Small Medium Enterprises Research Articles

Transforming Challenges Into Opportunities: The Role Of Accounting Systems And Technology In MSME Performance Post-COVID-19, Enhanced By Market Innovation

This research explores the impact of technology adoption on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the post-COVID-19 landscape, with a particular focus on the moderating role of market innovation. Utilizing a Structural Equation Modeling (SEM) approach, data was collected from MSMEs to evaluate the relationships among technology adoption, market innovation, and business performance. The findings reveal that technology adoption has a significant positive effect on MSME performance, contributing to operational efficiency and improved customer engagement. However, contrary to expectations, market innovation does not significantly moderate this relationship. This suggests that the immediate benefits of technology adoption are sufficient to drive performance improvements without the need for market innovation to enhance these effects. The research highlights the importance for MSMEs to prioritize technology adoption as a strategy for resilience and growth in the wake of the pandemic, while market innovation can be pursued as a complementary initiative for long-term competitiveness. The study provides valuable insights for policymakers and practitioners aiming to support the recovery and development of MSMEs in Indonesia.

WHY SMALL- AND MEDIUM-SIZED ENTERPRISES DO NOT CONDUCT RESEARCH AND DEVELOPMENT — THE RELATIONAL EMBEDDEDNESS MODEL

Research and development (R&D) represents the strength of corporate innovation; however, many small- and medium-sized enterprises (SMEs) do not engage in R&D activities. Resource constraints are often cited as the reason; however, no deeper understanding has been provided yet. To fill this gap, we investigated a research model based on the relational embeddedness between customer firms and SMEs (suppliers) using a questionnaire obtained from Japanese manufacturing SMEs. Our findings show that SMEs’ R&D activities are likely to be positively impacted by inter-organisational trust (IT) and negatively impacted by relational inertia (RI) and relational duration (RD). The relationships between the variables behind these impacts were also analysed. This study also highlights the dark side of relational embeddedness. SMEs with the closest and major customer relationships may be hindered in their overall R&D activities by the effects of RI and RD.

The impact of financial literacy on SMEs lending conditions

This study investigates the influence of entrepreneurs' financial literacy on the banking-lending terms extended to small and medium-sized enterprises (SMEs). We employed structured interviews with account managers from the second-largest bank in Brazil. The findings demonstrate that financial literacy positively impacts SME bank lending terms across three dimensions: knowledge, behavior, and attitudes. Entrepreneurs with higher levels of financial knowledge are more adept at negotiating favorable credit terms, thereby reducing administrative costs. Financial attitudes serve as a signal to banks of entrepreneurs' confidence and professional management capabilities. Additionally, heightened financial behavior enables entrepreneurs to advocate for more sophisticated financial products. Results achieved are further evidence of the positive impact that financial literacy can bring to SMEs by providing a basis for making sound financial decisions. This research provides valuable insights into how assessing lending practices through the lens of financial literacy can inform policy design, aiming to transform regions with low economic development by leveraging credit as a tool for poverty alleviation. The research aimed to analyze the influence of financial literacy on the lending conditions of SMEs from the perspective of financial institution agents involved in credit provision.

Impact of Corporate Entrepreneurship and Market Orientation on the Performance of Small Medium-Sized Enterprises in Ibadan Nigeria

The performance of Small and Medium-Sized Enterprises (SMEs) is pivotal to economic development, particularly in emerging economies like Nigeria. This paper explores the intersection of Corporate Entrepreneurship (CE) and Market Orientation (MO) and their collective impact on the performance of SMEs in Ibadan, Nigeria. Two research questions were raised, and two hypotheses were tested. The study employed the survey research design with five hundred and forty-six (546) respondents as subjects. Representative SMEs were purposively selected from each of the 11 local government areas in Ibadan Metropolis. Primary data was employed using the questionnaire to elicit information from the respondents. Data collected were analysed using Canonical Correlation and Multiple Regression. Findings indicated a combined impact of CE and MO on the performance of SMEs with a Canonical Correlation of 0.510 at p < 0.0. The results also showed that corporate innovation, corporate pro-activeness, risk taking, entrepreneurial culture, intelligence generation, intelligence dissemination and responsiveness using Multiple Regression jointly predicted SMEs performance at F = 19.501; R= .450, R2 = 202, Adj. R2 = .192; P < 000. Based on these results, it is recommended that SMEs should emphasise the practices of CE and put more effort into market research specifically to make confident, progressive business decisions based on market development and market entry opportunities that can lead to sustainable competitive advantage and superior organisational performance.

