Service SMEs Research Articles

CORPORATE GOVERNANCE, CREDIT RISK, AND FINANCIAL LITERACY FOR SMALL MEDIUM ENTERPRISE IN INDONESIA

The problem of SMEs in Indonesia as a “high-risk borrower” that has not been resolved until today. The purposes of this study was to analyze the financial literacy as mediating between corporate governance and SMEs’ credit risk in Indonesia. This sample method used purposive sampling: 1273 units of Trade and Service SMEs fostered by Central Java that received credit in 2018. Twenty percent of the totals were taken, so the total was 255 samples. The data collection technique used questionnaires and interviews. The number of questionnaires distributed were 255 with a response rate of 95%, so resulting 242 respondents. Data analysis used descriptive and Regression Method. The corporate governance shown by responsibility, independence, and fairness did not affect SMEs’ credit risk. In other words, transparency and accountability is effective in reducing SMEs’ credit risk. Also, financial literacy can strengthen the influence of transparency, accountability, and responsibility in reducing credit risk for SMEs in Indonesia.

Exploring the Co-effect of Market-Orientation and Ambidextrous Innovation in Service Innovation of SMEs

Market-orientation capability (MOC) and ambidextrous innovation (AI) as dynamic capabilities have a significant role in the success of SME service innovation. Their co-effect, which has not been studied previously, represents the linking strategy and actions that relate MOC to AI to reconfigure resources based on market insights to balance the exploration-based and exploration-based innovation activities and leads SMEs to seize service innovation opportunities effectively. Thus, this study examined the relationships among these variables and firm performance, considering international environmental hostility (IEH) as a moderator, in a model using data from 154 tourism and travel firms in Iran as an emerging market. The results reveal a significant association between each of MOC and AI with firm performance, in which IEH significantly moderates these relationships. Also, their co-effect negatively influences the firm performance, which indicates a weak relation between MOC and AI in these SMEs. This research suggests that tourism SME managers should deliberately adjust the linking strategy between their MOC and AI to accurately respond to service innovation opportunities and attempt to turn the threats of environmental hostility into opportunities for the sustainability of their firm performance.

Strategic capabilities and firm performance in Omani manufacturing and service SMEs

Purpose This paper aims to examine small- and medium-sized enterprises’ (SMEs) strategic capabilities in terms of their marketing and management capabilities, their sources of environmental uncertainty and their organizational capabilities. Additionally, to what extent the effect differs across two sectors (manufacturing and service). Design/methodology/approach Partial least squares structural equation modeling was used to conduct multigroup analysis for the two sectors. Data was collected from a sample of 315 Omani SMEs, 166 from manufacturing and 149 from services. Findings The results show that strategic capabilities have a significant positive effect on customer satisfaction. However, the effect differs between manufacturing and service SMEs; the effect is greater in service than in manufacturing SMEs. Furthermore, the effect of organizational capabilities on customer satisfaction was found to be positive. However, the effect is higher in manufacturing as the difference is statistically significant. Originality/value Due to the growing importance of the service and manufacturing SMEs in developing countries and their considerable involvement in economic development, it is important to understand the characteristics of the strategic capabilities in both sectors. Thus, according to the authors’ knowledge, this paper is one of the first to propose a comprehensive framework that measures collectively the direct impact of strategic capabilities, organizational capabilities and environmental uncertainties on SMEs customer satisfaction and effectiveness.

Optimalisasi Penyaluran Bantuan Pemerintah Untuk UMKM Menggunakan Metode Fuzzy C-Means

Indonesian MSMEs were very seriously affected by the Covid-19 pandemic, which caused the Indonesian economy has experienced deceleration. The Indonesian government has taken several steps to keep economic activity running, such as direct cash assistance for micro-scale businesses but is having problems in obtaining real data so that assistance is not on target, the clustering method using Fuzzy C-Means (FCM) is used for grouping MSME data. FCM allows the data to be a member of all clusters in which each cluster has a membership degree value of 0-1. The data used is from the website of the Sleman Regency Cooperatives and SME Service. FCM classifies MSME data based on the attributes of revenue, assets and number of workers. This research resulted in grouping MSME data into 3 priority levels for MSMEs in obtaining assistance, namely high priority, medium priority, and low priority. The results of this study show that the number of MSMEs with high priority is 23,023 MSMEs, medium priority is 9,774 MSMEs and low priority is 3,159 MSMEs. The validation test of the FCM method uses the Partition Coefficient Index (PCI) which has a value of 0.826 which means that value good because it is close to 1.

