Small Enterprises Research Articles

Intellectual Capital and Company Performance with Innovation as Mediation Variables

This study aims to examine the correlation between intellectual capital, innovation, and corporate performance in micro, small, and medium enterprises (MSMEs) located in East Java, Indonesia. The proxy for each variable uses a Likert scale measurement by distributing questionnaires to MSME actors. The research sample consisted of 125 MSME actors who completed a returned questionnaire, whereas the study population consisted of 500 MSME company players. The PLS 3 software program is used in the quantitative descriptive data analysis technique. The findings demonstrated that innovation has a major impact on business success and that intellectual capital has a considerable impact on both. Additionally, innovation mediates the relationship between intellectual capital and business performance. Increased innovation will eventually lead to improved company performance if the intellectual capital developed by MSME business actors is more focused on innovation. Specifically the speed and quality of innovation, such as creating new and high-quality products, high-quality services, and problem-solving strategies that are also more accurate than those of other companies. This research contributes to the implications of intellectual capital in the business world which can be carried out early on, in the sense that even though companies are on a micro scale, MSME business actors can manage intellectual capital well in creating company performance. Keywords: intellectual capital, innovation, company performance, MSMEs

The Impact of Green Entrepreneurial Orientation and Greenmarket Orientation on SME's Performance: The Role of Green Innovation

Protecting the environment has turned into a competitive market problem, affecting the success of small businesses. Much research has been done on the direct links between green entrepreneurial orientation, green market orientation, green innovation, and SME success. However, few studies look at the indirect links through the lens of green innovation. This study aims to find out if green market orientation and green entrepreneurial orientation impact the success of small and medium-sized businesses. PLS-SEM is used to test the theories quantitatively. Conversations with Batik SME business owners in Ponorogo City were used to gather data. Thirty people took part in this study. The results show that green market orientation and green entrepreneurial orientation have both direct and indirect effects on the success of small businesses. Green innovation also has a direct impact on the success of small and medium-sized enterprises, as well as affects green business orientation and green market orientation. Keywords: green entrepreneurial orientation, green market orientation, green innovation, SME performance

The Influence of Market Orientation on Marketing Performance of Small and Medium Enterprises in Lamongan District

This research aims to analyze the influence of market orientation on innovation capability and marketing performance, as well as examine the mediating role of innovation capability in the relationship between market orientation and marketing performance. The results of this quantitative research show that market orientation contributes to marketing performance and the formation of innovation capabilities, and that innovation capabilities of SMEs are reflected in attractive and safe products. This research contributes to an understanding the dynamics of market orientation, innovation, and marketing performance in SMEs in the context of Lamongan Regency. Managerial implications and policy recommendations are outlined based on research findings, with the hope of providing guidance for SMEs and related parties on improving marketing performance. These findings support the theory that market orientation can improve marketing performance with innovation capabilities. The practical implication of this research is that SMEs can strengthen their market orientation to increase product innovation. Keywords: market orientation, innovation capability, marketing performance

Entrepreneurial potential in digital transformation: scale development using item response theory

PurposeThis study aims to develop a scale using item response theory (IRT) to assess the entrepreneurial potential for digital transformation in Brazilian companies.Design/methodology/approachIRT was used to develop a scale for entrepreneurial potential in digital transformation. This scale was constructed from a questionnaire, covering the domains: (1) data-driven culture, (2) openness to knowledge and adaptation to change, (3) connectivity and (4) creativity and innovation. The questionnaire was administered to a sample of 216 entrepreneurs from small business enterprise (SBE) and startups in Brazil.FindingsA questionnaire was developed and validated to assess the latent trait of entrepreneurial potential within the context of digital transformation. Additionally, a three-level scale of entrepreneurial potential was established: low (level I), intermediate (level II) and high (level III). The interpretation of this scale provides valuable information on which domains, such as data-driven culture, innovation, among others, can be enhanced to improve the potential of entrepreneur for digital transformation.Research limitations/implicationsThe sample was limited to small Brazilian companies and startups, which may restrict the applicability of the results to other business or geographic contexts. Additionally, the items evaluated in the scale may not fully capture all nuances of entrepreneurial potential for digital transformation. Future research should consider including new items that cover a broader range of entrepreneurial characteristics.Practical implicationsThe findings of this study have significant practical implications for the Brazilian entrepreneurial ecosystem, the entrepreneurs themselves, public policy makers and entrepreneurship support institutions. These results can guide digital transformation strategies, adjustments in public policies and investments, thereby promoting economic development and innovation in the country.Originality/valueThis study stands out for using IRT as a robust methodology to develop an interpretative scale to assess entrepreneurial potential in the digital transformation era. By focusing on Brazilian SBEs and startups, the study offers an original contribution on how these companies are handling the challenges of digitalization and identifying areas for improvement to further promote digital transformation among entrepreneurs.

