orientation on the digital transformation and digital innovation of small and medium enterprises (SMEs) during the COVID-19 pandemic. In addition, this study assesses how the role of digital transformation and digital innovation mediates the relationship between digital capabilities, digital orientation, and SME performance during the COVID-19 pandemic. Using a sample of 247 SMEs managers, data were analyzed using the structural equation modeling with a partial least square approach. The findings demonstrate the significant and positive influence of digital capability and orientation on SMEs’ digital transformation and innovation during the pandemic. Additionally, the study confirms that digital transformation and innovation positively affect SMEs’ performance during the pandemic. Furthermore, the study reveals that digital transformation and innovation mediate the relationship between digital orientation and capability on SMEs’ performance during the pandemic. However, digital innovation was not found to significantly mediate the link between digital capability and SMEs’ performance.

Small and Medium Enterprises (SME) product innovation in order to support the concept of green products must be able to convince consumers. Product innovations which have been made that are not in accordance with the tastes of consumers, so the goods are less attractive to consumers. SMEs have difficulties in adjusting products that are environmentally friendly and acceptable to consumers. The high cost in innovating also results in SMEs who hesitate to modify the product. This study aimed to determine, describe, and analyze the effect of green products on the performance of SMEs in Sidoarjo. The first stage was to map green product criterias that affect the performance of environmentally-based SMEs, then analyse the effect of green products on the performance of environmentally-based SMEs. The method used in determining this effect was Partial Least Square (PLS). From the results of data processing, there were factors that influence the performance of environmentally friendly SMEs, namely the green product factor. Then a critical success factor analysis was carried out on the green product factor to determine the strategies that must be taken by environmentally friendly SMEs. The results of the analysis obtained strategy recommendations in improving the performance of SMEs were the strategy of selecting raw materials, choosing energy sources, using the amount of raw materials, and choosing product packaging materials. The strategy was in the context of developing environmentally friendly SMEs so they can improve SME competitiveness.

PurposeBecause of the emergence of technological development, firms (i.e. small and medium enterprises (SMEs)) adopt innovative cost-reduction strategies to improve their processes. Therefore, the adoption of green supply chain practices (GSCP) is critical for SMEs to enhance their business process performance (BPP). This paper aims to investigate how GSCP directly and indirectly (via BPP) influences firm manufacturing performance using the resource-based view as a theoretical base. This research also pursues to examine the mediation mechanism of BPP in the linkage between GSCP and SMEs performance in manufacturing SMEs.Design/methodology/approachUsing the survey method, the authors recruited 407 textile SMEs executives and validated the proposed model and relationships in AMOS.FindingsThe outcomes confirm that GSCPs are positively related to BPP and SME performance, and BPP significantly mediates the association between GSCP and SME performance.Practical implicationsThe outcomes help SME executives to minimize operational costs, save time and reduce wastage by implementing GSCP in their manufacturing processes. SME executives can improve their internal business processes for attaining the best firm performance.Social implicationsThis research provides a healthy workplace to employees by improving business processes performance, enhancing brand image, increasing employee morale and decreasing production wastage.Originality/valueThis research theoretically and empirically contributes to explore the impact of GSCP on textile SME performance, which was unexplored in strategic green supply chain and performance management literature. Furthermore, this is the first study that explores the mediation mechanism of BPP between GSCP and SMEs performance.

The development of technology and science in the Industrial Revolution 4.0 era requires companies to increase effectiveness and efficiency to maintain a competitive advantage. Supply chain management is the integration of business processes involving end customers and key suppliers whose function is to provide value to customers and stakeholders by providing products, services, and information. Implementation of supply chain management is considered an operational function or company activity that greatly determines the effectiveness and efficiency of the supply chain. This research aims to analyze the relationship between the implementation of supply chain management and the performance of small and medium enterprises (SMEs), the relationship between supply chain management, and the relationship between competitive advantage and the performance of SMEs. The research uses a quantitative descriptive approach. The quantitative approach is data in the form of numbers which are generally arranged through structured questions. The questionnaire contains statement items designed using a Likert scale from 1 to 7. The data in this study uses cross-sectional data because the data collection was carried out in a certain period. The data was obtained from distribution of online questionnaires via social media. The unit of analysis used in this research is the owners/managers of SMEs in Indonesia. The sampling technique used in this research is a non-probability sampling technique, namely purposive sampling. The total sample for this research was 432 respondents. The data management used in this research is the Structural Equation Model (SEM) method, which is a collection of statistical testing techniques on a series of relatively complex relationships, simultaneously. The data processing tool is SmartPLS 3.0. The SEM technique is used to examine and justify different hypotheses of the survey. Hypothesis testing is carried out by comparing the p-value with a confidence level (alpha) of 5% (𝛼 = 0.05). The results of this research show that the implementation of supply chain management has a positive effect on the performance of SMEs. In addition, supply chain management has a significant effect on competitive advantage while competitive advantage has a significant effect on SME performance. This research shows that supply chain management has a positive influence on competitiveness both with performance and competitiveness. Descriptive analysis found that supply chain management indicators have sufficient value and have a big impact on performance and competitiveness.

