Small Medium Enterprises Research Articles

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

Efektivitas YouTube Sebagai Alat Pencarian Informasi Untuk Diversifikasi Produk Stroberi pada UMKM Desa Lebakmuncang Ciwidey

The village of Lebakmuncang in Ciwidey has become a center for strawberryproduction, with the majority of its residents relying on agriculture and plantations.However, many Micro, Small, and Medium Enterprises (MSMEs) in this village still relyon fresh products without taking advantage of the potential for diversification intoprocessed products such as jams, juices, and snacks. Product diversification has becomean important strategy to enhance the competitiveness and sustainability of MSMEs (Micro,Small, and Medium Enterprises). YouTube, as the largest video-sharing platform, offers information that can assist small and medium enterprises (SMEs) in productdiversification. However, challenges arise in measuring the effectiveness of this platformin the context of strawberry product diversification. This research aims to analyze theeffectiveness of YouTube as a source of information and to assess the impact of thatinformation on the product diversification decisions of strawberry SMEs in LebakmuncangVillage, Ciwidey. The results indicate that YouTube has proven to be an effective source ofinformation for strawberry product diversification. All the indicators studied yieldedpositive results, with the usefulness of information being the most important factor. Theinformation available on YouTube has a significant impact on the diversification of MSMEproducts, allowing them to learn, innovate, and reach new audiences. This researchrecommends that SMEs make optimal use of YouTube, encourage content creators toprovide more relevant information, and suggest improvements to the portal design toenhance user experience. The development of strawberry SMEs in Lebakmuncang Village,Ciwidey, is expected to enhance the economic welfare of the local community and make themost of local potential.

Big data analytics, company innovation and risk-taking: influence of absorptive capacity

PurposeThe purpose of this study is to empirically examine the indirect effect of big data analytics capability (BDAC) on performance through innovativeness and risk-taking among small and medium-sized enterprises (SMEs) by considering the moderating role of absorptive capacity (ACAP).Design/methodology/approachThis study utilized a quantitative method through a survey questionnaire. The hypotheses were tested with a sample size of 202 surveys completed by SME owners. Partial least squares structural equation modeling (PLS-SEM) was administered to analyze data via the SmartPLS 4.0 software.FindingsThe analysis revealed that BDAC had an indirect effect on performance through innovativeness and risk-taking. ACAP strengthened the relationship between risk-taking and performance and also enhanced the link between BDAC and performance. Interestingly, ACAP weakened the connection between innovativeness and performance.Practical implicationsFrom a practical standpoint, our study offers valuable insights for entrepreneurs in the process of implementing BDAC. The mediating roles of innovativeness and risk-taking underscore their potential as drivers of SME performance. Also, it is crucial for managers to leverage lower-order capabilities (BDAC) to build higher-order organizational capabilities (innovativeness and risk-taking) and improve performance. Finally, managers are advised to utilize ACAP to identify external opportunities that contribute to performance.Originality/valueThe current study leverages the resource-based view (RBV) to provide new insights into the significance of innovativeness and risk-taking as key drivers to harness the benefits of BDAC for improving the performance of SMEs. Moreover, this study presents evidence of the moderating role of ACAP in the above relationships.

Digitalisation and Cybersecurity: Towards an Operational Framework

As businesses increasingly adopt digital processes and solutions to enhance efficiency and productivity, they face heightened cybersecurity threats. Through a systematic literature review and concept development, this article examines the intersection of digitalisation and cybersecurity. It identifies the methodologies and tools used for cybersecurity assessments, factors influencing the adoption of cybersecurity measures, and the critical success factors for implementing these measures. The article also puts forward the concept of cybersecurity governance process categories, which are used to classify the factors uncovered in the research. Findings suggest that current information security standards tend to be too broad and not adequately tailored to the specific needs of small and medium-sized enterprises (SMEs) when implementing emerging technologies, like Internet of Things (IoT), blockchain, and artificial intelligence (AI). Additionally, these standards often employ a top-down approach, which makes it challenging for SMEs to effectively implement them, as they require more scalable solutions tailored to their specific risks and limited resources. The study thus proposes a new framework based on the Plan-Do-Check model, built around the cybersecurity governance process categories and the three core pillars of governance, culture and standards. This is essentially a bottom-up approach that complements current top-down methods, and will be of value to both information technology (IT) professionals as an operational guide, and to researchers as a basis for future research in this field.

