Small Medium Enterprises Research Articles

Edukasi Penerapan Prinsip Akuntansi Lingkungan Melalui Efisiensi Energi dan Pengelolaan Limbah Pada UMKM Tambakrejo Semarang

Management understanding and knowledge of environmental accounting, especially related to waste management and energy efficiency, is very important to achieve business sustainability, including for Micro, Small, and Medium Enterprises (MSMEs). The Tambakrejo MSME group often lacks understanding of milkfish waste management and faces increasing energy operational costs, especially for refrigerators. Lack of environmental awareness causes milkfish waste to pollute the environment and hinder water drains. Environmental accounting integrates environmental aspects in accounting practices to measure, report, and manage environmental impacts. This Community Service educates about waste management strategies and energy efficiency based on environmental accounting principles. The results of Community Service have a positive impact, the enthusiasm of MSME actors is very high, this is evidenced through pre and post testing measuring tools for MSMEs with the results of the increasing level of public understanding of environmental awareness and energy saving in MSMEs, as well as teaching environmental cost management methods through identification, recognition, measurement, reporting, and integration of environmental aspects in the accounting system.

Fintech Adoption: Peer-to-Peer Lending for Indonesian Msmes

The objective of this research is to examine the conduct of Micro, Small, and Medium Enterprises (MSMEs) concerning their embrace of financial technology linked to peer-to-peer lending. Employing a survey approach, this research collected data from MSME owners in Indonesia using purposive sampling techniques. Structural Equation Modeling (SEM) was employed to evaluate the impact of dimensions within the Unified Theory of Acceptance and Use of Technology on the preparedness of MSMEs to adopt the FinTech model. The results revealed that each dimension of the Unified Theory of Acceptance and Use of Technology, encompassing performance expectancy, effort expectancy, facilitating conditions, social influence, hedonic motivation, price value, habit, perceived trust, and perceived risk, plays a crucial role in shaping the behavioral intention of MSMEs toward the adoption of financial technology, specifically peer-to-peer lending. Effort expectancy emerged as the primary factor influencing performance expectancy. Moreover, perceived trust exhibits a close correlation with perceived risk, thereby influencing the behavioral intention of MSMEs. However, perceived risk is the only dimension with a negative impact.

Analysing the Nexus between Innovation and Knowledge Sharing among Small and Medium Enterprises (SMEs) in Promoting Development in BRICS Countries

Small and medium-sized enterprises (SMEs) in the informal sector of Brazil, Russia, India, China, and South Africa (BRICS) play a critical role in boosting their nations’ economies. Informal entrepreneurship is an important source of economic development thanks to knowledge sharing and innovation extensively employed in this area. The BRICS countries are viewed as leaders in economic development, innovation, and knowledge transfer among developing countries; abundant research into the factors of their success has so far paid insufficient attention to the relationship between innovation and knowledge generated by the SMEs and their role in promoting the BRICS countries’ development. This paper attempts to narrow the gap by critically analysing the nexus between innovation and knowledge sharing among informal small and medium-sized enterprises in these countries. It offers a systematic review of academic sources obtained from EBSCOhost followed by a thematic analysis of secondary data and a discussion of its results, which, as we hope, will provide insights for development practitioners and researchers in BRICS countries.

Optimizing VAT threshold: The key to improving VAT performance

The low tax ratio in Indonesia is an issue often associated with suboptimal tax revenue performance. This study examines the role of the threshold for Value Added Tax (VAT), which is suspected to significantly influence the optimization of VAT revenue, while also exploring the effect of VAT rate and Gross Domestic Product (GDP) per capita. The study analyze data from member countries of the Organization for Economic Co-operation and Development (OECD) in 2022 using multiple linear regression methods. The results show that increases in the VAT threshold and VAT rate positively impact VAT revenue performance, while an increase in per capita GDP has a negative effect. A higher VAT threshold allows the country to focus on larger taxpayers, while the Micro, Small, and Medium Enterprises (MSMEs) benefit from reduced administrative burdens. These findings can serve as a basis for government evaluation in determining the appropriate threshold and VAT rates to enhance tax revenue performance optimally.

