Micro, Small And Medium-sized Enterprises Research Articles

Strategic Decision Analysis To Manage Competitive Advantage For Shopee Indonesia

Shopee Indonesia, a key participant in the dynamic e-commerce landscape, has leveraged the power of innovative digital solutions to reach and serve a diverse customer base. Despite its success, Shopee faces unique challenges and opportunities that influence its strategic decisions and market position, just like any other competitive industry player. Shopee benefits from the rapid development of Indonesia's internet and e-commerce penetration rate as well as increase in Micro, Small, and Medium-Sized Enterprises (MSME) participation across the nation. However, Shopee confronts intense competition from emerging platforms such as Tiktok Shop, particularly in the Fashion and Beauty category. Shopee's extensive coverage of Stock Keeping Units (SKUs) and comprehensive selection of products are distinguishing features that provide customers with a vast array of options. Additionally, Shopee's marketing strategies and free shipping promotions distinguish it in the market. Notably, Shopee's extensive payment options, such as Cash-on-Delivery, increase its accessibility for a vast array of consumers. However, User Interface and User Experience (UI/UX), loyalty and rewards programs, customer service quality, personalized purchasing experience, and engaging features such as Shopee Games, Shopee Live, and Shopee Video are identified as key areas for improvement. Strategic investments in enhancing UI/UX, providing engaging loyalty programs, delivering exceptional customer service, and leveraging innovative technology to curate personalized purchasing experiences can elevate Shopee's position in the e-commerce industry. Shopee is poised to capitalize on its strengths, resolve its weaknesses, and take advantage of available opportunities to maintain its leadership position in the Indonesian e-commerce market, which is constantly evolving.

Critical Firms Prediction for Stemming Contagion Risk in Networked-Loans through Graph-Based Deep Reinforcement Learning

The networked-loan is major financing support for Micro, Small and Medium-sized Enterprises (MSMEs) in some developing countries. But external shocks may weaken the financial networks' robustness; an accidental default may spread across the network and collapse the whole network. Thus, predicting the critical firms in networked-loans to stem contagion risk and prevent potential systemic financial crises is of crucial significance to the long-term health of inclusive finance and sustainable economic development. Existing approaches in the banking industry dismiss the contagion risk across loan networks and need extensive knowledge with sophisticated financial expertise. Regarding the issues, we propose a novel approach to predict critical firms for stemming contagion risk in the bank industry with deep reinforcement learning integrated with high-order graph message-passing networks. We demonstrate that our approach outperforms the state-of-the-art baselines significantly on the dataset from a large commercial bank. Moreover, we also conducted empirical studies on the real-world loan dataset for risk mitigation. The proposed approach enables financial regulators and risk managers to better track and understands contagion and systemic risk in networked-loans. The superior performance also represents a paradigm shift in addressing the modern challenges in financing support of MSMEs and sustainable economic development.

The Effects Of Customer Orientation, Competitor Orientation, And Promotion On The Marketing Performance Of Logistics Companies In Surakarta City

This study aims to explore the effects of customer orientation, competitor orientation, and promotion on marketing performance of logistics companies in Surakarta City. The research design employed a quantitative approach, utilizing a sample population of micro, small and medium-sized enterprises (MSMEs) in the expeditions or courier services sector. Data collection involved questionnaires and secondary data obtained from the Departement of Cooperatives, MSMEs, and Industry in Surakarta City. Descriptive statistics and regression analysis were used to analyze the data. The result of hypothesis testing revealed that customer orientatiom, competitor orientation, and promotion did not have a significant effect on the marketing performance of expedition services companies in Surakarta City. These findings contribute to the existing body knowledge and provide practical implications for logistics companie in Surakarta City to enhance their marketing strategies and overall performance. In conclusion, customer orientation, competitor oerientation, and promotion were found to be insignificant factors influencing the market performanceof logistics companies in Surakarta City. This reserach highlights the need for tailored strategies and futher investigations in the logistics industry. The implications of these findings provide insights for policy and practical in enhancing marketing strategies and suggest avenues for future studies in this context.

