Micro Small Medium Enterprises Research Articles

Implementation of the Halal Assurance System and MSME Business Development Strategy: the Case of a Coffee Shop

This study aims to help a micro-small-medium enterprise (MSME), in this case Dakara Coffee, meet the requirements of HAS 23000. The identification carried out in this study was in the form of primary and secondary identification to apply the HAS Manual. The HAS Manual is designed based on the actual conditions of Dakara Coffee and contains 11 HAS criteria. The results showed that several identified food and beverage ingredients did not meet the HAS 23000 criteria and did not have supporting documents. Several improvements are then recommended such as replacing materials that do not comply with HAS 23000 and completing documents for food and beverage ingredients. Employing AHP method, the main priority for Dakara Coffee business development is location, followed by various other aspects such as halal management, branding strategy, product innovation, and organisational management.

The effectiveness of case method in developing intrapreneurship among business students

Intrapreneurship skill has considered as the alternative learning outcomes of entrepreneurship education. However, entrepreneurship teachers need a complex learning program to develop intrapreneurship among business students. At the same time, The Ministry of Education and Culture of The Republic of Indonesia recommends university teachers implement case methods to deliver complex learning environments and build critical skills among students.  Therefore, this study aims to i) examine the effect of micro small medium enterprise (MSME) cases on the intrapreneurship of business students, ii) investigate the influence of MSME cases on flow experience in entrepreneurship education and iii) investigate the effect of flow experience during entrepreneurship education on intrapreneurship skill.  We used field experiments on entrepreneurship and digital business student in business development courses.  The result indicates that the case method effectively developed student intrapreneurship skill and flow experience during the course positively impacting student intrapreneurship skill.

The Impact of Digital Marketing and Innovation on Marketing Performance is Influenced through the Development of a Competitive Advantage

Objective: The aim of this research is to explain how Micro Small Medium Enterprises (MSMEs) implement digital marketing and innovation, achieve competitive advantage, and improve marketing performance. The study also examines how digital marketing and innovation influence marketing performance through competitive advantage. This study centers on detailing and examining these aspects, involving an investigation carried out on small-scale food and beverage entrepreneurs in Bekasi, Indonesia.   Theoretical Framework: Este estudo está fundamentado na Teoria da Visão Baseada em Recursos. Ele enfatiza a importância das capacidades dinâmicas, que são a habilidade de uma empresa ajustar seus recursos e capacidades para se manter competitiva em condições de mercado em constante mudança. As organizações podem manter sua vantagem competitiva e alcançar sucesso a longo prazo ao adaptar-se continuamente e introduzir novas ideias.   Method: This study utilizes quantitative methodologies. 100 food and beverage micro business owners were surveyed using the simple random sampling method. The PLS technique is utilized in the data analysis process.   Results and Discussion: The findings indicate that competitive advantage is positively impacted by digital marketing and innovation. Digital marketing also has a beneficial impact on marketing effectiveness. Competitive advantage plays a role in connecting digital marketing with marketing performance, as well as linking innovation with competitive advantage. Innovation does not impact marketing performance.   Research Implications: Entrepreneurs must integrate digital marketing to enhance marketing effectiveness and incorporate digital marketing and innovation to boost competitive edge. It is necessary to engage in constant communication with customers using online platforms, ensure fast and efficient access to information, keep product content up-to-date and in line with current trends, deliver products as scheduled, and provide frequent updates on product availability in the market. They must also implement modifications in their business operations to effectively and efficiently meet the demands and desires of their customers.   Originality/Value: This research adds to the existing body of research by validating that digital marketing can enhance marketing effectiveness both directly and through competitive advantage. Innovation does not have a direct impact on marketing performance. In order to enhance the marketing performance of food and beverage MSMEs, innovation must serve as a competitive edge. The MSME owners can be motivated by the research results to adopt digital marketing and innovation, leading to a competitive edge for their products. This will help enhance their marketing performance and ensure long-term sustainability.