Concentrated bank market and SMEs’ collateral issues: a study of the firms of developing Asian countries

Collateral is a significant challenge for small and medium enterprises (SMEs) in acquiring formal credit. Bank market concentration can cause to increase collateral demand through enhancing bank market power. This study explores the relationship between bank market concentration and the collateral challenges faced by SMEs in accessing bank credit by employing a probit regression model. The analysis utilizes a sample of over 25,000 firms from 19 developing Asian nations. The datasets combine firm-level data sourced from the Business Environment and Enterprise Performance Survey (BEEPS) with country-level financial data obtained from the Global Financial Development Data (GFDD) which are provided by the World Bank. The results reveal a significant positive correlation between bank market concentration and the collateral challenges encountered by SMEs in developing Asian countries. In markets characterized by high levels of banking concentration, financial institutions tend to exhibit risk-averse behavior, manifesting in an increased propensity to demand collateral for both SME and large enterprise loans. Consequently, this heightened bank concentration exerts additional pressure on SMEs in acquiring bank credit. To foster an environment conducive to SME financing, countries with high levels of banking concentration should enact regulatory measures aimed at managing and constraining market concentration levels.

SMEs Capital Budgeting Practices: A Review Article

This study aims to conduct a comprehensive systematic review of the existing literature on capital budgeting practices (CBP) in Small and Medium-Sized Enterprises (SMEs). By analyzing 130 academic publications from 1964 to 2024, we seek to identify key trends, gaps, and emerging themes in this field. Our analysis reveals a substantial body of research focusing on CBP in larger corporations but highlights a significant dearth of studies specifically examining SMEs, particularly in developing economies. Despite the value of existing research, the current review underscores the need for further exploration of CBP within SMEs. A critical area of inquiry is to understand how SMEs' CBP differs from those employed by large firms and the underlying reasons for these discrepancies. By revealing the unique challenges and opportunities faced by SMEs, this study contributes to the knowledge pertaining to the development of more effective financial management strategies tailored to their specific needs.

Enhancing customer satisfaction through IIoT-Enabled coopetition: Strategic insights and impacts

This research investigates the significant role of Industrial Internet of Things (IIoT) to enable Coopetition Network Practices (CNPs) in enhancing the performance of Small and Medium Enterprises (SMEs) within the context of global digital supply chains. Employing a quantitative approach, our study reveals that CNPs contribute to a noTable 51.0 % improvement in factors determining customer satisfaction. This underscores the strategic importance of blending competition with collaboration to refine production processes and align with consumer expectations. Additionally, the research presents a remarkable 69.1 % boost in operational consistency and reports substantial progress in manufacturing flexibility and the value-to-weight ratio, witnessing increases of 125.8 % and 33.2 %, respectively. These improvements are pivotal in optimizing production resources, which in turn, have led to a 29.3 % decrease in customer complaints and a 15.6 % rise in on-time delivery rates. Conversely, a slight decline in the consistency of the value-to-weight ratio was observed, pointing to potential areas for future research. The findings decisively show that CNPs offer concrete advantages by enhancing customer satisfaction determinants and operational efficiency in SMEs. The paper advocates for future studies to directly measure customer satisfaction and to formulate actionable guidelines for the effective implementation of coopetition strategies. This proposed research direction aims to provide solutions to the manufacturing sector's emerging challenges, thereby promoting competitive advantage and growth in the digital era.

The Effect Of Entrepreneurial Orientation And Human Capital On Tapis Business Resilience With Social Capital As Moderating Variable

The rise of Micro, Small, and Medium Enterprises (MSMEs) increases inevitable competitors and business fields that continuously change. The existence of competition makes the SMEs should face many opportunities and threats. The researcher would like to know more about how entrepreneurial orientation, human capital, and social capital could affect Tapis business resilience in Bandar Lampung. This research used the survey method, which is a type of quantitative approach. Respondents of this research are 119 tapis craftsmen in Bandar Lampung, the researcher will use Smart PLS 3.0 to process data. The result of this research shows that entrepreneurial orientation has a positive and significant effect on business resilience, human capital does not affect business resilience, social capital positively moderates the effect of entrepreneurial orientation on business resilience, and social capital does not moderate the effect of human capital on business resilience.

