Performance Of Enterprises Research Articles

Investigating the Mediation of Powerful Entrepreneurial Networking in the Marketing Performance of Halal Smes in Indonesia Towards Achieving Sustainable Development Goals

Objective: This study introduces and analyzes a framework for Powerful Entrepreneurial Networking (PEN) to connect Entrepreneurial Orientation (EO) and Marketing Performance (MP) of halal Small and Medium Enterprises (SMEs) in Indonesia. It explores the direct impact of EO and Resource Availability (RA) on marketing performance and examines the mediating role of PEN in these relationships. The study aligns these factors with the Sustainable Development Goals (SDGs), aiming to enhance the economic and social performance of halal SMEs. Theoretical Framework: The research integrates concepts of entrepreneurial orientation, resource availability, and business networks, positing that PEN acts as a mediator, enhancing the influence of EO and RA on marketing performance. This holistic approach underscores the role of both internal capabilities and external networks in achieving business success, particularly within the halal sector. Method: A quantitative research approach was used, applying Structural Equation Modeling with Partial Least Squares (SEM-PLS). Data were collected from 354 halal-certified SMEs in North Sumatra, Indonesia, through structured questionnaires, and SEM-PLS was used to validate the research model. Results and Discussion: The findings reveal that entrepreneurial orientation and resource availability significantly improve the marketing performance of halal SMEs. Furthermore, PEN mediates these effects, enabling SMEs to leverage their entrepreneurial orientation and resources effectively, which is crucial for achieving superior marketing outcomes and contributing to the SDGs. Research Implications: The study offers practical implications for halal SMEs, suggesting the need to focus on entrepreneurial orientation, resource management, and networking to drive sustainable growth and align with SDGs. Originality/Value: This research contributes to the understanding of how PEN mediates the relationship between EO and marketing performance, providing insights into enhancing the capabilities of halal SMEs in line with SDGs.

Differential effects of collaborative partners on financial and growth outcomes in ventures in South Korea

ABSTRACT In the rapidly evolving landscape of venture businesses, understanding the impact of collaborations is crucial. This study examines how different types of organizational collaborations influence the financial performance and long-term growth prospects of venture enterprises. Drawing on data from the 2022 Detailed Venture Business Survey in South Korea, which encompassed 1,202 Korean ventures with prior collaboration experience, the research aims to provide a comprehensive understanding of collaborative dynamics. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) as the methodological approach, the study offers an in-depth analysis of how partnerships with various entities such as universities, research institutes, and small to large enterprises distinctly affect venture outcomes. Findings reveal that while collaborations with universities and small enterprises significantly boost immediate financial performance, they do not necessarily contribute to sustainable long-term growth. In contrast, partnerships with medium and large enterprises, though less impactful in the short term, show a positive correlation with long-term growth prospects. These results provide valuable insights for venture managers, policymakers, and investors, highlighting the need for strategic alignment of collaboration choices with business goals. This study thus contributes to the broader discourse on the strategic management of collaborations in the entrepreneurial ecosystem.

Strategic Management Practices and Performance of Small and Medium-Sized Enterprises in Nairobi County, Kenya

This study aimed to assess the relationship of strategic management practices and the performance of Small and Medium Enterprises (SMEs) in Nairobi County, Kenya. The research was motivated by the significant role that SMEs play in economic development, particularly in reducing unemployment and contributing to the GDP. However, SMEs often face challenges such as limited resources, inadequate technology adoption, and poor strategic planning, which hinder their competitiveness. The study adopted a quantitative approach, targeting 250 top-ranked SMEs in Nairobi. Data collection was conducted using structured questionnaires, focusing on the four strategic management practices: strategy formulation, strategy implementation, strategy evaluation, and strategic control. The results of the study revealed that all the strategic management practices examined had a positive and significant effect on the performance of SMEs. Specifically, strategy formulation had the highest impact, followed by strategic control, strategy implementation, and strategy evaluation. The findings indicated that SMEs in Nairobi County that adopted comprehensive strategic management practices were more likely to experience improved business performance. The study also confirmed the importance of involving all levels of staff in the strategic management process, as it fosters a sense of ownership and facilitates successful implementation. Furthermore, the research demonstrated that superior strategies positively contribute to organizational performance. Based on these findings, the study concluded that strategic management practices are crucial for the growth and competitiveness of SMEs. It recommended that SME managers focus on developing and implementing superior strategies through detailed situational analysis and participatory mechanisms. Additionally, continuous evaluation of strategies was advised to ensure sustained performance improvements. This research contributes to the existing literature by highlighting the specific role of strategic management in enhancing SME performance, particularly in the context of developing economies like Kenya