How to Optimize Promotion Tactics for Sustainable Tourism Product through 360-degree Communication? (Case Study in Poncokusumo, Malang)

The presence of a tourism village in Indonesia might be viewed as an opportunity to strengthen small, micro, and medium-sized businesses as a driving force in the local economy. The goal of Micro Small Medium Enterprises (MSMEs) development is to create a tourism village supported by MSMEs that combines natural and culture attractions, local gastronomic and artisan, and public service facilities. Poncokusumo village, one of Malang’s tourism villages, has a distinct personality when compared to other Malang tourism villages. The goal of this research is to look at promotional strategies for sustainable tourism products in Poncokusumo village to strengthen the village’s tourism identity. This is a qualitative study in which the informants were chosen on purpose; they are the head of Poncokusumo village, the leader of the tourist local community (Pokdarwis), and an entrepreneur. According to the research findings, the 360-degree communication approach is best for supporting offline promotional operations. 360-degree marketing communication is also being considered to strengthen tourism village identity. A 360-degree model of marketing communication is built in three stages: pre-purchase, purchase, and post-purchase in a sustainable tourist product. This paper also contributed to the sustainable development goals which focus on decent work and economic growth. The existence of sustainable product in tourism village is an attraction that encourage local economic growth.

Intellectual capital and competitiveness improvement among micro-small-medium enterprises: a resource orchestration view

PurposeThe study aims to test the framework that proposes the role of resources (intellectual capital) in mobilizing entrepreneurial orientation that influences the competitiveness improvement of micro-small-medium enterprises (MSMEs) under the lens of resource orchestration theory.Design/methodology/approachIn this study, 347 respondents from the MSMEs participated through a structured questionnaire. For the data analysis purpose, the structural equation modeling technique was employed using SmartPLS software.FindingsThe results suggest human, structural, and relational capital are significant antecedents of entrepreneurial orientation, which leads to competitiveness improvement. The findings also indicate the mediation role of entrepreneurial orientation between intellectual capital and competitiveness improvement.Practical implicationsThe current study presumably will supplement the promising research effort to progress the research orchestration theory and also could be a strategic guideline for the managers/owners of the MSMEs.Originality/valueThis study is possibly a novel attempt to divulge the association between intellectual capital (tripartite model) and competitiveness improvement of firms under the lens of resource orchestration theory.

Impact of solar energy subscription on the market performance of micro, small & medium enterprises in Nigeria

Access to clean, affordable and reliable energy is a major developmental challenge in Africa. The present study investigates the determinants and impact of adopting solar energy on Micro, Small & Medium Enterprises (MSMEs) market performance in Lagos, Kano and Ondo states in Nigeria using survey data from 700 MSMEs. We estimated the average treatment effect on the treated (ATT) and average treatment effect (ATE) of adopting solar energy on MSMEs’ income. The findings indicate that adoption of solar energy is associated with an increment in MSMEs’ monthly earnings by 27% (nearest neighbor matching), 24% (Kernel matching) and 23% (radius matching). The study points out that powering MSMEs through solar energy decreases their energy expenditure. By adopting solar energy, MSMEs using the national grid and standby generators can cut down their average monthly energy expenditure by 36.64%. MSMEs’ decision to adopt solar energy is influenced by trade-offs between the possible production, economic and environmental effects as well as business owners, business, and product characteristics. To the extent that governments, non-governmental organizations and policymakers are committed to providing reliable, cheaper and cleaner energy systems, they must raise broader awareness of the potential benefits of adopting solar energy.

The Determinant of Micro, Small, and Medium Tax Revenue on Tax Office Performance Moderated the Tax Target

This study aims to analyze the factors that affect the performance of tax office and micro small medium enterprises (MSME) tax revenue. The research method used is quantitative. The data is collected by distributing questionnaires to 100 micro small medium enterprises (MSME). Data was processed by using Structural Equalling Modeling (SEM) and hypothesis testing using the SmartPLS (Partial Least Square) method. The results of the study on the determinants of tax revenue consisting of policies, socialization, the number of tax returns, turnover, and WP compliance in the implementation of tax obligations have a significant effect on micro small medium enterprises (MSME) tax revenue in Bogor Regency. The study also found that socialization of policies and regulations for MSME needs to be improved in order to optimize tax office performance and tax revenue. In addition, the number of registered taxpayers is not balanced with the total number of MSME, moreover the taxpayer of MSME is dominated by the micro scale. Implications for tax office performance that cause socialization and to micro small medium enterprises (MSME) are not optimal. By understanding tax policies and regulations for MSMEs it is hoped that compliance and awareness of MSME taxpayers in fulfilling their tax obligations.

