Micro, Small And Medium-sized Enterprises Research Articles

Financial literacy practices on family farms

Financial literacy has attracted significant interest in the past two decades with researchers predominantly focusing on two dimensions of its conceptualisation; knowledge and application. This paper answers calls for research on how context shapes financial literacy in Micro, Small and Medium-Sized Enterprises (MSMEs) using a practice framework drawn from established literacy theory. Financial literacy practices manifest in events and are influenced and shaped by social, cultural, temporal, technological, historical and institutional circumstances. This context-driven approach facilitates the examination of financial literacy in MSMEs where the owner-manager's financial literacy is entwined with that of the enterprise's practices. Using in-depth longitudinal case studies, we show how social and financial literacy practices on family farms are intrinsically interlinked and frame the timing of financial activities, the roles and tasks people undertake, the location where these activities occur, and how they are articulated. Institutional power relationships manifest in the disconnect between farm level financial literacy practices, many of which are informal and idiosyncratic, and those required by banks and government agencies. This power divide leads to frustration and sometimes apparent indifference to conducting more formal financial literacy practices. Temporality also emerges as a critical contextual factor. We identify the important moments in the farming calendar when farmers are focused on the financial aspects of the farm and propose that educational programmes aimed at improving the farmers' financial literacy could be more effectively targeted using a social practice lens.

The Influence of Financial Literacy, Risk Orientation and Qualified Accountants on Performance in Micro, Small and Medium Enterprises: The Mediating Role of Management Accounting

There are limited studies examining whether the owner or manager’s financial literacy, risk orientation, and deployment of qualified accounting staff influence the adoption of management accounting practices (MAPs) and performance in the context of micro, small, and medium-sized enterprises (MSMEs). Thus, this study seeks to examine the effect of financial literacy, qualified accounting staff, and risk orientation on performance, with MAPs as a mediating variable within the context of MSMEs from a developing country. A quantitative study was established where a questionnaire survey was administered to Malaysian MSMEs from different sectors. Based on 105 valid responses, the results show that MAPs have positive and significant effect on performance. The study also reveals that MAPs significantly and fully mediate the relationships between owner/manager’s financial literacy, qualified accounting staff, risk orientation, and performance of MSMEs. The findings provide significant data for identifying key factors within the setting of small businesses in developing countries to improve financial resilience in the current competitive economy. Our findings offer valuable insight to practitioners about how competencies and key management accounting concepts can consequently affect the positive outcomes of organisational performance.

Analysing the influence of digital strategy and innovation on MSMEs' performance in emerging countries

Drawing on the technology–organization–environment (TOE) framework, the diffusion of innovation (DOI) theory and the technology acceptance model (TAM), this research analyses how digital strategic orientation has a direct influence on the performance of micro, small and medium‐sized enterprises (MSMEs) in emerging markets and an indirect influence mediated by innovation. Using a representative sample of Peruvian MSMEs, we shed light on the sometimes inconclusive evidence on why small business struggle to benefit from digitalization, a particularly key issue in emerging economies. The structural equation model used shows that the impact of digitalization on firm performance is significant, as is the mediating effect of innovation. Our results imply that the total effect of digitalization on performance will be greater if the MSMEs develop innovative activities. Furthermore, we show that the performance effect requires not only digital technology but also the involvement of the entire organization.

Adoption of cloud-based accounting solutions in micro, small and medium-sized enterprises: insights from the Kingdom of Saudi Arabia

Purpose This study aims to explore the extent to which micro, small and medium-sized enterprises (MSMEs) in Saudi Arabia are adopting cloud-based accounting systems, what cloud accounting technologies MSMEs are using and the factors that affect cloud accounting system adoption. The technology, organizational and environmental model was used to assess the factors that affect the adoption of cloud accounting systems. Design/methodology/approach Data were collected via a survey distributed to MSME owners, directors and chief executives in Saudi Arabia. The final sample comprised 174 participants. Descriptive statistics, multiple response analysis and logistic regression were used to analyze the data. Findings This study’s findings show that many MSMEs currently do not use cloud accounting. The findings also show that Sage One and Xero Accounting are the main cloud accounting technologies MSMEs use. Perceived benefits, security concerns, organizational readiness, government support and vendor support were found to significantly influence the adoption of cloud accounting systems, while compatibility, firm size, top management support and intensity of the competition were not found to affect MSMEs adoption of cloud accounting technologies. Originality/value To the best of the authors’ knowledge, this study is the first to explore cloud accounting adoption by MSMEs in Saudi Arabia. It empirically shows the extent to which cloud-based accounting systems are used in MSMEs and the significant factors influencing the adoption of these systems.