The effect of Islamic financial literacy on business performance with emphasis on the role of Islamic financial inclusion: case study in Indonesia

Purpose Recently, financial inclusion promoters have observed that financial literacy is a vital tool for financial inclusion growth, especially among the poor who are considered financially illiterate. The purpose of this paper is to look at the role of Islamic financial literacy (IFL) and inclusion in improving the performance of micro, small and medium enterprises (MSMEs) in Indonesia. Design/methodology/approach This study uses questionnaire data collected as many as 197 MSMEs. This study was analyzed using structural equation modeling approach to test the hypothesis. Findings The results show that IFL is an important variable to increase Islamic financial inclusion. The results also show that both have a significant influence in developing the MSME sector business. Research limitations/implications This research is not without limitations. This study only adopted a sample in one Province in Indonesia with focus on creative economy sector and some others sectors located in the province of Riau, therefore ignoring suburban and urban areas in Indonesia. Therefore, future studies using a cross-sectional research design are feasible. In addition, this study only uses quantitative data, so that qualitative research with key informant interviews can be considered for further research. Practical implications The findings of this study enlighten policymakers, managers of financial institutions and advocates of financial literacy and inclusion about the importance of improving the performance of MSMEs. As a policy recommendation, this study suggests that Islamic policy makers and financial institutions should play a proactive role in increasing service outreach and providing the regulatory environment needed for MSMEs given the important role MSMEs play in the Indonesian economy. Originality/value This study combines functional components (behaviors and attitudes) and nonfunctional measures (knowledge and skills) of financial literacy and financial inclusion in explaining the performance of MSMEs. Thus, this research is an initial effort to explain financial literacy and inclusion on the performance of MSMEs.

Financial literacy and small and medium enterprises performance: the moderating role of financial access

Purpose The current study examines the relationship between financial literacy and small and the performance of medium enterprises (SMEs), focusing on the moderating role of financial access. Design/methodology/approach The population of this study consists of present SMEs in Kuwait, from whom a sample of 155 businesses was chosen. This study adopted a cross-sectional time frame and analyzed the collected data using partial least square structural equation modeling, and Smart-pls 4 software was applied for calculation. Findings This research reveals that financial literacy significantly influences SME performance, consistent with previous studies, showing that higher financial literacy promotes entrepreneurs' financial management capabilities and enhances business outcomes. Also, the study supports that financial access significantly moderates this relationship, pointing out that adequate access to financial services boosts the benefits of financial literacy. Research limitations/implications Major implications of this study compromise the urgent need for customized financial literacy programs and policies promoting financial thoroughness, particularly in enhancing economies. The study recognizes limitations such as its cross-sectional design, small sample size and reliance on self-reported measures, suggesting further research use longitudinal approaches, a larger sample and objective measures. Practical implications The authors’ recommendations contain comprehensive financial literacy training, development of targeted financial education initiatives, promotion of sound financial management practices and policies to enhance financial access and inclusion, all aimed at boosting SME performance and contributing to economic growth. Originality/value To the best of the authors’ knowledge, this study is Kuwait’s first of its sort. Thus, the research is even more critical in Kuwait, where social and corporate values differ significantly. Therefore, this study aimed to investigate the relationship between financial literacy and the performance of Kuwait’s SMEs moderated by financial access.

