Financial Performance Of SMEs Research Articles

The Impact of E-commerce on Organizational and Financial Performance in SMEs: Evidence from Saudi Arabia

The Impact of E-commerce on Organizational and Financial Performance in SMEs: Evidence from Saudi Arabia

The impact of innovation on the financial performance of SMEs after the COVID-19 pandemic

The impact of innovation on the financial performance of SMEs after the COVID-19 pandemic

Effect of Cost Accounting Techniques on Financial Performance of Small and Medium Enterprises in Kigali, Rwanda

The global economy’s highly advanced period has an impact on the increasingly harsh economic competition that happens. Cost accounting, with its marginal costing technique, assists management in profit planning. Despite the cost accounting processes put in place for a majority of manufacturing organizations, commercial success is slow and insignificant. As a result of poor performance, several industrial enterprises have even gone bankrupt. The general objective of this study was to examine the effect of cost accounting techniques on financial performance of small and medium enterprises in Kigali, Rwanda. The study used descriptive research design. The target population consisted of 393 small and medium enterprises operating in the industry sector in Kigali City. A sample size of 393 was. Descriptive and inferential statistics was used to analyze the data. Results of the study were that there was a statistical significant effect of cost accounting techniques (absorption costs, marginal costs, budgetary control costing) on financial performance of SMEs as evidenced by findings strong positive correlation coefficients additionally multiple linear regressions measured how much variability in the dependent variable (that is, Financial Performance of SMEs in Kigali City) the predictors (absorption costing, marginal costing, and budgetary control) accounted for. This implied that use of cost accounting technique explained about 88.2% of the variation of financial performance of SMEs in Kigali City.It was therefore concluded that continual use of cost accounting techniques (absorption costing, marginal costing and budgetary control) helps in decision making, to achieve high standard of accounting procedure, leads to cost effective procurement, save cost, increase profit margin, increase business growth and among others. The study therefore recommends that SME’s owners are encouraged continual use of cost accounting techniques. The SMEs owners also have to provide special training to the employees on cost accounting and accounting to enhance the employees’ performance. Government of Rwanda should also encourage SMEs to work professionally so that even those which left behind of keeping accounting records they can adapt them.

Is Sustainable Entrepreneurship Profitable? ESG Disclosure and the Financial Performance of SMEs

Is Sustainable Entrepreneurship Profitable? ESG Disclosure and the Financial Performance of SMEs

Exploring the relationship between sustainable supply chain and sustainable development goals on the financial performance of SMEs

Exploring the relationship between sustainable supply chain and sustainable development goals on the financial performance of SMEs

The mediating role of sustainable supply chain management on entrepreneurship strategy, social capital and SMEs’ financial and non-financial performance

Research related to entrepreneurial strategy variables, financial and non-financial performance, social capital and supply chain management in SMEs has not been widely carried out in Indonesia. The purpose of this study is to analyze the relationship between entrepreneurial strategy on financial and non-financial performance, social capital on financial and non-financial performance and sustainable supply chain management on financial and non-financial performance in SMES. The research method is quantitative with the online survey method. The data collection method is by distributing online questionnaires to 690 SMEs owners in Indonesia determined by simple random sampling. The questionnaire is designed using a Likert scale of 7. Data processing used structural equation modeling with SmartPLS 3.0 software tools. The results of data processing show that entrepreneurship strategy (ES) had a positive and significant effect on sustainable supply chain management (SSCM), social capital (SC) had a positive and significant effect on sustainable supply chain management (SSCM), entrepreneurship strategy (ES) had a positive and significant effect on SMEs financial and non-financial performance (SFNFP), social capital (SC) had a positive and significant effect on financial and non-financial performance (SFNFP) and sustainable supply chain management (SSCM) had a positive and significant effect on financial and non-financial SMEs financial performance ( SNFFP).

The effect of debt financing on the financial performance of SMEs in Zimbabwe

The effect of debt financing on the financial performance of SMEs in Zimbabwe

Assessing the impacts of a firm’s reputation on the financial performance of SMEs- Evidence from selected Literature.

