Performance Of Medium Enterprises Research Articles

The Role of Financial Knowledge and Adoption of Fintech Payment on MSME Performance in Bandar Lampung City

This study aims to test the influence of Financial Knowledge and Fintech Implementation Payment on the Performance of Micro, Small and Medium Enterprises (MSMEs) in Bandar Lampung City. The research sample consisted of 100 MSMEs obtained through Slovin's estimation. The variables analyzed included Financial Knowledge as an understanding of basic financial concepts and Fintech Payment which includes the use of digital payment technology in business transactions. Multiple receivable analysis method used to see the influence of the two variables on the performance of MSMEs. The results of the study show that partially Financial Knowledge positive influence but not significant towards MSME performance, while Fintech Payment has a positive and significant influence on the performance of MSMEs. In addition, both variables simultaneously have a positive influence which is significant to the performance of MSMEs. The findings show that the implementation of Fintech Payment plays a bigger role in increasing the efficiency and effectiveness of MSME operations compared to the level of Financial Knowledge possessed by MSME actors. Therefore, this study suggests increasing financial literacy and adopting digital payment technology as a strategy to encourage the development of MSMEs in Bandar Lampung City.

Influence of Electronic Customer Relationship Management Strategy on Performance of Small and Medium Enterprises in Kenya

Despite the high cost of electronic customer relationship software solutions, its use can be justified as an investment in building long-term client relationships, improving customer retention, and, ultimately, boosting long-term profitability. As a result, it is critical for small- and medium-sized firms (SMEs) in Kenya to take a forward-thinking attitude and maintain their market survival by adapting to developing trends in customer relationship management. This is because the modern business setting has become exceedingly dynamic, necessitating small and medium enterprises to formulate strategies that align with the rapid evolution of technology, shifting customer demands, and intensified global competition to improve their performance. The findings indicate SMEs in Kenya are increasingly implementing relatively uncomplicated information and communication technologies to enhance their capabilities in customer communication and information management. This strategic move is aimed at gaining a competitive edge by leveraging electronic customer relationship management practices. Small- and medium-sized enterprises perceive the communication component of electronic customer relationship management as more manageable, yet encounter challenges in effectively incorporating client information into their decision-making processes. Overall, it can be observed that electronic customer relationship management implementation in SMEs is often characterized by an ad hoc approach rather than a strategic one. SMEs need to align electronic customer relationship initiatives with the overall strategic goals to enhance their overall performance.

The importance of ICT adoption on MSMEs performance: the mediating role of distinctive competencies

Purpose This study aims to examine and identify how the resource-based view and dynamic capability theory contribute to information and communication technology (ICT) adoption to improve micro, small and medium enterprise (MSME) performance, mediated by distinctive competencies. This research provides insight into how MSMEs can improve performance by strategically adopting ICT tools and developing distinctive competencies. Design/methodology/approach Data were collected through online questionnaires from creative industry MSMEs (fashion, culinary and crafts) in Indonesia. The results were analyzed using the partial least squares-structural equation method technique (Fornell and Cha, 1994) with Smart PLS 3.0 (Ringle et al., 2015). Findings The results show that ICT adoption significantly impacts the MSMEs marketing performance in the creative industry sector. In addition, adopting ICT tools influences the development of distinctive competencies among MSMEs, improving MSMEs marketing performance. Distinctive competencies were found to mediate the relationship between ICT adoption and MSMEs marketing performance, which underscores the importance of technology skills, organizational skills, environmental skills and entrepreneurial mindset in driving business success. These findings highlight the critical role of distinctive competencies as a key factor in leveraging ICT adoption to improve MSMEs marketing performance. Research limitations/implications The main limitation is that this research coverage area is less extensive due to the time constraints of this study. Future work could cover different regions and explore other mediators in the ICT–performance relationship. Practical implications This research assists MSMEs in improving performance by adopting ICT and developing distinctive competencies with targeted training in relevant skills. Social implications This research highlights the potential to improve MSMEs marketing performance and drive economic growth and resilience through ICT adoption. Originality/value This study contributes to the existing literature by providing empirical evidence of the relationship between ICT adoption, distinctive competencies and MSME marketing performance in the context of the creative industries sector. This study offers a new perspective on how MSMEs can use ICT tools and develop distinctive competencies to enhance their marketing performance competitive advantage and achieve sustainable growth. By emphasizing the mediating role of distinctive competencies, this study highlights how ICT adoption impacts positively MSME marketing performance, providing valuable insights for practitioners, policymakers and researchers in entrepreneurship and technology adoption.