MANAGEMENT, MARKETING AND FINANCIAL APPROACHES TO ASSESSING THE SOCIO-ECOLOGICAL AND ECONOMIC EFFECT OF ENTERPRISE INTERACTION IN THE FACE OF CHANGING CONSUMER PREFERENCES

Introduction. Differences in understanding the main sources of effect and benefits that accompany the interaction of SME with each other and with large industrial enterprises indicate the ambiguity of ways to measure and evaluate such interaction and its scope, which in the face of changing consumer preferences requires further study. Methods. The following special methods of scientific cognition were used in the research process: historical-logical method (in the study of the evolution of changes in the value of SMEs under the influence of changes in consumer preferences); method of systematization, classification and theoretical generalization (use of the potential of interaction between SMEs and large enterprises); method of institutional analysis (in the study of the transformation of the SME management process); method of system analysis (in the study of the classification of interactions of small and medium enterprises); method of logical analysis and synthesis (in the construction of forms of interaction between SMEs and large enterprises); method of graphical analysis (in the development of configurations of varieties of the structure of the satellite form of interaction of industrial SMEs and large enterprises). Results. It is proved that one of the directions of development of modern industrial SME in Ukraine is the use of various forms and methods of partnership: from concluding long-term bilateral supply agreements to creating new SME of design and process type to solve new problems. The most promising partners of manufacturing SME in Ukraine are large industrial enterprises, whose growth opportunities due to limited resources, high competition from foreign manufacturers, almost complete lack of state support are almost exhausted. Production SME are characterized by dipole and network interaction with large industrial enterprises - cooperation of their activities, which provides for mutually beneficial counterparty relations: a large enterprise on the basis of contractual relations orders from production SME certain products or services of production nature with definition of their specification or semi-finished products. The function of production SME is to perform a separate operation of the production process or a certain type of production service. Discussion. To study the possibilities of cooperation of industrial SMEs with large industrial enterprises, it is advisable to determine the regional specifics of industrial SMEs, using the method of rating the investment competitiveness of regions by number of manufacturing SMEs, number of employees, sales and financial results. This would make it possible to identify the districts of the region whose small production enterprises need the most support. Keywords: managerial, marketing and financial approaches, evaluation, socio-ecological-economic effect, interaction of enterprises, change of consumer preferences.

Innovation of SME service industry in Indonesia in improving customer satisfaction

Purpose Small-medium enterprise (SME) service industry is an industry that continues to experience growth in developed and developing countries, including Indonesia. SME service industry that engaged in the service industry, namely, rental for generator set, air conditioner and sound system. In recent years, this SME has been experienced in declining in sales and getting some complaints from their customers. Many studies suggest that service quality and customer satisfaction are the key factors in the service industry. The purpose of this paper is to analyze the quality of service based on the customer’s perspective. Design/methodology/approach Data was collected using a combination of literature review, interview, brainstorming and questionnaires and analyzed by using importance-performance analysis (IPA) and quality function deployment (QFD) model. Findings This research resulted in nine technical requirements that allow the company to focus on these attributes to help the company enhance its customer satisfaction. Practical implications Based on the theory, applying service quality, IPA and also QFD will result in customer satisfaction. Practically the enhancement in customer satisfaction is not as easy as expected. Nowadays, customers always expect more and more and it is impossible to fully captured customers’ needs and always satisfy customers. Nevertheless, for this research company can understand their customers better, companies can evaluate their performances based on the customers’ perspective and know their customers’ needs. The company also know their strengths and weaknesses to allocate the resources and maximize their potential. Last but not least, the company is able to know their strategic priority that needs to be done for their better performance in the future to fulfill their customers’ needs and hope to enhance their customer satisfaction Originality/value A lot of research about customer satisfaction but still limited especially in the service industry in Indonesia using a combination of IPA and QFD model. So this research will give benefit for SMEs in Indonesia to allocate their resources more effectively by looking at the results of the four quadrants of IPA and house of quality (HOQ) framework can be used for a company as the references for their priority strategic option. Yet, to keep improving, the company recommended reviewing HOQ periodically.

Pembinaan Penyusunan Laporan Keuangan Dan Pemberdayaan Pemasaran Berbasis E-commerce Pada UKM Bank Sampah Mandiri Kota Batam

The implementation of community service activities that will be carried out is in the form of fostering the preparation of financial reports and marketing empowerment based on e-commerce for small and medium-sized enterprises of bank sampah Mandiri. Based on the results of interviews in the field, this Mandiri Garbage Bank UKM has problems in marketing production and financial records. The methods used in coaching the SME Bank Sampah Mandiri that will be provided are survey methods, The results of the SME service feel that there is still a need for adjustments to the preparation of financial statements with financial accounting standards for entities without public accountability, there has been a separation of financial reports that have been commonly prepared by SMEs through business profits and personal cash and the availability of SME social media pages that are run by participants and understand it. about what to do with the page to maximize sales.