Correlation Analysis of ESG Ratings and Enterprise Performance

ESG (environment, society and governance) evaluation system, as a tool to comprehensively consider the sustainable development ability of enterprises, is increasingly receiving attention. In the context of the promotion of the concept of global sustainable development and the pursuit of high-quality economic development, many third-party evaluation institutions and index research organizations at home and abroad are actively building and improving the ESG rating framework. Through systematic review of domestic and foreign academic circles of ESG rating and enterprise performance correlation research results, this paper reveals an important discovery: ESG rating mechanism not only provides the mirror of self, make it can accurate positioning and optimization in environmental protection, social responsibility and corporate governance, also became the driving enterprises to the direction of more green, harmonious and efficient key force, and promote the long-term sustainable development of the enterprise.

Financial Literacy and Financial Performance of Small and Medium Sized Enterprises in Kakoba Ward Mbarara City, Uganda

The financial performance of SMEs is a major concern for Uganda with high rates of solvency among these enterprises. Financial literacy has been identified as a one of the key competencies required for the establishing, management and thriving of SMEs. The study was guided by three objectives that include to analyze the effect of debt management literacy on the financial performance, to assess the effect of book keeping literacy on the financial performance of Small and Medium enterprises in Kakoba Division Mbarara City Southland to examine the effect of budgeting literacy on the financial performance of Small and Medium enterprises.. The researcher deployed across sectional survey design where a sample of 97 SMEs was selected using stratified random sampling technique. Responses were collected using a self-administered questionnaire that was comprised of Likert scaled questions. Data collected was analyzed using SPSS version 23.0 where regression analysis was performed to establish the effect between the variables. The study established that bookkeeping literacy (Adjusted R2=0.077, P-value = 0.015) and debt management Adjusted R2= 0.096, P-value =0.007) significantly and statistically affect and predict financial performance of SMEs. The study concludes that financial literacy significantly affects financial performance of SMEs and recommends that government and other development partners should institute financial literacy training programs and owners should follow separate ownership from business actives and therefore employ people with necessary knowledge to run their operation. The study further suggests that further research on other dimensions of financial literacy like savings, accountability, and investment so as to make a generalization of effect of financial literacy on the financial performance of SMEs

Green human resource practices and corporate sustainable performance—The role of corporate green culture and dynamic capabilities

AbstractSustainable development has always been a hot topic in academia and business circles. The green human resource practices play an important role in the sustainable development of enterprises. However, research on how green human resource practices can improve corporate sustainable performance is relatively scarce. In order to explore the internal mechanism and boundary conditions of the impact of green human resource practice on the sustainable performance of enterprises, the research is based on the dynamic capability theory, through the survey data of 460 enterprise managers. The hierarchical regression and bootstrapping methods are used to analyze the relationship mechanism and boundary conditions between green human resource practice and enterprise sustainable performance through dynamic capabilities. The research results show that green human resources have a positive impact on the sustainable performance and dynamic capabilities of enterprises; dynamic capabilities mediates the relationship between green human resource practices and corporate sustainable performance; corporate green culture not only enhances the relationship between green human resource practices and dynamic capabilities, but also enhances the mediating role of dynamic capabilities in green human resource practices and corporate sustainable performance. The research conclusions lay a theoretical foundation for the implementation of green human resource practices and provided a decision‐making reference for the sustainable development of enterprises.

The influence of entrepreneurial orientation on business performance of SMEs: Evidence from Kathmandu, Nepal

The purpose of the study was to investigate the impact of entrepreneurial orientation comprising autonomy, innovation, networking, and pro-activeness on business performance in Nepalese context. The literature of entrepreneurial orientation concerning to business performance depicted distinct directions with divergent and unsettled evidences. This research was conducted to address the research objective and for testing hypotheses. Thus, this study employed a descriptive and causal-comparative research approach, through cross-sectional data to gather information from participants to address research issues and objectives. A structured questionnaire of total 425 adopting the convenience sampling technique distributed among the targeted respondents in Kathmandu and received only 410 useful questionnaire for analysis. The findings of the study revealed that entrepreneurial orientation comprising autonomy, innovation, networking, and pro-activeness behavior found positively associated with the business performance of small and medium enterprises (SMEs) in Kathmandu, Nepal. There was a positive impact of entrepreneurial orientation on SMEs' business performance. It showed that better entrepreneurial orientation leads towards better business performance. This research contributes for better understanding of the association between entrepreneurs’ orientation and business performance with their effect for business performance. This study establishes significant benchmark to a number of stakeholders consisting entrepreneurs, educators, academic institutions, regulators, and policymakers for a better understanding and optimum execution of the research outcomes to prepare effective policies for entrepreneurship development.