From Structure to Strategy: How Organization Design Influences Innovation and Performance in Micro, Small, and Medium Enterprises (MSMEs)

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

Unpacking the Resilience-Performance Nexus in African MSMEs: A Systematic Literature Review

This systematic review examines the crucial link between resilience and performance in African Micro, Small, and Medium Enterprises (MSMEs). By analyzing existing literature, the study identifies key factors driving MSME resilience and their impact on business performance. Findings highlight that adaptive capacity, sound financial management, market responsiveness, and strong networks are essential for enhancing both resilience and performance. These insights underscore the need for targeted support systems to bolster MSME sustainability and competitiveness, offering valuable guidance to policymakers, practitioners, and researchers working towards fostering sustainable economic development across Africa.

Digital Financial Transactions and Business Performance: The Role of Mobile Money in Ghana’s SME Sector: Evidence from the Sunyani Municipality

This study examines the role of mobile money (MM) transactions in enhancing the performance of small and medium enterprises (SMEs) in the Sunyani Municipality, Ghana. While previous studies have explored the impact of mobile money on various aspects of economic development, limited research has specifically examined its direct impact on SME performance in the Ghanaian context. A purposive sampling technique was employed to select 120 SMEs from various sectors, including retail, electronics, and services. Data collected through structured questionnaires were analyzed using Statistical Package for Social Sciences (SPSS) version 20 and STATA version 13, focusing on key variables such as sales revenue, frequency of mobile money transactions, and business characteristics. The results reveal a significant positive relationship between the frequency of MM transactions and sales revenue (r = 0.45). Specifically, for each additional MM transaction, sales revenue increased by GHC 500, and for every additional GHC transacted, sales revenue increased by GHC 1.50. The amount transacted via MM showed a stronger correlation with sales revenue (r = 0.60), emphasizing that higher transaction volumes drive business growth. While business age and workforce size positively impacted revenue, their influence was weaker compared to MM usage. The regression analysis further confirmed the critical role of mobile money, with MM transaction frequency and amount being the most significant predictors of sales revenue. The findings suggest that wider adoption of mobile money services could enhance operational efficiency, expand market reach, and improve financial performance, positioning MM as a key driver of SME growth in emerging markets. This study contributes to the growing body of literature on digital financial inclusion and business development, offering practical insights for policymakers and SME owners. The study covers only SMEs in Sunyani Municipality, and thus results may be limited to the generalization to other regions with different socio-economic characteristics. Based on the findings, the study recommends that promotion of the use of mobile money by SMEs be stepped up through targeted financial literacy and awareness creation directed at explaining the utility and profitability of the instrument.

The Mediating Role of Information Technology between Digital Marketing and Firm Performance in Jordanian Small and Medium Enterprises

This article presents a conceptual model that explores the interrelationships among digital marketing (DM), firm performance (FP), and information technology (IT) in Jordanian small and medium-sized enterprises (SMEs). Furthermore, it examines the mediator role of IT in the link between DM and FP. The validation of the conceptual model was performed utilizing IBM SPSS version 22, pursued by confirmatory factor analysis and structural equation modeling with IBM SPSS AMOS version 24. The findings revealed a significant positive relationship between digital marketing (DM) and firm performance (FP), with information technology (IT) serving as a partial mediator in the relationship between DM and FP. Furthermore, the overall impact of the dimensions of digital marketing on firm performance was assessed to be 95.92%.

The Impact of Taxation on the Performance of Small to Medium Enterprises (SMEs) in the Lowveld/Chiredzi District

This study investigates the impact of taxation on the performance of small and medium enterprises (SMEs) in the Lowveld of Zimbabwe. SMEs are crucial for economic development, job creation, and poverty reduction in Zimbabwe. However, high tax levels and complex tax systems pose significant challenges for these businesses. The primary problem addressed in this study is the negative impact of taxation on SME performance in the Lowveld. The aim is to understand the specific tax-related challenges SMEs face and to propose solutions that could enhance their performance and sustainability. The study is grounded in three key theories: The Theory of Taxation and Economic Growth, the Laffer Curve Theory, and the Theory of Compliance Costs. These theories provide a foundation for analyzing how different aspects of taxation influence SME performance. The researcher employed both qualitative and quantitative data since they all provide in-depth data about the relationship between taxation and SME performance. This study employed a descriptive research design, using document analysis, observation schedules, and questionnaires. Fieldwork revealed that high tax rates, lack of tax knowledge, and inefficient tax administration are major obstacles for SMEs. These factors negatively affect profitability, cash flow, and overall financial health. The average rating for ease of meeting tax obligations was 3.33 out of 10, highlighting the severe impact of taxes on business operations. The study concludes that taxation significantly hinders the performance of SMEs in the Lowveld. High tax burdens, coupled with poor tax knowledge and administrative inefficiencies, undermine SME growth and sustainability. To mitigate these challenges, the study recommends improving tax education among SME owners, simplifying tax administration processes, and introducing more effective tax incentives. These measures could alleviate the financial burden on SMEs, fostering a more conducive environment for their growth and contribution to the economy