Pengembangan UMKM Dengan Pembuatan Daftar Menu Menarik dan Banner di Desa Pasinan Kecamatan Lekok Kabupaten Pasuruan

Community service is a form of implementation of the Tri Dharma of Higher Education, with the aim of having a positive impact on society. This activity was carried out on 29 July 2024 in Pasinan Village, Lekok District, Pasuruan, with a focus on developing local Micro, Small and Medium Enterprises (MSMEs). The Unsuri team collaborated with MSME players in designing marketing strategies through attractive menu list and banner designs. The approach used is participatory, where MSME players are actively involved in every stage of planning. The methods used include field observations, interviews, design, and implementation of marketing strategies based on the results of MSME needs analysis. Active participation from villagers is expected to increase programme engagement and sustainability, as well as strengthen the competitiveness of local products. The results of this programme show an increase in the visual appeal and professional image of MSMEs, which has a positive impact on sales potential and the village economy.

Revolutionizing Payment Systems: The Integration of TRAM and Trust in QRIS Adoption for Micro, Small, and Medium Enterprises in Indonesia

Background: In an era where digital finance is growing rapidly, the Quick Response Code Indonesian Standard (QRIS) revolutionizes the payment system through a single unifying code. This study brings novelty in integrating TRAM and Trust in the adoption of QRIS in micro, small, and medium enterprises (MSMEs) in Indonesia, for which studies are still limited. Objective: To observe determinants of QRIS adoption by integrating the Technology Readiness Acceptance Model (TRAM) and Trust in the emerging Indonesian market where QRIS is in a growing stage. Methods: This study collects data through the survey of 210 MSME owners and staff who are familiar with and/or have used QRIS through convenience sampling. In analyzing the data, this study uses the Structural Equation Model-Partial Least Square (PLS-SEM) to examine the relationship between variables that explain influencing factors of QRIS adoption. Results: The results show that 7 of 13 hypotheses were accepted; optimism and trust positively significantly affect perceived ease of use and perceived usefulness, while insecurity and innovation have no significant influence on perceived ease of use and perceived usefulness. Besides, this study shows unexpected positive results between discomfort, perceived ease of use, and perceived usefulness. Overall, the proposed TRAM and Trust model contributes 60.9 % in explaining QRIS adoption. Conclusion: This study emphasizes the importance of optimism, discomfort, trust, perceived ease of use, and perceived usefulness in influencing QRIS adoption in micro and small businesses in Indonesia. It guides QRIS providers, policymakers, financial institutions, and MSMEs in having effective QRIS adoption in business operations. Keywords: Micro Small and Medium Enterprises, QRIS, TRAM, Trust

Efektivitas YouTube Sebagai Alat Pencarian Informasi Untuk Diversifikasi Produk Stroberi pada UMKM Desa Lebakmuncang Ciwidey

The village of Lebakmuncang in Ciwidey has become a center for strawberryproduction, with the majority of its residents relying on agriculture and plantations.However, many Micro, Small, and Medium Enterprises (MSMEs) in this village still relyon fresh products without taking advantage of the potential for diversification intoprocessed products such as jams, juices, and snacks. Product diversification has becomean important strategy to enhance the competitiveness and sustainability of MSMEs (Micro,Small, and Medium Enterprises). YouTube, as the largest video-sharing platform, offers information that can assist small and medium enterprises (SMEs) in productdiversification. However, challenges arise in measuring the effectiveness of this platformin the context of strawberry product diversification. This research aims to analyze theeffectiveness of YouTube as a source of information and to assess the impact of thatinformation on the product diversification decisions of strawberry SMEs in LebakmuncangVillage, Ciwidey. The results indicate that YouTube has proven to be an effective source ofinformation for strawberry product diversification. All the indicators studied yieldedpositive results, with the usefulness of information being the most important factor. Theinformation available on YouTube has a significant impact on the diversification of MSMEproducts, allowing them to learn, innovate, and reach new audiences. This researchrecommends that SMEs make optimal use of YouTube, encourage content creators toprovide more relevant information, and suggest improvements to the portal design toenhance user experience. The development of strawberry SMEs in Lebakmuncang Village,Ciwidey, is expected to enhance the economic welfare of the local community and make themost of local potential.

