Small Companies Research Articles

PEMBERDAYAAN UKM INDUSTRI MANUFAKTUR DI RANDU, KECAMATAN KENJERAN KOTA SURABAYA

Recently, the industrial of manufacturing has grown into industry 4.0 and its progress significantly enhanced. The activity of public-serving is to develop the ability of small companies to manufacture. Regarding it, a semi-auto welding machine is required to revolute their performance in the small industry. Further, the welding knowledge obtained by training. That is, the public serving is at CV. Manshurin. The methods of public-serving aim to develop the small company. The first activity of it has done by upgrading the welding machine. Thus, training for employees to the welding characteristics is important. An invited trainer in a short class meeting is to deliver the information on the welding morphology and guide to operate the semi-automatic welding machine. Regarding it, the employee training has been done offline. the employee’s knowledge of the welding system increased. Further, the employee of CV. Manshurin skills are also increased. Therefore, they can operate a new welding machine (a semi-automatic welding machine). That is, those facts concluded that the employees receive the enhancement of knowledge, especially the morphology of the welding characteristic. In which, its formations are presented by a trainer who is invited to its training day. Thus, a semi-automatic welding machine improves the quality of the welding result.

Disaster vulnerability of the construction industry: comparing impacts of hurricanes and the COVID-19 pandemic on Florida construction companies

This research tests differences in construction company vulnerability to disaster events based on theoretical differences across hazard types and unique economic vulnerabilities within the sector. The authors conducted an online survey of construction companies in Florida who experienced both the pandemic and a recent hurricane to compare their impacts and experiences through rank and proportion testing of Likert-scale measures and analysis of open-ended survey responses. Survey results showed greater material, labour and equipment costs and procurement challenges and number of contractual disputes during the pandemic compared to after hurricanes. The results also showed differences in post-disaster demand, number of contracts, and revenue based on company size, sector, and project specialization, though results varied across the pandemic and hurricanes. Lastly, the study found that significantly more construction companies applied for and received government assistance during the pandemic, which took the form of wage subsidies rather than traditional disaster loans, though written responses suggest that small construction companies may have been more hesitant to use government funding. The results of this study can help construction companies understand differences in impact across disaster types and better prepare them for the increasing frequency, severity, and complexity of natural hazards in the future.

Exploring Green HR Practices in the Construction Industry—Evidence from Poland

The objective of this paper is twofold. First, it systematizes knowledge about green management practices as a manifestation of the green human resource management (HRM) concept. Second, it diagnoses the practices of green management in construction companies in Poland. The research is qualitative and was conducted in three construction companies (one large, one medium, and one small-sized). Due to the small sample size, the study is treated as a pilot study. The research concluded that although green management practices are employed in the studied companies, they are neither systemic nor satisfactory in intensity. In the large company, green management practices are visible at all stages of the human resource process except for employee appraisal. In the medium and small companies, green management is limited to the development of green knowledge and employee awareness activities. The added value of this paper is an original tool for diagnosing the level of advancement of green management practices in competence management, which can be used in various types of business entities, regardless of the sector or industry.

The Influence of Firm Characteristics and Macroeconomic Factors on Financial Performance: Evidence from the Portuguese Hotel Industry

This study examines the determinants of the financial performance of the Portuguese hotel industry. Despite the economic relevance of the hotel industry and financial performance as an indicator of business survival, academic research on the factors that influence it in the context of this industry, particularly in Portugal, is not extensive. This study encompassed a sample of 738 hotel companies from 2016 to 2021, using data from the Orbis database. This research was based on the assumption that a company’s size, liquidity, the tangibility of its assets, and debt level influence financial performance in the hotel industry, as well as the assumption that gross domestic product and consumer sentiment also affect the business success of hotel companies. By applying a panel data methodology, the findings indicate that all variables showed significant influence on financial performance, except liquidity. The analysis also reveals that smaller companies were more negatively affected by the demand decline induced by the COVID-19 pandemic. To improve the financial performance of the Portuguese hotel industry, the findings suggest that policymakers must work towards ensuring diversified sources of financing for the hotel business, such as investment subsidies, so that companies can minimize debt, especially during periods of slow economic growth. Additionally, companies must promote management strategies that enhance self-financing. Both measures could help companies increase their size, taking advantage of good business opportunities to explore economies of scale.