Exploring the Drivers, Challenges, and Opportunities of Supply Chain Technology Adoption for Small and Medium Enterprises (SMEs) in Malaysia

Small and Medium Enterprises (SMEs) have a crucial impact on the Malaysian economy, making major contributions to the functioning of the supply chain. Integrating supply chain technology has become a crucial element in enhancing the efficiency and competitiveness of SMEs in Malaysia. During recent years many developing and developed countries have witnessed the expansion of markets and supply chain networks; in the progress of these market and supply systems SMEs find various complexities when they are implementing or improving the technology integration of their supply chain. The current body of literature often addresses the adoption of technology in a general manner or within larger organizations, resulting in a significant gap in study about the specific circumstances and requirements of small and medium-sized enterprises (SMEs). This study employs a rigorous methodology that analyzes relevant papers to examine the drivers, challenges, and opportunities for adopting supply chain technology among SMEs in Malaysia. By implementing supply chain technology, Malaysian SMEs can increase their performance in many areas of key performance indicators. This includes improving efficiency, optimizing inventory management, achieving cost savings, enhancing customer service, and increasing market competitiveness. It is believed that the findings of the study can be useful for managers of SMEs, policymakers, and interested stakeholders. This will enable SMEs to navigate the challenges of adopting technology more effectively and enhance global competitiveness.

Determinants of ICT Adoption in Business for Emerging SME Entrepreneurs in Indonesia

This study investigates the factors of ICT adoption by early-level small and medium-sized enterprises (SMEs) in Indonesia after the pandemic. The study was conducted among 237 new SME entrepreneurs from Indonesia's sixth-highest economic growth regions, with a confirmatory analysis of ICT adoption constructs in a structural equation model (SEM) analysis. This study showed that the benefits and integration with consumers are SMEs' main determinants when adopting ICT when starting their business. This condition is a rational response from SMEs when they begin their business in Indonesia's post-pandemic economic recovery conditions, which need to immediately emerge to capture the market with the efficiency and effectiveness of business processes. The study's results empirically provide a valid and reliable description of the determinants of ICT adoption for strengthening post-pandemic SME business practices and theoretically offer empirical evidence of factors for improving and strengthening digital transformation in business through usefulness and integration with consumers.

The effects of Vicoba Services on the performance of SMEs in Tanzania; the case Kinondoni District

This study assessed the effect of VICOBA services on the performance of small and medium enterprises in Tanzania. The study employed descriptive design to establish relationship between loans and financial performance of Small and Medium Enterprises (SMEs) in the Kinondoni district. The multistage sampling techniques of simple random and judgmental sampling were employed in selecting 76 replicates from Umoja wa VICOBA Kata ya Kigogo (UVIKAKI). Structured questionnaires instruments and interviews were used in data collection. Data analysis was performed using descriptive and content analysis. The study findings revealed that, there is significant influence of VICOBA to the development of entrepreneurship schemes and poverty reductions among community members of UVIKAKI scheme. Through loans disbursement at low interests encourage the improvement of capital and livelihood to the members through income-generated activities such as poultry, catering, canteen, and workshops. The government partners that play a key role in the grassroots movement of informal sector of economy should call on all funders, financing organizations, and development partners to help the marginalized population. Similar to this, communities could assess themselves against programs like VICOBA by developing their own internal awareness, knowledge, skills, and capital.

Examining the triple impact of eco-intellectual capital on the financial, social and environmental sustainability performance of SMEs in emerging economies

The way business has been conducted in modern times has traversed the need to achieve financial gains. Globally, it has become imperative for organisations to thrive competitively on the basis of ecologically conciousness and sustainability. Hence, the primary aim of this investigation is to determine how Eco-Intellectual Capital (EIC) influences the sustainability performance of small and medium enterprises (SMEs). The study made use of primary data and employed a quantitative research approach using a survey for data collection. The main data collection instrument used was a structured questionnaire. Data for the study were solicited from a group of 500 employees and owners managing SMEs in Ghana. Data collected from the questionnaires were analysed using IBM SPSS Statistics version 24 and IBM SPSS AMOS (26.0) Graphics. The results showed that EIC had a favourable effect on the social and environmental dimensions of sustainability performance. On the economic (financial) dimension, however, the effect was not significant. Aside from magnifying Eco-Intellectual Capital and Sustainability Performance literature, this research study is one of the few that looks at how green human, structural and relational capital work together to improve the economic, social and environmental sustainability of SMEs in emerging economies.

