Food Small And Medium Enterprises Research Articles

Innovation, Capabilities and Networking: An Approach to SMEs Marketing Performance

This research describes innovation capabilities, networking and marketing performance in small and medium enterprises (SMEs) in the Lamongan district. The research was conducted on food and beverage SMEs in Lamongan Regency because one of the development priorities in the 2005-2025 Regional long-term development plan (RPJPD) of Lamongan Regency is to develop and increase the competitiveness of SMEs as drivers of the local economic life of Lamongan Regency residents. This research is survey research using structured questions, and then all answers are obtained, recorded, processed and analyzed. The research population was 182 SMEs food and beverage actors in Lamongan Regency in 27 sub-districts. Meanwhile, the sample for this research was 182 SMEs. The research results show that the ability of SMEs to innovate is determined by product, process, and marketing innovation. The most significant contribution from SMEs is in product innovation, with the resulting products being attractive, with unique packaging and safety. Relationship expertise, relationship skills, network characteristics, and network orientation determine the networking of SME actors. The most significant contribution of SME players is in the formation of networking with network characteristics, such as SMEs supporting each other's success with partners and carrying out initial evaluations of potential partners to build profitable relationships. Furthermore, the marketing performance of SMEs is determined by sales growth, customer growth, and market share growth. It creates marketing performance by selling products that align with sales targets so that sales growth increases yearly. The contribution of this research can provide input for the Lamongan Regency Cooperatives and Micro Enterprises department as a consideration for making strategies to improve performance marketing and input for me about the importance of improving marketing performance through innovation and networking capabilities.

Is investing in food small and medium enterprises a viable path to improved nutrition in Sub‐Saharan Africa? A multidisciplinary perspective

AbstractThrough the perspectives of impact investors, and the nutrition community, this paper explores whether impact investment in food‐related small and medium enterprises (SMEs) creates a viable path to improved nutrition in Sub‐Saharan Africa. From the nutrition perspective, investment in food SMEs could help address coexisting multiple forms of malnutrition by shifting nutritional quality of available foods. From the investor perspective, attractiveness of investment in food SMEs depends on financial risks, how costs are passed on to consumers, and probability of impact. Clear nutritional objectives and investment criteria are needed, as well as research to maximize the potential of this innovative approach.

Sanitation Knowledge and Practices of Malaysian Food SMEs: Addressing Current Issues and Readiness in Acceptance of Green Sanitation Technology

Sanitation is crucial in the food industry, involving cleaning and disinfection processes to ensure facility cleanliness. This study examined sanitation knowledge and practices among small and medium enterprises (SMEs) in Malaysia's frozen meat sector. It also evaluated the acceptance of eco-friendly sanitation technology, specifically an electrolysis unit producing electrolyzed water. Data was collected through an open-ended online questionnaire using Google Forms. The questionnaire comprises demographic profiles, sanitation knowledge, sanitation program design knowledge, sanitation challenges, and the acceptance of integrating a green cleaner with the current sanitation program. Results show SME manufacturers possess sanitation knowledge but face implementation challenges due to absent sanitation programs, skilled labor shortage, hot water supply issues, difficulty cleaning narrow spaces in equipment, chemical storage, and budget constraints. Due to low-temperature operations, only 73 % of frozen meat industries use hot water for sanitation. Additionally, 45 % lack wastewater treatment, leading to chemical residue discharge into municipal drainage. SMEs show interest in electrolyzed water for its dual role as a cleaning and disinfecting agent. The technology's room-temperature efficacy and environmentally friendly degradation into salt and water appeal to SMEs. Adopting electrolysis sanitation technology is expected to significantly reduce costs by utilizing only salt, water, and electricity for electrolyzed water generation.