CEOs’ Perceptions of Loneliness in the Workplace: An Exploratory Study

Loneliness among CEOs is a topic that draws the attention of leadership experts, as it was suggested that it’s a less explored topic in leadership studies (Wright et al., 2023). The popular phrase “it’s lonely at the top” suggests that top managers frequently experience loneliness in their roles. Not having someone close to confide in is a challenge for many leaders at work (George, 2015). CEO loneliness can have negative effects both individually (e.g., health, well-being and stress) and organizationally (e.g., commitment, employee perceptions of the CEO and turnover) (Wright et al., 2023; Chen et al., 2021). The aim of this study was therefore to explore how CEOs perceived and experienced workplace loneliness; more specifically, we sought to identify what types of loneliness they encounter most often, what situations may trigger workplace loneliness, and how CEOs cope with loneliness in the workplace, in Norwegian organizational settings. Based on empirical results from 14 in-depth qualitative interviews with CEOs of small and medium-sized companies, it appeared they had experienced state loneliness at work and that none of them had reported trait loneliness. State loneliness often arose in situations such as confidentiality cases, decision-making processes and change management processes. Due to the nature of the CEO role, our participants stated that they often accepted the loneliness in the workplace as part of their role, which might suggest a potential coping strategy that they utilize. Other coping strategies that were found include disconnection techniques and the use of their support networks. Addressing this topic adds value to empirical research on leadership by raising awareness of the challenges of loneliness that business leaders in positions of power, specifically CEOs in a Norwegian cultural context, face in the workplace when performing their duties. It provides insight into the types of loneliness experienced, the situations that can trigger CEO loneliness, and how loneliness in the workplace can be addressed and mitigated.

The Development of MSMEs in India: a Bibliometric Analysis

This paper aims to evaluate the structure and evolutionary trend of research on development in MSMEs in India using a bibliometric examination. An analysis of academic research from 2008 to 2022 was conducted using bibliometric methods, searching for the terms used in emergent technologies. The research is intended to assess the development of micro, small, and medium companies and understand how far this topic has been achieved. Several research methods were applied, including the network method, thematic maps, and coefficients of approaching or intellectual tools. The result of this work can be helpful for new scholars and current trends, based on the study trends to achieve sustainable development goals against poverty, micro MSMEs (Micro Small Medium Enterprises), and unemployment. The highlight of the report stresses on the key issues where researchers are giving more focus which includes innovation and supply chain strategies. The findings from the study serve to enhance our understanding about areas within the extant research literature where less is known, particularly when it comes to advances and barriers that impact Micro, small-and medium enterprises (MSMEs). The present study will imbibe researchers and the experts from industry to have a profound insight into intellectual domains surrounding certain technologies that can facilitate growth of MSMEs in India, as well provide above detailed unattended research scope. The research concerning MSMEs has undoubtedly provided many facts about the growth and development of these enterprises, applicable particularly in India. To describe the research and intellectual progress on the Manufacturing industry, a bibliometric approach was used in this study. A comprehensive literature review and meta-analysis were employed to get trustworthy results.

The Success of Transition Process: Founder vs. Successor Perspective – Case of Croatia

Family business is the most common form of business worldwide. Despite the acknowledged importance of family business in the Croatian economy, there are still no formal and reliable statistics on the national level available regarding the prevalence and impact of this ownership structure. However, it is assumed that family businesses in Croatia employ over half of the total workforce and that the majority of small companies are family-owned. Most of the family-owned companies are still first-generation family firms, owned and managed by the founders but transition processes are taking root. Since the very survival of a family business, continuity, and success depend on the transition process, a substantial body of literature focuses on the transition process and factors that will facilitate a successful transition. Therefore, this paper aims to contribute to the existing body of literature by providing a deeper understanding of the transition process specificities in Croatian family-owned companies. In this paper, we analyze differences in the perception of factors relevant to the success of the transition process on the convenience sample of Croatian family-owned companies. The sample included first-generation and second-generation owners and a questionnaire was used as the primary data collection instrument. The results of the statistical analysis show that there are significant differences in the perception of factors relevant to the success of the transition process from the founders' and successors' point of view.