The purpose of this study is to analyze the effect of supply chain management on competitive advantage, the effect of supply chain management on performance and the effect of competitive advantage on performance of small and medium enterprises (SMEs). The object of this research includes all SMEs in Tangerang, the population in this study also covers all 680 Small and Medium Enterprises in Tangerang, Indonesia. The research method uses quantitative methods and the technique used for data collection is by using an online questionnaire. Questionnaires are given to 210 owners or managers of Small and Medium Enterprises who were selected using the simple random sampling method. Data analysis used Structural Equation Modeling (SEM) with data processing tools using SmartPLS software. The results of data analysis show that supply chain management has a positive and significant effect on the performance of SMEs. Supply chain management has a positive and significant effect on competitive advantage. Finally, competitive advantage has a positive and significant effect on performance.

Small and Medium Enterprises (SMEs) in Indonesia have a strategic role in the national economy and face challenges in global competition. These challenges include limited access to capital, limitations in technology adoption, low innovation capacity, and the need for more human resource development. Many SMEs also operate informally, facing obstacles in obtaining policy support or broader market access. This study aims to analyze the effect of Customer Relationship Management (CRM) and market orientation on SMEs’ performance, with innovation capabilities as a mediating variable. The study was conducted on 348 respondents who were SMEs business actors producing packaged food in North Sumatra. The method used is quantitative through surveys and data analysis using the Structural Equation Modeling (SEM) Partial Least Squares (PLS) technique. The results of the study indicate that Customer Relationship Management (CRM) has a positive influence on SMEs performance (p=0.000) and innovation capabilities (p=0.011). Besides, market orientation also contributes significantly to SMEs’ performance (p=0.000) and innovation capabilities (p=0.000). Innovation capabilities have been proven to improve SMEs’ performance (p=0.000). In the indirect effect, innovation capabilities mediate between CRM and SMEs’ performance (p=0.013) and between market orientation and SMEs’ performance (p=0.000). These results indicate that CRM and market orientation not only have a direct effect on SMEs’ performance but also indirectly through increasing innovation capabilities. Acknowledgment Gratitude to the Directorate General of Higher Education, Research, and Technology of the Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia (Kementerian Pendidikan, Kebudayaan, Riset, dan Teknologi Republik Indonesia, Direktorat Jenderal Pendidikan Tinggi, Riset, Dan Teknologi) for providing financial support through funding for Regular Fundamental Research in 2024 with contract number 103/E5/PG.02.00.PL/2024; 16/LL1/AL.04.03/2024; 10/II.3-AU/UMSU-LP2M/C/2024. Gratitude to the Leaders of the University and the Leaders of Universitas Muhammadiyah Sumatera Utara (UMSU) [University of Muhammadiyah Sumatera Utara] for their support and provision of facilities during the research process. Thank you to all parties who have contributed directly and indirectly to supporting and assisting this research. The assistance, time, and attention given are significant in completing this research.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity). The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance. This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Supply chain management is becoming more complex for small and medium enterprises (SMEs) and the need to improve performance seems to be significantly necessary. For SMEs to be efficient and effective towards minimising disruptions within the supply chain, ensure availability of resources and improve just-in-time delivery, information sharing coupled with supply chain collaboration and responsiveness are essential strategies to enhancing business performance. Therefore, the current study regards supply chain collaboration, responsiveness and information sharing as major factors influencing not only SMEs performance, but also allowing SMEs to better coordinate their business activities both within and outside the business environment. In this study, a quantitative research methodology was applied. Relational governance theory (RGT) provided structure to a clear understanding of information sharing among SMEs and customers, highlighting that SMEs aiming to improve their performance, should adopt the style of collaborating with the right suppliers and continuously communicating with the members of the supply chain. Confirmatory factor analysis (CFA) and structural equation modelling (SEM) results support the empirical findings suggesting that the model fits the study. The reliability and validity of the constructs (composite reliability) and the average variance extracted sought the empirical findings that correlate the need for SMEs to employ information sharing, supply chain responsiveness and supply chain collaboration as a determinant influence on SMEs performance.