Sanitation Knowledge and Hygiene Practices: An Evaluation of Indonesian Online Food SMEs Based on National Food Safety Guidelines

In Indonesia, the surge in online food Small and Medium Enterprises (SMEs) has underscored the critical need for stringent sanitation and hygiene practices. Utilizing a cross-sectional approach, the research assessed knowledge levels through a questionnaire, complemented by an evaluative tool aligned with guidelines from the Indonesian food and drug regulatory authority. From a sample of 132 SMEs spanning various Indonesian cities and regencies, it was observed that 57.6% had an adequate grasp of sanitation principles. Furthermore, a significant correlation between knowledge and its practical application emerged. Notably, there was a discernible difference in practice scores between participants with limited knowledge compared to those with a deeper understanding, evidenced by a mean difference of 10.62±3.77. This highlights a substantial inconsistency in translating knowledge into practice. Despite a reasonable level of awareness, the practical execution of sanitation and hygiene standards remains uneven among these enterprises. This gap indicates a need for focused interventions to enhance the consistent application of sanitation practices in the Indonesian online food SME industry, ensuring better compliance with established hygiene standards.

Green Business Practices and the Success of Malaysia's Halal Food Companies

This study examines the impact of green practise (GP) antecedents—green halal supplier selection (SUPP), green halal manufacturing (GHM), and green halal logistics (GHL)—on supply chain performance in the context of halal food small and medium enterprises (SME). The study examined the relationship between GP antecedent and supply chain performance using data from 115 halal SME. To test the proposed hypothesis, this study employed quantitative methodology with a purposive sampling technique. In addition, multiple regression employing structural equation modeling-partial least square (SEM-PLS) is used to examine the collected data while maximising the variance captured. This study found that GHL among supply chain partners has a greater impact on the performance of halal supply chains. In addition, empirical data validate the significance of SUPP and GHM in enhancing the performance of the halal supply chain in the context of halal food SME. Incorporating the GP as a strategic approach to boost supply chain performance while ensuring the halal credibility of the product, the findings of this study will assist halal small and medium-sized enterprises (SME) in refining their supply chain activity. This is the first study to examine the role of strategic green firm resources in enhancing supply chain performance.

FINANCIAL BEHAVIOR OF SMEs AS A MEDIATION OF FINANCIAL SELF-EFFICIENCY ON FINANCIAL ATTITUDES

In East Java's Greater Malang region, which has potential for small industries, the function of Micro, Small and Medium Enterprises (SMEs) is particularly important. These MSME actors specialize in the food and beverage industry. The goal of this study is to examine how financial self-efficacy, financial attitudes, and financial attitudes' effects on financial behavior and attitudes' mediating effects on financial self-efficacy. 100 food and beverage SMEs in Malang Raya make up the study sample. SEM (Structural Equation Model) is the analytical instrument used, and Baron Kenny is used for the mediation test. The study's findings demonstrate how financial self-efficacy impacts financial behavior and attitudes, which in turn influences financial behavior.

Knowledge, attitude and practices regarding food additives of food SMEs in Mauritius

A Knowledge-Attitude-Practice (KAP) survey was conducted amongst operational food Small and Medium Enterprises (SMEs) in Mauritius and (1) Pearson's Rank Correlation Coefficient was used to determine association between knowledge and attitude (K-A), knowledge and practices (K-P) and attitude and practices (A-P); (2) Chi-square test was used to test for differences of knowledge, attitude and practices with selected demographic factors (gender, level of education, number of years of experience and age group) of respondents; (3) Chi-square test was also used to test for difference of knowledge between the two independent groups; respondents who did not make use of additives and respondents who made use of additives; (4) Independent two samples t-test was used to compare the means (µ) for attitude subscale; and (5) Structural Equation Modelling (SEM) was used to determine the suitability of KAP framework/model. The field study revealed that out of 1020 registered enterprises, only 363 were in operation (35.6%) and in addition to other KAP studies, a database was developed. The database provides information on the number of enterprises per region manufacturing each category of food. Forty-two of the SMEs surveyed made use of food additives out of which 29% had poor knowledge, 4.5% had negative attitude whilst 36% had poor practices. Medium positive correlation was found between (K-A) (0.59), between (K-P) (0.54) and (A-P) (0.46). Education level and age group affect knowledge of respondents (p < 0.05). Statistical analysis showed that there was a significant difference in knowledge between respondents who made use of additives and those who did not use additives (χ2 = 3.02, p = 0.004), however, no difference was observed for the attitude subscale (p-value = 0.641). SEM showed evidence for model fit (RMSEA of 0.04, GFI of 0.81 and TLI of 0.98, CFI of 0.98).