ANALISA PERAN UPAH DAN INSENTIF TERHADAP PRODUKTIVITAS KERJA KARYAWAN PADA 5 UMKM DI BULAK KAPAL BEKASI TAHUN 2020

This study Wages and incentives are important elements in increasing employee productivity. With the provision of appropriate wages and incentives, it is expected that the productivity of 5 SME Service Businesses in west Java, Bekasi will increase, so that companies are ready and able to compete with other companies in facing competition. The research objective of this study was to determine how high the influence of wages and incentives on employee work productivity. The sampling technique is quite simple, namely by using a saturated sample, namely all employees of 5 SMEs, totaling 81 people. The research method uses the PLS technique. The analysis technique used is validity test, reliability test, multiple regression analysis, outer inner loading analysis and t test. The results of this study indicate both partially and collectively salaries and incentives have a significant positive effect on employee work productivity.

A nexus between Green HRM (GHRM), Supply Chain Performance (SCP) and Business Performance (BP): The mediating role of Supply Chain Organizational Learning (SCOL)

Purpose: This study tests and analyzes the relationship pattern (nexus) of Green HRM, SCP, and BP. In addition, this study also tests the mediation role of SCP in analyzing the relationship between GHRM and BP and the mediation role of SCP in analyzing the relationship between SCOL and BP.Design/methodology: This study uses survey method. The survey is distributed to owners/managers of courier service SMEs in two provinces (Special Region of Yogyakarta and East Java) in Indonesia. The sampling technique is conducted purposively with 165 respondents. The data analysis technique uses AMOS 23. Findings: SCOL has a positive effect on SCP and BP and mediates the effect of SCP on BP. The most interesting about the findings is GHRM has no effect on SCP and BP and SCP does not mediate GHRM on BP.Research limitations/implications: Researcher use purposive sampling which has limitation of not being able to generalize the population in two provinces, namely Special Region of Yogyakarta and East Java. This is also not ideal approach to evaluate the impact of GHRM on SCP and BP and the impact of SCOL on SCP and BP. Courier service SMEs in this study have not implemented GHRM in ideal manner so they are unable to conclude the results in a comprehensive and transparent manner.Managerial Implication: Companies need to consider aspects related to the courier service industry, namely digitalization of information and green innovation so their contribution can be seen in improving whole business performance. In addition, it is necessary to divide SMEs that have practiced GHRM and those that are not so they can make strategies and policies related to GHRM, SCP, BP and SCOL. It is also necessary to examine other aspects in improving the business sustainability of courier services, namely the complexity and service strategy orientation. SMEs who have more SCOL strategy will better implement GHRM practices associated with SCP and BP. This is important since competition in the courier service industry is getting tougher especially when faced with foreign competitors who already have global service standards.Theory Implication: This study contributes the theory enrichment of SCOL aspect in mediating the relationship pattern between SCP and BP. This study also provides theoretical contributions namely GHRM has no effect on SCP and BP and SCP does not mediate GHRM on BP.Originality/value: Study which examines the role of SCOL, especially when it is related to GHRM, SCP and BP is still limited in Asia. SME owners in the courier service industry rarely have good data integration in the system. The implementation of SC is starting from upstream to downstream processes so that SMEs need a well-planned and integrated SCOL in each work unit which ultimately have an impact on SCP and BP.

Examining mobile marketing technology adoption from an evolutionary process perspective: the study of the UK service SMEs

Examining mobile marketing technology adoption from an evolutionary process perspective: the study of the UK service SMEs

BURNOUT AMONG EMPLOYEES OF SMALL AND MEDIUM-SIZED ENTERPRISES

The article indicates the importance of the problem of burnout in the SME service sector, pointing to the goal of analyzing burnout in small and medium-sized enterprises. The structure of the article is expressed on the theoretical and empirical levels. Through empirical verification of the thesis, it has been shown that over 50% of workers in the sector in question have symptoms of burnout, pointing to the causes and effects of burnout. The article indicates the problem without a detailed discussion of it, because the author’s presentation is preliminary and will be successively enriched with information from extended research