E-commerce and Online Dispute Resolution in Hong Kong

This article critically examines the development of online dispute resolution (ODR) in Hong Kong, focusing on the Electronic Business Related Arbitration and Mediation System International Online Dispute Resolution Centre Limited (eBRAM). As an independent, not-for-profit organization, eBRAM offers a platform for resolving disputes among micro, small and medium-sized enterprises (MSMEs). The article explores eBRAM’s potential impact on local MSMEs and legal professionals, Hong Kong’s position as an international business hub, and its complementarity with existing dispute resolution providers.
 Keywords: ODR; eBram; LawTech; Hong Kong.

Impact of ICT in the Tourism Sector: Ecuadorian Case.

The rapid development of Information and Communication Technologies (ICT) has profoundly impacted international tourism. This research analyzes the utilization of ICTs in the Ecuadorian tourism sector, specifically within micro, small, and medium-sized enterprises (MSMEs). The study employs an exploratory, descriptive, and bibliographic methodology, including a questionnaire distributed to 378 tourism experts representing Ecuadorian tourism MSMEs. The objective is to examine the relationship between ICTs and current tourism practices. The findings demonstrate that ICTs support 80% of MSME activities in the Ecuadorian tourism sector. They also provide benefits such as improved access to information about Ecuadorian tourist sites, enhanced communication between companies and tourists, and increased ease of tourist mobility.

Reputation based on internal capabilities: The case of small enterprises within the Colombian orange economy.

This study seeks to understand how micro, small, and medium-sized enterprises (MSMEs) can be innovative while developing their reputation. In doing so, this study focuses on companies classified as promoters of Colombia's "orange economy," which relates to the country's cultural and creative diversity. Firms with a non-technological emphasis also require knowledge, innovation, and reputation to perform better. In this regard, the study is based on the work of Hormiga and Garcia-Almeida (2016) who proposed the relationship between accumulated knowledge and innovation as background of reputation. In this paper, the purpose is to understand the internal reputation-building process carried out by MSMEs and the variables that intervene. Therefore, this research accounts for how MSMEs can build their reputation through innovation and accumulated knowledge. For this, a survey was conducted in 320 orange economy MSMEs located in Bogotá, Colombia, and the relationship of these variables was statistically tested through a quantitative analysis of multivariate data. Innovation was found to not impact the performance of companies, but this can be associated to factors that were not considered in this research. However, it is proposed to refine the original model by considering the manager's perspective. It is recommended that entrepreneurs invest resources in accumulating internal (tacit) knowledge to improve skills that enhance reputation.

Creating an innovative culture in agribusiness of micro, small and medium-sized enterprises

Purpose. This research aims to assess the motivational factors in creating an innovation culture in agribusiness of micro, small, and medium-sized enterprises (MSMEs) by examining the organizational perspective, including organizational culture, organizational learning, market orientation, and attitude to innovation culture.
 Methodology / approach. A random cluster sampling method was used to select 100 agribusiness MSMEs in Sukoharjo Regency. This research considered exogenous latent variables, such as organizational culture, organizational learning, market orientation, and attitudes toward intention to innovate. The endogenous latent variables used were innovation intentions and innovation culture. Data were collected through an online survey and analyzed using Structural Equation Modeling (SEM) and Partial Least Square (PLS) analysis tools.
 Results. The results showed that organizational culture, market orientation, and attitudes influenced the intention to innovate, while the level of organizational learning did not. The intention to innovate, in turn, had a significant effect on innovative behavior, as shown in the performance of agribusiness companies. This innovative behavior was reflected in the emergence of new ideas to enhance the business, including the development of new product variants, the utilization of e-commerce for sales, and the improvement of production technology to increase cost efficiency. Therefore, there was a relationship between cultural innovation and company performance.
 Originality / scientific novelty. This research model was built based on behavioral theory and organizational culture, taking into account the difficulty and time required to develop an innovative culture within agribusiness MSMEs. These enterprises have organizational features different from medium and large companies. The objective of this research was to change the mindset of agribusiness MSMEs towards innovation, where innovation was no longer viewed as an option but rather a condition for success. Innovation became a value in fostering organizational culture.
 Practical value / implications. The practical implications of the findings were that agribusiness MSMEs should focus on efforts such as adapting to external changes, involving all employees, consistency, and a clear and long-term business vision to promote innovation. This positive attitude towards innovation could create a culture of innovation within the company, enabling MSME agribusiness to compete and develop into a better company.

