Micro, Small And Medium Enterprises Owners Research Articles

When and why is kinship important? Reducing turnover intention with kinship employee engagement

Purpose The main objective of this study is to assess kinship employee engagement as a mediating variable in the relationship between person–organization–fit (P-O Fit) and person–job–fit with turnover intention. Design/methodology/approach This research was conducted at creative industry micro, small and medium enterprises (MSME) in Yogyakarta, Indonesia. The number of respondents was 331 MSME employees. The distribution of questionnaires was carried out using offline and online systems through direct questions and Google forms. The data analysis tool used was structural equation modelling. Findings The findings of this study revealed that kinship employee engagement is proven to mediate the relationship between P-O-fit and P-J-fit on turnover intention. Research limitations/implications This research provides a new perspective on social exchanges, namely, exchanges that are intangible based on the relationship between employees, leaders and owners of micro and small medium enterprises (MSMEs) in the form of kinship employee engagement. Employees who feel P-O Fit and P-J fit with their organizations will exhibit positive behavior in the form of kinship employee engagement. Practical implications The first practical implication is that MSME superiors/owners must pay more attention to P-O fit; one way to do this is to assess P-O fit at the recruitment and selection stage. This may be useful for organizations that hire and retain employees whose goals and values closely match those of the organization. With regard to the P-J fit relationship, and turnover intention, which turns out to have a negative relationship, this finding has implications for the formulation of policies that should not only focus on increasing the knowledge, skills and abilities of employees but also on fulfilling their wishes. For example, providing employees with training, self-development opportunities, flexible working hours and competitive salaries will strengthen their level of compatibility with their jobs, which in turn will reduce the willingness of employees to leave their jobs. Social implications In social practice, kinship employee engagement can be applied to MSMEs. When MSME owners have limited funds, facilities, etc., to bind employees, they can apply kinship to employees so that they are more attached to MSMEs. Originality/value This study is among the first to introduce a new construct (kinship employee engagement) which is an extension of the engagement construct that is more specific and follows the MSME context, and is the first study to propose kinship employee engagement as a mediating variable in the relationship between P-O-fit and P-J-fit on turnover intention.

FROM DIGITAL DESERTS TO TECH HAVENS: THE ROLE OF DIGITAL INFRASTRUCTURE IN MSME COMPETITIVENESS

In the current digital age, robust digital infrastructure is crucial for the competitiveness and growth of micro, small, and medium enterprises (MSMEs). This research paper explores how digital infrastructure can transform MSME competitiveness, particularly focusing on the shift from areas with insufficient digital access, termed "digital deserts," to vibrant technological centers, or "tech havens." By conducting a thorough literature review, analyzing case studies, and undertaking empirical analysis, the paper examines the critical role of digital infrastructure in empowering MSMEs, fostering innovation, and promoting economic growth. Key areas of focus include defining and understanding digital deserts, identifying factors that contribute to their development, and exploring strategies for converting these regions into tech havens. Additionally, the paper highlights the impact of digital infrastructure on MSME competitiveness, underscoring opportunities for policymakers, MSME owners, and other stakeholders to bridge the digital divide and encourage inclusive economic growth. This research aims to provide a deeper understanding of how MSMEs can utilize technology to succeed in today's competitive business environment.

Pendampingan Penyusunan Laporan Keuangan bagi UMKM

This community service aims to strengthen the empowerment of Micro, Small, and Medium Enterprises (MSMEs) in South Sulawesi through assistance in preparing financial statements. Through a series of workshops, trainings, and individual mentoring sessions, we provide an in-depth understanding of the significance of financial statements and equip MSME owners with practical skills to compile, read, and analyze their financial statements. The mentoring method involves organizing interactive workshops led by experienced financial practitioners and individual mentoring sessions tailored to the needs of each MSME. In addition, we provide online resources as a learning platform that MSMEs can access flexibly, including guides, financial statement templates, and relevant case studies. Outcomes of the service include improved MSMEs' understanding of financial reporting, significant financial empowerment, and increased access to external financial support. MSMEs that participated in the program were able to produce clear financial statements, providing a basis for smarter decision-making and increasing their chances of securing financial support from financial institutions. With a focus on the context of South Sulawesi, this service contributes to the strengthening of the MSME sector in the region, supports local economic growth, and positively impacts the financial sustainability of MSMEs. Through assistance in preparing financial statements, it is hoped that MSMEs in South Sulawesi can develop sustainably and contribute optimally to regional economic development