INFLUENCE OF CEO PROFESSIONAL RICHNESS ON THE INNOVATION PERFORMANCE OF LISTED COMPANIES IN THE AI SECTOR

With the rapid development of artificial intelligence (AI) technology, enterprises in the AI sector are becoming an important engine of global economic growth. In this era full of challenges and opportunities, enterprises' innovation performance is critical because it directly determines their long-term competitiveness in the market. The CEO's professional background has a profound impact on the enterprise's strategy formulation, organizational management, and innovation ability as a key decision-maker and strategic leader. Especially in the technology-intensive AI field, the professional richness of the CEO may have a significant impact on the innovation performance of enterprises, which makes it important to theoretically and practically study the impact of the CEO's career background on the innovation performance of enterprises in the AI sector. The widespread application of AI technology has changed the business model and operation mode of many industries, driving enterprises to gain a competitive advantage in the market. Through continuous innovation, AI-sector enterprises improve the function and performance of products to meet the personalized needs of users, thereby increasing market competitiveness and profitability. However, the AI technology innovation process also faces challenges such as high costs, legal and regulatory restrictions, and ethics. In this context, the role of the CEO is particularly critical. How the diversity of his professional background affects the innovation ability of enterprises and their flexibility to respond to market changes still needs further in-depth research and theoretical discussion.

The role of legal system in SME bank credit in ASEAN

This study aims to investigate the role of legal system in the access to bank credit of small and medium enterprises (SMEs) and explores the measures to improve legal system among the Association of South-East Asian Nations (ASEAN). By applying the ordinary least squares (OLS) method, the study examines the bank credit accessibility of over 12,000 firms across eight ASEAN countries, using the data collected from the World Bank’s Business Environment and Enterprise Performance Survey (BEEPS), in relation to each country's contract enforcement indicators. The estimated results reveal a significant positive relationship between contract enforcement and SMEs’ access to bank credit. Furthermore, the results show that long time consumption and large costs for contract enforcement reduces financing opportunities of SMEs. Additionally, the study finds that a country’s legal tradition does not impact the effectiveness of its contract enforcement. Implementing electronic filing systems and limiting times and costs for legal processes can enhance contract enforcement. Consequently, strong contract enforcement appears to encourage banks to increase SME lending, leading to higher SME bank credit in countries with efficient contract enforcement mechanisms. Enhancing contract enforcement can increase SME financing and consequently, will improve a country’s financial intermediation. These findings underscore the importance of contract enforcement including its duration and cost, in the context of SME financing and suggest ways to improve a country’s legal system to foster SME access to bank credit.

Transparency as a Determinant of Financial Performance in State-Owned Commercial Enterprises in Kenya

State-owned commercial enterprises (SOCEs) in Kenya register below-par output in fiscal standards. Many explanations have been proffered for this state of affairs, including competition and fluctuations in the local and global economies. Additionally, it is important to examine how factors internal to these enterprises shape their financial performance. As such, this study aimed to examine the role of transparency as a corporate governance strategy in the fiscal output of state-owned commercial enterprises as anchored by legitimacy theory. Further, the study adopted explanatory research design. It targeted 476 board members and 379 corporate executives from 46 SOCEs in Kenya. The sample size was 295, consisting of 142 corporate executives and 153 board members, who were selected via stratified random sampling. To collect primary data, a questionnaire and document analysis were deployed. Data was analysed using descriptive statistics. Test for relationship between variables was done using covariance-based structural equation modelling (CB-SEM) along with Analysis of Moment Structures (AMOS) software. The study results revealed that transparency (estimate = 1.946, critical ratio = 3.676, p < 0.001) positively and significantly influenced the financial performance of SOCEs. It was thus deduced that transparency was a determinant of SOCEs’ fiscal output in Kenya. Therefore, SOCEs should deploy centralized real-time monitoring of financial performance through dashboards, build data management capacities and adopt business intelligence and data analytics technologies that allow for data driven and intelligence-based decision-making by the SOCEs’ board and corporate executives.