ANALYSIS OF THE EFFECT OF PRACTICE AND SUPPLY CHAIN INTEGRATION ON OPERATIONAL PERFORMANCE OF SMEs IN MALANG CITY

&lt;p&gt;This study was conducted to evaluate the practice of implementing Supply Chain Management (SCM) and Supply chain Integration (SCI) on operational performance in Small and Medium Enterprises (SMEs) in Malang City. This study aims to determine the effect of SCM practices on supply chain integration, the effect of SCM on operational performance, and the effect of supply chain integration on operational performance. Data collection in this study was carried out by distributing 100 questionnaires to owners or managers of SMEs in Malang City which the criteria are food and beverage agro-industry SMEs located in Malang City and have carried out supply chain management (SCM) activities for at least 1 year. The analytical method used in testing the research hypothesis is using multiple regression. The results of the study found that 1) there is a positive influence of supply chain management practices on operational performance, 2) there is a negative influence of supply chain integration on operational performance, 3) supply chain management practices and supply chain integration simultaneously have a positive effect on operational performance in SMEs in the Malang City.&lt;/p&gt;

CSR, marketing capabilities and human resource development: the endogenous role of network capabilities

PurposeThis study aims to examine the relationship between human resource development (HRD) and the interaction between corporate social responsibility (CSR) and marketing capabilities in small and medium enterprises (SMEs) in the food industry.Design/methodology/approachThis research uses the extended regression model on a sample of 2,649 food SMEs in Vietnam.FindingsThis research found that CSR and marketing strategies positively influence HRD; the interaction of CSR and marketing capabilities has a negative effect on HRD; the endogenous role of network capabilities on the effects of CSR and marketing capabilities on HRD.Originality/valueThis research helps food companies use their resources in allocating resources for CSR and conduct marketing reasonably and effectively. This study highlights that the impact of CSR and marketing on HRD is dominated by endogenous networking.

Implementation Sanitation Standard Operational Procedure in Online Food during Covid-19 Pandemic in East Jakarta

The COVID-19 pandemic has caused people to immobilize to eat out, many industries are closed, the community’s economy is down, and many online food small and medium enterprises (SMEs) have sprung up. One of the areas affected by the COVID-19 pandemic is East Jakarta. The implementation of Sanitation Standard Operational Procedure (SSOP) in online food SMEs requires special attention during the COVID-19 pandemic. This study aims to evaluate food production facilities in online food SMEs. Direct observation using instrument from Indonesian National Agency of Drug and Food Control (BPOM) Number HK.03.1.23.04.12.2207 2012 was conducted. The survey was conducted from May to June 2021 in five sub-districts in East Jakarta, namely Duren Sawit, Matraman, Pulo Gadung, Kampung Makassar, and Cipayung. Of the 32 SMEs observed, 50% had been established in less than one year. Most of the SMEs owners have secondary and higher education education and sell popular Street food or food. The survey covers non-compliance in 14 elements of food production facilities. The results show minor disobedience 18.8%, major disobedience 33.3%, serious defiance 25.8%, and critical disobedience 29.9%. In conclusion, major disobedience had the highest percentage, followed by critical, serious, and minor disobedience. Further education in the application of SSOP for online food SMEs should be carried out.