Impact Of Marketing Events On Customer Satisfaction Mediated By Digital Marketing And Moderate Green Marketing On MSMEs In Banyumas District

With the help of digital marketing and green marketing, the purpose of this study is to investigate the influence that marketing events have on customer satisfaction in micro, small, and medium-sized enterprises (MSMEs) located in the Banyumas Regency. The method of sampling is known as simple random sampling. This is due to the fact that the population is quite huge, which means that the samples are taken depending on the convenience that is discovered. To estimate the appropriate size of the sample for this investigation, the Slovin formula was utilized. (0.1) is the absolute maximum percentage of the sample limit that can still be allowed. The distribution of questionnaires to micro, small, and medium-sized enterprises (MSMEs) in the Banyumas Regency was carried out by sending a link to a Google form. The findings of this study indicate that marketing events have an effect on the level of satisfaction experienced by consumers, that digital marketing acts as a mediator during the interaction between marketing events and consumer satisfaction, and that green marketing acts as a moderator during the relationship between marketing events and consumer satisfaction.

Spatial patterns and drivers of micro, small and medium-sized enterprises (MSMEs) within and across Indonesian cities: Evidence from highly granular data

The importance of micro-, small-, and medium-sized enterprises (MSMEs) for economies and livelihood is widely recognized, especially in emerging economies. However, there are scarcely any studies on their spatial determinants, particularly in Indonesia, where MSMEs account for more than 95 % of enterprises. This paper aims to assess the spatial drivers of MSMEs within and between Indonesian cities using multilevel modeling techniques that incorporate district (n=98) and nested village-level (n=4995) spatial units. The study's findings have implications for policy interventions, suggesting the need to enhance infrastructure and digital connectivity, promote employment accessibility, and consider planning mechanisms to influence MSMEs' spatial configuration.

Sosialisasi Serta Pendampingan dalam Pembuatan Nomor Induk Berusaha ( NIB OSS-RBA) Kepada Pelaku UMKM di Desa Seberang Sanglar

In the era of free markets, Micro, Small, and Medium-Sized Enterprises (MSMEs) must fulfill specific conditions in order to compete. In order to help business actors—particularly craftspeople and MSME actors—better expand their enterprises, community service activities are necessary because many of them still lack business legitimacy. The purpose of this activity is to introduce the company Identification Number (NIB), which may be obtained online, and to raise awareness of the need of maintaining company licenses. The Indonesian government wants to make business actor registration easier by using the Online Single Submission (OSS) to submit NIBs. The provision of business legality theory and practice is part of this support. The purpose of this study is to arm business actors with information and expertise about creating NIB so they may grow their enterprises. The findings demonstrated that the community's comprehension of creating NIB, which each and every business actor must own, had improved. Because the NIB has granted legal status to the firm, it has made doing business simpler. MSME participants in Seberang Sanglar Village also benefit from protection from the government, easy access to financing, government empowerment, and support for their business growth.

Impact of Financial Literacy, Risk Tolerance, Usefulness Perception, and Trust Perception on Financial Decision of MSMEs in West Java

This study investigates the impact of financial literacy, risk tolerance, perceived usefulness, and trust perception on the financial decision-making of micro, small, and medium-sized enterprises (MSMEs) in West Java. Using a sample of MSME owners, the study employs multiple regression analysis to explore the relationships between these variables. The findings reveal that financial literacy is the most significant factor influencing financial decision-making, followed by perceived usefulness, risk tolerance, and trust perception. The results underscore the importance of financial education, adoption of beneficial financial tools, and fostering trust in financial institutions for enhancing MSME financial decisions. The study offers practical and theoretical contributions, providing valuable insights for policymakers, financial institutions, and MSMEs. Future research should consider expanding the geographical scope and exploring potential moderating factors in financial decision-making.