Research on the Problems and Countermeasures of Using Management Accounting Methods to Promote the Reform of State-owned Enterprises

This paper deeply discusses how to use the power of management accounting to promote the deepening of the reform of state-owned enterprises, and proposes effective solutions to the existing problems. The reform of state-owned enterprises, as an indispensable part of China's economic map, is of great importance. Management accounting, as a mature and efficient management tool, is gradually becoming an indispensable supporting force in the reform of state-owned enterprises. This paper provides an in-depth analysis of the unique role of management accounting in the reform of state-owned enterprises. We find that by introducing management accounting concepts and methods, we can effectively optimize resource allocation, improve decision-making efficiency, and inject new vitality into the reform of state-owned enterprises. The research results of this paper are of great significance for guiding the reform practice of state-owned enterprises and improving the operating performance of state-owned enterprises. We believe that with the help of management accounting, the reform of state-owned enterprises will be able to take more solid steps and contribute more to the sustainable development of China's economy.

Pelatihan Digital Accounting guna Peningkatan Kinerja Keuangan UMKM

This community service program aims to improve the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in the Bandulan sub-district of Malang city through digital accounting training. This training is designed to improve understanding of basic accounting concepts and the use of accounting software to facilitate the recording of financial transactions that previously used manual recording. The training activities were carried out online and offline and were attended by 10 MSME participants, either as owners or in the finance department. The implementation method used was lectures to convey basic accounting concepts for MSMEs and practice operating digital accounting applications. The results of monitoring and evaluation showed that the value of MSME partners was at least 75 points, which means that partners can absorb the knowledge that has been carried out by the service team well. The results of this service can improve financial performance and effective and efficient management decision-making.

Comparative study of enterprise efficiency and environmental, social and governance performance before and after COVID‐19 epidemic—A study of China's A‐share listed Fintech companies

AbstractSince the outbreak of COVID‐19, it is worth noting how the enterprise efficiency and ESG performance of Chinese fintech enterprises are affected by pandemic. However, researches using Data Envelopment Analysis (DEA) to explore this issue are still very scarce. Therefore, this paper selects 45 A‐share listed fintech enterprises to construct A two‐stage RDM‐DDF efficiency analysis model, and evaluates the efficiency of different stages and different input–output indexes by using the window efficiency analysis method. At the same time, target enterprises were grouped according to their registered locations, so as to explore the regional differences in efficiencies and changes in the efficiency before and after the outbreak of COVID‐19. The analysis results show that: (1) Regional differences in corporate efficiency are quite pronounced. (2) There is no obvious positive correlation between ESG performance and traditional financial performance of target enterprises. (3) Following the outbreak of the COVID‐19 pandemic, the efficiency changes in target companies have been complex.

The Influence of Business Model Canvas on Financial Performance of Micro, Small, and Medium Enterprises (MSMEs)

This research aimed to analyze the influence of the nine components of Business Model Canvas (BMC) on financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Kudus Regency. BMC components included Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure. In addition, the data was collected from 393 MSMEs selected through purposive sampling using a quantitative method. The analysis was performed using Structural Equation Modeling (SEM) and SmartPLS 3 software. The results showed that Cost Structure had a positive and significant impact on financial performance of MSMEs out of the nine BMC components. In this context, the efficiency in cost management significantly contributed to the improvement of financial performance. Other components such as Channels, Customer Relationships, Customer Segments, Key Activities, Key Partnerships, Key Resources, Revenue Streams, and Value Propositions did not have a significant impact on financial performance. Therefore, MSMEs in Kudus Regency were expected to optimize the implementation of the components to have a greater impact on financial performance. The practical implications were that MSMEs should focus more on efficient Cost Structure management as a primary strategy to enhance financial performance.