The Intention to Use E-Money: An Empirical Study of Halal Food SMEs In Surakarta

Entering Financial Technology (FINTECH) era, Indonesian Banks and financial institutions competing in issuing their electronic money product. E-money potentially used by Small and Medium Enterprises (SMEs) for doing business and making transactions but in reality it is not so. Halal food SMes E-money usage still low so its important for fintech companies to be able to know and understand perceptions to increase interest in re-transacting using electronic money. However, these is still few studies discussed behavioral intention to use e-money in SMEs sector. Consequently, This study identifies and examines the factors that contribute to behavioral intention to use e-money in Surakarta from the Halal food SMEs perspective . Data for this study were obtained through a mail survey sent to 125 Halal Food SMEs in Surakarta, Jawa Tengah. Regression is used to analyze the data and determine the impact the factors have on behavioral intention to use e-money. The regression results confirm that perceived usefulness, perceived ease of use, perceived behavioral control are the most likely factors that contribute to halal food SMEs intention to use e-money whereas trust was not significantly related. Implications of the findings for developers are discussed further.

An investigation of adoption intention of halal traceability system among food SMEs

PurposeThe incredulity among Muslim consumers due to fake and doubtful halal logos has led to some querying the halal compliance and halal integrity among food small and medium enterprises (SMEs). By using the traceability systems consumers may track and trace the movement of food products available in the market. The purpose of this paper is to investigate factors that influence food SMEs’ intention to adopt a halal traceability system.Design/methodology/approachA structured questionnaire survey was developed and administered to a systematic random sampling of 260 food SMEs. The data were analyzed using descriptive analysis, Chi-square analysis, Pearson correlation analysis and logistic regression analysis.FindingsThe results revealed a strong correlation between the environmental aspect (EA) and perceived usefulness (PU) of a halal traceability system. Sales turnover, PU, perceived ease of use, technological aspect, organizational aspect and EA are the factors that influenced food SMEs’ intention to adopt a halal traceability system.Research limitations/implicationsThe context of this study is confined to the SMEs in the food industry in Peninsular Malaysia, thereby limiting the generalizability of the findings to other industries.Practical implicationsThis study shows a halal traceability system facilitates food SMEs in enhancing their business and provides tremendous potential to further improve the halal industry in Malaysia.Originality/valueThe traceability system that is perceived to be easy and useful are the most influential factors toward the adoption of technology among food SMEs. Thus, this study confirms the growing importance of the halal traceability system in the food industry.

Servant leadership and employee productivity: a mediating and moderating role

PurposeThis study aims to determine the relationship between servant leadership, innovation self-efficacy, corporate work culture and employee productivity in mediating and moderating role.Design/methodology/approachThe research sample was 72 supervisors and 576 employees from 72 food and beverage small and medium enterprises (SMEs) in three major cities in Indonesia. SPSS and AMOS were used to test the research hypothesis using the hierarchical regression analysis test.FindingsThe results show that there was a positive and significant effect between servant leadership on innovation self-efficacy and employee productivity. Innovation self-efficacy mediates the relationship between servant leadership and employee productivity. Corporate work culture moderated the relationship between innovation self-efficacy and employee productivity.Research limitations/implicationsFuture research with larger samples are needed to determine the relationship between servant leadership, innovation self-efficacy, corporate work culture and employee productivity more clearly not only on food and beverage SMEs but also on other industries. Future research needs to be carried out using experimental and longitudinal research designs.Practical implicationsThere are three important practical implications based on the findings of this study. First, the results of the study provide new ideas for SME managers on how to increase the productivity of their employees, by using servant leadership which is known to be the main driver for innovation self-efficacy behavior. Second, the mediating role of innovation self-efficacy requires managers to build employee self-efficacy behavior, share more power with employees and make employees more involved in decision-making, which in turn can increase employee confidence and motivation, and their productivity. Finally, managers must realize the need to create a productive work culture in the company, by taking various actions, such as giving rewards to productive employees, making clear regulations on the company regarding working hours and company targets, and must pay attention and respect the employee's views and opinions to improve employee identification of their leaders.Originality/valueThis is the first study to build and examine the direct and indirect relationship (mediating and moderating role) between servant leadership, innovation self-efficacy, corporate work culture and employee productivity in food and beverage SMEs.

