Performance Of Small Medium Enterprises Research Articles

Social Media Engagement, Organizational Agility and Digitalization Strategic Plan to Improve SMEs’ Performance

Sustainability in the post pandemic era is very challenging. Every business entity including small medium enterprises (SMEs) needs a more valuable strategy to adapt to dramatic changes, such as strengthening digitization to improve SME performance. The industrial revolution 4.0 confirms digitalization as a strategic plan for SMEs in realizing a digital-based work culture. Digital skills are one of the skills to maximize the use of information and communication technology (ICT) in business. As an illustration, using social media to build brand reputation, promote and interact with customers. We also believe that digitalization can make SMEs more agile, as they are more adaptive to all changes and pressures from the external environment. This article aims to describe and analyze models for improving the performance of SMEs through agility, social media, and digitalization-based strategic planning. Data were collected from 239 SMEs in creative industry. The data were analyzed using SmartPLS analysis. The results showed that digital skills can increase the use of ICT, social media engagement, and organizational agility in SMEs. This article provides practical insights for SMEs to be more sustainable and competitive in the future.

Effect of Leverage and Net Profit to the Firm Performance in Indonesia’s Small Medium Enterprises (SMEs) Listed Firms

Whether large corporations or small medium enterprises (SMEs), it is of utmost importance for all companies to achieve good firm’s performance in order to secure their existence in the economy, especially as publicly traded companies. The purpose of this study is to investigate the impact of firm’s leverage and net profit on the performance of listed SMEs in Indonesia. A total of 148 samples of secondary data used for this study were obtained from the Pefindo25 SME Index for companies listed on the Indonesian Stock Exchange from 2012 to 2017. The result shows that the two independent variables, the leverage and net profit, have a significant impact on the firm performance of SMEs, in opposite directions; the leverage variable has a negative significant impact on firm performance, while the variable net profit has a positive impact on firm performance.

The Role of E-Commerce Use, Capital Availability and Business Training on Performance of Small Medium Enterprise (SMEs) in Indonesia

This study aims to determine whether the simultaneous use of finance, business training, and e-commerce has a favorable and significant impact on microbusiness revenue. Multiple linear regression is being used in this quantitative research approach. The people who participate in microbusinesses and have received business training make up the population of this study. Purposive sampling, a non-probability sample technique, and a total of 100 respondents make up the approach employed in this study. The questions for this study were made available and directly completed by respondents using Google Forms. The Likert scale was employed by the author as a measurement in this study. The usage of e-commerce has a good and considerable impact on microbusiness income, according to the research findings. Microbusiness income is significantly and favorably impacted by capital. Microbusiness income is significantly and favorably affected by enterprise training. Microbusiness revenue benefits significantly and positively from the usage of e-commerce, financing, and business training all at once. 52% of microbusiness income is impacted by the usage of e-commerce, financing, and enterprise training. The other 48%, meanwhile, was affected by things unrelated to this study.

Learning Orientation as Mediator between International Entrepreneurial Orientation and International Firm Performance in Global Halal Industry

The halal industry has provided a new competitive advantage for Muslim countries, especially Malaysia, as the export of halal products is now one of the most important contributions to the national income. The contribution is mostly by small-medium enterprises (SMEs). However, in ensuring the sustainability of SMEs in the international market, the firm needs to hire managers with internationally oriented entrepreneurs to prepare SMEs to face uncertain environments globally through the intervention of learning orientation as an organizational culture. Thus, this research was conducted to examine the mediating effect of learning orientation between the international entrepreneurial orientation and international firm performance of SMEs in the global halal industry. This study is a quantitative, cross-sectional study. Purposive sampling was used as the sampling method where the sample was selected based on four criteria: SMEs, manufacturer, possession of a Malaysia halal certification, and exporter of halal products. Responses collected from 136 top management teams from participating firms were analyzed using PLS-SEM. The results show that the relationship between international entrepreneurial orientation with international firm performance is conditional upon learning orientation. To operate internationally, having managers equipped with prior entrepreneurial behavior is insufficient to increase performance. Learning orientation thus serves as a platform to transfer tacit knowledge to employees and at the same time value employees’ ideas so that continuous changes can take place. This improvement will ultimately result in higher international firm performance.

Does Government Support Enhance the Sustainable Competitive Performance among SMEs? Empirical Study among Small Medium Enterprises (SMEs) Perlis

In recent decades, economic growth in countries around the world has become increasingly dependent on the dynamism of small and medium-sized enterprises (SMEs). The success of SMEs depends on the support provided by their state. Government plays a crucial role in small- and medium-sized enterprises to boost performance and economic growth because it creates employment opportunities, poverty reduction, and economic development. The underlining study’s main objective is to examine how government support affects the sustainable competitive performance of SMEs at Perlis. Hence, small enterprises are a significant source of economic development, employment, and value creation. Therefore, based on previous literature, we developed hypotheses related to government financial support and network structure, and data collected through structured questionnaires from top management of SMEs at Perlis. The results indicate that density has a positive and significant effect on sustainable competitive performance, while centrality has an insignificant impact on sustainable competitive performance. Furthermore, government financial support strongly and significantly supports the sustainable competitive performance of SMEs.