Big data analytics, company innovation and risk-taking: influence of absorptive capacity

PurposeThe purpose of this study is to empirically examine the indirect effect of big data analytics capability (BDAC) on performance through innovativeness and risk-taking among small and medium-sized enterprises (SMEs) by considering the moderating role of absorptive capacity (ACAP).Design/methodology/approachThis study utilized a quantitative method through a survey questionnaire. The hypotheses were tested with a sample size of 202 surveys completed by SME owners. Partial least squares structural equation modeling (PLS-SEM) was administered to analyze data via the SmartPLS 4.0 software.FindingsThe analysis revealed that BDAC had an indirect effect on performance through innovativeness and risk-taking. ACAP strengthened the relationship between risk-taking and performance and also enhanced the link between BDAC and performance. Interestingly, ACAP weakened the connection between innovativeness and performance.Practical implicationsFrom a practical standpoint, our study offers valuable insights for entrepreneurs in the process of implementing BDAC. The mediating roles of innovativeness and risk-taking underscore their potential as drivers of SME performance. Also, it is crucial for managers to leverage lower-order capabilities (BDAC) to build higher-order organizational capabilities (innovativeness and risk-taking) and improve performance. Finally, managers are advised to utilize ACAP to identify external opportunities that contribute to performance.Originality/valueThe current study leverages the resource-based view (RBV) to provide new insights into the significance of innovativeness and risk-taking as key drivers to harness the benefits of BDAC for improving the performance of SMEs. Moreover, this study presents evidence of the moderating role of ACAP in the above relationships.

Digitalisation and Cybersecurity: Towards an Operational Framework

As businesses increasingly adopt digital processes and solutions to enhance efficiency and productivity, they face heightened cybersecurity threats. Through a systematic literature review and concept development, this article examines the intersection of digitalisation and cybersecurity. It identifies the methodologies and tools used for cybersecurity assessments, factors influencing the adoption of cybersecurity measures, and the critical success factors for implementing these measures. The article also puts forward the concept of cybersecurity governance process categories, which are used to classify the factors uncovered in the research. Findings suggest that current information security standards tend to be too broad and not adequately tailored to the specific needs of small and medium-sized enterprises (SMEs) when implementing emerging technologies, like Internet of Things (IoT), blockchain, and artificial intelligence (AI). Additionally, these standards often employ a top-down approach, which makes it challenging for SMEs to effectively implement them, as they require more scalable solutions tailored to their specific risks and limited resources. The study thus proposes a new framework based on the Plan-Do-Check model, built around the cybersecurity governance process categories and the three core pillars of governance, culture and standards. This is essentially a bottom-up approach that complements current top-down methods, and will be of value to both information technology (IT) professionals as an operational guide, and to researchers as a basis for future research in this field.

Exploring the Drivers, Challenges, and Opportunities of Supply Chain Technology Adoption for Small and Medium Enterprises (SMEs) in Malaysia