Understanding financial management as a determining factor for the success of MSMEs: A qualitative study

Purpose: This study aims to explore the understanding of financial management among micro, small, and medium enterprises (MSMEs) and how such understanding influences the success and sustainability of their businesses. The primary focus is to identify key financial management factors considered essential by MSME owners and the challenges they face in implementing effective financial practices. Research Methodology: This research employs a qualitative literature review methodology, analyzing relevant studies, reports, and articles related to MSME financial management. The study synthesizes insights from various sources to provide a comprehensive understanding of the current practices, challenges, and factors that contribute to the financial success of MSMEs. Results: The findings indicate that a solid understanding of financial management, including cash flow management, transaction recording, and long-term financial planning, plays a crucial role in the success of MSMEs. Despite the recognition of its importance, many MSME owners face barriers such as lack of financial knowledge, limited access to financial resources, and reliance on manual accounting methods. Moreover, many fail in long-term financial planning, which impedes their ability to manage risks and plan for business expansion effectively. Limitations: This study is limited to a qualitative literature review, which may not capture the full range of experiences from MSME owners across different sectors or regions. Contribution: This research contributes valuable insights for MSME owners, financial institutions, and policymakers in understanding the critical role of financial literacy and providing better support for MSMEs.

Persepsi Tingkat Kesiapan UMKM dalam Pengelolaan Media Sosial

This study examines the readiness of micro, small, and medium enterprises (MSMEs) to utilize social media for digital marketing. Given the importance of digital platforms in today's modern business era, this study aims to understand how MSMEs view their readiness to manage social media and their level of involvement in utilizing it for promotional activities. The methodology used is quantitative descriptive, including a survey distributed to 64 MSME owners, which collected data on their experiences, practices, and attitudes toward social media management. The results show that most MSME owners feel ready to manage their social media by actively following trends and creating relevant content to attract consumers. The study also shows that although social media significantly contributes to expanding market reach, improving customer relationships, and increasing sales, many MSMEs still lack a comprehensive digital marketing strategy. Although MSMEs show a high level of readiness to use social media, further education and support are needed to adopt more advanced digital marketing tools and strategies.

Analisis Strategi Branding pada UMKM di Gorontalo

This study aims to analyze branding strategies implemented by Micro, Small, and Medium Enterprises (MSMEs) in Gorontalo, focusing on the challenges faced and opportunities that can be taken. MSMEs' understanding of branding is often limited to visual elements such as logos and packaging design. In contrast, other important aspects, such as brand value, messaging, and customer experience, are often overlooked. This research method uses a qualitative approach, with in-depth interviews with 15 MSME owners from various sectors. Key findings indicate that despite awareness of the importance of branding, the majority of business actors still need help with limited resources and tight market competition. This study recommends more significant support from the government and educational institutions in providing the necessary training and resources to improve branding practices among MSMEs in Gorontalo.

PENGARUH LITERASI KEUANGAN DAN LITERASI DIGITAL TERHADAP PERTUMBUHAN UMKM DI KECAMATAN RAPPOCINI KOTA MAKASSAR

This study aims to analyze the influence of financial literacy and digital literacy on the growth of Micro, Small, and Medium Enterprises (MSMEs), specifically in the culinary sector in Rappocini District, Makassar City. The research method used is a quantitative approach with data collection techniques through surveys and questionnaires distributed to MSME actors in the Rappocini District, Makassar City. The research sample consists of 102 informants, calculated as 25% of the total population of 408 MSMEs in the area. The results of the study indicate that financial literacy and digital literacy have a significant impact on the growth of MSMEs. Financial literacy helps MSME owners manage their finances better, while digital literacy enables them to utilize technology for more efficient marketing and operations. The conclusion of this study is that increasing financial and digital literacy can substantially promote the growth of MSMEs. Therefore, it is recommended to have training and education programs focusing on these two aspects to support the sustainability and expansion of MSMEs in the Rappocini District.

Building Entrepreneurial Capacity: The Role of Publicly Funded Training Programs in Empowering MSMEs in Dharmasraya, Indonesia

Micro, small, and medium enterprises (MSMEs) are vital to the Indonesian economy, especially in rural areas like Dharmasraya. This community service project aimed to empower MSMEs by building their entrepreneurial capacity through publicly funded training programs. Using a participatory action research approach, a needs assessment was conducted with 100 MSME owners in Dharmasraya to identify challenges and training needs. Based on the findings, workshops and mentoring sessions were designed and delivered, focusing on financial literacy, marketing strategies, digital literacy, and business plan development. The training program significantly improved participants' understanding of key business concepts, including financial management, marketing, and digital tools. Participants also showed increased confidence in managing and growing their businesses. The program fostered a sense of community and peer learning among MSME owners. In conclusion, publicly funded training programs are crucial for building entrepreneurial capacity and empowering MSMEs in Dharmasraya. This initiative highlights the effectiveness of participatory approaches in addressing community needs and fostering sustainable economic development.