Incremental and Radical Innovations that Contribute to the Survival of Small Businesses in Environments of Crisis

This paper examines the influence of incremental and radical innovations on the survival capacity of micro and small companies (MSE) in contexts of economic crisis.State of the art on innovation points to a lack of a specific methodology to segregate incremental and radical innovation in MSEs. Identifying such a method allows for action to promote innovation in such more assertive companies, contributing to the survival of companies in the most adverse moments, such as crises.In this sense, a methodology was developed to identify the type and degree of innovation based on the level of innovation in the sector of activity and was applied to a sample of 60 companies in the textile retail sector. The dependent variable was business survival, measured by the continuity or cessation of activity in 2020. The estimate of the probability of survival was carried out using a binary logistic regression model.The dimensions of incremental innovation, which are the most common in the business environment, did not significantly affect survival. The dimensions of radical innovation, which imply deeper and more disruptive changes in the business model, had a positive impact. significant impact on survival in all cases. The most complex actions in the Solutions dimension increased the chances of survival by 42%; improving Processes by 39%; and innovation in the Square by 38%. These findings suggest that small businesses that adopt radical innovations have greater adaptability and resilience to adverse situations.

Technology shock of ChatGPT, social attention and firm value: Evidence from China

The release of ChatGPT has attracted widespread attention and triggered fluctuations in the capital market. This study employs difference-in-differences (DID) and event study (ES) to investigate the effects of ChatGPT's release on the cumulative abnormal return (CAR) of listed companies in China. The results reveal that a series of ChatGPT launch events, including GPT-3.5 and GPT-4, have a significantly positive impact on the firm value of the companies focused on ChatGPT, with dynamic effects. In the initial two months after the release of ChatGPT, the Chinese stock market exhibited an undervaluation of GPT-focused companies, indicating information asymmetry and competitive substitution effect. With the widespread promotion of generative AI, social recognition of ChatGPT's potential value increased. This study verifies the moderation effect of social attention in strengthening ChatGPT's impact, demonstrating that a higher search index for ChatGPT enhances stock returns for GPT-focused companies. Heterogeneity tests reveal that the impact of ChatGPT is significantly positive for large or non-state-owned companies, while small or state-owned companies show no significant effect. From the perspective of labor structure, companies dominated by technical and production personnel experience positive effects, whereas those dominated by sales personnel do not. In the eastern regions with more favorable digital economic innovation environments, companies experience a notably positive impact. This paper provides a theoretical explanation and empirical evidence for the microeconomic impact of generative AI in the Chinese context, offering valuable insights for both government and firms.

The Mediating Effect of Innovative Performance on the Relationship Between the Use of Information Technology and Organizational Agility in SMEs

The current study has four main objectives. First, it aims to investigate the effect of the relationship between information technology (IT) dimensions (customer relationship management, knowledge management, and human resource management) and innovative practices on organizational agility in small and medium-size companies (SMEs). Second, it seeks to measure the relationship between IT components and innovative performance. Third, it examines the impact of innovative performance on organizational agility. Fourth it explores the mediating role of innovative performance in the relationship between IT and organizational agility. These objectives provide a clear roadmap for the research and guide the analysis and interpretation of the findings. This paper’s statistical population was composed of senior managers in SMEs in Khorsaran Razavi, Iran. The data were collected using standard questionnaires, 172 which were received in 2023 and analyzed using SPSS version 25 and SmartPLS version 4 software. The results demonstrate that using customer relationships, human resources, and knowledge management as three dimensions of IT and innovative performance can enhance organizational agility. Moreover, innovative performance plays a crucial role as a mediator, strengthening the impact of information IT dimensions on organizational agility. These findings underscore the practical relevance for companies operating in a dynamic economic environment. Special attention to organizational agility and practical factors will increase flexibility, speed of response, etc., and, ultimately, companies’ success in this tense economic environment. The innovation of this research is that the three dimensions of IT, including evaluating customer relationship management, human resource management, and knowledge management, is a growing research field in organizational agility. Therefore, this research is vital in empowering SMEs to increase agility. By evaluating the effect of the four variables of knowledge management, customer relationship management, human resource management, and innovative performance on organizational agility in SMEs, on the one hand, this research expands the theoretical literature and, on the other hand, helps such companies.