Focus Group Interview: University-Industrial Collaboration

Business innovations can introduce novel and imaginative concepts, particularly within digitalization. Innovations have the potential to stimulate the advancement of enterprises, fostering market expansion, enhancing competitiveness, and optimizing profitability. Nevertheless, the implementation of innovation may be achievable in collaboration. Collaborations and interactions between academia and industrial entities may yield improved outcomes. Nevertheless, the presence of obstacles between academia and industries could harm the long-term viability of commercial innovation. The concerns and challenges faced by local institutions and enterprises in Malaysia are examined within the framework of a case study. Data was obtained from a random sample of Chief Executive Officers (CEOs) across several industries. A focus group was conducted with 15 representatives from Small and Medium Enterprise (SME) companies and one moderator to lead the discussion. The findings from the focus group have been transcribed and analyzed based on their sharing. The rationale for focusing on CEOs was their role as critical decision-makers responsible for driving corporate innovations. The collection of perspectives from academia and industries was facilitated through face-to-face interviews. The study provided suggestions for potential avenues of future investigation.

Technological Innovation for Sustainable Supply Chain Management in the Food Industry

This study explores the critical role of technological innovations—specifically blockchain, Internet of Things (IoT), and artificial intelligence (AI)—in enhancing sustainable supply chain management within Malaysia's food industry. As the industry faces increasing pressure to adopt sustainable practices due to environmental concerns, regulatory demands, and consumer expectations, these technologies offer significant potential for improving traceability, reducing waste, and optimizing operational efficiency. The research highlights how blockchain enhances transparency and ethical sourcing, IoT enables real-time monitoring to minimize waste, and AI optimizes demand forecasting and inventory management, reducing overproduction and resource waste. However, the study also identifies substantial barriers to the adoption of these technologies, particularly for small and medium-sized enterprises (SMEs). These challenges include high implementation costs, a shortage of skilled labor, and concerns over data security and privacy. To address these issues, the study recommends starting with pilot projects to mitigate risks, investing in continuous workforce training, enhancing data security measures, and leveraging government support and industry collaborations. By overcoming these challenges, Malaysia's food industry can effectively integrate these innovations, leading to more sustainable, efficient, and resilient supply chains. This research underscores the importance of strategic planning and continuous improvement in fully realizing the benefits of technological advancements, thereby positioning Malaysia’s food industry as a leader in sustainable practices within the global market.

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.

The Proliferation of Artificial Intelligence in the Forklift Industry—An Analysis for the Case of Romania

This paper investigates the impact of artificial intelligence (AI) on the forklift industry, focusing on logistics and procurement within small and medium-sized enterprises (SMEs) in Romania. Using a mixed-methods approach, including interviews with seven managers from a benchmarked company in the forklift industry (BCFI) and quantitative analysis of operational data, we examine the transformative effects of AI integration. Key findings include a 30% reduction in inventory holding costs due to AI-powered predictive analytics; a 15% decrease in procurement costs through AI-driven supplier evaluation systems; a 25% increase in operational efficiency from AI-optimized route planning; a 40% boost in overall productivity attributed to AI-enabled automation; and a projected 20% reduction in low-skilled labor requirements over the next five years. The study employs environmental, social, and corporate governance (ESG), balanced scorecard (BSC), benchmarking, and activity-based management (ABM) models to analyze risks and implications of AI integration. A case study of a leading Romanian SME in the forklift industry is presented, examining financial strategies using McKinsey’s 7S framework. The paper concludes that while AI offers significant operational benefits, it also presents challenges in workforce transition and ethical considerations that require careful management.