Pengelolaan Kas dan Strategi Kelangsungan Usaha pada Pedagang Kecil Somai Bagas di Pringapus

This study aims to analyze financial management in Micro, Small, and Medium Enterprises (MSMEs) in Semarang Regency, focusing on various business sectors such as culinary, retail, and handicrafts. Using a qualitative approach, data was collected through in-depth interviews lasting 30–45 minutes with 10 MSME owners. Each interview followed a structured format to ensure the depth of data obtained. The findings indicate that 70% of business owners still use manual methods for financial recording, while the remaining 30% use digital financial applications, although they face technical challenges in their usage. The main challenges faced include inadequate financial literacy (60%) and the impact of income fluctuations (50%) due to market uncertainties. A total of 80% of respondents expressed interest in improving their financial management skills. This study recommends developing digital-based financial training programs and technology support for MSMEs as a sustainable step to improve financial management efficiency and ensure the long-term viability of their businesses.

Enhancing Sales Volume to Optimized Retail Marketing Strategy: Case Study on MSMEs Retail in Bantul, Yogyakart

The retail industry in Indonesia has experienced significant growth, particularly with the increasing presence of modern retail chains that challenge the sustainability of local Micro, Small, and Medium Enterprises (MSMEs). MSMEs in the retail sector, especially in regions like Bantul, Indonesia, face mounting competition from these larger and better-funded players. This study investigates how MSMEs can enhance their sales volume by adopting more effective retail marketing strategies. Grounded in marketing theory, specifically the principles of modern merchandising, category management, pricing, promotion, and supplier relationship management, this research aims to determine the strategies that are most impactful for MSME retailers in a competitive market. Using a qualitative case study methodology, data were collected from interviews with MSME owners, direct observations, and sales data analysis of selected retailers in Bantul. The findings reveal that MSMEs implementing modern marketing techniques, such as improved merchandising displays, competitive pricing strategies, and strategic supplier negotiations, were able to increase their sales volumes despite facing strong competition from established retail chains. Furthermore, businesses that incorporated digital tools for promotions and customer engagement saw a noticeable improvement in customer loyalty and sales growth. In the discussion, the study emphasizes that while the adoption of modern retail strategies is critical, MSMEs still face challenges such as limited financial and technological resources, which hinder their ability to fully compete with larger retailers. Nonetheless, the findings demonstrate that targeted marketing strategies, particularly in supplier relationships and pricing techniques, offer MSMEs a sustainable path to growth. The study concludes that for MSMEs to thrive in the competitive retail environment, they must adopt a hybrid approach that combines traditional retail techniques with modern marketing innovations. Future research should focus on the role of digital transformation in further enhancing the competitiveness of MSMEs in the retail sector. Keywords: Sales Volume, Retail Marketing, MSMEs

Exploring the Role of Knowledge on Adoptability of Islamic Banking and Financing Options for Micro, Small and Medium Enterprises: The Mediating Role of Trialability

Knowledge is the act of knowing something with familiarity gained through experience or education. Prior studies have discovered that knowledge has a significant relationship with the adoption of Islamic Banking and Financing Options (IBFOs) amongst Small and Micro Enterprises (SMEs). However, this study explores the role of knowledge on adoptability of Islamic Banking and Financing Options (IBFOs) for Micro, Small and Medium Enterprises (MSMEs), with the mediating role of trialability. While trialability has been suggested as an adoption factor, it has not been considered important in adoption studies and has thus received debates. A structured questionnaire survey consisting of a Likert scale from 1 to 5 was conducted with 300 MSME owners or managers. The findings revealed that trialability has a partial mediation between knowledge and adoptability of IBFOs. This implies that when IBFOs are offered on a trial basis, it will have an impact on the level of knowledge MSMEs will have about IBFOs with the adoptability of IBFOs. As a result, the banking and financing sector should consider offering IBFOs on a trial basis to enhance the knowledge of MSMEs and lead to its adoptability. This research contributes to literature by offering trialability as a mediating variable in the adoptability of IBFOs. The authors recommend testing trialability as a mediating variable in determining the adoptability of any other product or service or even testing it as a moderating variable.