Financial performance has been the beckon of growth of most SMEs worldwide as such there is a growing need to improve small and medium-sized enterprises’ (SMEs) reputation to gain more financially and to be highly competitive. For this reason, this study reviewed 25 articles referenced in Web of Science and Scopus journals using a systematic literature review to explain the impacts of reputation on SME firms’ financial performance. The author identified differences in theoretical models in the articles and conceptualize them summarily based on the outcome. Articles were selected from 2018 to 2022. The resultant effect of this review asserts that business reputation significantly influences SMEs’ financial performance, and it is mediated by leadership. However, profitability reduces if SME leaders concentrate more on investment in reputation as acclaimed by some CEOs. This research will leverage more studies in the field of SME performance and reputational management factors. It will give guidance to future researchers thematically.
 Keywords: Corporate reputation, financial performance, SMEs, leadership, Corporate social responsibility, intangible Asset Management, management, and systematic review

SMEs and patents: Is it worth it? A longitudinal analysis of the patent-performance relationship

In response to scepticism about the benefits of patenting in small firms, this paper provides new evidence on the relationship between financial performance in SMEs and patents, distinguishing between applications and granted patents. Empirical analyses show that firms with a patent application still pending five years after the filing date report higher sales than comparable firms who have not filed. Yet, we also find that the monopoly rights attached to granted patents do not result in higher sales than simply filing for a patent. This analysis leads us to infer that the activities performed during the patent application process improve firm knowledge stocks and absorptive capacity, in turn promoting performance above and beyond the status quo. SME managers should find in this study solid empirical evidence supporting well-informed decision-making over patenting.

Evaluation of the Influence of Cost of Credit on the Financial Performance of SMEs in Juba County, South Sudan

Evaluation of the Influence of Cost of Credit on the Financial Performance of SMEs in Juba County, South Sudan

An Empirical Evaluation of Information Sharing's Impact on Profitability; Evidence from the Solar Sector

The role of online marketing is significant. Businesses strive to maximize their profit, and there are low-budget but efficient digital solutions for this aim. Social media sites are not just a connection point but also a great surface to collect information regarding products and/or companies. Even though these free opportunities are often used, websites are the „classical” standalone digital surfaces used for marketing purposes. SEO (Search Engine Optimization) provides various techniques to improve the companies' websites' SERP (Search Engine Result Page). In addition, it could provide even statistically proven financial benefits. The current study analyzes the SEO’s influence on the financial performance of SMEs in the solar sector. The nationwide study based on the Kruskal-Wallis test revealed the importance of connecting social media sites to the company's website. The proper Social SEO results in significantly higher after-tax profit. Regarding the first contentful paints (first feedback to the browser about the website loading), the Pearson correlation coefficients showed up moderately strong, positive, significant relationships with many financial indicators.

Profiting from the digital integration of the value chain and digital competencies: does open innovation matter for manufacturing SMEs?

ABSTRACT Drawing from a resource-based view of the firm, this study investigates the effect of the level of digital integration in value chain (DIVC) activities and digital competencies (DCs) on the financial performance of SMEs, differentiating between firms that embrace open innovation (OI) and those that do not. We test our hypotheses on a sample of 348 manufacturing SMEs based in Tuscany (Italy). The results show that the level of DIVC positively influences firm performance, while the impact of DCs is not significant. Furthermore, SMEs that pursue OI perform better than those who do not pursue it, but only when the level of DIVC is low. The managerial and academic implications and avenues for future research are discussed.