Business entrepreneurs’ intention towards takaful participation to mitigate risk: a study in Sri Lanka based on the theory of planned behaviour

PurposeTakaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is to examine the factors that influence the behavioural intention of micro, small and medium-sized enterprises (MSMEs) entrepreneurs to participate in takaful in Sri Lanka.Design/methodology/approachThis study is designed quantitatively with deductive approach using the theory of planned behaviour. A total of 432 MSMEs in Sri Lanka were surveyed using convenience sampling to measure the intention to participate in takaful as a risk mitigation. The collected data were analysed through partial least square-structural equational modelling.FindingsAttitude, subjective norm and perceived behavioural control variables positively influenced the intention, with t-values of 3.216, 3.813 and 3.859, respectively. The influence of these variables exhibits not much difference.Research limitations/implicationsThis study only focuses on MSMEs and a general takaful scheme. Future researchers may consider family takaful involvement among Sri Lankan business entrepreneurs.Practical implicationsTakaful practitioners should gain from the entrepreneurs’ intention to participate in takaful. Findings from this study could help marketing managers to revamp their strategies to further attract the entrepreneurs and make them to understand risk they are facing and, subsequently, participate in the takaful scheme.Originality/valueThis paper focuses on the context of Muslim minority among pluralism, where there is no regulation for Islamic financial products and services, and under the Islamic financial market crisis. This unleashes how business owners feel about takaful system on different dimensions.

Do Adaptability and Innovation Speed Matter in Increasing Sales of MSMEs during the COVID-19 Pandemic?

Micro, Small, and Medium-sized Enterprises (MSMEs) in Eastern Indonesia are threatened with bankruptcy during the COVID-19 pandemic. This situation occurred due to significantly decreased people’s purchasing power, and most production activities stopped. In light of this issue, this study aims to investigate how well MSMEs’ adaptability and innovation speed in Eastern Indonesia have increased their sales during the pandemic. We collected the data by distributing questionnaires on offline and online channels using Google Forms to MSMEs owners in Maluku and North Maluku Provinces. We eventually gathered 262 pieces of data and analyzed it through the PLS-SEM approach. The results showed that adaptability has a positive and significant effect on sales and the speed of innovation, while innovative speed has no impact on sales. In other words, the innovation speed can also not mediate adaptability to MSMEs sales. The results of this study are expected to benefit MSMEs owners in implementing appropriate business strategies, especially how MSMEs owners have the adaptability and innovation speed to manage their business in this condition of uncertainty. Additionally, this research is expected to provide an empirical contribution to the government of Indonesia in making considerations, policies, and decision-making related to the empowerment of MSMEs during the pandemic and beyond.Â

Financial constraints: Its impact on access to financing of micro, small, and medium businesses in Calapan City

Micro, small, and medium-sized enterprises (MSMEs) play an important role in a country's progress, particularly in the Philippines. Lack of access to finance has been identified as the most severe hindrance to MSMEs' growth and development. Thus, the purpose of this study is to evaluate the awareness of MSMEs in accessing finances and know their capacity to handle financial constraints. The factors discussed were the structure of the financial sector, awareness of funding opportunities, collateral requirements, and small business support services. The research focused on a sample size of 363 MSMEs. The research design of this study is quantitative since the research questions seek to answer and lead to numerical data. The researchers used a descriptive research method as it seeks to ascertain if there is a significant relationship between financial constraints and MSMEs' access to finance in Calapan City. Self-structured questionnaires were used to collect the primary data. By examining the factors or indicators of the study, the researchers found that financial constraints such as collateral requirements, small business support services, the structure of financial institutions, and awareness of funding opportunities, had a significant relationship towards accessing finance of MSMEs in Calapan City. Therefore, the study suggested that MSMEs should look for a financial institution that provides loan products and services that are consistent with their demands for business funding. Business owners should improve their financial management abilities by attending government-provided training and seminars. Further studies are highly recommended to discover other factors affecting MSMEs' financing access.