The entrepreneurial ecosystem is a relatively new perspective within the field of entrepreneurship but is now one of the most discussed topics in that field. It emphasizes the role of broader framework conditions that promote or constrain entrepreneurial activity in any region. The supportive institutional framework (reduced number of government regulations, ease in compliance of taxation system and control over corruption) and physical conditions (ease in access to finance, developed infrastructure, stability in political environment, the availability of an educated workforce and reduced competition with informal sector) create an entrepreneurial ecosystem where entry, survival and growth of firms will be at the highest rate. These elements of the institutional framework and physical conditions are interactive in nature, therefore, policymakers around the world are trying to achieve a balance between these components of the entrepreneurial ecosystem. There is a paucity of research on the entrepreneurial ecosystems of developing countries, therefore, the findings of this thesis will not only be an addition to the literature but will also be useful for policymakers in these countries. In this study, pooled cross-sectional data for Pakistan and 41 low-middle income countries (LMICs) covering the period 2006-13 have been used to identify different entrepreneurial ecosystems and explain their impact on the performance of small and medium enterprises (SMEs). The performance of SMEs has been measured through the annual change in sales growth, employment growth and labour productivity growth. The findings based on the analysis of the entrepreneurial ecosystems for the group of LMICs show that all of the identified components can have a negative effect on the performance of the SMEs. However, ranking of components on the basis of magnitude and statistical significance of effect shows that corruption has the most negative effect on firm performance, which warranted further examination. Therefore, we compare the firm performance of the most corrupt and least corrupt LMICs through the use of propensity score matching (PSM) methods. The results of matching methods show that firm performance in the most corrupt countries is at least 10% lower than firms in the least corrupt countries. Thus, LMICs need to take steps to improve their control over corruption in order to achieve better performance of their SMEs. However, only the individual components of the entrepreneurial ecosystems could be assessed for LMICs because of the heterogeneity of the institutional frameworks and physical conditions of these countries. Therefore, the entrepreneurial ecosystem of Pakistan has also been analysed to determine its existence and composition, and its effects on the performance of SMEs. The entrepreneurial ecosystem of Pakistan is examined using firm level survey data provided by the World Bank Enterprise Survey (WBES) for the years 2007 and 2013. A cluster analysis and canonical discriminant analysis (CDA) is undertaken to identify the composition of the entrepreneurial ecosystem existing in Pakistan. This bottom-up approach, recommended in the literature, has been used to measure the interactive effects of components of the entrepreneurial ecosystem of Pakistan. None of the studies in the literature has measured and empirically tested the entrepreneurial ecosystem of Pakistan using this approach. The findings indicate that the entrepreneurial ecosystem of Pakistan is a combination of elements of the institutional framework and physical conditions. Except for government regulations and political stability, all other components contribute negatively to the entrepreneurial ecosystem of Pakistan. Thus, the aggregate effect of the entrepreneurial ecosystem is negative on the performance of SMEs. Moreover, an index was calculated using the interactive weighted effect of the components of the entrepreneurial ecosystem of Pakistan. The regression estimates based on the index values affirmed the negative effect of the entrepreneurial ecosystem of Pakistan as a system. Our findings for Pakistan can be used as a guideline for policymakers in other developing countries with similar institutional frameworks and physical conditions. However, it can be inferred that there is no shortcut to create a supportive entrepreneurial ecosystem. The gradual improvements, with government acting as facilitator, are required to make the entrepreneurial ecosystems in LMICs conducive for entry, survival and growth of businesses. The specific recommendations for both policymakers and entrepreneurs are given at the end of the thesis.

PurposeThe purpose of this study is to determine and compare the performance of small and medium enterprises (SME) and manufacturing company stock portfolios in the Indonesian, Chinese and Indian capital markets by the Sharpe Index and the significance of differences in average performance in the capital market.Design/methodology/approachThis is comparative research that compared the performances of SME and manufacturing company stock portfolios in Indonesian, Chinese and Indian capital markets. The hypothesis examination of comparative test used one-way ANOVA technique on the performance of SME and manufacturing company stock portfolios in Indonesian, Chinese and Indian capital markets. One-way ANOVA test was used in the analysis to test the average difference of performance indices of SME and manufacturing company stock portfolios is in Indonesian, Chinese and Indian capital markets.FindingsThe performance of SME and manufacturing company stock portfolios in Indonesian capital market was not better than the performances of IHSG and LQ45 Index, the performance of SME and manufacturing company stock portfolios in Chinese capital market (SZSE) was better than the performance of Shenzhen Composite Index and the performance of Shenzhen A-Share Stock Price Index. The comparison of the performances of SME and manufacturing company stock portfolios in Indonesian, Chinese and Indian capital markets showed that the performance of SME and manufacturing company stock portfolios in Chinese capital market was the best and the performance of SME and manufacturing company stock portfolios in Indonesian capital market was the lowest.Practical implicationsThe implication of this study was that SME and manufacturing company stock portfolios had relatively better performances in China and India, so investors should consider investing in SME and manufacturing company stocks. The performance of SME and manufacturing company stock portfolios in Indonesia was not able to exceed market and LQ45 portfolios, so the authority in Indonesia financial market should consider developing a special market for SME and manufacturing company to support the development of SME and manufacturing company in Indonesia and solve the problem of lack of funding source for SME and manufacturing company.Originality/valueThe originality of the present study is in the measurement of the performance of SME and manufacturing company stock portfolio by risk-adjusted return which returns per risk unit measured by Sharpe Index as a more beneficial measurement in measuring stock portfolio performance than average return. Comparative study of the stock portfolio performances of small medium enterprises and manufacturing company In Indonesian, Chinese and Indian stock markets, and object studies conducted in Indonesia, China and India.