Small and Medium Enterprises (SMEs) have a crucial impact on the Malaysian economy, making major contributions to the functioning of the supply chain. Integrating supply chain technology has become a crucial element in enhancing the efficiency and competitiveness of SMEs in Malaysia. During recent years many developing and developed countries have witnessed the expansion of markets and supply chain networks; in the progress of these market and supply systems SMEs find various complexities when they are implementing or improving the technology integration of their supply chain. The current body of literature often addresses the adoption of technology in a general manner or within larger organizations, resulting in a significant gap in study about the specific circumstances and requirements of small and medium-sized enterprises (SMEs). This study employs a rigorous methodology that analyzes relevant papers to examine the drivers, challenges, and opportunities for adopting supply chain technology among SMEs in Malaysia. By implementing supply chain technology, Malaysian SMEs can increase their performance in many areas of key performance indicators. This includes improving efficiency, optimizing inventory management, achieving cost savings, enhancing customer service, and increasing market competitiveness. It is believed that the findings of the study can be useful for managers of SMEs, policymakers, and interested stakeholders. This will enable SMEs to navigate the challenges of adopting technology more effectively and enhance global competitiveness.

Determinants of ICT Adoption in Business for Emerging SME Entrepreneurs in Indonesia

This study investigates the factors of ICT adoption by early-level small and medium-sized enterprises (SMEs) in Indonesia after the pandemic. The study was conducted among 237 new SME entrepreneurs from Indonesia's sixth-highest economic growth regions, with a confirmatory analysis of ICT adoption constructs in a structural equation model (SEM) analysis. This study showed that the benefits and integration with consumers are SMEs' main determinants when adopting ICT when starting their business. This condition is a rational response from SMEs when they begin their business in Indonesia's post-pandemic economic recovery conditions, which need to immediately emerge to capture the market with the efficiency and effectiveness of business processes. The study's results empirically provide a valid and reliable description of the determinants of ICT adoption for strengthening post-pandemic SME business practices and theoretically offer empirical evidence of factors for improving and strengthening digital transformation in business through usefulness and integration with consumers.

The effects of Vicoba Services on the performance of SMEs in Tanzania; the case Kinondoni District

This study assessed the effect of VICOBA services on the performance of small and medium enterprises in Tanzania. The study employed descriptive design to establish relationship between loans and financial performance of Small and Medium Enterprises (SMEs) in the Kinondoni district. The multistage sampling techniques of simple random and judgmental sampling were employed in selecting 76 replicates from Umoja wa VICOBA Kata ya Kigogo (UVIKAKI). Structured questionnaires instruments and interviews were used in data collection. Data analysis was performed using descriptive and content analysis. The study findings revealed that, there is significant influence of VICOBA to the development of entrepreneurship schemes and poverty reductions among community members of UVIKAKI scheme. Through loans disbursement at low interests encourage the improvement of capital and livelihood to the members through income-generated activities such as poultry, catering, canteen, and workshops. The government partners that play a key role in the grassroots movement of informal sector of economy should call on all funders, financing organizations, and development partners to help the marginalized population. Similar to this, communities could assess themselves against programs like VICOBA by developing their own internal awareness, knowledge, skills, and capital.

Examining the triple impact of eco-intellectual capital on the financial, social and environmental sustainability performance of SMEs in emerging economies

The way business has been conducted in modern times has traversed the need to achieve financial gains. Globally, it has become imperative for organisations to thrive competitively on the basis of ecologically conciousness and sustainability. Hence, the primary aim of this investigation is to determine how Eco-Intellectual Capital (EIC) influences the sustainability performance of small and medium enterprises (SMEs). The study made use of primary data and employed a quantitative research approach using a survey for data collection. The main data collection instrument used was a structured questionnaire. Data for the study were solicited from a group of 500 employees and owners managing SMEs in Ghana. Data collected from the questionnaires were analysed using IBM SPSS Statistics version 24 and IBM SPSS AMOS (26.0) Graphics. The results showed that EIC had a favourable effect on the social and environmental dimensions of sustainability performance. On the economic (financial) dimension, however, the effect was not significant. Aside from magnifying Eco-Intellectual Capital and Sustainability Performance literature, this research study is one of the few that looks at how green human, structural and relational capital work together to improve the economic, social and environmental sustainability of SMEs in emerging economies.