Can digital technology adoption promote environmental innovation in small and medium-sized enterprises (SMEs)? Evidence from China

Despite the widespread acknowledgment in both industry and academia of the substantial potential of digital technology for fostering innovation and sustainable development, there remains uncertainty surrounding whether integrating these technologies can improve environmental innovation in small and medium-sized enterprises (SMEs) due to the liability of smallness. This paper utilizes a panel dataset comprising 1036 Chinese manufacturing SMEs listed between 2011 and 2020 to investigate the influence of different digital technology adoption strategies—specifically, digital technology adoption breadth (DTAB) and digital technology adoption depth (DTAD)—on SMEs' environmental innovation. Additionally, we examine the moderating effects of government subsidies and industrial agglomeration on these relationships. The results reveal that (1) DTAB has a negative effect on SMEs' environmental innovation; (2) DTAD positively affects SMEs' environmental innovation; and (3) both government R&D subsidies and environmental subsidies can positively moderate the relationships among DTAB, DTAD, and environmental innovation within SMEs. These findings are extended and upheld after undergoing a series of further analyses, endogeneity analyses, and robustness tests. Our research suggests that SMEs are not as suited to the broad adoption of digital technologies as large firms; instead, they should focus on the deep application of specific digital technologies to promote environmental innovation.

Conceptualizing an interpretative framework for energy transition among Italian innovative small and medium enterprises

Energy transition (ET) is becoming essential for most countries worldwide. Companies can only adapt their behaviours to the objectives set by countries’ institutions. A new research stream has thus emerged, which investigates the factors facilitating ET among companies. To date, less attention has been paid to small and medium-sized enterprises (SMEs). One of the greatest difficulties in examining SMEs is their extreme heterogeneity, making results difficult to interpret.This study analyses the factors supporting ET among a specific population of companies in a defined territorial context: the so-called innovative SMEs belonging to a special Italian database. The high propensity towards eco-environmental innovations characterizing these SMEs and their inclination towards sustainable development suggests that their experience represents a prospective path that policymakers could adopt for other types of SMEs.Through a partial least squares analysis of data collected from these SMEs, outcomes show that the only factor supporting the ET is the sensitivity of these economic organizations towards energy issues developed over time; that is, the corporate culture with regard to sustainability.This result is only seemingly surprising under the specific features of these SMEs. Conversely, it presupposes new implications regarding policy measures, questioning the traditional approach based on providing incentives and/or regulations.

Drivers of strategic green marketing orientation: An SME owner-manager perspective

Small and Medium-Sized Enterprises (SME) are crucial in addressing climate change as they constitute more than 90% of global businesses. Building on the upper echelons theory, this study examines the driver of strategic green marketing orientation (SGMO) from the perspective of SME owner/manager. Through a survey involving 426 SME owners/managers in the United States, it reveals that SME owners/managers’ biospheric values positively influence SGMO via perceived competitive advantage, which in turns influence business performance. It also identifies perceived stakeholder pressures, perceived behavioral control, and perceived risks as key boundary conditions on the relationship between SGMO and its drivers.

The Influence of Information Security Management System Implementation on the Financial Performance of Indian Companies: Examining the Moderating Effect of National Culture

The extensive focus on information technology (IT) within organizations, along with the substantial significance of information security issues, has made information security a top priority for executives. The International Organization for Standardization 27001 (ISO-27001) policy outlines the requirements for an effective Information Security Management System (ISMS). Implementing an ISMS not only enhances the overall profitability of a firm, but it also has a significant impact in various scenarios. In this study, we examined how ISMS implementation can assist corporations financially, with a specific focus on the moderating effect of Indian national culture. We analyzed financial performance following ISMS and ISO-27001 implementation using sample data from 420 Indian small and medium-sized enterprises (SMEs). By analyzing 256 survey questionnaires from 420 SMEs, we found that national culture amplifies the strong interaction between ISMS implementation and SME performance in India. We found that ISMS implementation increased the profitability of recognized Indian firms, supporting study hypotheses. The findings provide valuable insights for SMEs seeking to enhance financial performance through ISMS implementation, emphasizing the moderating role of national culture in shaping these outcomes.

A framework to assess the effectiveness index (EI) of the Indian SMEs to integrate lean and sustainability through combined fuzzy logic and systems approach