Effect of Human Capital and Information Capital Readiness on Business Sustainability: Do Market Orientation and Business Performance Matter?

COVID-19 pandemic has been threatening the sustainability of companies in Indonesia. Various policies and restrictions have caused a significant decline in sales and led to bankruptcy. As the major players in the national economy, the micro, small, medium enterprises (MSMEs) are encouraged to focus on their survival and sustainability. Survey method is done to examine the direct effect of human capital readiness and information capital readiness on business sustainability. It investigates whether the relationship is sequentially mediated by market orientation and business performance. Online questionnaires were distributed to 347 owners/managers of Indonesian manufacturing MSMEs in the East Java Province, Indonesia. PLS-SEM equation modeling was employed to test the hypotheses. Result shows that human capital readiness and information capital readiness positively affect business sustainability, and business performance does not mediate the effect of human capital readiness on business sustainability. Most important finding reveals that market orientation and business performance sequentially mediate the human capital readiness-business sustainability relationship. Market orientation and business performance sequentially mediate information capital readiness-business sustainability relationship. This study contributes to the development of resource-based view (RBV) by providing the empirical result on the important internal resources on sustainability. This brings practical awareness to the owners/managers of Indonesian MSMEs on increasing their market orientation to enhance their business performance and to guarantee their business sustainability. Practically, this research has important implications for achieving business sustainability as it offers a way for practitioners to improve business sustainability by utilizing human capital readiness, information capital readiness, market orientation, and business performance.

The Relationship among Socioeconomic Factors in the Western Region and Eastern Region of Indonesia

The research aim was to study the influence of industrial development, wages, education, training institutions and MSMEs on unemployment in the western and Eastern regions of Indonesia. Indonesia is can be divided into two regions, western Indonesia and eastern Indonesia to make comparisons regarding economic growth and unemployment. The results of the analysis show that the industrial developments have no influence on economic growth in either the western region or the eastern region. Industrial development has a significant positive influence on unemployment both in Western and Eastern Indonesia. Economic growth has a significant negative influence on unemployment both in Western Indonesia and Eastern Indonesia. Apart from that, wages have an insignificant positive influence on economic growth and unemployment in both Western and Eastern Indonesia. The influence of education on economic growth is positive and significant in Western Indonesia but has no effect in Eastern Indonesia. Furthermore, the effect of education on unemployment is positive and very significant in both regions of Indonesia. On the other hand, training has no effect on economic growth and unemployment in the two regions of Indonesia. Lastly, Micro Small Medium Enterprises (MSMEs) had a positive effect on economic growth and unemployment in western Indonesia but had no influence in western Indonesia

Determinants of loan self control: Customer case “Kredit Usaha Rakyat” of Indonesia

Loan Self Control (LSC) can be defined as the ability of self-control related to behavioral control, cognitive control, and decisional control in managing loans or debts for financial welfare. The study aims to determine the factors of loan self-control in Kredit Usaha Rakyat (KUR) banking customers of Micro Small Medium Enterprise (MSMEs) in Indonesia so that they can obtain three-time financing from banks. This study used 87 samples collected by purposive sampling technique. Primary data was collected using an online survey. Factor analysis formed 3 loan self-control factors, namely Behavioral control, Cognitive control and decisional control from 14 indicators tested.