Focus Group Interview: University-Industrial Collaboration

Business innovations can introduce novel and imaginative concepts, particularly within digitalization. Innovations have the potential to stimulate the advancement of enterprises, fostering market expansion, enhancing competitiveness, and optimizing profitability. Nevertheless, the implementation of innovation may be achievable in collaboration. Collaborations and interactions between academia and industrial entities may yield improved outcomes. Nevertheless, the presence of obstacles between academia and industries could harm the long-term viability of commercial innovation. The concerns and challenges faced by local institutions and enterprises in Malaysia are examined within the framework of a case study. Data was obtained from a random sample of Chief Executive Officers (CEOs) across several industries. A focus group was conducted with 15 representatives from Small and Medium Enterprise (SME) companies and one moderator to lead the discussion. The findings from the focus group have been transcribed and analyzed based on their sharing. The rationale for focusing on CEOs was their role as critical decision-makers responsible for driving corporate innovations. The collection of perspectives from academia and industries was facilitated through face-to-face interviews. The study provided suggestions for potential avenues of future investigation.

Technological Innovation for Sustainable Supply Chain Management in the Food Industry

This study explores the critical role of technological innovations—specifically blockchain, Internet of Things (IoT), and artificial intelligence (AI)—in enhancing sustainable supply chain management within Malaysia's food industry. As the industry faces increasing pressure to adopt sustainable practices due to environmental concerns, regulatory demands, and consumer expectations, these technologies offer significant potential for improving traceability, reducing waste, and optimizing operational efficiency. The research highlights how blockchain enhances transparency and ethical sourcing, IoT enables real-time monitoring to minimize waste, and AI optimizes demand forecasting and inventory management, reducing overproduction and resource waste. However, the study also identifies substantial barriers to the adoption of these technologies, particularly for small and medium-sized enterprises (SMEs). These challenges include high implementation costs, a shortage of skilled labor, and concerns over data security and privacy. To address these issues, the study recommends starting with pilot projects to mitigate risks, investing in continuous workforce training, enhancing data security measures, and leveraging government support and industry collaborations. By overcoming these challenges, Malaysia's food industry can effectively integrate these innovations, leading to more sustainable, efficient, and resilient supply chains. This research underscores the importance of strategic planning and continuous improvement in fully realizing the benefits of technological advancements, thereby positioning Malaysia’s food industry as a leader in sustainable practices within the global market.

How Fintech Adoption, Digital Payment Systems, and Consumer Trust Shape Financial Performance of MSMEs

This study investigates the impact of fintech adoption, digital payment systems, and consumer trust on the financial performance of micro, small, and medium enterprises (MSMEs). Using data from 400 MSMEs, the research employs multiple regression analysis to explore the relationships between these factors. The results reveal that fintech adoption has the strongest positive influence on financial performance, followed by digital payment systems and consumer trust. Additionally, consumer trust moderates the relationship between digital payment systems and financial performance, highlighting the importance of customer confidence in driving business success. These findings emphasize the need for MSMEs to embrace digital financial solutions and build trust with their customers to improve their financial outcomes. The study provides practical implications for MSME owners, policymakers, and industry leaders, encouraging the adoption of fintech and digital payment systems as crucial tools for achieving competitive advantage and financial sustainability.

The Proliferation of Artificial Intelligence in the Forklift Industry—An Analysis for the Case of Romania

This paper investigates the impact of artificial intelligence (AI) on the forklift industry, focusing on logistics and procurement within small and medium-sized enterprises (SMEs) in Romania. Using a mixed-methods approach, including interviews with seven managers from a benchmarked company in the forklift industry (BCFI) and quantitative analysis of operational data, we examine the transformative effects of AI integration. Key findings include a 30% reduction in inventory holding costs due to AI-powered predictive analytics; a 15% decrease in procurement costs through AI-driven supplier evaluation systems; a 25% increase in operational efficiency from AI-optimized route planning; a 40% boost in overall productivity attributed to AI-enabled automation; and a projected 20% reduction in low-skilled labor requirements over the next five years. The study employs environmental, social, and corporate governance (ESG), balanced scorecard (BSC), benchmarking, and activity-based management (ABM) models to analyze risks and implications of AI integration. A case study of a leading Romanian SME in the forklift industry is presented, examining financial strategies using McKinsey’s 7S framework. The paper concludes that while AI offers significant operational benefits, it also presents challenges in workforce transition and ethical considerations that require careful management.