Corporate Environmental, Social, and Governance (ESG) and SMEs' Value (a Lesson From Indonesian Public SMEs)

Corporate Environmental, Social, and Governance (ESG) has prominently emerged to address sustainability challenges. Despite the positive implications in the extant literature, corporate ESG performance was given less attention by small-medium enterprises (SMEs). Hence, this study aims to investigate corporate ESG performance in Indonesian public SMEs and its influence on firm value. The study was conducted on 17 non-financial SMEs consistently listed on IDX PEFINDO25 from 2016 to 2020. The study found a trend of the annual increase in corporate ESG performance of SMEs and disclosure. The detailed level of performance revealed governance performance was featured, followed by social and environmental performance. The regression analysis showed a significantly positive influence of corporate ESG on firm value. Following these positive influences, we suggest that SME managers amplify corporate ESG as a long-term business growth and value-creation strategy. In addition, investors are advised to consider SMEs with higher ESG performance as part of their investment portfolio. Keywords: corporate ESG, disclosure, firm value, SMEs, sustainability challenges

Big data analytics and key success factor in achieving competitive advantage and performance of small medium enterprises: literature review

Along with the rapid changes in technology, many small and medium-sized enterprises (SMEs) have leveraged Big Data Analytics and other factors to drive digital transformation to gain a competitive advantage and improve performance. Making smart decisions based on data will help small and medium-sized companies get through the wave toward larger investment targets. The successful implementation of Big Data Analytics and other factors depends on alignment with aspects of an organization, technology, and human resources. Identifying critical success factors (CSFs) in driving Big Data innovation is critical to addressing the challenges surrounding Big Data Analytics and its application. This study aims to examine a systematic literature review that explains the concept of Big Data Analytics and the key success factors in achieving competitive advantage and performance of small and medium-sized companies. By conducting a systematic literature review analysis for studies related to key success factors and Big Data Analytics during the research period on data needs, there were 50 sources of articles analyzed to identify the concept based on its classification. Referring to the descriptive qualitative analysis method for the selected literature section, the findings of this study succeeded in identifying 48 critical success factors from the implementation section of Big Data Analytics by proposing schemes and frameworks in 4 categories, namely: Organization, Technology, Human Resources (People) and Management Data Governance. These findings can be used as a reference for successful strategies and implementation of Big Data Analytics by formulating them into a more effective database form to improve the performance of small and medium-sized companies in achieving competitive advantage.

The impact of customer-focus on the performance of business organizations: evidence from SMEs in an emerging West African economy

PurposeThe purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).Design/methodology/approachThis research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs.FindingsThe outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance.Research limitations/implicationsNotwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance.Practical implicationsThe practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance.Social implicationsThis study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth.Originality/valueGenerally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.

Effect of Accounting Practices on Financial Performance of Small Medium Enterprises in Rwanda

Effect of Accounting Practices on Financial Performance of Small Medium Enterprises in Rwanda

Effect of Quality Practices on Customer Satisfaction and Its Impact on Business Performance of Small Medium Enterprise in Banda Aceh, Indonesia

Effect of Quality Practices on Customer Satisfaction and Its Impact on Business Performance of Small Medium Enterprise in Banda Aceh, Indonesia

Role of Competitive Advantage in Mediating the Effect of Market Orientation on Marketing Performance of Small Medium Enterprise (SME): Study on the Gold and Silver Jewelry Craft Industry in Singapadu Village, Gianyar, Indonesia

Marketing “performance is sales growth based on the extent to which the company can maintain or add new customers. Companies or business owners must develop the products they offer to compete in the market, considering the increasing number of competitors with similar products and different levels of quality and excellence. This study aims to explain the role of competitive advantage in mediating the effect of market orientation on marketing performance. This research was conducted on small and medium enterprises (SMEs) crafting gold and silver jewelry located in Singapadu village, Gianyar district. The number of samples used was 64 SMEs. Collecting data using questionnaires and interviews, data were analyzed using the path analysis method. The study results can be concluded that market orientation has a positive and significant effect on marketing performance. market orientation has a positive and significant impact on competitive advantage. Competitive advantage has a positive and significant effect on marketing performance. Competitive advantage can mediate the impact of market orientation on the marketing performance of gold and silver jewelry handicraft SMEs in Singapadu village.