The implementation of tax imposition Micro Small Medium Enterprise (MSME) in the form of limited companies after the expiry period of final income tax

The MSME tax policy has undergone several changes and changed regulations. In 2022, the government again re-regulated MSME taxes, namely PP Number 55 year 2022 regarding Adjustments to Regulations on Income Tax. This research uses a descriptive qualitative approach. With the issuance of PP Number 55 of 2022, this provides an opportunity to increase the taxes owed by MSMEs and researchers also want to illustrate to the government that after this regulation is issued what impact will be felt by MSME Taxpayers, so that this will later be used as an evaluation by the Government. The result of this research is the calculation for the 2023 tax year using the rate of Article 17 of the Income Tax Law with the rate of 22%, and an additional 50% tax reduction as the Income Tax Law Art 31 E, resulting in the tax payable of IDR 4,240,946.16. PT ABC must carry out the bookkeeping obligations in reporting the tax liabilities and create proof of transactions for every business transaction to avoid a high tax burden.

Transformasi Digital dan Pertumbuhan UMKM: Analisis Dampak Teknologi pada Kinerja Usaha Kecil dan Menengah di Indonesia

This study examines the impact of digital transformation on the growth of Small and Medium Enterprises (SMEs) in Indonesia, focusing on the impact of technology on SME performance. A quantitative approach with a survey method was employed, involving 100 SMEs across various sectors in Indonesia. Data was collected through questionnaires measuring variables such as the use of e-commerce, social media, and management information systems as indicators of digital transformation, and increased revenue, efficiency, and market reach as indicators of SME performance. Multiple linear regression analysis revealed that digital transformation has a positive and significant impact on SME performance. The findings demonstrate that every one-unit increase in the digital transformation variable results in a 1.5-unit increase in SME performance. Furthermore, the study identified factors influencing the adoption of technology by SMEs, such as internet access, digital literacy levels, and government support. The analysis indicates that high internet access and digital literacy, along with strong government support, are crucial factors in increasing technology adoption and maximizing the benefits of digital transformation for SMEs. The study recommends strategies to encourage digital technology adoption by SMEs in Indonesia, including improving digital infrastructure, providing training and mentoring programs, and offering incentive schemes for digitally transforming SMEs.

Pengaruh Pemahaman dan Kesiapan terhadap Penerapan Standar Akuntansi Keuangan Entitas Mikro Kecil dan Menengah (SAK EMKM) pada UMKM Jenis Perdagangan dan Reparasi di Kabupaten Ponorogo

Micro, Small and Medium Enterprises (MSMEs) in Indonesia are one of the priorities in national economic development. Therefore, reporting in this type of MSME business activity must be able to make systematic reports with the recording process following the applicable Financial Accounting Standards. So, there needs to be an understanding and readiness factor in preparing the report, so that SAK EMKM can be implemented in the management of MSMEs. This research aims to determine the effect of understanding and readiness for SAK EMKM on Trade and Repair MSMEs in Ponorogo Regency. This type of research uses primary data in the form of data on the number of trade and repair type MSMEs in 2021. This research method is a quantitative descriptive approach. Meanwhile, the data analysis method uses data quality testing, regression analysis, and hypothesis testing, while data collection is by distributing questionnaires and interviews. The results of this research show that there is a significant influence of understanding and readiness factors on the implementation of SAK EMKM in Ponorogo Regency. This means that the government needs to pay more attention or provide outreach/direction regarding the preparation of financial reports to MSME actors in Ponorogo Regency in accordance with applicable financial standards.

The Impact of Financial Literacy, Inclusion, and Access on Msme Growth and Welfare in North Sumatra: A Mediating Role of Business Growth

This study examines the impact of financial literacy, financial inclusion, and financial access on the growth and welfare of Micro, Small, and Medium Enterprises (MSMEs) in North Sumatra, Indonesia, with business growth acting as a mediating factor. Using a quantitative research design and Structural Equation Modeling (SEM) analysis, data were collected from 306 MSME operators selected via purposive sampling. The findings reveal that while financial literacy does not have a significant direct effect on MSME growth and welfare, both financial inclusion and financial access significantly enhance business growth and welfare. Furthermore, business growth serves as a mediating variable, amplifying the positive effects of financial inclusion and access on MSME welfare. The results indicate that MSMEs benefit from better access to formal financial services, such as credit and insurance, which facilitates business expansion and improves the overall welfare of business owners. However, the lack of significant impact from financial literacy suggests that practical financial education initiatives should be paired with improved access to capital and market opportunities. This study highlights the need for integrated policy efforts to enhance financial literacy, expand financial inclusion, and provide easier access to credit to foster MSME growth and welfare in North Sumatra.