دور القيادة في تعزيز الابتكار داخل المؤسسات الصغيرة والمتوسطة: دراسة حول كيفية تأثير أساليب القيادة المختلفة على معدلات الابتكار في المؤسسات الصغيرة والمتوسطة

This study examined the role of leadership in fostering innovation within small and medium-sized enterprises (SMEs), focusing on the importance of effective leadership in driving creativity and improving organizational performance. Leaders in SMEs face various challenges related to limited resources and competitiveness in rapidly changing markets. This study analyzes the impact of different leadership styles, such as transformational and motivational leadership, on innovation development in these enterprises. These results were analyzed, and they relied heavily on leadership to encourage contribution, at a rate of 48%, and appeared creative in innovation, as 44.9% of the participants in the questionnaire were, and they only participated in an integral part of the institutions’ culture, and some participants also participated in being involved significant support was not completed, as 34.7% was not completed. The findings reveal that leaders who adopt inspirational leadership styles and encourage creative thinking contribute directly to enhancing innovation levels and increasing the organization's competitiveness. The study offered recommendations to enable leaders to foster an innovative environment by promoting open communication, supporting new experiments, and investing in skill development descriptive principle of Newton's analysis, the questionnaire tool, was used, and the data was analyzed using the Excel program, and several results were reached, the most prominent of which are: that institutions rely heavily on leadership for encouragement, that practicing commerce is important in supporting creative and innovative employees, and that leadership is a small commercial institution. She works largely in the field of health care, and ended up studying after being among the top achievers: Promoting a creative work environment, encouraging effective communication, encouraging cooperation between different teams.

The implementation of tax imposition Micro Small Medium Enterprise (MSME) in the form of limited companies after the expiry period of final income tax

The MSME tax policy has undergone several changes and changed regulations. In 2022, the government again re-regulated MSME taxes, namely PP Number 55 year 2022 regarding Adjustments to Regulations on Income Tax. This research uses a descriptive qualitative approach. With the issuance of PP Number 55 of 2022, this provides an opportunity to increase the taxes owed by MSMEs and researchers also want to illustrate to the government that after this regulation is issued what impact will be felt by MSME Taxpayers, so that this will later be used as an evaluation by the Government. The result of this research is the calculation for the 2023 tax year using the rate of Article 17 of the Income Tax Law with the rate of 22%, and an additional 50% tax reduction as the Income Tax Law Art 31 E, resulting in the tax payable of IDR 4,240,946.16. PT ABC must carry out the bookkeeping obligations in reporting the tax liabilities and create proof of transactions for every business transaction to avoid a high tax burden.

Transformasi Digital dan Pertumbuhan UMKM: Analisis Dampak Teknologi pada Kinerja Usaha Kecil dan Menengah di Indonesia

This study examines the impact of digital transformation on the growth of Small and Medium Enterprises (SMEs) in Indonesia, focusing on the impact of technology on SME performance. A quantitative approach with a survey method was employed, involving 100 SMEs across various sectors in Indonesia. Data was collected through questionnaires measuring variables such as the use of e-commerce, social media, and management information systems as indicators of digital transformation, and increased revenue, efficiency, and market reach as indicators of SME performance. Multiple linear regression analysis revealed that digital transformation has a positive and significant impact on SME performance. The findings demonstrate that every one-unit increase in the digital transformation variable results in a 1.5-unit increase in SME performance. Furthermore, the study identified factors influencing the adoption of technology by SMEs, such as internet access, digital literacy levels, and government support. The analysis indicates that high internet access and digital literacy, along with strong government support, are crucial factors in increasing technology adoption and maximizing the benefits of digital transformation for SMEs. The study recommends strategies to encourage digital technology adoption by SMEs in Indonesia, including improving digital infrastructure, providing training and mentoring programs, and offering incentive schemes for digitally transforming SMEs.