Assistance in managing business legality in Omah Kripik Mbote

The ability of a business to operate legally is crucial for consumer confidence as well as providing capital for network formation and expansion. However, it is common for business actors, particularly MSMEs (micro, small, and medium-sized enterprises), to operate their companies without following the law, as is the case with the Omah Kripik Mbote. This activity's goals are to strengthen the business legality framework for partners' owned business products and to give a better understanding of business law. The following activities are used to carry out Omah Kripik Mbote's business legal assistance programs: 1) dissemination of policies for handling business legality; 2) assistance in determining the needs for processing business legality; and 3) assistance in processing business legality. The outcomes of this program included the issuance of a certificate of domicile for the Omah Kripik Mbote company and an NIB with the KBLI code.

Vulnerability, Business Resilience, Mechanisms, and Challenges of Village (Barangay) Micro Business Enterprises in the New Normal

Micro, small, and medium-sized enterprises (MSMEs) and their employees have been particularly hard hit by the recession because of the COVID-19 pandemic. This study assesses the level of vulnerability and business resilience of two hundred seven (207) Village (Barangay) Micro Business Enterprises (BMBEs) in Bacolod City, Negros Occidental, Philippines. Likewise, it identifies the mechanisms, opportunities, and challenges of BMBEs in the new normal. Respondents of this study are from the wholesale and retail trade and food and beverage service sectors in Bacolod City who were selected using stratified random sampling. The descriptive-comparative research was used in the study and utilized both researcher-made and adapted questionnaires to gather data. Results showed that BMBEs had a moderate level of vulnerability and a high level of business resilience during the COVID-19 crisis. In terms of mechanisms and challenges, most BMBEs adopt technology for promotion purposes and have experienced insufficiency of cash flows to maintain operations. It can be concluded that the businesses were highly resilient during the COVID-19 crisis, as there is only a moderate extent of vulnerabilities from the BMBEs' internal operations. Businesses were able to absorb both internal and external shocks by adjusting to change and seizing opportunities.

Analyzing blockchain-based supply chain resilience strategies: resource-based perspective

PurposeThis research tries to find the blockchain-based resilience strategies that can help the supply chains of micro, small, and medium-sized enterprises (MSMEs) to recover from the disruptions and work effectively in a resource-based view perspective.Design/methodology/approachEight broad strategies and 32 sub-strategies are identified from the literature review. Delphi study was carried out, and detailed discussion with 16 experts helped in finalizing these strategies. Further, the best-worst method (BWM) prioritized these strategies.FindingsThe findings suggests that “building social capital,” improving “coordination capabilities,” “sensitivity towards market,” “flexibility in process and production,” “reduction in process and lead time,”and “having a resource efficiency and redundancy” are the top strategies on which the top management should focus to overcome the situations of disruptions and enhance performance of MSMEs.Practical implicationsThe blockchain-based strategies will enable the companies in tracing the products from the company to customers. Further, the customers will be able to identify their manufacturers, the raw materials used in manufacturing, and the life and quality of raw used materials. Altogether the textile industry will become more sensitive toward environmental practices.Originality/valueThe previous research has not identified and evaluated the blockchain-based resilience strategies, and therefore this study tries to fill this gap. This study used a smaller sample from the experts, so the results may vary if the larger data set is used and hypothesis testing can be done.