The Impact of Spiritual, Social, And Emotional Intelligence on the Performance of SMEs in the Covid-19 Pandemic

Small Medium Enterprises (SMEs) are an important part of the economic system in Indonesia, this can be seen from the number compared to large-scale industrial enterprises. SMEs in their position have advantages compared to large-scale businesses, one of the advantages is being able to absorb more labor and accelerate the process of equitable development. However, currently, SMEs are experiencing problems in achieving better performance. These obstacles do not only come from within the SMEs organization but also from outside. Internal factors are factors that come from the work environment such as organizational culture, attitudes, and actions of colleagues as well as the organizational structure of the SMEs. Internal factors include intelligence it has, there are several bits of intelligence in humans, including emotional intelligence, social intelligence, and spiritual intelligence. Therefore, this study aims to determine the effect of spiritual intelligence, social intelligence, and emotional intelligence on SMEs actors during the Covid-19 period. This research is a quantitative study with a population of small and medium enterprises. The sampling method is purposive sampling, which was conducted using 90 samples. The approach of data analysis with multiple linear regression. The tool used is a regression with IBM SPSS 25 software. The results showed that spiritual intelligence, social intelligence, and emotional intelligence affected the performance of SMEs during the Covid-19 period.

The effects of foreign direct investment on the performance of small-medium enterprises: The case of Vietnam

Foreign direct investment (FDI) is one of the most important elements influencing countries' international economic integration. FDI establishes direct, consistent, and long-lasting interconnections between economies as well as encouraging innovative technology and know-how transmission across territories while allowing host economies to offer their goods more extensively on global markets. FDI is also a source of investment financing that creates the climate for appropriate policies. Aside from the obvious advantages for all economic sectors, attracting FDI in small and midsize enterprises (SMEs) has a variety of additional benefits. For example, an opportunity to participate in the global supply chain for parts and components; an opportunity not yet wholly established in most developing nations but is critical for industrialization and improving income distribution through job creation for low-skilled employees. This study compared the impact of FDI on the performance of SMEs in Vietnam to that of a group of ASEAN nations with comparable economic structures including Indonesia, Malaysia, and Thailand. The empirical evidence indicates that FDI has a negative effect on the performance of SMEs in the group of four ASEAN member countries while having a positive influence on Vietnamese SMEs.

Mediating Role of Interaction Orientation on the Relationship between Strategic Orientation and Small Medium Enterprises Performance in North-East Nigeria

This study was designed to find out the mediating role of interaction orientation in the relationship between strategic orientation and Small Medium (SMEs) performance in northeast Nigeria. Data was collected from a sample of 326 SME owner-managers in northeast Nigeria using questionnaire. The analysis was done with inferential statistics on Partial Least Square Structural Equation Modelling (PLS-SEM) on Smart-PLS 3. The results revealed that interaction orientation mediates the relationship between each of entrepreneurial orientation, market orientation learning orientation, and technology orientation with SMEs’ performance. Without taking proper training and orientation measures for SME owner-managers on the application of entrepreneurial, market orientation, and technology jointly with interaction orientation in Nigeria, the country will continue to suffer from poor SMEs’ performance. It is recommended that special consideration should be given to interaction orientation because of its mediation effect on market orientation and SMEs performance.

Measuring the Impact of Cultural Innovation, Marketing Innovation, and Product Innovation on the Firm's Performance of Small-Medium Enterprises. A Study of Textile Industry in Multan Region

Measuring the Impact of Cultural Innovation, Marketing Innovation, and Product Innovation on the Firm's Performance of Small-Medium Enterprises. A Study of Textile Industry in Multan Region

The effect of financial literacy and entrepreneurship orientation on the performance of small-medium enterprise ‘tenun gringsing’ in tenganan village, karangasem regency

Small-medium business enterprises play an important role in the national economics. As such, the performance of small-medium enterprises should be optimized through various efforts among others; increasing financial literacy and entrepreneurship orientation of the businessman/woman themselves. The current research was conducted because there are some performance issues with the small-middle enterprise ‘Tenun Gringsing’ in Tenganan Village, Karangasem. In an effort to optimize and increase performance of the small-middle enterprise, there needs to be a competent financial literacy and a strong entrepreneurship orientation. The purpose of the current study is to study the effect of financial literacy and entrepreneurship orientation on the performance of small-medium enterprise “Tenun Gringsing” in Tenaganan Village Karangasem partially and simultaneously. This research applied a quantitative method. Population studied is 80 businesspeople of the small-medium “Tenun Gringsing” enterprise. Saturated sampling technique was used. Data was collected using interview, observation, survey, and documentation study methods. Data was analyzed using a Mutiple Regression Analysis. The results of the study indicated that there is a positive and significant effect (partially and simultaneously) of financial literacy (X1) and entrepreneurship orientation (X2) towards performance (Y).