Efek Mediasi Penggunaan Financial Technology Pada Pengaruh Literasi Keuangan Terhadap Kinerja Keuangan UMKM Kabupaten Gresik

This study aims to analyze the mediation effect of the use of financial technology (fintech) on the influence of financial literacy on the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Gresik Regency. Financial literacy is one of the important factors that influences the ability to manage MSME finances. However, along with the development of financial technology, fintech is expected to play a role as a mediator in strengthening the influence of financial literacy on financial performance. The data used in this study are primary data obtained from distributing questionnaires that meet the research criteria. The method used in sampling is purposive sampling. The sample consists of 100 MSME actors in Gresik Regency. The research method used is a quantitative approach with data collection through a survey of MSMEs in Gresik Regency. Data were analyzed using a structural model (SEM-PLS) to test the relationship between financial literacy, the use of fintech, and MSME financial performance. The results of this study indicate that financial literacy has a positive effect on financial performance. Furthermore, financial literacy has a positive effect on Financial Technology. Financial Technology is able to mediate the influence of financial literacy on financial performance.

Sustainable development through eco-innovation: A focus on small and medium enterprises in Colombia.

This study examines the impact of eco-innovation on the economic, social, and environmental performance of small and medium enterprises (SMEs) in Colombia. SMEs are pivotal to Colombia's economic landscape, contributing significantly to job creation, economic growth, and regional development. The research utilizes structural equation modeling (SEM) to analyze data collected from 568 SMEs through an electronic survey. The findings indicate that eco-innovation positively influences both environmental and economic-social performance. Enhanced environmental performance, driven by eco-innovation, is associated with improved resource efficiency, reduced emissions, and waste management. Moreover, economic and social performance, measured through profitability, product quality, and job satisfaction, also benefits from eco-innovative practices. These results underscore the importance of eco-innovation in promoting sustainable development within the SME sector. The study advocates for further large-scale investigations to validate these findings and to explore the broader implications of eco-innovation in diverse economic contexts.

Financial Resources and Business Performance of Small and Medium Enterprises

Financial Resources and Business Performance of Small and Medium Enterprises

The impact of green marketing strategy on performance of small and medium enterprises in Vietnam

The impact of green marketing strategy on performance of small and medium enterprises in Vietnam

Dynamics between the obstacles of business environment and firm performance in Bangladesh: Survey-based empirical insights using ML algorithms.

This study investigates the impact of business environment obstacles on the performance of Cottage, Micro, Small, and Medium Enterprises (CMSMEs) in Bangladesh, utilizing data from 998 firms in the 2022 World Bank Enterprise Survey. A recursive feature elimination algorithm identified ten key business factors and obstacles from an initial set of twenty-eight that significantly influence CMSME performance. Analysis using ordinary least squares (OLS) and generalized least squares (GLS) regression models reveals that investments in electricity infrastructure, access to financial services, and obtaining quality certifications positively impact CMSME performance. In contrast, challenges such as power outages, delays in licensing, uncompetitive practices, and stringent tax and labor regulations hinder performance. Additionally, the predictive accuracy of the OLS model was compared with several machine learning algorithms, including decision tree, random forest, support vector, and gradient boosting, using a 75-25 training-testing split and k-fold cross-validation. The findings provide data driven actionable insights for policymakers to address specific obstacles, thereby enhancing the business environment for CMSMEs in Bangladesh.