Pengembangan Usaha Masyarakat Melalui Pelatihan Inovasi Produk Berbahan dasar Tepung Tempe sebagai pengganti Tepung Terigu di Desa Setiamekar

To Improfing knowledge among Micro, Small Medium Enterprise (MSMEs) actors in Setiamekar Village, Tambun Selatan District, Bekasi toward using of tempeh as a profitable business opportunity, they also need to improve knowledge about other products that using tempeh as the basic ingredient. The methods used include socialization, mentoring, and practice in creating innovative processed tempeh products. This type of product is produced from the basic ingredient of tempeh which will later be transformed into tempeh flour and will be processed into a variety of snacks that are delicious, healthy, attractive and have sales value, namely Gluten Free Brownies Cookies. The result of the training activities carried out is the success of MSMEs in Setiamekar Village in processing innovative and creative products that use tempeh as the basic ingredient as a profitable business opportunity, increasing the selling value of tempeh, and as an effort to extend the shelf life of tempeh.
 Keywords: Tempeh Flour, MSMEs, Gluten Free Diet, Product Innovation Training

Strategic Preferential Procurement Policy for Localisation and Inclusive Growth for Micro Small Medium Enterprises (MSMEs) in Gauteng Province

The study aims to develop interventions to address the low productive capacity and competitiveness levels of township Micro Small Medium Enterprises (MSMEs) to enable meaningful participation in the mainstream economy. Most township firms continue to be informal and underdeveloped. Despite countless interventions by the development finance institutions, most township enterprises remain perpetual survivalists. The study is anchored upon the neoliberal theory, which emphasizes value for money and market efficiencies in procurement, as well as interventionist theories promoting the inclusion and participation of MSMEs in business, and advocating for the localization of products through various policy interventions. The researcher adopted a mixed-method approach to gather primary and secondary data. Secondary data was used for analysis and supported by the primary information or empirical evidence. The secondary data enriched the research content and complemented the primary data. Databases and reports on township suppliers from the Gauteng Provincial Treasury (Procurement Division) and Gauteng Department of Economic Development helped determine the extent of MSMEs' access to development and financial support opportunities. The study found that the high informality level of township businesses, low level of development, poor economic infrastructure, and lack of access to finance hinder MSMEs' participation in public procurement. Programs and products offered by government agencies do not adequately respond to public procurement challenges facing MSMEs, e.g. product testing and accreditation. The high barriers to entry due to complicated administrative processes and procedures continue to deter MSMEs from participating in the mainstream economy. The Development Finance Institutions (DFIs) were found to be a challenge due to a mismatch between the resource structure to drive economic development and the products offered. The study recommends that to increase the participation of MSMEs in public procurement, there needs to be a targeted growth continuum strategy that tracks interventions from the beginning to the end. Additionally, there needs to be a shift from a quantitative approach with minimal impact to a customised one with qualitative, tangible and tradable products and skills aimed at increasing participation of MSMEs. Furthermore, the political will is required to address the resource mismatch, repurpose resources, or develop specific products by the well-resourced Development Finance Institutions to suit the material conditions of township MSMEs with lesser stringent measures.

Effects of motivation and infrastructure on MSME (Micro Small Medium Enterprise) performance in the time of COVID-19 pandemic

Effects of motivation and infrastructure on MSME (Micro Small Medium Enterprise) performance in the time of COVID-19 pandemic

Micro, Small & Medium Enterprises’ need for digitization to counteract COVID-19: From “nice-to-have” to “must-have”?

ABSTRACTThe impact of COVID-19 on Micro, Small & Medium Enterprises (MSMEs) has been devastating. Digitization has been one of the core strategies to cushion the impact of the pandemic. Based upon a questionnaire distributed in October 2020 to a sample of 345 US, 100 UK and 100 Indian MSMEs, we empirically investigate the determinants of MSMEs’ digitization as a strategy to confront the pandemic. Prior digital experience and company size seem to be predictive of the ability to implement new digital strategies during the pandemic. Our data also show that digital MSMEs expected lower sales drop caused by COVID-19. As policy implications, governments should target non-digital, smaller MSMEs to help them engage in digital transformation.

