SME Owners Research Articles

Developing model of logistics capability, supply chain policy on logistics integration and competitive advantage of SMEs

This study aims to analyze the influence of supply chain policies, logistical capabilities, on logistical integration and competitive advantage in SMEs in Indonesia. The measurement method uses structural equation modeling (SEM) analysis using SmartPLS 4.0 software to analyze the influence of supply chain policies, logistical capabilities, on logistics integration and competitive advantage. The research data was obtained from distributing online questionnaires via social media. The questionnaire was designed using a Likert scale of 7. The respondents used in this study were SMEs owners who were determined through simple random sampling. The online questionnaire was distributed to 490 UKM owners. The stages of data analysis are validity test, reliability test and significance test or hypothesis test. Based on the results of data processing carried out, it was found that supply chain policy has a positive effect on logistical integration, logistics capability has a positive effect on logistics integration, supply chain policy has a positive effect on competitive advantage, logistics capability has a positive effect on competitive advantage, logistics integration has a positive effect on competitive advantage competitive. The novelty of this research is the relationship model of logistics capability and supply chain policy on logistics integration and competitive advantage in SMEs organizations. The theoretical implication of this research is to support previous theories that logistics capability and supply chain policy play a role in encouraging increased logistics integration and encouraging increased competitive advantage in SMEs organizations. The practical implication of this research is the management of SMEs to implement logistics capability and create and implement supply chain policies to encourage increased logistics integration so that it will increase competitive advantage.

Random Effect Model for Ethical Stewardship Mediation among Ethiopia's SMEs based on Marketing Proficiency and Orientation

As the world economy continues to move towards deeper integration, MSE will benefit most from its involvement in the global economy. With ethical stewardship acting as a mediating factor, this study will investigate the effect of marketing talent and direction on venture success: the state of a select group of Ethiopian SME sectors. Using surveys and questionnaires to gather data, the study used a quantitative research design method. SME owners and leaders of the job opportunity creation and proficiency offices in both zones and towns are purposefully chosen to participate in this study through random sampling and purposeful sampling, and they are asked to complete questionnaires. Given the extent of the Zone, the researcher will pick five towns to study: Nagele, Adola, Shakiso, Bore, and Haro Wachu. The sample size was determined to be 382 responders in total. Due to Yamane's (1967) simplicity of use, the sample size will be determined by taking into account the anticipated total population of 2,322 business owners, job creators, and competent office executives in 5 towns. For the data analysis in the meta analysis, the random effect model was employed. The impact of marketing talent and direction on venture success was examined in this case using mata analysis, which also used forest plot, funnel plot, moderation analysis, publishing bias based on effect size, and ethical stewardship as a mediating factor. The results indicated that every factor had a positive and notable impact on a company's ability to sustain itself.

PROSPECTS FOR DIGITAL TRANSFORMATION IN RURAL SOUTH AFRICA'S SMALL AND MEDIUM-SIZED ENTERPRISES

The global wave of the coronavirus pandemic has constrained small, medium-sized enterprises to seek out ways to survive. The pandemic has propelled businesses to review their system of operation and embrace the endless benefits inherent in the digital world. However, there is a dearth of empirical studies on the propensities for digitalization in the context of rural-based SMEs in South Africa. To fix this gap, this paper explores the prospects for the digital shift among rural-based South African SMEs. A descriptive survey anchored in a quantitative research method was utilized using a Likert scale questionnaire as a tool for data collection, hence, thousand and sixty-seven (1067) SME owners operating in Ethekwini Municipality rural communities, KwaZulu-Natal province of South Africa were engaged as respondents. It was found that the major barriers to digital transformation amongst the small business owners in the rural setting include: the reluctance of SMEs owners to experiment with digital tools, the risk-aversive nature of the rural-based entrepreneurs, limited financial resources and inadequate awareness of available sector-specific digital tools. The outcome of this study further indicates that majority of rural-based South African SMEs are at risk of retrogressing due to inadequate knowledge of relevant digital tools with which they can enhance the level of competitiveness of their businesses. Thus, this paper advocates timeous succour for these SMEs in order to ensure their longevity. Recommendations and future research directions were also offered.

Managerial ties, business model innovation & SME performance: Moderating role of environmental turbulence

Despite the surge in academic and non-academic literature on business model innovation (BMI) and its implications on firm performance, research on the antecedents of BMI is still evolving. Building on institutional theory, we empirically advance extant knowledge by proving that managerial ties play a significant role in BMI and firm performance. We also propose that BMI mediates the relationship between managerial ties and firm performance. In addition, we argue that the relationship between managerial ties and firm performance is contingent on the degree of environmental turbulence. Our analysis of 280 Saudi-based small and medium-sized firms highlights that managerial ties have a positive impact on firm performance. The mediation tests indicated the significance of BMI in the relationship between managerial ties and firm performance. Results, however, do not confirm the moderating role of environmental turbulence. The study brings into perspective that SME owners and managers need to give more attention to managerial ties to support business model innovation.