Gendered enterprise: Women and Australian business history

AbstractThis special issue examines women and Australian business history. Contributions explore women's entrepreneurship in small urban businesses, side hustles, agriculture, and family companies. Articles highlight the importance of women's businesses, as a financial necessity for women, their families, and their communities. Authors examine the barriers for women in business, including legislation, licensing, societal expectations, and discrimination. Articles also explore women's intersections with other demographic characteristics, with access to enterprise mediated by class and the rural–urban divide. Finally, contributions examine the way traditional archives have obscured histories of businesswomen, and the opportunities offered by feminist historical methodologies for studying business history.

The analysis of a causal model of learning organization on sustainable organizational performance of public IT companies in China: Knowledge management practices and innovation capability as multiple mediators

This research aims to empirically examine the role of learning organization practices in enhancing sustainable organizational performance, utilizing knowledge management and innovation capability as mediating variables. The study was conducted in public IT companies across China, which is a vital sector for driving innovation and economic growth. A mixed-methods approach was employed, with quantitative methods accounting for 70% and qualitative methods for 30% of the research. Purposive sampling was utilized to distribute questionnaires to 546 employees from 10 public IT companies. Statistical analysis was conducted using Structural Equation Modeling (SEM). The findings indicate that learning organization practices significantly influence knowledge management practices (β = 0.785, p < 0.001) and innovation capability (β = 0.405, p < 0.001). Furthermore, knowledge management practices positively contribute to sustainable organizational performance (β = 0.541, p < 0.001), while innovation capability also has a positive effect (β = 0.143, p < 0.001). Moreover, knowledge management practices partially mediate the relationship between learning organization practices and sustainable performance, with a total effect of 0.788 (p < 0.001). The mediating role of innovation capability is also significant, with a total effect of 0.422 (p = 0.045). The study further includes qualitative in-depth interviews with 20 managers from 10 IT companies across five regions in China: East, South, West, North, and Central. Senior managers were selected through a stratified sampling method to ensure comprehensive representation by including both the largest and smallest companies in each region. These findings underscore the critical role of learning organizations in promoting sustainability through effective knowledge management and innovation capabilities within the IT sector.

Examination of Access to Credit and Performance of Small and Medium Enterprises in Bushenyi District, Uganda

The study examined access to credit and the performance of small and medium enterprises in Bushenyi District, Uganda. The study was guided by the following objectives: to examine the extent of access to credit and the performance of small and medium enterprises in Bushenyi District. SMEs have been seen as uncommon supporters of the Ugandan economy because they both organize and work for innovative considerations. In any case, their execution and development are regularly ruined by different challenges. For the methodology, surveys and interviews were utilized to gather essential information, whereas diaries, books, and the web were sources of auxiliary information. The information was secured over five years, extending from the year 2019 to 2024. The relapse show has an R of 0.724, which shows a solid positive relationship between the factors. The coefficient of assurance, R square, demonstrates how well the information fits within the measurable range and how effective the fit is in clarifying the variety of the information. In this study, 52.4% of the variance within the dependent variable is explained by the independent factors, supporting financial services that are more inclusive and sensitive to SMEs. The areas of the study were challenged by the barriers and constraints facing SMEs in accessing credit from credit facilities. It was also limited to accessing the respondents since they were located across the Bushenyi District. Through creating an empowering environment for SMEs, the bridge that exists between huge and small companies can be limited. This may also be accomplished through segmenting NSE for SMEs posting and defining the administrative system that's inviting SMEs

DECARBONIZING FREIGHT TRANSPORTATION IN BRAZIL: METHODOLOGIES, RESULTS AND PRACTICAL IMPLICATIONS

Objective: The objective of this technological article is to present a practical tool for calculating CO2 emissions based on fuel consumption applied in a small road freight transport company. Theoretical Framework: There are 4 methods available in the literature for calculating CO2 emissions produced during cargo transport, which stand out for their applicability: (1) GHG Procol; (2) MNT; (3) DEFRA; and (4) GLEC. The authors (Leonardi & Baumgartner, 2004; Lewis et al., 2016) have methodologies for calculating emissions from freight transport, which currently present significant variability in the approaches and databases recommended. The main methodologies in this area are based on two main foundations: (1) fuel-based methodologies; (2) activity-based methodologies. Method: The calculation methodology used is based on fuel consumption (bottom-up), which considered the characteristics of the target fleet, the number of vehicles and their technological phase, the actual intensity of fleet use in operation, and real fuel consumption. Results and Discussion: From this initial information, it was possible to obtain the volume of CO2 emissions specific to the fleet, considering vehicles using regular diesel and biodiesel (S10). The results indicated a fleet CO2 emission of 1,643 tons per year with the use of biodiesel (S10), representing a 10.5% reduction compared to the total CO2 emission from regular diesel. Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of [insert field of study]. These implications could encompass [list impacted areas or sectors]. Originality/Value: This technological article contributes to the presentation of a review of CO2 emission calculation models available in the literature and the selection of a methodology for easy application for small and medium-sized road freight transport companies.