Factors Affecting the Management of Small and Medium-Sized Enterprises and Corresponding Recommendations

Abstract: Small and medium-sized enterprises (SMEs)play a crucial role in economic development. Their management methods and internal strategic decisions not only affect their own development but also influence the establishment of internal management systems within related industries. Therefore, identifying the factors that influence changes in business management methods is of paramount importance for SMEs. Additionally, due to the smaller size and scale of SMEs, they are easily affected by changes in various management factors. To mitigate risks and enhance development, SMEs must assess both individual and combined impacts of various factors. This article employs a literature review to examine SMEs comprehensively. It summarizes and analyzes existing research, identifies key management factors, and offers targeted recommendations. The research results show that human resource management, financial management, and technology management have important effects on the management methods of SMEs. All three aspects originate from the enterprise itself and continuously affect enterprise development from different angles. Therefore, this article also proposes corresponding recommendations for SMEs concerning these three aspects, in order to continuously improve enterprise management methods.

Research on International Trade Development Path of Small and Medium-sized Enterprises in the Context of E-commerce Trade

With the rapid development of Internet technology and the advancement of globalization, e-commerce has become an important part of international trade activities. In this context, how to expand the international market and enhance the competitiveness of small and medium-sized enterprises with the help of e-commerce trading platform has become a hot issue in current research. This paper first summarizes the development of e-commerce trade and its impact on the international trade of small and medium-sized enterprises (SMEs), and then analyzes the current situation and main problems of the international trade of small and medium-sized enterprises. On this basis, it puts forward the development path and strategy of SMEs' international trade under the background of e-commerce trade, including establishing e-commerce trade platform, strengthening supply chain management, utilizing cross-border e-commerce, strengthening brand building, and innovating service mode. This paper aims to provide theoretical support and practical guidance for SMEs to carry out international trade under the background of e-commerce trade.

Digital tax policies and compliance challenges for MSMEs in Indonesia

As digital Micro, Small, and Medium Enterprises (MSMEs) rapidly grow in Indonesia, ensuring their compliance with tax regulations has become an urgent priority. This study delves into the challenges and innovative solutions to enhance tax compliance, focusing mainly on digital content creators. This study examines the challenges and solutions for improving tax compliance among digital Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, mainly digital content creators. The research aims to analyze the impact of tax sanctions, modernization of tax administration, and tax policy reforms on the compliance behavior of these entities. A qualitative approach was employed, utilizing interviews and focus group discussions (FGDs) with informants selected through purposive sampling. The findings indicate that tax sanctions significantly influence compliance, but modernization of tax systems improves transparency and efficiency, thus enhancing compliance. Policy reforms, particularly those tailored to the unique needs of digital businesses, offer the flexibility needed for fulfilling tax obligations. The novelty of this research lies in the proposed model that integrates tax sanctions, administrative modernization, and policy reforms, addressing the unique characteristics of digital MSMEs. The practical implications suggest that implementing a user-friendly digital tax system, supported by clear guidelines and targeted reforms, can simplify compliance for digital MSMEs, leading to better tax reporting. These findings provide actionable insights for policymakers in designing effective, adaptive tax policies for Indonesia's rapidly growing digital economy.

A Bibliometric Analysis of Sustainability in MSME

This research paper examines the role of Micro, Small, and Medium Enterprises (MSMEs) in the Indian economy and their sustainability. It analyses 85 Scopus documents from 66 sources between 2014 and 2024, revealing a peak in scientific production in 2023. The study emphasizes the importance of sustainable practices for long-term success. This comprehensive research paper rigorously examines the pivotal role of Micro, Small, and Medium Enterprises (MSMEs) in the Indian economy and emphasizes the critical importance of sustainable practices for long-term success. Through meticulous analysis of 85 Scopus documents from 66 sources between 2014 and 2024, the study conclusively reveals a peak in scientific production in 2023 and robust ties between India and various other countries in this domain.