Strategic model for strengthening SMEs: An empirical study based on Porter’s Five Forces

This study aims to develop and validate a strategic model tailored to the unique challenges and contexts faced by micro, small, and medium-sized enterprises (MSMEs) in Ecuador, enhancing their operational efficiency and access to financing. Employing a quantitative approach, the research utilized a non-experimental, cross-sectional design to gather data from a sample of 358 companies. The study revealed that MSMEs are significantly hindered by limited access to financing, lack of managerial skills, and technological gaps. Despite these challenges, MSMEs demonstrated considerable adaptability and resilience, underscoring their critical role in the local economy. The strategic model proposed leverages Porter’s Diamond Model to identify and address the specific competitive and operational challenges encountered by these enterprises. Key findings include the necessity for enhanced financial literacy, simplified regulatory frameworks, and the integration of digital technologies to improve competitiveness. The proposed model focuses on strategic training, fostering innovation, and creating a more supportive financing environment. The implications of this study are profound, suggesting that policymakers and practitioners should streamline regulatory processes, enhance financial and technological support frameworks, and provide tailored training programs. These strategies are intended to bolster the sustainability and growth of MSMEs, contributing to broader economic development. This research contributes to the academic literature by providing empirical evidence on the challenges faced by MSMEs in developing economies and proposing a contextually adapted strategic model to mitigate these challenges, thereby enhancing their economic impact and sustainability.

Micro, Small, and Medium-Sized Enterprises (MSMEs) Sustainability: The Strategic Role of Digitalization, Financial Literacy, and Technological Infrastructure

Micro, Small, and Medium-Sized Enterprises (MSMEs) Sustainability: The Strategic Role of Digitalization, Financial Literacy, and Technological Infrastructure

Analysis of sales techniques from the perspective of entrepreneurship in MSMEs (MIPYMEs)

This study analyzes and evaluates sales techniques from the perspective of entrepreneurship in micro, small and medium-sized enterprises (MSMEs) with the objective of identifying effective strategies to improve their competitiveness and commercial performance. Critical to economic development and employment generation, MSMEs face significant challenges, including limited resources and intense competition. The research focuses on traditional and digital sales techniques, highlighting the importance of innovation and entrepreneurship. A quantitative and documentary methodology was used to collect and analyze data from 40 MSMEs. The results indicate that digital techniques, such as social media marketing and e-commerce, have surpassed traditional techniques, such as print advertising and direct sales, in effectiveness. MSMEs that adopt an entrepreneurial and flexible approach show better business performance and higher customer satisfaction. Ongoing training and the use of emerging technologies are crucial to the successful implementation of current sales strategies. However, MSMEs face barriers such as resistance to change and scarcity of financial resources. To overcome these challenges, it is recommended to encourage innovation, invest in staff training, and optimize available resources.

Financial Management Behavior with Locus of Control as an Intervening Variable: Impact of of Financial Knowledge and Income Level

Micro, Small, and Medium-Sized Enterprises (MSMEs) are business sectors that offer a range of goods and services and play a significant role in developing new industries as a solution to the unemployment issue. MSMEs have a huge potential to boost local economic activity and provide the majority of people with a source of income, which would improve welfare. MSMEs are still growing, but it is not slow and stagnant growth because of issues including capital constraints, a lack of utilization of information and technology, and poor financial literacy in managing company finances. The primary data for this study came from questionnaire surveys that were conducted directly. The results of the study allow for several inferences: The degree of income and financial literacy has a significant impact on where control is placed. The way people handle their money has a huge bearing on their financial knowledge. The majority of the time, people's financial management is unrelated to their degree of income. The behavior of financial management is significantly influenced by the locus of control. Financial knowledge has a significant impact on financial management behavior through the locus of control. The placement of control is substantially influenced by income and financial literacy levels. The way people handle their money has a huge bearing on their financial knowledge. The way people manage their finances is mostly independent of their income level. The behavior of financial management is significantly influenced by the locus of control. Financial knowledge has a significant impact on financial management behavior through the locus of control.