Development of A Structural Equation Model of The Variables Affecting the Purchase Intention Innovation Solar Power Air-conditioning Systems of Small and Medium-Sized Enterprise

Purpose: This quantitative dissertation aimed 1) to investigate the impact of government policies, product innovation attributes, consumer innovativeness, and perceived value towards purchase intention,2) to construct a linear structural equation model that illustrates the influence of those factors on the purchase intention of innovative solar power airconditioning system of SMEs in the service sector. Method: The sample group was 320 executives of SMEs in the service sector. Sampling was by specific and quota random sampling. Data were collected by a structured questionnaire and analyzed by descriptive statistics, confirmatory component analysis, and structural equation model analysis. Results: The findings of this study demonstrate significant direct effects of government policy, consumer innovativeness, and consumer’s perceived value on purchase intention of innovative solar power air conditioning systems. Moreover, government policy and consumer innovativeness also exerted indirect effects on purchase intention through their influence on consumers’ perceived value, serving as mediator variables. Research Implication: Through the development of a structural equation model, consumer innovativeness had the greatest overall influence on the purchase intention of SMEs in the service sector, followed by consumer’s perceived value, government policy, and product innovation attributes, respectively. Originailty/Value: Airconditioning SMEs can used government policy, consumer innovativeness, and consumer’s perceived value to motivate consumers on purchase intention of innovative solar power air conditioning systems.

Upaya Meningkatkan UMKM Ketupat Viral Desa Hamparan Perak Menggunakan Social Media

Micro, Small, and Medium Enterprises (MSMEs) are encouraged to leverage social media as an online marketing tool to reach a broader market. Currently, social media is easily accessible and widely favored by people worldwide. Therefore, MSME entrepreneurs are recommended to utilize social media as a means to share information about their products with consumers online. This research aims to assist and convince MSME entrepreneurs in Hamparan Perak Village about the benefits of social media for expanding their marketing reach. Through research on marketing enhancement strategies via social media, it can be determined how significant the impact and benefits of social media are for the development of MSME marketing in Hamparan Perak Village, Hamparan Perak District, Deli Serdang Regency.

Dominant factors for solar energy choice by Manufacturing Micro, Small and Medium Enterprises (MSMEs’) in Tanzania

Energy demand by manufacturing industries has increased significantly whereby fossil fuels consumption is dominant. Increased concern over resource depletion, and environmental impacts, suggests future dependence on renewable energies. Tanzania is blessed with abundant solar energy and its exploitation may contribute to increased energy access. Despite the paybacks of renewable energy, studies on the exploration of the dominant factors for energy choice by manufacturing MSME’s are scarce. This study explored the dominant factors for solar energy choice by manufacturing MSME’s. Questionnaires were used to collect data (n = 236) from employees in manufacturing MSMEs’ whereby descriptive and multinomial probit (MNP) model were employed to establish the dominant factors. The findings of MNP revealed that not expensive energy, and other factors (e.g., availability of solar appliances) have significant influence on solar PV use, while the adoption of hydro-electricity was significantly influenced by not expensive and advised to use energy. Easy access, and not expensive have significant influence on fossil fuels. The Confirmatory Factor Analysis (CFA) results revealed that all factors (i.e., environmental, social, and economic) have significant influence on workers perception of sustainable manufacturing. These findings provide critical information for policy making instruments in Tanzania for informed decisions in the formulation of policies in the utilization of renewable energy technologies.