Pengaruh Pemberdayaan Karyawan dan Lingkungan Kerja Terhadap Kinerja Karyawan dengan Produktivitas Kerja Sebagai Variabel Mediasi pada UMKM di Madura

This study aims to explore and analyze the influence of employee empowerment and work environment on employee performance in Micro, Small, and Medium Enterprises (MSMEs), with work productivity as a mediating variable. In the context of MSMEs, employee empowerment and work environment are considered important factors that can affect employee performance. Employee empowerment involves giving authority, autonomy, and opportunities to develop, while the work environment includes physical and psychological aspects that affect work comfort and effectiveness. This study uses a quantitative method with a survey on MSMEs in Madura Island, and involves data collection through questionnaires filled out by employees and managers. Data collected as many as 103 samples will be analyzed using the smartPLS 4.0 technique to test the relationship between employee empowerment, work environment, work productivity, and employee performance. The results of the study indicate that employee empowerment does not significantly affect employee performance, employee empowerment significantly affects work productivity, work environment significantly affects employee performance, work environment significantly does not affect work productivity, work productivity significantly does not affect employee performance in MSMEs in Madura Island. These findings provide important insights for MSME owners and managers in designing empowerment strategies and creating a supportive work environment. By increasing employee empowerment and creating a conducive work environment, MSMEs can improve overall employee productivity and performance. This study suggests that MSMEs should pay more attention to these factors in an effort to improve their competitiveness and business success.

INCREASING HUMAN RESOURCE COMPETENCY FOR THE SUSTAINABILITY OF MSME BUSINESSES IN PULAU PINANG, MALAYSIA

Sustainability in business is not only about creating processes that support environmental and social sustainability but also about ensuring the longevity of the company itself. Sustainable businesses provide both short-term and long-term benefits, making it essential for MSMEs (Micro, Small, and Medium Enterprises) to develop high-quality human resources (HR). HR competency is crucial for MSMEs to thrive in the face of global competition. This community service project aims to equip MSME owners and employees with the knowledge of HR competency development to enhance performance and implement business sustainability strategies. By improving the skills and quality of their workforce, MSMEs can increase their competitiveness and ensure business continuity. The level of competence possessed by HR will directly influence the overall performance of the MSMEs, as well as their ability to remain competitive in the market. Thus, by fostering professional and competitive HR competencies, MSMEs can improve their operational effectiveness and enhance their chances for sustainable success in a globalized economy.

Improvizing West Java MSMEs Using Quality Service Gaps Model

This study aims to understand the challenges and opportunities for the development of Micro, Small and Medium Enterprises (MSMEs) in West Java. With a very large number, MSMEs in West Java have great potential to drive economic growth. However, various obstacles such as access to capital, information, and technology are still an obstacle. This research proposes the application of the Service Science framework to map the MSME ecosystem and identify opportunities for service innovation. Thus, it is expected to increase the competitiveness of MSMEs and make a greater contribution to the regional economy. This research reveals that MSMEs in West Java face significant constraints in terms of access to capital, information, and technology. Through in-depth interviews with 8 MSME owners, this research aims to understand in-depth the challenges and opportunities faced by micro, small and medium enterprises. Thematic analysis of the interview data identified a gap between the ideal conditions that MSMEs desire and the actual conditions they experience. Using the Service Quality Gap Model, this study created four action plans to improve MSMEs in West Java. By addressing the identified gaps and encouraging collaboration between MSMEs, government, academia and industry, the Sadulur platform can catalyze the sustainable growth and development of MSMEs in West Java. These gaps, which we refer to as 'customer gaps', are manifested in four main themes: 1) the potential for MSMEs to create innovative products more easily, 2) the need to develop a strong business foundation and build sustainable brand value, 3) the importance of improving business processes and management to increase efficiency, and 4) the need to build good relationships with external parties to expand networks and business opportunities. These findings form the basis for formulating an action plan to improve the quality of services provided to MSMEs.

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

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.