EFFECT OF FINANCING OPTIONS ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN FEDERAL CAPITAL TERRITORY ABUJA, NIGERIA

Small and Medium Enterprises play a vital role in Nigeria's economic growth. However, in the Federal Capital Territory Abuja, the performance of some of the small and medium enterprises and hindered by a severe financing gap, limiting expansion, technological adoption, and productivity improvement. Therefore, this study examined the effect of financing options on performance of small and medium enterprises in Federal Capital Territory Abuja Nigeria. This study adopted a survey research design, with population of 22,861 registered small and medium enterprises and sample size of 432 which was purposively selected. The study used questionnaire as instrument for data collection and Multiple regression analysis was employed to analyze the data collected. The study found that both bank loan and venture capital financing have positive but insignificant effect on performance of small and medium enterprises in Federal Capital Territory Abuja, Nigeria at 5% level of significant. The study conclude that financing options of bank loan and venture capital influence the performance of small and medium enterprises. The study thus recommended that SMEs operators in FCT Abuja, Nigeria, are advised to position their businesses to attract venture capitalists by improving their business models, enhancing their market competitiveness, and demonstrating scalability and innovation. This can be achieved through engaging in capacity-building programs on venture capital financing, as this will help them better understand investor expectations, negotiate favorable equity terms, and secure strategic partnerships.

ISLAMIC RELIGIOSITY AND ISLAMIC BRANDING ON MSMEs PERFORMANCE: FINANCIAL KNOWLEDGE AS MEDIATION

This study aims to determine the effect of Islamic religiosity and Islamic Branding on Micro, Small and Medium Enterprises (MSMEs) performance mediated by Financial Knowledge. The purpose of this research is to enrich the literature and also to provide a strong foothold in developing entrepreneurial strategies with sharia principles and try to examine the factors to take advantage of this potential. This research is particularly interesting because currently, research on the role of Religion on entrepreneurship in Indonesia is limited and scarce, mostly conducted on Western and non-Muslim businesses. Currently, the Islamic economy and halal industry are growing rapidly in both local and global markets. However, the fact is that the potential of the Islamic economy has not been maximally utilized by entrepreneurship in Indonesia. Therefore, this research focuses on sharia management and Entrepreneurship with the aim of not only influencing consumer preferences, but also providing a strong foothold in developing products, services, and management strategies that are in accordance with sharia principles to capitalize on the potential of the sharia economy. This study used purposive sampling method to collect data, using a questionnaire with the criteria of Muslim entrepreneurship owners or managers in MSMEs. This study uses quantitative data processing methods using structural equation modeling partial least squares analysis with Smart PLS 4.0 statistical tools. Islamic religiosity directly affects the performance of organization and affects financial capability and Islamic branding affects financial knowledge but does not directly affect the performance of organization. In addition, organization performance is influenced by individual financial knowledge. Another finding is that financial knowledge mediates Islamic religiosity but has no effect for Islamic branding on organizational performance.

TINJAUAN LITERATUR: IMPLEMENTASI PENGGUNAAN E-MONEY SEBAGAI PENDUKUNG CASHLESS SOCIETY DI INDONESIA

This research aims to investigate the use of electronic money (e-money) as a catalyst for the advancement of the cashless society concept in Indonesia. In today's digital landscape, society is compelled to harness technology across various spheres of life, particularly in financial transactions. The adoption of e-money, a constituent of financial technology (fintech), is steadily proliferating, spanning from online shopping transactions and public transportation fares to regular bill settlements. Employing a literature review methodology, this research entails gathering and evaluating literature pertinent to the evolution of e-money technology, governmental regulations, benefits, and challenges encountered in fostering the realization of a cashless society in Indonesia. Findings suggest that the implementation of e-money holds significant promise in supporting the materialization of a cashless society in Indonesia. The utilization of e-money yields substantial positive impacts on the financial performance of Small and Medium Enterprises (SMEs) and has the potential to enhance financial inclusivity. However, several obstacles such as data security, privacy concerns, and the populace's limited digital literacy pose challenges. Therefore, addressing these hurdles through enhanced digital literacy initiatives and fortified security protocols is imperative to attain a more comprehensive and efficient cashless society.