Moderating role of technological turbulence between green product innovation, green process innovation and performance of SMEs

Innovation in green technologies is a key factor propelling Jordanian sustainable development in the small and medium enterprises for achieving sustainability. Jordan is considered as a hub of small and medium enterprises, however, despite technological advancements and the efforts of the government, small and medium enterprises in Jordan are scarcely catering the aspect of green activities and researchers have paid less attention towards the same. Green product and green process innovation mode choices have drawn enough attention recently, but limited researchers have thoroughly examined the pathways through which green innovation is transmitted to small and medium enterprises’ performance. Green product and process innovation are the two main streams of green innovation that can enhance small and medium enterprises’ performance. The current research builds the framework for SMEs performance based on green product innovation and green process innovation following earlier research that have been conducted in the context of developed countries. It conducts an empirical analysis using responses of 384 manufacturing sector small and medium enterprises in Jordan. The findings demonstrate that small and medium enterprises can perform better when green products and processes are innovated. One significant moderating variable over the performance paths of small and medium enterprises is technological turbulence. The findings of the research contribute to a better understanding of green innovation and have implications for designing policies that promote green development.

The Potential of Halal Micro, Small, and Medium Enterprises and Halal Lifestyle in Building the Indonesian Economy

Introduction: Indonesians contribute to the national Gross Domestic Product, contributing 60.5%. The number of Muslim populations in Indonesia is the most important compared to other countries, thus creating a large market for halal products. Objective: The research can provide an in-depth understanding of the market potential for Micro, Small, and Medium Enterprises focusing on halal products. This research also aims to understand how these halal products are related to the halal lifestyle, which is a lifestyle that complies with the principles of Islamic sharia in various aspects of life. Method: This research is considered most appropriate using a descriptive qualitative approach with a literature review. Data sources use secondary data. Furthermore, descriptive analysis techniques are used to analyze the collected data. Result: The results of the study show that to increase Indonesia's role in the global halal industry, steps are needed, such as halal certification, training and mentoring for Micro, Small, and Medium Enterprises, financial service facilities, and socialization regarding the importance of halal products. Implication: In general, the expected impact of this research is the creation of a more robust and more competitive ecosystem for halal Micro, Small, and Medium Enterprises in Indonesia, which will strengthen the national economy and improve Indonesia's position in the global halal industry.

The Impact of Financial Reporting on Investment Decision of Small and Medium Enterprises in Nigeria: A Case Study of Small and Medium Enterprises in Delta State, Nigeria

This study examines the impact of financial reporting on investment of small and Medium Enterprises in Delta State, Nigeria. The study employed descriptive survey research design. A sample of 398 SMEs was employed for the study using simple random technique. Data collected was analyzed using correlation and chi-square technique. The results show that SMEs in Delta State do not use financial reporting in their decision making process. Besides, most of them do not even have adequate knowledge of financial reporting. The study therefore recommends that managers of SMEs should be trained on the use and preparation of financial reports by the various SMEs to enable them be able to use financial reports in their decision making process.

The effect of business owners’ personal characteristics on enterprises’ human resource management strategies – a multigroup comparison model based on micro, small and medium-sized private enterprises

PurposeIt has been proven that the characteristics of top management in an organization have an impact on the organization’s employee management strategies. In micro, small and medium-sized enterprises, the business owner’s influence is constructive. However, there has been little discussion about the influence of business owners’ personal characteristics on enterprises’ human resource management (HRM) strategies.Design/methodology/approachIn this study, two complementary experimental designs – quantitative research and qualitative research – were adopted to verify the theoretical framework.FindingsThe results show that business owners with masculine characteristics tend to adopt the strategies of internal development and external acquisition, while those with feminine characteristics tend to adopt the strategies of internal development. Significant differences were found between the female business owner group and the male business owner group in terms of the relationship paths of gender role orientation, leadership style and gender role orientation and HRM strategies.Originality/valueFirstly, this is the first time to discuss human resource management strategies from the perspective of gender roles. Secondly, the data of this research is collected from entrepreneurs, which is another advantage of this research. Finally, this research has obtained more valuable research findings. This study found that feminine bosses tend to adopt internally developed human resource strategies, while masculine bosses value internally developed human resource management strategies and also tend to adopt external acquisition strategies. Studies have shown that companies that adopt defensive strategies rely more on internally developed human resource management strategies, while those with exploratory strategies are more inclined to externally acquired human resource management strategies. So, does the boss’s gender role orientation match the organizational strategy, that is, feminine bosses adopt defensive strategies, while masculine bosses adopt defensive and exploratory organizational strategies? This point provides new research ideas for the development of private enterprises.