Entrepreneurship Orientation, Eco-innovation, Information and Communication Technology (ICT) Learning Adoption Capability: A case Study of Food SME’s in Central Java, Indonesia

This study aimed to investigate the entrepreneurship orientation among the Central Java’s food small and medium enterprises (SMEs) and its impact on their marketing performance, the business method through eco-innovation. This study also employed eco-innovation and Information and Communication Technology (ICT) learning adoption capability. The respondents of this study were withdrawn purposely from food industries located in Central Java. The location of the study was in Surakarta, Salatiga, Semarang and Kudus. The time frame of the study was from January 2019 to July 2019. The software of SEM version 23 (Structural Equation Modelling) was utilized to test the hypotheses. The findings revealed that all the hypotheses (entrepreneurship orientation, ecoinnovation and ICT learning adoption capability) have significant impact on marketing performance.

Understanding Halal Food SMEs� behavior intention towards e-money

This study investigates halal food SMEs intention on use e-money. Prior to the existence of e-money, banking was a solution for small and medium enterprises (SMEs) in doing business and making transactions. Entering the era of the rise of fintech, banks are also competing in issuing their respective electronic money. �The lack of interest in halal culinary SMEs in using electronic money, it is important for fintech companies to be able to know and understand perceptions to increase interest in re-transacting using electronic money. However, these are few studies discussed behavioral intention in this new area. Consequently, this study examined the factors that influence SMEs' intention to use e-money. A total of one hundred respondents are selected using quantitative method as sources of data collection. The questionnaires are distributed using purposive sampling method in Surakarta, Indonesia. The software used for analysis is the SPSS 20. This study concludes with conclusion and limitation.

Sustainable business model in food and beverage industry – a case of Western and Central and Eastern European countries

PurposeThe presented study pinpoints transformation of business models of small and medium enterprises (SMEs) in the food and beverage sector depending on their sustainability strategy. This paper makes a novel contribution to understanding various instruments of sustainability implementation in SMEs’ business models operating in the food and beverage industry of well-developed Western European countries versus less-developed Central–Eastern European countries.Design/methodology/approachThe empirical basis is a survey of 770 European SMEs, of which 369 operate in Western European countries (including Great Britain, Germany and Spain) and 401 in Central and Eastern Europe (including Poland, Croatia and Russia). The nonparametric U Mann–Whitney test was used to examine the significance of the differences between the two groups of companies.FindingsThe study empirically confirmed that despite self-declared lack of skills and knowledge in managerial impacts of sustainability, it shapes business models of SME in both country groups in food and drink industry. At the same time, the motivation grounds for business models transformation toward sustainable models vary between mostly economic factors in Eastern Europe and social and cultural factors in Western Europe. The economic factor is formed due to smaller integration into social investments at the SME-level Eastern European countries, while Western European SMEs invest more in a variety of sustainability supporting instruments (R&D, new equipment).Originality/valueThis comparative study is the novel empirical research study on the implementation of sustainability into business models of food and beverage SMEs operating in two groups of Western and Central–Eastern European countries, which has not been previously observed in such a setting.

Pelatihan Good Manufacturing Practice (GMP) pada Usaha Pangan Binaan Universitas Andalas

Food business is a very promising, but the products must be safe and worth buying. Good manufacturing practices (GMP) are production practices which considering various aspects, such as preventing food contamination during the production process, and production control as well. Small and Medium Enterprises (SME) fostered by Andalas University, which is engaged in the field of food manufacturing, wants to find its products better known and with a wide sales distribution. This can be realized if the business owner has the trust of many consumers. One effort that can be done is to implement the GMP For this reason, SMEs need to receive GMP Training.The method of this event is in the form of training to socialize the concept of GMP for food SMEs fostered by Andalas University, as well as self-assessment of the application of GMP that has been carried out by each SME. The training was held in the presence of 50 SMEs assisted by Andalas University, on Thursday / December 5, 2019 at Amaris Hotel, Padang. Participants were very enthusiastic in attending and actively participating during the training. Self assessment results showed most SMEs have not yet implemented a good GMP in their industry.