The Impact of Turnaround Strategies on SME Performance

This study examines the impact of various turnaround strategies on the performance of small and medium-sized enterprises (SMEs). Specifically, the research focuses on five key strategies: CRM, publicizing efforts, rebates, credit periods, and online business. The goal is to examine the interaction between these tremendous strategies for SME performance in business sales growth. A survey research methodology was used, and data was collected from 300 SMEs from various sectors by a structured questionnaire. Chi-square tests and regression analysis are used to establish the interaction between the company's turnaround strategies and its performance results. The result disclosed that online business was the most viable strategy for enhancing SME performance. According to the studies, CRM also positively affected business performance, even though the results differed depending on the implementation. On the other hand, credit period was a negative factor, whereby the performance of SMEs declined when credit period was offered. The influence of publicizing efforts and providing rebates yielded a moderate effect; therefore, the effectiveness of the two strategies depends on the existing context.

Global geopolitical risk and corporate ESG performance

This study investigates whether and how the global geopolitical risk (GPR) impacts the environmental, social, and governance (ESG) performance of Chinese enterprises utilizing panel data of Chinese A-share listed enterprises from 2011 to 2020. The findings show that enterprises' ESG performance is negatively impacted by the global GPR. According to heterogeneity analysis, the global GPR has a more detrimental effect on ESG performance in non-state-owned enterprises, enterprises in the decline period, enterprises with higher institutional investor shareholdings, and enterprises without political connections. Additional mechanism analysis reveals that global GPR primarily weakens Chinese enterprises' ESG performance by increasing their financing constraints and reducing competitiveness. . In conclusion, our main findings are still valid after addressing endogeneity-related concerns and doing robustness tests.

Evaluating effect of Inventory controls on financial performance of Small and Medium Enterprises in Eldoret Town, Kenya

Inventory management is essential for maintaining optimal stock levels and minimizing costs, which ultimately affects a firm's overall financial performance. This study focuses on the impact of inventory controls on the financial performance of small and medium enterprises (SMEs) in Eldoret town. Inventory controls are measured through various dimensions, such as inventory levels, inspection, auditing, and management systems. Previous research has shown that effective inventory management can increase a firm's profitability by reducing unnecessary stock holding costs and avoiding stockouts. To investigate this further, a descriptive research design was employed, and data was collected from 171 SME owners/managers through self-administered questionnaires. Descriptive statistics and regression analysis were used to analyze the data. The results revealed a significant positive relationship between inventory controls and the financial performance of SMEs. Specifically, the inventory controls explained 11.5% of the variance in financial performance. These findings suggest that SMEs that implement efficient inventory management practices tend to experience better financial outcomes. Therefore, it can be concluded that effective inventory control mechanisms are crucial for enhancing the competitiveness and growth of SMEs. Consequently, this study recommends that SME owners implement robust inventory control systems to maximize their financial performance.

Impact of UK's social stock exchange trading scheme on the performance of social enterprises

AbstractUsing a difference‐in‐differences (DID) framework, we evaluate the effect of UKSSE Trading scheme 2015—launch of stock trading by UK social stock exchange (UKSSE) for social enterprises (SEs) that became its members, on the productivity of UKSSE member‐firms (treated group) as compared to nonmembers (control group) for the 2008–2014 and the 2015–2018 periods, before and post the implementation of the UKSSE trading scheme 2015. Our findings suggest significant positive impact of UKSSE trading scheme opening on the productivity of all SEs (treated group) for 2 years and SEs‐SMEs (treated group) for 3 years, respectively, following the launch of this trading scheme, compared to the control groups. Thus, the UKSSE, through its trading scheme 2015, accomplished its role as a means to improve the performance of its members, measured by productivity.