PELATIHAN DESAIN LOGO DAN KEMASAN UMKM KERIPIK PISANG DESA TRUNAMANGGALA MELALUI PENJUALAN DIGITAL MARKETING

The development of micro, small and medium enterprises aims to generate income for the lower middle class and is the most important driver in the national economy. In an effort to improve the welfare of micro, small and medium enterprises, the government currently offers various programs to business actors, including business capital, training, and business assistance with stakeholders. The banana chip business, which is one form of small micro business in Trunamanggala Village, Cimalaka District, Sumedang Regency, has problems in the form of the absence of a logo as a product identity, the absence of attractive packaging and the lack of utilization of digital marketing technology in its sales so that an assistance is needed to overcome this. Therefore, this community service method uses a training and socialization approach which aims to provide training in making product logos as well as providing training in marketing products online. The positive impact of this training is to increase market attractiveness and interest to help product images with creative logos, MSME players have products in digital marketing so that they can increase promotion of banana chip MSME players and increase the economy and profits for banana chip MSME players in Trunamanggala Village.

Enacting Resilience in Small and Medium Enterprises Following the Sustainability Path: A Systematic Literature Review

ABSTRACTThis article investigates entrepreneurship literature insights into whether and how changing organizational strategies and processes toward more sustainable ones can allow small and medium enterprises (SMEs) to gain resilience. We deepen the relationship between reorienting SMEs' strategies and processes toward sustainability and gaining resilience by providing a framework and suggesting avenues for future research. Specifically, we cluster the content of 53 articles in five thematic areas using qualitative thematic analysis. These areas are “barriers, contextual factors, and government help,” “entrepreneurial orientation or attitude,” “capabilities and lean thinking,” “means and processes,” and “supply chains, synergies, and collaborations.” The findings suggest that reorienting businesses to more sustainable strategies and processes can also facilitate the shift toward more resilient business models and ecosystems. The article contributes to the literature on SMEs' resilience, binding such literature with the one on sustainable business and SMEs' sustainability, providing a theoretical framework useful for researchers, managers, and policymakers. The novelty of the work consists of emphasizing consciousness of this relationship and suggesting unexplored lines of research.

The Integration of Ai in Small Enterprises and Its Impact on Productivity and Innovation

The Integration of Ai in Small Enterprises and Its Impact on Productivity and Innovation

Assessing the extent to which small enterprises, inclusive of emerging black businesses engage in service dominant logic practices

This study is aims to assess the extent to which small enterprises engage in service dominant logic practices. In this study, data was quantitatively collected from 144 service providers of the game and nature reserves in Mpumalanga. The findings revealed a strong positive relationship between the effectiveness of using ICT and the extent to which small enterprises engage in service dominant logic practices. These findings suggest that the use of ICT technologies has a positive effect on the extent to which small businesses engage in service dominant logic practices. The limitation is that this current study is only limited to the tourism industry, in that sense it cannot be generalized to other industries.This study contributes to the existing body of knowledge by assessing the extent to which small enterprises engage in service dominant logic practices. Through the co-creation of value, these small businesses can be sustained. Collaborative relationships between small businesses and dominant firms can enhance the small part that black entrepreneurs now play in the country's tourism industry. By means of value co-creation, major corporations have the ability to offer small and medium-sized companies (SMMEs) both entrepreneurial experience and skill training

MENINGKATKAN PENJUALAN UMKM MELALUI STRATEGI PEMASARAN ONLINE YANG EFEKTIF

This service aims to explore the potential of online marketing strategies in increasing sales of Micro, Small and Medium Enterprises (MSMEs) in Indonesia, with a focus on MSMEs that have not yet run online marketing. Although digital technology has developed rapidly, many MSMEs still do not maximize the potential of online marketing. The service method used is the community education method with MSME owners who have not run online marketing which will be carried out on February 19, 2024, precisely in Sukamukti Village, Bojongmangu District, Bekasi Regency to understand their challenges and needs in dealing with online marketing strategies. This service has a positive impact on understanding the barriers faced by MSMEs in starting online marketing, as well as their views on its potential and benefits. However, there is a need for support and mentoring for MSMEs that have not yet embarked on online marketing, as well as the importance of providing appropriate resources and training.