The Effect of Business Capital on Business Performance with Product Innovation as a Mediating Variable in Kendari City Micro Businesses

Kendari City''s micro-enterprises struggle with limited capital and low product innovation, with 60% facing difficulties accessing capital. This study aims to examine the relationship between business capital and micro-enterprises'' performance, with product innovation strengthening this relationship. Policy support is crucial for improving competitiveness and sustainability. This study investigates the effect of business capital on business performance in micro enterprises in Kendari City, focusing on product innovation as a moderating variable. Data was collected from 50 respondents using the Slovin formula and Structural Equation Modeling (SEM) method. The study validated and tested the data for reliability and validity, providing an overview of the relationship between business capital and performance. Business capital significantly influences business performance, product innovation, and overall performance. Its Path Coefficient is 0.011, with a T-Statistic value of 9.875, above the threshold of Z α 0.05. Product innovation also positively influences business performance, with a Path Coefficient of 0.004 and a T-Statistic value of 2.855. Business capital''s influence on product innovation is fairly large, exceeding the threshold. Business capital significantly impacts the performance of Micro, Small, and Medium Enterprises (MSMEs) in Kendari City, enhancing product innovation, competitiveness, and market competitiveness. A synergistic strategy utilizing sufficient capital fosters innovative capabilities, resulting in improved performance.

The Influence of Social Media on the Performance of Micro, Small, and Medium Enterprises (MSMEs) in Tangerang Regency in an Effort to Penetrate the Global Market

The purpose of this study is to analyze and analyze the influence of social media use on the performance of MSMEs in Tangerang Regency in an effort to penetrate the global market. The research uses a quantitative approach with the type of explanatory research. The research sample is 100 MSMEs selected using the purposive sampling technique. Data analysis using Partial Least Square (PLS) with SmartPLS software. Social media has a positive and significant effect on the performance of MSME actors, Social Media has a positive and significant effect on the global market, MSME performance has no effect on the global market and Social media has no effect on the performance of MSMEs through the Global Market. There are many limitations in conducting this research, many difficulties in determining respondents who have or have not done the global market in their business. Respondents are limited in using social media because there are still respondents who only use 1 or 2 social media. Therefore, this research is still not optimal, and it is difficult to reach respondents who are not members of the MSME group. This research hopes that MSME business actors can improve their performance and can strive to penetrate the global market in the business sector in order to increase profits and MSME performance by better understanding the use of social media. The results of the study show that social media has an impact on the performance of MSMEs.

The Effect of Legal Protection Innovation and Marketing Education on the Performance of Banjarbaru City MSMEs In The Era Of Society 5.0

This study aims to analyze the influence of legal protection innovation and marketing education on the performance of Micro, Small and Medium Enterprises (MSMEs) in Banjarbaru City in the context of the Society 5.0 era. The Society 5.0 era emphasizes the important role of digital technology in various sectors, including MSMEs. MSMEs play a significant role in the Indonesian economy, but face various challenges, such as increasingly tight competition and changes in market patterns towards digital. This study uses a quantitative approach with a sample of 26 MSMEs from a total population of 10,869 registered in Banjarbaru City. Data were collected through questionnaires and processed using non-parametric statistical analysis, such as Spearman Rank Correlation and Kruskal-Wallis, because the data were not normally distributed. The results of the study indicate that legal protection innovation does not have a significant effect on MSME performance, with a correlation coefficient of -0.026 and a significance value of 0.901. In contrast, marketing education has a significant positive effect on MSME performance, with a correlation coefficient of 0.591 and a significance value of 0.001. This confirms that MSMEs who receive better marketing education tend to have higher performance, especially in terms of sales growth, customers, and profits. This study also found significant differences in MSME performance based on age, with older age groups showing higher levels of education and better MSME performance. In conclusion, although innovations in legal protection have not shown a significant impact, marketing education has been shown to play an important role in improving MSME performance in the digital era. This study recommends improving marketing training and education programs for MSMEs to strengthen their competitiveness in an increasingly modern and digital market.

Fintech, Social Capital and Performance of Indonesian MSMEs

This research aims to determine the influence of financial technology, financial literacy and financial inclusion on the performance of micro, small and medium enterprises (MSMEs) in Indonesia mediated by social capital. This research uses quantitative methods, assisted by SmartPLS software for data processing in structural equation modelling analysis. The contribution of this research can be used as a financial strategy for MSMEs to survive, such as testing how financial technology, social capital and financial literacy interact. The results of this research show that the use of financial technology, financial inclusion and financial knowledge can significantly influence the performance of MSMEs. In addition, social capital significantly mediates the relationship between financial technology, financial inclusion, financial knowledge and MSME performance. The results of this research provide a solid basis for creating a broad and integrated policy strategy. The success of MSMEs depends on a wise combination of fintech, financial inclusivity, financial literacy and social wealth. Therefore, policy makers, financial institutions and business people can use this information to create an environment that supports the growth and sustainability of MSMEs and makes a greater contribution to the local and national economy.