The impact of halal certification for MSME business: A systematic literature review

Indonesia is the country that is home to the most significant number of Muslims anywhere in the globe. As a result, there is a considerable demand for halal food and other goods in Indonesia. As a result, halal certification is crucial for the success of Micro, Small, and Medium-sized Enterprises (MSMEs) in Indonesia to fulfill the requirements of an expanding market. Having a halal certification provides various benefits for micro, small, and medium-sized enterprises (MSMEs), including enhancing consumer confidence in the products and services supplied, growing the market due to the preference of many consumers for halal products, and strengthening corporate competitiveness in the global market. This study aims to investigate the effects of halal certification on small and medium-sized businesses. This research was put together utilizing the systematic literature review (SLR) method, and the access journals Google Scholar and Garuda were used in its construction. A total of over one hundred pieces were considered for usage and reviewed based on the criteria that had been established in advance. Twenty articles were found to satisfy the requirements. According to the findings of this research, halal certification is essential for bolstering micro, small, and medium-sized enterprises (MSMEs) to ensure the continuity of production or operation. According to the findings of this survey, buyers of MSME goods and services give more significant consideration to buying products that have received halal certification. It has also been demonstrated that halal certification can help micro, small, and medium-sized enterprises (MSMEs) increase their turnover or sales.

Analysis of the Impact of Financial Technology and Financial Literacy on MSME Business Sustainability

The purpose of this study is to investigate, from a monetary point of view, how the adoption of technology and increased levels of financial literacy affect the continued viability of micro, small, and medium-sized enterprises. In this study, a quantitative methodology is utilized by selecting a sample of 42 culinary MSMEs located in the Sumedang district. The data that were collected were examined utilizing approaches that involved multiple regressions. According to the findings of the study, the application of technology as well as an understanding of financial concepts has a materially beneficial effect on the long-term viability of micro, small, and medium-sized enterprises (MSME). Technology may be of assistance to micro, small, and medium-sized enterprises (MSMEs) in enhancing their levels of efficiency and production, while financial literacy may be of assistance in fostering improved levels of financial management and improved decision-making. This sends a message to the government in its role as a regulator, to academics in their role as educators, to the business sector in its role as a catalyst, and to the community in its role as a driver to promote and grow financial literacy and fintech for MSMEs in Sumedang Regency.

Linking Supply Chain Management Practices of Micro, Small, and Medium-Sized Enterprises to Customer Relationship Management Objectives: A Proposed Framework

Highlighting the importance of micro, small, and medium-sized enterprises (MSMEs) for economic development and growth, and the appearance of their supply chain vulnerability due to the pandemic attack. Thus, the aim of this research is to propose a framework linking the supply chain management practices (SCMPs) of MSMEs to CRM objectives for the purpose of improving MSMEs’ operational performance. This article conducted a systematic review of all available publications from two prominent databases (WoS and Scopus) through PRISMA guidelines to explore the relationship between variables upon which the theoretical framework will be identified. Followed by semi-structured interviews with MSMEs’ eco-system stakeholders to validate the proposed framework using content analysis based on NVivo software. The findings revealed the relationship between SCMPs and CRM objectives through MSMEs’ operational performance, and a set of indicators has been determined for each variable, upon which a theoretical framework has been developed. Moreover, content analysis for interviews validates the key determinants for SCMPs, operational performance, customer satisfaction, and loyalty for MSMEs, upon which a proposed framework has been developed. This research provides a framework that can be used by academics and practitioners to assess the impact of SCMPs on CRM objectives through improving MSMEs’ operational performance and corrective action for MSMEs’ procedures.