Integrated food assurance system

A good food is a food which is good at quality, safe and halal. A system is needed to ensure that quality, the safety, and its halal labeled. In Indonesia, quality assurance system, safety assurance system, and halal assurance system have not been integrated into one system. A food assurance certification in the form of GMP certificate, HACCP certificate, and also Halal certificate is carried out individually by the authorized institution (certification body, LPPOM MUI and BPOM). An individual certification costs a separate fee. This insignificant cost is certainly burdensome for small and medium enterprises (SMEs) which have a limited fund. This will certainly hamper the development of Food SMEs to compete in national or international market. The aim of this study was to produce recommedation for an integrated food quality, safety and halal assurance system. The research method applied was review of the requirements contained in ISO 9001, ISO 22000 and HAS 23000. The quality assurance system refers to ISO 9001 and GMP, the safety assurance system refers to ISO 22000 and HACCP and the halal assurance system refers to HAS 23000. The integrated system is expected to reduce cost of food assurance certification, especially for Food SMEs.

Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java

PurposeThis study aims to examine comprehensively the factors determining the performance of small and medium enterprises (SMEs) producing Indonesian special food in East Java.Design/methodology/approachThis study is quantitative and qualitative. Primary data was collected from entrepreneurs in East Java, those producing Indonesian special food. Secondary data was obtained from the literature, literature study, journals, Central Bureau of Statistics and the office of industry, trade, cooperatives and SMEs in East Java. Areas selected for this study were Surabaya, Madiun, Malang, Pasuruan, Lamongan and Banyuwangi. The population was small and medium entrepreneurs producing Indonesian special food in the selected cities. Based on the PLS sampling rule, the number of samples in each research area was 50, with total of 300 respondents (50 × 6). The methods of collecting primary data were interviews and questionnaire. Data analysis was done using GSCA.FindingsThe study firstly found the significant influence of entrepreneurial orientation on business strategies of SMEs producing Indonesian special food in East Java. SME managers have a high entrepreneurial orientation. Secondly, it found a significant influence of entrepreneurial orientation on business performance of SMEs producing Indonesian special food in East Java. Thirdly, the study found that government policy is not a moderating variable. Additionally, business strategies have a significant influence on the performance of SMEs producing Indonesian special food in East Java. Finally, dynamics of the environment and business strategy have a significant influence on the performance of manufacturing industry in South Sulawesi.Originality/valueTo know the effect of entrepreneurial orientation, environmental dynamism, consisting of uncertainty of environment and intensity of competition, and business strategies toward business performance. Considering the findings of the previous studies, the authors would like to re-examine the effect of entrepreneurial orientation on business performance, which also compares the findings of previous studies, especially, the one by Lee and Tsang (2003) on SMEs in Singapore.

Applications of information and communication technology for sustainable growth of SMEs in India food industry

Indian food sector is facing severe problem of wastage of about 30% of farm products due to inefficiency in operations of Small and Medium Enterprises (SMEs). The SMEs in Indian food sector are facing different challenges, such as financial issues, lack of technical skills and investment in the business etc. In this sense, several key factors can help food SMEs in reducing wastage of farm products and lowering energy consumption for sustainable growth. Thus, this paper tries to identify and analyse key factors for Information Communication Technology (ICT) applications for a sustainable growth of SMEs in Indian food sector. Grey based Decision-Making Trial and Evaluation Laboratory technique was applied for analysis of factors. From findings, ‘Government initiatives and policies’, ‘Public-private partnership’, and ‘Encouragement to ICT service provider’ are topmost influential cause group factors. While, ‘ICT integrated effective food supply chain’, ‘Coordination between different departments’, and ‘Collaboration and strategic alliances across supply chain’ are highest influenced factors. Results suggests that ‘Government policies and initiatives’ are at the core of the efforts to upgrade food supply chain. As, Indian government is the largest customer of SMEs and controls various policy-making aspects in food sector. Therefore, government has to take steps to encourage private and foreign investments as well as promote IT service providers and business environment related economic policies to improve competitiveness of Indian food sector. This work would help managers to develop efficient ICT applications for an effective sustainable growth of SMEs in their respective food supply chains.