PurposeTo become a sustainable lean manufacturing (LM) system, an organization must be first distinctly cognizant of the terms “lean” and “sustainability” as they relate to the state of affairs of their particular industry and business. Next, the organization must identify and acquire the necessary qualities it needs to become sustainable in lean philosophy and its practices in the organization. The LM paradigm has been a top priority for many businesses; thus, this article is based on actual research done in Indian small and medium scale organizations to see how widely it is understood and implemented.Design/methodology/approachA framework was developed based on literature review and academic research. A preliminary analysis of a small number of small and medium-sized enterprises (SMEs) that, conceptually, summarizes and demonstrates the concerted efforts that a company may undertake to increase its leanness. This conceptual model was employed to create a questionnaire that was administered to survey the SMEs of India. The information gathered through this questionnaire was analyzed using the model developed by the researchers. Then fuzzy logic and systems approach were used to find out the effectiveness index (EI) of the organization.FindingsThe EI for system leanness at different organizational levels within an organization is determined using fuzzy logic and systems approach for 48 SMEs in different clusters. The average EI of the system was found to be 0.336 on a scale of 0–1 which indicates that the current state of lean implementation and its sustainability is very low and poor in Indian SMEs. This article outlines the key model components and describes how they were applied to analyze the data gathered from an industry study.Research limitations/implicationsThe research aims to make lean continuously sustainable by surfacing and eliminating the wastes in the Indian SMEs whenever it appears rather than using it as a cleaning tool. The present study was focused on India’s southern industrial areas and it was difficult to gather the information around the country due to its diverse industrial culture and geography. Hence, more research and the comparative study of the same that takes into account the various regions of the nation’s industrial lean behavior can be conducted.Practical implicationsThe generalized sustainable lean framework analyzed using fuzzy logic and systems approach gives the current effectiveness of the leanness in SMEs of south India. This model can be effectively implemented in other areas of the nation to identify the scenario of lean and its sustainability and a final comprehensive model can be developed.Originality/valueThere is a dearth of comprehensive studies on the assessment of sustainability of the lean philosophy in Indian SMEs. With the help of combined fuzzy logic and systems approach, the model developed in this study evaluates the sustainability of the lean methodology using the EI used in SMEs by taking into account both the lean and sustainability factors as well as enablers like customer satisfaction, ethics, innovation and technology.

Pelatihan Peningkatan Kapasitas UMKM dan Kepariwisataan

On July 15, 2024, a community service activity was held in Kampung Dadap Timur with the topic "Training for Enhancing the Capacity of MSMEs and Tourism." The primary goal of this activity was to improve the skills and capacity of Micro, Small, and Medium Enterprises (MSMEs) and tourism destination management in the area. Initial observations identified fundamental needs in MSME management, budgeting for traditional food businesses, and applying the Sapta Pesona tourism concept. These findings served as the basis for designing relevant and targeted training materials. Preparations for the activity included intensive coordination among the service team to ensure the readiness of materials and equipment. Preparations also involved selecting and setting up the training venue, including audiovisual facilities and printed materials. The training covered: (1) MSME management strategies, including business planning, marketing, and product development; (2) budgeting techniques for traditional food MSMEs, including cost estimation, financial management, and pricing strategies; (3) application of the Sapta Pesona concept in tourism to enhance the quality of tourist experiences; and (4) practical sessions teaching how to make chicken dumplings and Es Kuwut. The training was designed to provide practical skills and in-depth knowledge to participants. Evaluation of the activity indicated that the training had a significant positive impact. Participants felt more confident and prepared in managing their businesses and tourism. However, the evaluation also identified some challenges, including the need for more specific case studies and ongoing support. It is recommended that future activities include follow-up sessions and more diverse training materials.

Unpacking the relation between learning orientation and product innovation: Does strategic flexibility matter?

Abstract Learning orientation emphasizes the importance of learning from any experience. It is grounded on commitment to learn, shared vision, open‐mindedness, and knowledge sharing. Organizational knowledge management literature based on social complexity theory posits that learning orientation makes companies generate new knowledge through spontaneous multi-level iterations and self-organization. Challenges related to the current business environment requires companies to constantly adjust to remain competitive. Still, the mechanisms making learning-oriented companies more capable to develop innovative product have been scantly explored. Pertinent literature actually conjectures this relationship as spontaneous, directed, and unmediated. Moreover, Small and Medium Enterprises (SMEs)rarely represent the context of analysis of research on this topic. Frequently lacking resources to systematically pursue product innovation, SMEs rely on solutions deriving from the combination of internal knowledge and external sources; thus, these companies depend on learning orientation principles to remain innovative. In this vein, the research aims to understand how learning orientation allows product innovation in SMEs through the achievement of strategic flexibility. Structural equation modelling was used to analyse data from 300 British SMEs. The results demonstrate the mediating role of strategic flexibility in the relationships between learning orientation and product innovation. The importance of innovation culture also emerged.