IMPACT OF INPUT TAX CREDIT ON WORKING CAPITAL REQUIREMENTS OF MSMES IN INDIA: AN EMPIRICAL STUDY

The main objective is to find out the impact of the Tax Credit (ITC) in the GST structure on the utilitarian capacity and liquidity of micro, small and medium-sized enterprises (MSMEs) in India. Using a coordinated survey to gather information on working capital stocks and GST consistency, 200 MSMEs in Assam, India, were selected to conduct a quantitative assessment. The results show that there are significant areas for the relationship between better working capital conditions and the use of ITS. This suggests that MSMEs can have greater financial flexibility and fewer pay restrictions if they do register ITC claims. According to the practical implications of the assessment, policymakers should deal with the ITC system and offer additional assistance to ensure that MSMEs can fully benefit from the GST. This study is novel because it is uniquely relevant to the state of Assam, offering alternative, progressive views on the specific impact of the goods and services tax on small businesses in that state.

Analysis of Halal Literacy, Halal Awareness, Motivation and Religiousity of SMES on Interest in Halal Certification in Banjarmasin

Micro, Small, and Medium-Sized Enterprises (MSMEs) play a significant role in Banjarmasin City's local economic development. Along with this growth, halal products have great potential to gain the support of consumers whose awareness of halal products is increasing. Halal factors are becoming increasingly important to consumers when making routine product purchases. This study examines how the motivation,religiosity, halal literacy, and halal awareness of MSME (Micro, Small, and Medium Enterprises) actors affect their desire to get halal certification in Banjarmasin City. This study is conducted using field research using a quantitative descriptive technique. Purposive sampling, a non-probability sampling technique, selects samples based on the requirement to meet specific objectives, such as identifying MSMEs in Banjarmasin for a minimum of one year. A questionnaire is used for data collection, and the sample size is 96. Using SPSS 25.0 for Windows applications,the following data analysis procedures were employed: hypothesis testing, data validity analysis, and descriptive data analysis. The findings indicate that MSMEs' interest in Halal Certification in Banjarmasin City is significantly influenced, at least in part, by the factors of Halal Literacy, Halal Awareness, Motivation, and Religiosity. The factors significantly impacting MSMEs' interest in halal certification in Banjarmasin City simultaneously include motivation,religiosity, halal literacy, and halal awareness.

Economy, Energy, and Environment Impact on the Use of Ferronickel Slag Waste for Construction Project in Indonesia

This research intends to investigate the economic, energy and environmental aspects of mortar and concrete manufactured with ferronickel slag (FNS) as a substitute for cement and aggregate because many infrastructure projects in Indonesia use waste materials, particularly FNS, as one of the construction components. Results indicate that incorporating FNS powder as one material in construction projects also has indirect benefits such as generating employment, and fostering local community economic growth. The grinding of FNS will provide business opportunities for Micro, Small and Medium-sized Enterprises (MSMEs). The use of FNS as sand replacement affords an economy advantage in concrete production which also benefits in the construction sector. In addition, utilizing by-products (FNS 1 and FNS 2) in mortar production has a beneficial effect on lowering the LCC. However, adding FNS in place of sand does not reduce the LCC of concrete constructed with FNS. The usage of FNS in place of cement appears to help reduce mortar's energy consumption. However, using FNS in place of sand throughout the concrete-making process has minimal impact on energy usage. There is an environmental benefit to using FNS 1 and FNS 2 in the mortar production process. When concrete is built using FNS as a sand substitute, the CO<sub>2</sub> emission does not show the same favourable outcomes as mortar made with FNS powder. Although it doesn't significantly reduce carbon emissions, FNS sand significantly improves concrete's performance.

COVID-19, Agency and Resilience: The Experiences of Micro, Small and Medium-Sized Enterprises (MSMEs) in Ghana

COVID-19, Agency and Resilience: The Experiences of Micro, Small and Medium-Sized Enterprises (MSMEs) in Ghana

Does social media marketing important for MSMEs performance in Indonesia?