Investigation of Factors Which Hinder SMEs’ Formalization in Chilenge Market of Lusaka District

The aim of the study was to investigate factors which hinder SMEs’ formalization in Chilenge Market of Lusaka District and research objectives were to identify factors that promote SMEs to operate in the informal economy; to analyze the competitive advantage that formal SMEs have over informal SMEs; and to find out if the legal environment supports informal SMEs’ transition to the formal economy. The study employed a descriptive research design with a sample size of 595 SMEs who were operating from Chilenje Market in Lusaka. Quantitative data were collected by using the questionnaire and were analyzed by using SPSS. The study concluded that the level of education for enterprise owners; awareness of government services; awareness of government services and the procedures involved in accessing government support; cost of formalisation for registered businesses; levels of satisfaction for government services; and laws and policies on enterprise formalisation were directly linked to enterprise owner’s decisions to either formalise their businesses or not. The study recommends that the government should consider offering business training for owners of SMEs for them to be able to make well informed decisions that can improve and lead to business growth. The study further recommends that the government should provide incentives to financial institutions that provide affordable credit for SMEs and start-up businesses; coming with up a communication strategy so as to improve communication of government support and services for SMEs; and proper implementation of laws and policies that that are meant to support SMEs and facilitate graduation of SMEs from informal to the formal economy.

Performance of green supply chain management: Investigating the role of reverse logistics and green procurement aspects in SMEs

The purpose of this study is to analyze the relationship between the performance of Reverse Logistics and Green Supply Chain Management, to analyze the relationship between Green Procurement Aspects and the performance of Green Supply Chain Management. This research method is quantitative, the analysis of research data uses the partial least square structural equation model (SEM-PLS) with a statistical data processing tool, namely SmartPLS 4.0 software. Research data was obtained by distributing online questionnaires through social media designed using a Likert scale of 7. Respondents in this study were 670 SMEs owners in Java Island, Indonesia. The stages of data analysis are validity test, reliability test and significance test or hypothesis test. The results of this study indicate that Reverse Logistics has a positive and significant effect on the performance of Green Supply Chain Management, Green Procurement Aspects has a positive and significant effect on the performance of Green Supply Chain Management. The novelty of this study is the relationship model between Reverse Logistics variables, the performance of Green Supply Chain Management and Green Procurement in SMEs which was not found in previous studies. Culinary SMEs are expected to be able to participate in supporting environmentally sound development. This is because the concept of Green Supply Chain Management (GSCM) is a concept that aims to minimize the negative impact of an organization and its supply chain on the environment related to climate change, pollution and resources that are not too large. In order to support GSCM, it is necessary to evaluate the extent to which this concept is carried out by Culinary SMEs. By conducting this evaluation, it is hoped that the constraints and obstacles faced by SMEs in carrying out GSCM can be identified. For this reason, it is necessary to have support from related parties, in this case the government, to conduct socialization and counseling and assistance in implementing GSCM.

The mediating role of green supply chain management in the relationship between eco-efficiency and SMEs sustainability performance

The purpose of this study is to analyze the relationship between eco-efficiency and sustainability performance, the relationship between eco-supply chain management and sustainability performance and analyze the mediating role of Eco-Supply Chain Management on the relationship between eco-efficiency and sustainability performance. The study method is a quantitative survey which is executed through the partial least square structural equation model (SEM-PLS) with a statistical data processing tool, namely SmartPLS 4.0 software. Research data was obtained by distributing online questionnaires through social media designed using a Likert scale of 7. Respondents in this study were 590 SMEs owners in Java Island, Indonesia. The results of the study indicate that eco-efficiency had a positive and significant effect on sustainability performance, green supply chain management (GSCM) had a positive and significant effect on sustainability performance. GSCM also plays a full mediating role in the relationship between eco-efficiency and sustainability performance. This research is expected to be a source of reference for further research in discussing issues related to the implementation of eco-efficiency and GSCM.

Investigating halal food Supply chain management, halal certification and traceability on SMEs performance

This study aims to provide implications for the application of the halal logistics traceability model to food commodities in Indonesia and to be able to recommend alternative policy scenarios for the government. The system dynamic approach is used to model the traceability of halal logistics for food commodities in Indonesia. The urgency of this research is that it will contribute to improving the quality of halal logistics which has implications for the halal industry in Indonesia. This research also has implications for food quality and safety which helps food security in Indonesia, the relationship between Halal Certification and Traceability on SMEs Performance, analyzing the relationship between Halal food supply chain management and Halal Certification and Traceability. This research method is a quantitative survey, research data obtained by distributing online questionnaires to 390 food SME owners who have implemented the Halal Assurance Management System. Data analysis used a structural equation model (SEM) with SmartPLS 3.0 software. The stages of data analysis are validity, reliability and significance tests. The sampling technique used is non-probability sampling. The questionnaire used in this study uses a Google form which will be distributed to respondents. This questionnaire measurement method uses a Likert scale of 5, namely Strongly Disagree (STS), (2) Disagree Answers (TS), (3) Neutral Answers (N), (4) Agree Answers (S), Strongly Agree (SS). The independent variable used in this research is halal supply chain management. The dependent variables used in this study are halal certification and traceability and SMEs Performance. The results of this study indicate that Halal food supply chain management has a positive and significant effect on the performance of SMEs, Halal Certification and Traceability have a positive and significant effect on SMEs Performance, Halal Certification and Traceability have a positive and significant effect on Halal food supply chain management.