The mutual influence between entrepreneurial marketing and causal and effectual entrepreneurship: an empirical study in an emerging and developing economy

PurposeEntrepreneurial marketing (EM) literature has evolved recently, but more understanding is needed on how the seven dimensions of EM impact causal and effectual entrepreneurial behavior and, similarly, how entrepreneurial behavior influences the results of all dimensions of the EM construct. This study investigates the association and mutual influence between EM and entrepreneurship.Design/methodology/approachThis study uses a qualitative strategy, addressing gaps due to its low incidence and employs theoretical replication, which is practically unexplored. It investigates two cases in Brazil: small companies (eight cases selected by literal replication) and a structured network of companies (one case selected by theoretical replication), predicting a positive influence of EM in the first case and a negative or neutral influence in the second.FindingsThe influence of EM on entrepreneurship is context-dependent and varies according to the empirical object. In turn, the impact of entrepreneurship on the results of the EM dimensions is more stable, primarily causal and varies slightly between structures.Originality/valueFirst, by studying how the dimensions of EM impact causal/effectual behavior, this study broadens the understanding of the area, which was previously focused on only a few dimensions. Second, by investigating the impact of entrepreneurship on EM outcomes, this study sheds light on the influence of and differences in causal/effectual behavior in each of the seven dimensions. Finally, it extends the understanding of EM and entrepreneurship in small businesses and a structured network by identifying similarities and distinctions hitherto unexplored.

Analysis of the Effect of Sharia Bank Financing and Investment on Economic Growth through Micro, Small and Medium Enterprises (MSMEs) Credit

This study seeks to examine the impact of sharia bank financing and investment on economic growth in Indonesia by analyzing lending to micro, small, and medium companies (MSMEs) utilizing time series data. This research characterizes economic growth through the Gross Regional Domestic Product (GRDP) for each province in Indonesia. This study utilizes secondary data from 2011 to 2022 sourced from BPS, OJK, and Bank Indonesia, analyzed using the Path Application. This report assesses the direct and indirect funding of Islamic banks and their involvement in economic growth via Micro, Small, and Medium Enterprises (MSME) credit. The research findings indicate that the Islamic bank funding variable does not significantly influence the MSME credit variable; nevertheless, the investment variable does have a substantial impact on the Micro, Small, and Medium Enterprises (MSME) credit variable.

Implications of The Increase In The Government's Project Budget Ceiling For Construction Managerial In Small Qualified Contractors

The government has issued LKPP regulation No. 11 of 2021 which states that small qualification contractors may handle projects up to 15 billion, which before this regulation came out small contractors could only handle projects with a maximum value of 2,5 billion. The government hopes positively for this restriction, because the gap between large and small construction companies is quite high. In order to compete for large project values, small contractors must be able to reorganize the four managerial stages of construction project implementation, namely Planning, Organizing, Actuating, and Controlling (POAC). For this reason, a study was conducted that aims to analyze the implications of increasing the budget ceiling of government projects on the construction managerial of small qualification contractors. This research uses a descriptive qualitative method by analyzing changes in construction project managerial at each stage of construction project managerial through an in-depth interview process directly with small contractors who handle construction projects worth 5 to 15 billion in fiscal years 2022 and 2023 in the Padang City government. The result of this research is that there are changes in the managerial constructors at the planning stage. At the planning stage the contractor organizes the implementation of the project so that the project can be completed within the agreed time, through the use of Man, Money, Material, Market, Machine, and Method (6M) resources. The resources that change during project implementation at the planning stage are human resources (man). With an increase in the project budget ceiling, small qualification contractors increase the number of team personnel, labor, and team competence in mastering certain competencies to support the implementation of construction projects. While the management of 5M (man, money, material, machine, and method) at the organizing, actuating, and controlling stages, small qualification contractors are able to adjust their construction managerial implementation when the project is still worth under 2,5 billion with a project whose value increases to 15 billion.