SISTEM INFORMASI AKUNTANSI, KINERJA NON-KEUANGAN DAN KINERJA KEUANGAN DI PERUSAHAAN KECIL: PENELITIAN EMPIRIS BERDASARKAN GENDER

AIS is a mandatory tool for managers to have a competitive advantage amidst rapid technological advances. Business competition is conducted based on financial as well as non-financial performance indicators. The research objective was to examine gender differences in the use of AIS and non-financial and financial performance measures by SMEs for better performance. AIS requirement, AIS capacity, and non-financial and financial performance are measured using a questionnaire. AIS alignment is measured by multiplying the AIS requirement items by the AIS capacity. The hypothesis was tested using multiple linear regression to determine the effect of AIS requirement and AIS capacity on AIS alignment and the effect of AIS alignment on SME financial and non-financial performance. Different tests are used to examine differences in AIS alignment based on gender and differences in financial and non-financial performance based on gender. AIS requirement and AIS capacities have a significant influence on AIS alignment. AIS alignment does not have a significant impact on SME non-financial performance or financial performance. Women have a more positive perception of the non-financial and financial performance of SMEs than men. There is no significant difference in perception between men and women regarding AIS alignment. Research suggestions include getting a larger and more representative sample of small companies. The research is expected to provide guidance for SMEs in choosing an appropriate AIS to face a competitive business environment and serve as a basis for further research

Impact of Activity Based Costing System on Financial Performance of SMEs: A Case of Lester Trading Private Limited

Purpose: The purpose of the study was to assess the impact of activity based costing system on financial performance of SMEs. It was observed that high escalating operating costs is a serious cause of concern in most SMEs in Zimbabwe. In order to establish the impact of activity based costing system on financial performance of SMEs, the study would like at the benefits of using activity based costing system, the effects of activity based costing system on cost control, the problems faced with use of activity based costing system and the cost drivers of activity based costing system. Methodology: A descriptive design research methodology was adopted to gather data through use of questionnaires from a population of 15 employees. Data analysis was undertaken by use of SPSS to determine correlations and tables, pie charts and graphs facilitated data presentation. Findings: From the findings, activity based costing system had negative effects on the cost control reduction concluding that there was an insignificant relationship. Originality value: training of employees is important to equip them with the necessary knowledge and skills and applying an effective ABC system.

Financial literacy, network competency, market orientation and financial performance: A study from Bandung SMEs

Indonesia SMEs have contributed 61.97% to GDP or Rp. 8,573.89 trillion, and they can absorb almost 97% of the workforce. However, several problems arise and become limitations for SMEs, such as limited capital and limited marketing ability and weak business management capabilities. For capital limitations, it can be solved by applying for credit to external parties such as banks and venture capital, but SMEs must meet the bank requirements. For marketing limitations, it can be pursued by maximizing the ability of SMES actors in network competence and market orientation. Therefore, this research was conducted to examine the financial literacy, network competence, and market orientation to the financial performance of SMEs. We collected data by an online questionnaire on 197 SMEs in Bandung. We use SEM PLS to analyze the data. Our results indicated that financial literacy, network competence, and market orientation had a positive and significant impact on the SMEs financial performance. That means that the ability to understand financial concepts, the ability to establish good relationships or networks with external parties, and the ability to sense markets and customer relations help SMEs to implement their business strategies properly. So that they will have an impact on increasing financial performance.

Entrepreneurial Marketing: Improving the Marketing Performance of the Creative Industry in the Embroider Stitching Sector in West Sumatra

Purpose: This study's goal is to ascertain how entrepreneurial orientation and market orientation affect Micro Small and Medium-sized Enterprises’ marketing performance (MSMEs). Theoretical Framework: Entrepreneurial Marketing is used to empower the creative industries as marketing and entrepreneurship are crucial in driving innovation, introducing new products, creating new ventures, and promoting economic development - all of which are key activities in the creative industries. Design/Methodology/Approach: To achieve the objectives of this study, the quantitative approaches were utilized. The population of interest was Micro, Small and Medium-sized Enterprises (MSMEs) engaged in Embroider and Stitching located in West Sumatra Province, and a purposive sampling technique was employed to select the sample for this study. Multiple statistical techniques were employed for data analysis, including SPSS and Partial Least Square (PLS) for Structural Equation Model (SEM) analysis. Findings: The study's results indicate that Entrepreneurial Orientation has a positive impact on Marketing Performance. Additionally, Entrepreneurial Orientation has a positive impact on Market Orientation, and Market Orientation has a positive impact on Marketing Performance. Furthermore, Entrepreneurial Orientation has a positive impact on both Market Orientation and Marketing Performance. Research, Practical, and Social Implications: This study offers theoretical and practical implications for improving the marketing performance of the Embroidery and Stitching industry in West Sumatra Province by applying Entrepreneurial Marketing, through the integration of local cultural values, it is expected that the competitiveness of the region will improve. The expectation is that government policy programs will subsequently stimulate the creative industry's growth in West Sumatra Province. Originality/Value: This study examines the impact of Entrepreneurial Marketing on marketing performance, while previous studies have examined its impact on the financial performance of SMEs.