PurposeThis study aims to examine the main factors that influence the adoption of social media marketing (SMM) by small and medium-sized enterprises (SMEs) in Indonesia and how the influence of social media marketing on the performance of micro, small and medium-sized enterprises (MSMEs) in Indonesia. This research can provide input for teaching, public policy toward digital infrastructure and influence public attitudes toward digital involvement in business. This implication is in line with the findings of this research, which bridges theory and practice and has the potential to influence economic growth and quality of life.Design/methodology/approachThe data collection method used is a survey method by distributing questionnaires to MSME actors. The number of samples in this study was 234 respondents. This study was analyzed using the Structural Equation Model (SEM) with the help of SmartPLS software.FindingsThe results of this study indicate that marketing through social media has an effect on the performance of MSMEs. MSMEs need to adopt digital media considering the rapid development of digital technology today to be in line with the demands of business development. Using social media platforms, consumers can instantly connect with new products, services and brands with ease.Originality/valueThis article provides a significant and original contribution to the literature by examining the influence of social media marketing on the performance of micro, small and medium-sized enterprises (MSMEs) in Indonesia. This report provides new insights into the adoption and impact of SMM in the Indonesian context, where internet and social media use is very high.

Unveiling knowledge ecosystem dimensions for MSMEs’ digital transformation, toward a location-based brokerage

This study explores how knowledge ecosystems (KEs) led by a knowledge broker (KB) can support the digital transformation of Micro-, Small and Medium-sized Enterprises (MSMEs). By employing an exploratory research design and action research methodology, the paper proposes and applies an analytical framework to investigate the characteristics of KEs and the knowledge managed by the KB as the innovation intermediary acting as leader of the KE The case study selected uncovers the dimensions of a regional KE guided by a digital innovation hub (DIH) supporting MSMEs towards the adoption of the “Digital Artisan platform” deriving from an Industry 4.0 project.The findings highlight the importance of trust, strategic alignment, and dynamic capabilities of KBs in enhancing MSMEs' digital journey and emphasize the location dimension of the regional KE as a means for providing tailored support. This research contributes to the theoretical and practical understanding of regional KEs enabling the digital transformation through KBs who are the innovation intermediaries covering the role of leaders of the ecosystem.

An Examination of Technical Efficiency of MSMEs Industries in Haryana: A Case Study of Faridabad District

India's economy's micro, small, and medium-sized enterprises (MSME) sector produce several goods. One of the most accurate ways to characterize the Industrial Sector is by its technical efficiency, which allows it to sustain a high level of manufacturing production. An investigation of the productivity and efficiency of micro, small, and medium-sized firms (MSMEs) in the industrial sector of Faridabad, Haryana, is carried out using parametric frontier analysis. Within the context of his essay on efficiency evaluation, which was published in 1957, Farrell presented various approaches for examining productivity and efficiency. The function that determines the creation of the stochastic frontier. We use a multistage estimation technique that incorporates four distinct error components to arrive at reasonable estimates. From 2016 through 2022, the data from the Ministry of MSMEs and the organization that is part of the state government were utilized. An investigation into the machinery and equipment that is utilized by micro, small, and medium-sized firms will be carried out as part of this study.

Online Marketing Readiness of MSMEs in Indonesia: A Perspective of Technology Organizational Environmental Framework

Micro, Small, and Medium-sized Enterprises (MSMEs) play a crucial role in the economic landscape of tourism areas, offering collective services that enhance tourist experiences and convenience at destinations. One key effort to promote tourism is enhancing the technological readiness of MSMEs. This study aims to evaluate the preparedness of MSMEs to adopt e-commerce technology. Data was gathered through interviews and questionnaires distributed randomly to 184 business operators. The research utilized the Technology Organizational Environmental (TOE) framework, encompassing ten indicators identified from various sources. Data analysis was conducted using Structural Equation Modeling (SEM) with four hypotheses. The findings reveal that both organizational readiness and external environmental support have a positive impact on technology adoption readiness. Furthermore, organizational readiness significantly mediates the relationship between environmental support and technological readiness. Therefore, it is essential to develop the organizational readiness of MSMEs to facilitate the adoption of e-commerce technology.