Knowledge Management Application Analysis on SME (Study on Tofu SMEs)

Companies currently apply knowledge management at various levels to improve competitive advantage, company performance, and business sustainability. At the small and medium enterprise (SME) level, knowledge management serves as one strategy to sustain the business and address the issue of potential knowledge loss, which could impact the sustainability of the SME business. Additionally, the purpose of knowledge management is to ensure that the next generation can carry on the business and understand the business process. In this paper, the focus is to analyze the knowledge management in one of the tofu SMEs that is still operating after transferring to the second generation with qualitative methods. This paper will use the concept of knowledge management from Fernandez and Sabhwerwal, which consists of four processes: knowledge discovery, knowledge capture, knowledge sharing, and knowledge application.

The Impact of the Issuance of e-CNY on the Business Strategy of Commercial Banks

This article comprehensively analyzes the issuance background, main features, technical architecture, and the impact on commercial banking operations and regulatory systems of China's Digital Currency Electronic Payment (DCEP or e-CNY). E-CNY is a legal digital currency that has the essential functions of money and a centralized two-tier operating system, making it compatible and stable with the current financial system. The article first outlines the main characteristics of e-CNY, reviews in detail the research and development process and pilot situations since 2014, and demonstrates its application progress in various scenarios. Furthermore, the article delves into the profound impact of e-CNY on commercial banks' deposits, loans, and international operations, suggesting that e-CNY may reduce the deposit base of commercial banks while providing Chinas small and medium-sized enterprises (SMEs) with a lower-cost financing channel, thereby promoting the development of the real economy. On the international front, promoting e-CNY is expected to enhance cross-border payments' efficiency and strengthen CNY's international competitiveness. Subsequent analysis of the practice of China Construction Bank (CCB) in the field of e-CNY showcases how commercial banks adapt to the era of digital currency. It also points out the need for further clarification and improvement of the regulatory framework to ensure the sustainable development of e-CNY. Finally, particular attention is given to the regulatory challenges e-CNY poses, especially regarding anonymity management, personal information protection, and delineating regulatory responsibilities.

Posthumanist Technologies in Business: AI and Cloud Computing for Global Optimization and Ethical Challenges

. This study explores the integration of artificial intelligence (AI) and cloud computing within posthumanist technologies, focusing on their impact on business optimization and information security. A systematic review of 40 studies across sectors such as banking and retail highlights the benefits of AI in automating tasks and enhancing decision-making, while cloud computing provides flexibility and scalability. However, risks like data privacy issues, algorithmic bias, and cybersecurity vulnerabilities demand attention. The research emphasizes the need for ethical frameworks and security strategies to mitigate these risks. Additionally, it stresses the importance of equitable access to these technologies for small and medium-sized enterprises (SMEs) and marginalized communities. The study provides actionable recommendations for businesses and calls for future research on the long-term societal implications of these technologies

The Role of the Ministry of Industry as the Main Stakeholder in the Development of IKM Centers in Indonesia

Small and medium industries (SMEs) are vital sectors in Indonesia's economy, with significant contributions to Gross Domestic Product (GDP) and job creation. The IKM Center, which groups small and medium-sized business units in one location, is expected to improve production efficiency and industrial competitiveness. However, many centers are experiencing problems in management and revitalization. This research aims to explore the role of the Ministry of Industry as the main stakeholder in the development of IKM Centers in Indonesia. Using a descriptive qualitative approach, this study examines the role of the Ministry of Industry as a regulator, facilitator, catalyst, investor, and strategic planner in developing SME Centers. The results of the study show that although the IKM Center has great potential, there are still challenges in policy implementation and management that require revitalization. The government is expected to continue to strengthen its role to support the sustainability and growth of the IKM Center in the long term

Open innovation and internationalization of SMEs: a systematic literature review

PurposeOpen innovation (OI) significantly impacts the internationalization of small- and medium-sized enterprises (SMEs) by connecting them with external resources and accelerating their innovation processes. This study aims to systematically evaluate and synthesize existing knowledge on the role of OI in the internationalization of SMEs.Design/methodology/approachThrough a systematic literature review method, this study critically evaluates 35 articles published between 2003 and 2023, synthesizing existing research from theoretical, contextual, characteristic and methodological perspectives.FindingsThis study identifies theoretical, methodological, characteristics and contextual research gaps and further proposes a research agenda for expanding knowledge in the field. Additionally, it provides an overview of the antecedents of OI adoption, SMEs internationalization outcomes and the influencing mechanisms of OI on SMEs internationalization found in the literature, thereby establishing a foundational knowledge base for future scholars and practitioners in this field.Originality/valueThis review contributes to the existing literature by consolidating current knowledge on the topic and advancing the understanding of the intersection between OI and the internationalization of SMEs.