Fintech Adoption: Peer-to-Peer Lending for Indonesian Msmes

The objective of this research is to examine the conduct of Micro, Small, and Medium Enterprises (MSMEs) concerning their embrace of financial technology linked to peer-to-peer lending. Employing a survey approach, this research collected data from MSME owners in Indonesia using purposive sampling techniques. Structural Equation Modeling (SEM) was employed to evaluate the impact of dimensions within the Unified Theory of Acceptance and Use of Technology on the preparedness of MSMEs to adopt the FinTech model. The results revealed that each dimension of the Unified Theory of Acceptance and Use of Technology, encompassing performance expectancy, effort expectancy, facilitating conditions, social influence, hedonic motivation, price value, habit, perceived trust, and perceived risk, plays a crucial role in shaping the behavioral intention of MSMEs toward the adoption of financial technology, specifically peer-to-peer lending. Effort expectancy emerged as the primary factor influencing performance expectancy. Moreover, perceived trust exhibits a close correlation with perceived risk, thereby influencing the behavioral intention of MSMEs. However, perceived risk is the only dimension with a negative impact.

The influence of innovation, knowledge management, and e-commerce adoption on MSME performance, and its impact on MSMEs sustainability

In the current digital age, financial development has seen substantial shifts, particularly in buying and selling activities that are now facilitated by digital technology or electronic transactions (e-commerce), which offer convenience at relatively low costs. However, micro, small, and medium enterprises (MSMEs), which play a crucial role in the economy, must adapt to these advancements to sustain and grow their businesses. Despite the widespread adoption of e-commerce, many MSMEs have yet to fully capitalize on this technology. Limited knowledge often leads to hesitation in embracing e-commerce opportunities. Consequently, this study seeks to explore how innovation, information management, and e-commerce adoption impact MSME performance and its implications for business sustainability. The research targets MSME owners and managers in the Jabodetabek area (Jakarta, Bogor, Depok, Tangerang, and Bekasi) and nearby regions, with a sample of 420 individuals selected through random sampling. Data was collected through an online survey (Google Forms) administered to MSME management. The survey items were tested for validity and reliability, and the data analysis was conducted using various regression analyses with SEM-PLS and Smart-PLS3. The study’s findings highlight the following key points: 1) E-commerce adoption significantly enhances information management, which supports MSME sustainability; 2) E-commerce adoption also improves performance through better information management, further promoting MSME sustainability; 3) While technology is important, e-commerce adoption is the primary factor driving MSME sustainability, with technology serving as a secondary factor.

MENINGKATKAN PENJUALAN UMKM MELALUI STRATEGI PEMASARAN ONLINE YANG EFEKTIF

This service aims to explore the potential of online marketing strategies in increasing sales of Micro, Small and Medium Enterprises (MSMEs) in Indonesia, with a focus on MSMEs that have not yet run online marketing. Although digital technology has developed rapidly, many MSMEs still do not maximize the potential of online marketing. The service method used is the community education method with MSME owners who have not run online marketing which will be carried out on February 19, 2024, precisely in Sukamukti Village, Bojongmangu District, Bekasi Regency to understand their challenges and needs in dealing with online marketing strategies. This service has a positive impact on understanding the barriers faced by MSMEs in starting online marketing, as well as their views on its potential and benefits. However, there is a need for support and mentoring for MSMEs that have not yet embarked on online marketing, as well as the importance of providing appropriate resources and training.

Women Fighting the Crisis: Antecedents of Women's Leadership Performance in Facing the Covid-19 Pandemic

Objective: This study aims to empirically investigate the interplay between financial literacy, entrepreneurial orientation, learning orientation, and the performance of food and beverage Micro, Small, and Medium Enterprises (MSMEs) in Bontang City, East Kalimantan Province. Method: The research, grounded in Resource-Based Theory (RBT), explores the mediation role of innovation ability in this relationship. The study encompasses 272 MSME owners as its population. Utilizing Structural Equation Modeling for data analysis. Research Findingsand Discussions: The findings show that financial literacy, entrepreneurial orientation, and learning orientation positively influence innovation capability and MSME performance. In addition, innovation capability emerges as an important mediator that bridges the impact of financial literacy, entrepreneurial orientation and learning orientation on MSME performance. The results of this study contribute to enriching the understanding of the Resource-Based Theory, highlighting that effective utilization of resources, such as financial literacy, entrepreneurial orientation, learning orientation, and innovation capability, can improve MSME performance. Research Implications: This study is a valuable reference for MSME owners in the food and beverage sector, emphasizing the importance of a proactive approach. Responding quickly to market opportunities, introducing new products to new markets, and developing a learning-oriented mindset all play an important role in driving innovation and ultimately improving MSME performance. Originality/Value: This research underscores the importance of strategic resource utilization for MSME success, in line with the principles of Resource-Based Theory. Owners of food and beverage MSMEs are encouraged to develop a proactive and learning-oriented attitude, encouraging innovation as a key driver to improve business performance.