The Influence of Work Motivation and Work Environment on the Performance of Employees of the UKM Cooperative Office of Kulon Progo District, Yogyakarta Special Region

Organizational achievement is influenced by the work environment where employees carry out activities also have an important role in improving their performance. The work environment refers to the material and psychological conditions of employees in the organization. This study aims to determine the effect of work motivation and work environment on employee performance at the Kulon Progo Regency Small and Medium Enterprises Cooperative Office. In this study, the data collection techniques used were questionnaires, observation, documentation and literature study. The analysis used is instrument test, classical assumptions, multiple regression, hypothesis testing, and R2 estimation. Sampling by distributing questionnaires directly to 37 samples. The results of data processing from motivation (X1) have a positive and significant effect on employee performance, namely tcount 2.573> ttable 2.032 with a significance of 0.015 <0.05 and the work environment (X2) has a positive and significant effect on employee performance, namely tcount 2.903> ttable 2.036 with a significance of 0.006 <0.05. Fcount value 7.803> Ftable 3.28, with a significance value of 0.002 <0.05. This means that motivation and work environment simultaneously affect employee performance. The results of the coefficient of determination test obtained an R-square value of 0.315 or 31.5%, which means that the influence of the independent variables on the dependent variable and the rest is influenced by other factors outside the research variables.

Strategic scaling initiatives and client networking dynamics for small and medium-sized enterprises growth: a comprehensive case study analysis

Strategic scaling initiatives and client networking dynamics for small and medium-sized enterprises growth: a comprehensive case study analysis

Implementasi SAK EMKM Terhadap UMKM di Kota Pontianak (Studi Kasus Pada FT Laundry)

The majority of businesses in Indonesia are micro, small and medium enterprises (MSMEs). Due to their presence in various sectors, MSMEs play an important role in driving the country's economy. Nonetheless, MSMEs face obstacles and lack of understanding in following the Financial Accounting Standard for Micro, Small, and Medium Entities (SAK EMKM) which highlights the importance of preparing financial statements. This study aims to investigate how FT Laundry MSMEs prepare their financial statements whether they are in accordance with SAK EMKM standards through a qualitative research approach involving document analysis, interviews, and observations. Data was analyzed using the methods of information collection, data reduction, data presentation, and conclusion drawing. Based on the research findings, it appears that owners of laundry businesses still rely on traditional accounting methods for their financial records and do not adopt the SAK EMKM financial reporting system. The main reasons why these businesses do not adopt SAK EMKM include a lack of understanding of the system, a lack of manpower who can prepare reports in accordance with SAK EMKM guidelines, and a lack of awareness of the importance of preparing reports in accordance with the standard.

Bridging the Gap: Unveiling the Factors of Government Support Influencing the Success of Vietnamese Agricultural SMEs Post-COVID-19

This study investigates the essential role of government aid in enhancing the resilience and success of small and medium-sized agricultural firms in Vietnam during the COVID-19 pandemic. The research fills a gap in the existing literature by concentrating on strategies for long-term recovery rather than immediate reactions. Using a structured survey and multivariate linear regression analysis, the study engaged 200 proprietors and executives from the Red River and Mekong Delta areas. The results exhibit a favorable association between governmental support and the success of small and medium-sized enterprises, emphasizing the necessity of tailored governmental interventions to enhance sector competitiveness. While offering valuable insights for policymakers, the study’s geographical and sectoral scope is restricted, indicating the need for more extensive research and qualitative evaluations to deepen comprehension of the effects of governmental support in diverse settings. This research has the potential to significantly influence policy formulation and further scholarly investigation in the economic landscape post-pandemic.