The Impact of Social Entrepreneurship, Corporate Social Responsibilities, and Working Capital Management Practices on the Performance of Tourism Small-Medium Enterprises (SMEs) During COVID-19: Moderating Role of Employee Behavior.

The failure or success of an enterprise depends upon its working capital management practices (WCMP) along with effective corporate social responsibilities (CSR) and social entrepreneurship (SE). These factors ensure not only the soundness of financial indicators but also the profitability of an enterprise. Therefore, the objective of this study was to determine the impact of CSR, SE, and WCMP on the performance of small–medium enterprises (SMEs) of tourism sector, during the lockdown period in Malaysia. The goals also include the investigation of moderating role of employee behavior (EB) among the nexus of CSR, SE, WCMP, and performance of SMEs. The survey was performed to find out the practices adopted by the SMEs during corona days. A quantitative research method has been adopted to get data with convenient sampling technique, and PLS-SEM has been exploited to find out the significant nexus among CSR, SE, WCMP, and the performance of SMEs. The results indicate that CSR, SE, and WCMP have a positive association with the performance of SMEs in Malaysia. The results also indicate that EB positively moderates among the nexus of CSR, SE, WCMP, and the performance of SMEs in Malaysia. Stock review strategies by the SMEs during the corona days also exhibit significant differences except for no stock review. Significant differences between the enterprises show a lack of adaptation of the financial indicators that determine enterprise soundness. The study not only provides guidelines for entrepreneurs of SMEs but also helps in maintaining standards for the evaluation of the enterprises.

Assessment of Effect on ICT Adoption in Small Medium Enterprises Performance (SMEs): A Case of Tanga District

ICT play a significant role in improvement of Small Medium Enterprise performance in Tanzania as other countries across the global. However the status of ICT use in business limited into the use of mobile phone for business transaction due to limited knowledge on ICT use among SMEs and little is known about effect of ICT adoption in Small Medium Enterprise (SMEs). This study focused on the assessment of effect of ICT adoption in SMEs performance in Tanga, district. The study was guided by Technology Acceptance Model (TAM) developed by Davis in 1989. The study employed quantitative research approach applying a descriptive research design. Total respondents were 100 who included SMEs owners and leaders who were selected through purposive and simple random sampling techniques. Data were gathered through Questionnaires. Statistical Package for Social Sciences (SPSS) 20 th version tool coupled with descriptive analysis technique was used in data analysis. The study findings revealed that ICT affect SMEs daily activities positively as it increase access to market, increase productivity and improve sales. On the other hand the study findings revealed that majority 61(61%) of the respondents use mobile phone in advertising their products and few use internet. The study recommends the use of mobile phone for business transaction as majority of the respondents have access on it. Keywords: ICT use, Effect of ICT, SMEs performance. DOI: 10.7176/EJBM/14-10-03 Publication date: May 31 st 2022

Entrepreneurial Orientation, Organizational Culture and Business Performance in SMEs: Evidence from Emerging Economy

The study objective is to empirically examine the mediating role of organizational culture on entrepreneurial orientation (EO) and business performance relationships in Algerian manufacturing SMEs. A sample of 180 Algerian Small medium enterprise (SME) owners/managers was collected for the year 2021 by using structured questionnaires. This study has contributed to the existing theory by evaluating the mediating role of Organizational Culture (OC) by using interaction effect in partial least squares structural equation modeling (PLS-SEM). The results have supported the hypothesized direct and mediate relationship: Entrepreneurial Orientation has the highest effect on the Organizational culture. On the other hand, Entrepreneurial Orientation has a medium influence on business performance. In addition, Organizational culture has a medium influence on business performance. Additionally, Entrepreneurial orientation and organizational culture together explain 50.2% of the variances for the business performance construct. On the other hand, 38.9% of the variances are explained by the entrepreneurial orientation for the organizational culture construct. Their relationship receives considerable scholarly attention in the literature, but few studies have been conducted among Algerian manufacturing SMEs. Hence, this investigation’s purpose is to add to the research in the newer context of Algeria. Thus, this study was an attempt to bridge this gap in the literature. This study can be used to supplement existing theories on organizational culture and small-business performance. This paper discovers an excellent link between entrepreneurial orientation and small and medium enterprise performance, with organizational culture as a partial mediating factor. This research also has significant implications for academics and practitioners to understand better entrepreneurial orientation, organizational culture perspectives, and organizational performance. The conclusions have been empirically intended to help SME authorities and future academics understand the function of entrepreneurial orientation and culture in improving the organizational performance of SMEs, particularly in North Africa.

Effect of internet banking on the performance of small-medium enterprises in Enugu metropolis

Effect of internet banking on the performance of small-medium enterprises in Enugu metropolis