HRM formality differences in Pakistani SMEs: a three-sector comparative study

PurposeGuided by institutional theory, this empirical paper examines variations in the adoption of HRM practices among SMEs in three different business sectors (services, manufacturing and trade).Design/methodology/approachData from 300 owners/managers representing three business sectors were collected through a survey method.FindingsThe results suggest that service SMEs use more formal HRM practices than manufacturing and trade SMEs. Manufacturing SMEs are more formal than trade firms. Results are not affected by firm age.Research limitations/implicationsSocial desirability bias may have influenced respondents into portraying a positive image of the organization by inflating HRM sophistication. A further limitation is that the performance of the firms was not measured. As such, it is not possible to judge whether greater HRM formality correlated with improved organizational performance.Practical implicationsThis study shows how the business sector shapes HRM practices in Pakistani SMEs. Findings help to inform Pakistan's Small and Medium Enterprise Development Authority (SMEDA) in dealings with manufacturing and trade firms in terms of improving HRM practices.Originality/valueGiven the important role of SMEs in economic development, comparative research on HRM in SME contexts is scarce. Since SMEs are vital for Pakistan's economy, an improved understanding of the sector's approach to human resource development is important. The findings extend the boundaries of prior comparative HRM literature in SMEs by addressing sector influences while controlling for contextual factors.

The Influence of Customer Value Co-Creation Behavior on SME Brand Equity: An Empirical Analysis

Competition in the service industry is intense. To deliver value-added services, more companies are focusing on consumers as a powerful means of establishing firm performance through dialog, participation, and engagement. However, scant research has been conducted to examine whether customer value co-creation can boost brand equity, particularly among SMEs. To address these shortcomings in the literature, this paper investigates the impact of customer value co-creation on brand equity among SME consumers of service industries. A theoretical model is developed and tested using survey data from 548 customers in Malaysia. Structural equation modeling (SEM) is employed to simultaneously test the hypothesized relationships. The results demonstrate a positive relationship between information seeking, responsible behavior, personal interaction, advocacy, tolerance and brand equity. This study contributes to the development of knowledge regarding the transfer of the concept of customer value co-creation to an SME service context.

Gestión del conocimiento de social media marketing, para aumentar las ventas de las micro-empresas de servicios, cuyos clientes son parte de una comunidad universitaria. Caso Ciudad de Puebla

Las redes sociales ofrecen importantes beneficios en materia de marketing, entre los más importantes está la facilidad para segmentar a detalle los mercados y los bajos costos.
 A pesar de ello, las microempresas, las cuales representan un alto índice en México, no cuentan con los conocimientos para explotar en su totalidad las bondades del social media marketing.
 El objetivo del artículo es proponer estrategias de social media marketing, para aumentar las ventas en las microempresas de servicios que tienen como clientes potenciales a comunidades universitarias.
 La presente investigación utilizó un diseño descriptivo correlacional simple, se hicieron entrevistas a dueños de microempresas y un cuestionario de 7 preguntas aplicado a la comunidad universitaria (clientes potenciales)
 Entre los principales resultados, se encontraron que la comunidad universitaria utiliza poco las redes sociales con objetivos de compra, y en los casos en los que han comprado, han sido productos tangibles y no servicios.
 Por ello, en las conclusiones del artículo, se presentan estrategias específicas que sean aplicables a las microempresas de servicios y que a su vez puedan ser traducidas en un aumento de las ventas

A framework of quality management practices for Indian service SMEs

This study adopts two-stage methodology by capturing the present implementation level of quality management (QM) practices and developed a framework as suggestive ranking by deploying fuzzy AHP and fuzzy TOPSIS to prioritize QM practices in context to Indian service SMEs with specific relevance to IT enabled enterprises. Suggestive ranking emphasize on practices like strategic issues, management focus, customer focus, human resource and process management for their survival in complex uncertain environment. The findings stated in this study are expected to offer practical guidelines to devise implementation strategies in order to precisely identify areas of concern and take corrective and preventive measures for quality improvement.

Exploración de la gestión de marca en las pequeñas empresas de servicios de México

La gestión de marca es uno de los temas de la literatura del marketing que está ganando cada vez más adeptos, ya que investigadores y académicos están orientando sus trabajos a demostrar que una adecuada gestión de marca permite a las empresas de servicios generar una marca fuerte; este es uno de los principales objetivos de las empresas de servicios. Así, a través de una muestra de 300 pymes de servicios y empleando el modelo de ecuaciones estructurales, el objetivo esencial de este trabajo fue analizar y discutir la gestión de marca en las pymes de servicios. Los resultados obtenidos indican que los valores, normas, símbolos y comportamientos son indicadores pertinentes para la medición de la gestión de marca de los servicios.