The Role of Knowledge and Penetration of Fintech Services in Improving MSMEs of Fishermen and Marine Farmers in Remote Small Islands Region

Objective: This study aims to investigate the impact of knowledge and current penetration of fintech services on the overall performance of micro, small, and medium-sized enterprises (MSMEs), which in this case were fishermen and marine farmers. Design/Methods/Approach: This study utilized data from nine fishing villages with two hundred respondents. The data was collected using a questionnaire based on the purposive sampling technique, then analyzed using SmartPLS and path analysis. Findings: Knowledge had direct and indirect positive and significant effects on the overall managerial performance of fishermen and marine farmers. In addition, the user experience might increase the rapid adoption of fintech, improving the performance of MSMEs in small island regions. Originality/Value: This study highlights the importance of fintech knowledge for increasing the uptake and impact of fintech among MSMEs in remote small island areas, which has escaped the attention of scientific research. Practical/Policy implication: Given the results, more effort is needed to increase the knowledge of MSMEs in small islands region regarding services and risk to increase the participation of MSMEs in fintech.

DETERMINANTS OF BEHAVIOR INTENTION TO ADOPT PEER-TO-PEER LENDING SERVICES AMONG INDONESIA MSMES

An alternative for Micro Small and Medium-Sized Enterprises (MSMEs) against the barriers of financial inclusion is peer-to-peer (P2P) lending services. Despite its effectiveness in advancing financial inclusion, the factors that influence its adoption among MSMEs are unique. The purpose of this study is to analyze the factors influencing the intention of Indonesia MSMEs to adopt P2P lending services using the unified theory of acceptance and use of technology (UTAUT) 2 model. The results of this study show that five variables significantly affect MSMEs including performance expectancy, social influence, price value hedonic motivation, and effort expectancy. Meanwhile, the result shows that the factors of facilitating conditions and habits were not significant. This study contributes a reflective insight on the determinants of the P2P lending adoption among MSMEs in a developing country.

Effects of Capital, Usage of Accounting Information, Financial Statements, and Characteristics Entrepreneurship on Financial Capability and Business Performance of MSMEs In Bogor City

This study aims to investigate the influence of capital, use of accounting information, financial reporting, and entrepreneurship on the financial capability and business performance of micro, small, and medium-sized enterprises (MSMEs) in Bogor, Indonesia. A cross-sectional survey was conducted, and data were collected from 200 MSMEs using a structured questionnaire. Smart-PLS was used to analyze the data and test the research hypotheses. The findings indicate that capital, use of accounting information, financial reporting, and entrepreneurship have a significant positive influence on the financial capability and business performance of MSMEs in Bogor. Specifically, capital was found to be the most influential factor, followed by entrepreneurship, use of accounting information, and financial reporting. These results suggest that MSMEs should prioritize obtaining sufficient capital, ensuring access to reliable accounting information and financial reporting, and developing entrepreneurial skills to improve their financial capability and business performance. The practical implications of this study suggest that MSMEs should focus on obtaining sufficient capital to invest in their businesses, ensuring access to reliable accounting information and financial reporting to make wise financial decisions, and developing entrepreneurial skills to identify and capitalize on opportunities in the market. This study has several limitations, including the use of self-reported data and a cross-sectional design, which limits the generalizability of the findings. Future research could address the limitations of this study by conducting longitudinal research using objective measures of financial capability and business performance. Additionally, similar studies could be conducted in other geographical locations to test the generalizability of the findings. Overall, this study provides important insights into the factors that contribute to the success of MSMEs and has practical implications for MSMEs in Bogor, Indonesia.

Financial Constraints of Micro, Small, and Medium-sized Enterprises (MSMEs) in the Indonesia Creative Industries

The creative industry has a significant role in the economy. The existence of a creative industry causes advanced innovations, increases job availability, and improves the value and quality of a product. However, MSMEs in the creative industry still face constraints related to finance because they have different types of business patterns. The business pattern is unpredictable and will have an impact on strategy. This study aims to identify and explore the financial constraints of MSMEs in the creative industry in Surabaya. A semi-structured interview was conducted with the owner of 8 MSMEs. Using an explanatory pilot study, the result found five themes of the financial constraints of MSMEs in the creative industry: working capital management, access to credit, financial support from the government, cost efficiency, and the financial literacy of the owners. This study has several implications for the creative economy to develop the financial aspect for MSMEs in the creative industry.