Performance is a success or failure of an organization in performing their tasks and main functions to realize their vision, missions, goals and objectives. An organization must consider the factors that influence the performance of their organization. The aim of this research is to determine role of cost leadership strategy in mediating the influence of market orientation and entrepreneurship orientation on performance of Small and Medium Enterprises (SMEs). This research is conducted on Laundry SMEs in Denpasar City. Sample is 160 laundry SMEs, determined by using the probability sampling method. Data collection is conducted by utilizing questionnaires. The analysis technique used is the Structural Equation Modeling (SEM). Analysis result shows that market orientation and entrepreneurship orientation has a positive and significant influence on cost leadership strategy. Market orientation, entrepreneurship orientation, and cost leadership strategy has positive and significant influence on performance of SMEs. Cost leadership strategy is capable of mediating the influence of market orientation and entrepreneurship orientation on the performance of laundry SMEs in Denpasar City.
 Keywords: cost leadership strategy, market orientation, entrepreneurship orientation, SME performance

During the past decade, environmental awareness and consciousness have increased dramatically particularly in the developing countries. Given the ever-increasing emphasis on the UN member countries for contributing towards the Sustainable Development Goals (SDGs), the notion of Green Supply Chain Management (GSCM) has gained increased traction, and as such it has become a powerful driver toward reducing the harmful impacts of the production processes, activities and emissions on the natural environment. However, it is still unexplored as to what extent the Green Intellectual Capital (GIC) and Green Human Resource Management (GHRM) when subject to the application of Quick Response Technology (QRT) affect the GSCM practices for augmenting the environmental performance of the Small and Medium Enterprises (SMEs) in the developing countries. It is therefore critical to evaluate the link between the above variables with an aim to derive sustainable environmental performance. Thus, by evaluating from the lens of Resource-Based-View (RBV) theory, this research offers a synergistic framework of the relationship between GIC, GHRM and GSCM when subject to a moderation effect of QRT for achieving the Firm Environmental Performance (FEP). In order to examine this, we invited participants from 244 SMEs of Pakistan to participate in this research and the data were statistically analysed using the Smart-PLS-based Structural Equation Modelling. The results demonstrated that GIC and GHRM, when mediated through GSCM and moderated by QRT, significantly enhanced the environmental performance of the SMEs. From the viewpoint of its theoretical contribution, this research adds a novel scholarly perspective to the GHRM, GIC and GSCM literature. On the policy and practice front, it offers sense-making insights and policy recommendations for the SMEs in the developing countries that are striving to adopt and maintain sustainable supply chain practices for deriving environmental performance. Additionally, from the SDG perspective, this research directly contributes towards achieving some specific SDGs in the developing countries, thereby formally sensitising SMEs, Governments, NGOs, Social Communities and Individuals in these countries to focus on the attainment of the SDGs.

The purpose of the study was to assess the influence of product innovation on the performance of small and medium enterprises (SMEs) when mediated by market innovation. This study adopted an explanatory research design to establish the relationship between variables. This study was conducted in Dar es Salaam, Temeke District in Tanzania from a total of 277 sample respondents. The study employed a causal research design with a quantitative approach. Data was collected through the self-administered questionnaire to SMEs owners and managers. The collected data was analyzed using the Structural Equation Model (SEM) to establish the extent to which product innovation influences SMEs' performance when mediated by market innovation. According to the findings, product innovation had a significant and positive effect on market innovation, and market innovation had a positive and significant effect on SMEs performance. Consequently, this study concludes that product innovation, when mediated by market innovation, significantly improves the performance of SMEs. This study's findings inform the Tanzanian SMEs Policy of 2003, in keeping up with the rate at which innovations are occurring in the SMEs space. The findings are an important input to the process of SMEs Policy 2003 regarding innovation advancement. Moreover, the findings add value to the frontier of SMEs innovation investment for enhanced performance.