Innovation and marketing performance of SME in an emerging economy: the moderating effect of transformational leadership

This paper aims to draw on the resource-based view (RBV) to examine the effect of transformational leadership (TL) on innovation and marketing performance in SME service firms. The paper further investigates the extent to which transformational leadership influences the effect of innovation on marketing performance and how such an effect could be managed for SME development. Cross-sectional survey data were collected from 437 SME service firms of an emerging economy with a fast-growing service sector. The quantitative methodologies were used in which partial least squares structural equation modeling (PLS-SEM) with bootstrap procedures was adopted to test the hypotheses. The findings suggest that innovation has a positive effect on marketing performance; transformational leadership has a moderating effect on the relationship between innovation and marketing performance. The study’s results show that these effects are robust in the firm’s marketplace. The current study examined the TL effect based on each rating. Therefore, it would be useful to study the effects of TL and other variables that can be manipulated by team level dynamics (or groups) such as trust in the team, team creativity, and team innovative performance in the future. For SME to be highly competitive in emerging economies, this study deepens the effect of innovation on firm performance and as such managers/owners should consider the vital role of transformational leadereship as a predictor of the relationship between innovation types and marketing performance. This current study contributes to the literature by assessing a valid model that describes the relationships between transformational leadership on innovation and marketing performance concurrently. This is the first empirical study to focus on SME marketing performance concerning types of innovation and marketing performance in an emerging economy with a moderated effect of transformational leadership.

Determinants of Financial Sustainability and Access to Finance among SMEs in Malaysia: A Pilot Study

The unavailability of external financing and lack of access to finance is an important research interest topic for scholars and a crucial issue for policymakers all over the world. However, compared to large companies, SMEs tend to report financing as a significant obstacle. The inadequate access to finance could dampen their potentials for growth and competitiveness in the business ecosystem. The objective of this research work is to examine and explore a small sample of data on the determinants of financial sustainability and access to finance among SMEs in Malaysia. The study adopted a quantitative survey approach to collect 53 usable questionnaires from SMEs in Johor as one of the divisions based on the stratified random sampling method. Therefore, the validity and reliability of the instruments were examined through a panel of expert and also the collected data was analysed using SPSS v22. Results, using exploratory factor analysis and Cronbach’s Alpha statistics confirmed the validity and reliability of the instruments adopted and used for the pilot study. It was concluded that the items on the surveyed instrument are suitable for future use in studies in the field of access to finance, especially in the SME service sector.

Use of Information and Communication Technology by Small and Medium Enterprises in Ogun State, Nigeria

Small and medium enterprises have emerged as promising opportunities to eliminate and reduce unemployment globally. Increasing levels of technological advancement has revolutionized the dynamics of the business terrain. However, SMEs in developing countries are yet to fully explore the benefits of Information and Communications Technology.
 Survey data was collected from 75 SME ICT users and non-users in Abeokuta and Otta through a structured questionnaire using stratified random sampling technique.
 Results of regression analysis revealed that demographic variable (Staff Strength) significantly influences use of ICT among SMEs while SME service delivery had no influence on ICT use. Also, analysis of variance on the categories of SMEs was not a determinant factor on the use of ICT.
 The outcome of this study has implications for owners/ managers of SMEs, stakeholders, government and academic researchers in developing countries as it can provide patterns to help bridge the existing digital divide especially among Nigerian SMEs.

EVALUASI EFEKTIVITAS PENERIMAAN PENDAPATAN RETRIBUSI PASAR DI DINAS KOPERASI DAN UKM KABUPATEN MINAHASA TENGGARA

Regional autonomy is regional empowerment in regional decision making that is more flexible to manage the resources possessed with the potential and interests of the region itself. Errors that make natural resources as the main factor in the source of regional income must be immediately changed because one day natural resources will be exhausted. The purpose of this study is to find out the process of Receiving Market Retribution in the Southeast Minahasa District Cooperative and SME Service and the effectiveness of Retribution Income at the Southeast Minahasa Regency Cooperative and SME Office. The analytical method used is descriptive qualitative. The results of the study show that the evaluation of the effectiveness of market retribution revenue at the Minahasa Regency Cooperative and SME Office in North Sumatra is quite effective. the advice given is to increase the process of collecting and depositing market retribution in the Southeast Minahasa District Government and for the Southeast Minahasa Regency government to pay more attention to the regulations issued so that the Effectiveness of Market Levy Income Revenues can achieve maximum results.