Policy review of government regulation no. 55 of 2022 regarding regulations adjustment of income tax in the micro small medium enterprises (MSMEs)

This study aims to analyze GR No. 55 of 2022 with regulations that have an impact on previous regulations. The analysis technique used is qualitative with several approaches. The qualitative descriptive approach analysis technique analyzes the comparison of GR No. 55 of 2022 and the Miles and Hubermen approach analysis technique is used in the policy study of GR No. 55 of 2022. Data collection techniques by collaborating literature study techniques with in-depth interviews with academic and practitioner informants. The main findings of the study identified that a significant change in GR No. 55 of 2022 is the regulation of benefit-in-kind from non-taxable to taxable income. The determination of the value of benefit-in-kind can create room for disputes due to differences in perceptions arising from the valuation of benefit-in-kind based on the market price. This potential dispute becomes a reference for further regulation by the tax authority. The results of this study contribute to MSME taxpayers in fulfilling GR No. 55 of 2022 as an application of tax liability compliance.

Achieving sustainability through the integration of lean, agile, and innovative systems: implications for Indian micro small medium enterprises (MSMEs)

Purpose The purpose of this study is to learn how the incorporation and use of leanness, agility and innovation in Indian manufacturing micro, small and medium enterprises (MSMEs) affect their bottom lines and how much these factors contribute to the MSMEs’ ability to meet their long-term sustainability goals. Design/methodology/approach The suggested model was subjected to data validation and additional empirical validation using a sample of 411 Indian manufacturing MSMEs. The analysis of construct measures is conducted through the utilization of confirmatory factor analysis, a statistical technique that is grounded in the theoretical framework of structural equation modeling (SEM). In addition, path model analysis was applied for the purpose to validate the assumptions that were included in the structural models. Findings Consistent with the proposed model, the findings of this study demonstrate that leanness, agility and innovation have a substantial favorable impact on the sustainability of a company’s performance. These findings may be helpful in gaining professionals, academics and policymakers to acknowledge the significance of leanness, agility and innovation in enhancing the long-term sustainability of MSMEs and enhancing the overall performance of a particular company. This research excluded the service industries-based research papers. Research limitations/implications Many research in the field of manufacturing industries that have adopted leanness, agility, innovativeness and sustainability as individual approaches or as a collective methodology of two or more were considered in the current study. This research excluded the service industries-based research papers. Practical implications This literature review has recognized and analyzed various dimensions and roles of leanness, agility, innovativeness and sustainability that are prevalent in manufacturing industries that include the positive and negative effects on the performance of the industries. The research enlightens the path and shows future directions for research to develop efficient, effective and sustainable manufacturing industries. Social implications By promoting the concept of focusing on the “human factor”, namely, stakeholder perspectives, the MSME sector is propagating a strategy that moves away from an excessive focus on technology and toward a more humane one. Through the application of the three key concepts of leanness, agility and innovation, this work aims to create a framework for measuring the sustainability performance of micro-, small- and medium-sized enterprises (MSMEs), with the ultimate goal of assisting the country in achieving the Sustainable Development Goals in the fields of industry, innovation and infrastructure by supporting environmentally friendly and resource-conserving businesses that give back to society and the natural environment. Originality/value The objective of this research is to assess the importance and effectiveness of integrating various approaches such as leanness, agility, innovativeness and sustainability within the framework of manufacturing micro, small, and medium enterprises (MSMEs). The authors hope that by going further into these concepts, they will be able to broaden their understanding and get a more comprehensive insight into the role that these concepts play and how they might be successfully used within this environment.

Recovery and development of the creative economy fried shallots MSMEs during the covid-19 pandemic in supporting economic growth

The Indonesian economy, especially in Palu, is currently dominated by the Micro, Small, Medium Enterprise (MSMEs) sector and the creative economy. There was a decrease in the production of fried shallots in 2020 for almost all fried shallot MSMEs in Palu City. The COVID-19 pandemic has hampered the performance of MSMEs, especially Fried Shallot MSMEs in Palu, or unable to carry out their business. This research was conducted on five Fried Shallot MSMEs in Palu from March to August 2022. The location selection was made purposively. SWOT analysis was used to analyze the data with a creative economy approach (Penta Helix). The COVID-19 pandemic has had an enormous impact on fried shallot MSMEs in Palu, which are a decrease in the number of workers, a reduction in production, and a decrease in sales. These three things influence each other. In addition, these three factors were affected by the difficulty in obtaining raw materials, the application of restrictive policies during the pandemic, and the declining purchasing power of consumers. Several alternative strategies can be applied to recover and develop fried shallot MSMEs based on the analysis results. In addition, implementing this strategy requires Penta Helix collaboration from MSMEs, Government, Academics, Financial Institutions, and the Community as consumers.