The Role of Human Resource Management in African Construction Companies

African countries have been heavily investing in construction projects, both infrastructure and superstructure. The construction industry is one the rapidly growing sectors in the continent and it greatly contributes to employment. The population increase and the urbanization in the continent, the strong growth of the construction sector is inevitable. However, there are still many crucial challenges to overcome, financing, available electrical grids, transportation, procurement, and skilled employees. Human Resources Management plays an important role within a Construction Organizations, Institutions, Associations or Companies in terms of work distribution. It is also the principal nerve otherwise the skeleton of any business that we want to achieve an efficient and effective goal in short, medium and long run time. Our case of study, GUICOPRESS - Guinea shows the real situation of building construction in Africa in general and Guinea in particular. Guinea is a large open work place which needs to be well - structured and organized, because of the lack of modern facilities around the country. Conakry the capital city has poor architecture and infrastructures. Shanties are sharing the same zone or space with luxurious buildings here and there so that it is difficult to see the beauty of the city although it is the largest city in Guinea. According to the business local magazine “Gniouma, 2020”, GUICOPRESS employs more than 10, 000 employees in Guinea and stays the leader of small and medium size companies in Guinea. This strong capacity of that enterprise is due to the strong policy implemented by its General Management Director, who likes innovating his works, by investing some huge amount of money in manpower and machinery purchasing. Beyond its financial contribution, GUICOPRESS - Guinea contributes a lot in the charity’s field through its social unit called “KPC for Humanity” assisting beggars, building schools in remote areas for poor communities.

Promotion included in prevention (PIP)

Abstract Issue/problem Every year in Europe more than 20 million visits are carried out on workers. The opportunity to integrate health promotion into prevention is now under the attention of large companies, according to the American model known as Total Worker Health©. Description of the problem The main critical points of this strategy are the correct balance between promotion and prevention efforts and the extension of the projects to small companies. Furthermore, coordination is necessary between all the figures who promote health, particularly in the national health service. Results Occupational risk prevention activities, mandatory in all European countries, have been integrated with health promotion campaigns, addressing health topics chosen in a participatory way. The costs of designing the campaign, information material for employees and data processing are borne by the university, which covers the costs with research funds. No costs are borne by workers or companies. During their medical check-up in the workplace, workers are invited to fill in a questionnaire regarding the project topic, its outcome, and some related factors. Workers receive advice on how to improve their lifestyles and are referred to the National Health Service for any necessary tests or treatments. In the last 15 years, as many annual campaigns have been conducted. Projects have dealt with: Eating behavior disorders; Post-COVID syndrome; Syncope and presyncope; Headache; Musculoskeletal disorders; Work engagement; Sleep health promotion; Aging; Violence at work; Work organization; Indoor air quality; Mediterranean Diet; Hand skin disorders; Teleworking; Work Ability. More than 30,000 workers from 38 companies participated. Lessons The participatory character of the projects, their simplicity and cost-effectiveness, the integration between occupational medicine and basic medicine demonstrate that PIP projects are economical, sustainable, and effective. Key messages • Health promotion can be integrated into the prevention of occupational risks, without additional costs. • The creation of a network of occupational physicians who are involved in PIP projects respects corporate and professional independence and improves the work culture, health, and safety of workers.

Manual Madness: Challenges of Contract Renewal in Campus Vending Machine Business

The vending machine industry has evolved from conventional to connected machines. Vending machines are currently in wide use and typically involve a remote machine holding a plurality of products or items to be dispensed after receiving money from a purchaser. The industry has gone beyond just delivering snacks and is developing new and sophisticated retail solutions for both large and small companies. In this study, a qualitative inquiry was conducted in one of the branch universities of the largest public universities in Malaysia. A total of three vending machine entrepreneurs were qualitatively interviewed individually. Interviews were transcribed and analyzed to find a common theme. As a result, three challenges were identified: using a lot of paper, being time-consuming, and having no alert process. Contract renewal is significant and should not be taken for granted and it is a far-sighted move for a business manager to use the most efficient process from start to end. The respondent agreed that the current renewal process is redundant and time-consuming. Therefore, the researchers proposed to all the parties to reduce the hassle of renewing the contract. Based on this research, the authority department in public or private universities can develop an innovation in monitoring systems to improve the process. The results can provide suitable coping strategies for business owners to have the best practices for a contract renewal mechanism.