Cashless Society Sebagai Pemoderasi Pengaruh Fintech Payment Gateway Terhadap Kinerja Keuangan UMKM di Kota Denpasar

The MSME sector impotant a strategic role in supporting the national economy by absorbing labor and sharing development outcomes. In the development of the MSME sector, the Covid-19 pandemic has affected the resilience and sustainability of SMEs. Entrepreneurs are driven to the ability to innovate using the sophistication of technology in their business.The purpose of this research is to identify the influence of variables fintech payment gateway on the financial performance of MSMEs in Denpasar City and identify variables cashless society moderate the influence between fintech payment gateway on the financial performance of MSMEs in Denpasar City. The population using MSMEs in the culinary field in Denpasar City is 9.679 business units. Determining the sample using purposive sampling and determining the number of samples using the solvin formula yields 99 respondents. Research material was collected by distributing questionnaires through google forms. The data analysis technique of this study uses simple regression analysis and MRA using SPSS. The research results show that 1) the variable payment gateway has a positive and significant effect on the financial performance of small and medium enterprises in the city of Denpasar. 2) variables cashless society that can moderated strengthen the effect of payment gateway on the financial performance of SMEs in Denpasar city. Keywords: Fintech Payment Gateway, Financial Performance of MSME, Cashless Society

An analysis of the effects of management accounting services on the financial performance of SME: The moderating role of information technology

Management accounting is very important in the field of accounting. It is a subject which implementation can bring about firm development. There are a lot of studies about management accounting. Past research have analysed various aspects of management accounting. However, the effect of management accounting services on the financial performance of SMEs have not been deeply researched into. This study aims to fill this gap by analysing the effect of management accounting service on the financial performance of SMEs in Ghana’s commerce, service, and manufacturing industries. The study’s population comprises registered SMEs from the Registrar General’s Department. The sample size was calculated using a population of 4,000 registered small and medium businesses to arrive at 365 SMfomular. Managers of SMEs were chosen and contacted using a systematic sample process and given questionnaires to complete. This study used the agency theory and Technology Acceptance Model (TAM). The PLSSEM Software was used to analyze the data collected from the respondents. The study found a relationship between SMEs’ performance and management accounting methods.

Accounting outsourcing and its relationship with financial performance of SMEs: Manager and employee perspectives

There is a gap in the literature related to understanding the relationship between outsourcing of accounting functions and financial performance (productivity and cost efficiency) of SMEs. This study examines the relationship between accounting outsourcing and financial performance in terms of cost efficiency and profitability in SMEs operating in Greater Sydney, Australia. An online survey of employees and managers (N = 80) of Australian SMEs using snowball sampling assessed the demographics, accounting outsourcing, organisational profitability, and cost-effectiveness of these SMEs. Data were analysed using linear regression and correlation analyses. The empirical analysis revealed that the outsourcing of tax services was related to a better financial performance of SMEs in terms of both cost efficiency and profitability. The outsourcing of management accounting functions was beneficial to the productivity of SMEs, whereas the outsourcing of general accounting was not related to higher productivity. Collectively, the findings of this study will assist SMEs in identifying resource gaps and the reasons for turning to external accountancy services to close the gaps and improve their financial performance.

Developing Management Skills on the Financial Performance of SMEs is a Priority in Iraq

Developing Management Skills on the Financial Performance of SMEs is a Priority in Iraq