The Communication Channels and the Innovation Perception on The Adoption of E-Commerce in Micro, Small Medium Enterprises (MSMEs)

The number of MSMEs products sold through e-commerce in Indonesia is considered insignificant, therefore, proper strategies are needed to increase the adoption of e-commerce. The purpose of this study is to explore the communication channels and the innovation perceptions on e-commerce adoption in MSMEs. A  qualitative approach and a case study method are used. The analysis consists of four medical device retailers, with observation and in-depth interviews as the data collection, and an implementation of a thematic data analysis technique. The communication channels that influence the adoption of e-commerce innovation technology are mass media, interpersonal communication, and interaction communication using the internet network. The indicators of the perceived innovation that influence adoption are relative advantages (e-commerce has broad market access, and provides a system for sales, payment, delivery, communication, marketing, and promotion), compatibility (e-commerce supports business activities according to retailers' daily habits and norms), complexity (retailers can create and manage online stores, upload and manage product inventories, and process online transactions), trialability (retailers can learn customer profiles, requirements, policies, costs, and functions), observability (retailers can evaluate sales performance, costs, competition among retailers, reviews and ratings).

Project Communication Management in a Micro Small Medium Enterprises (MSMES) in a Construction Project

ABSTRACTMicro, small, and medium enterprises (MSMEs) have become Indonesia's most essential and strategically important national economic drivers. This research focuses on an MSME involved in a construction project in 2021. This research aims to shed light on the project communication management of an MSME organization, PT Nata Kota Nusantara, simply Natakota, a micro-scale enterprise based in Bogor. Natakota was engaged in a civil construction project in a remote site area at PT GDE (GDE) in Ciwidey, Bandung. GDE is a state-owned enterprise focusing on geothermal energy and power generation. Virtual ethnography, observation, and discourse analysis were performed to reveal the project communication management process within the organization. It was unveiled that Natakota used Google Spreadsheet as a form of free and open-source software (FOSS) as their primary communication tool during the project execution. Actor-Network Theory (ANT) explains that the actor is the prime entity that shapes, drives, and accelerates the communication process within the network. This research observed the communication and collaboration between employees on several Google Spreadsheet files. In a project execution phase, communication is essential to obtain a productive project. Project communication plays a central part in communicating information flow to execute that project successfully. The results of this research show that several features in Google Spreadsheet play as actors in the ANT framework, which shapes, drives, and accelerates the internal communication process in the organization. Additionally, it appears that Google Spreadsheet could offer a competitive low-cost option for MSMEs looking to manage internal communications effectively and efficiently.Keywords: collaboration, communication, MSMEs, organization, project

THE INFLUENCE OF FINANCIAL LITERACY AND FINANCIAL ATTITUDE ON FINANCIAL RESILIENCE OF MICRO, SMALL, MEDIUM ENTERPRISES (MSMES) IN MANADO

This study aims to analyze the influence of financial literacy and financial attitude on financial resilience of Micro, Small, Medium Enterprises (MSMEs) in Manado. The quantitative approach used in this research, where research is conducted by collecting questionnaire data from 65 MSME actors who have featured products in Manado. The method used to analyze the influence of independent variables toward the dependent variable is multiple regression analysis. The results of this study indicate that financial literacy have a positive and significant effect on financial resilience, while financial attitude is also had a positive and significant effect on financial resilience. This research also indicates that simultaneously, financial literacy and financial attitude positively and significantly influence financial resilience of MSMEs in Manado.   Keyword: financial literacy, financial attitude, financial resilience