Exploring the role of supplier integration, customer integration on operational performance by mediating the SMEs supply chain flexibility

This research investigated the relationship between supplier integration and customer integration on operational performance by mediating supply chain flexibility in SMEs in Indonesia. The method used in this research used quantitative methods using a conceptual framework and analysis of research data was performed using structural equation models (SEM) with SmrtPLS 3.0 software tools. Respondents to this study were 650 SMEs owners in Indonesia who were determined using the simple random sampling method. Data collection in this study was carried out on primary data in the form of respondents' statements obtained from answers to online research questionnaires designed using a Likert scale of 7. The results of this study stated that Supplier Integration had a positive and significant effect on supply chain flexibility. Customer Integration had a positive and significant effect on Supply Chain Flexibility. Supply Chain Flexibility had a positive and significant effect on operational performance. Supplier integration had a positive and significant effect on operational performance. Customer integration had a positive and significant effect on operational performance.

Acceptance of Interest-Free Banking among Small and Medium Enterprises: A Structural Equation Model

Interest-free banking in Nigeria is evolving, which is supposed to be solid and ready to compete with conventional commercial banks that have dominated the market for more than a century. SMEs had difficulty in getting the funding they required to grow. The study examines the determinants of SMEs' acceptance of interest-free banking in Nigeria. The study used purposive sampling and adapted a questionnaire to collect data from a sample of 323 SMEs registered with the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN). A structural equation modelling via analysis of moment structures (SEM-AMOS) was used for data analysis and hypotheses testing. The study found a significant positive relationship between SME owners' religion, financing opportunities and acceptance of interest-free banking. The study also finds a positive but insignificant effect of a service cost on the acceptance of interest-free banking. Knowing the drivers of SMEs' acceptance of interest-free banking could guide banks' marketing strategies to compete with other types of banks in the industry. The study recommends that interest-free banks ensure the provision of products and services that comply with the religion of their existing and potential customers.

Role of Management Accounting Systems in Sustainable Survival of SMEs in Pakistan: A Conceptual Framework

This conceptual paper proposes a new framework for ensuring Pakistani SMEs' sustainable survival. SME owners always strive to survive in the long run, but most SMEs cannot sustain themselves due to resource constraints. In the ensuing survival of SMEs, the role of management accounting is critical. Management accounting provides financial and non-financial information for planning, controlling and decision-making. This information can persuade SME owners to think in a strategic way which can enhance their strategic thinking. Arguably, management accounting can cognitively engage SME owners by enhancing their strategic thinking, leading SMEs to enhance sustainable survival. Based on these arguments, a conceptual framework has been proposed in which strategic thinking mediates the relationship between management accounting systems and sustainable survival. This conceptual paper has endeavored to advance the understanding of strategic thinking in management accounting scholarship. Furthermore, this paper has also provided practical guidelines for SME owners to concentrate on sustainable survival by developing management accounting systems and focusing on strategic thinking.

IMPROVING GREEN INNOVATION PERFORMANCE BY SMES IN INDONESIA

This article aims at improving the performance of green innovation by SMEs in Indonesia. It describes new environmental issues that have received significant interest in the green operation, based on the great interest in the topic, explicitly on green innovation practices in SMEs in Indonesia, enabling the current study proposes the evaluation of green innovation practices focusing on human resource management and government regulation and innovation processes in green marketing orientation. Using an empirical interpretation designed under a quantitative method with hypothesis testing using the partial least squares structural equation modeling (PLS-SEM) method with a total sample of 163 SMEs, the authors describe the obtained results that green marketing orientation, government regulation, and human resource management significantly and positively affect the green innovation platform of SDGs in SMEs in Indonesia. Government regulation mediated the relationship between green marketing orientation and human resource management in Indonesian SMEs’ green innovation. The authors illustrate that the proposed green innovation by SMEs in Indonesia makes it possible to improve that women significantly contribute to pushing the economic 86 respondents (52,8%), with young age respondents 90 (55.2%). The new method effectiveness evaluation confirmed by the calculations with the Directorate General of Treasury, Ministry of Finance RI data showed women managed 95% of SMEs of 64 million SME owners since 2021. New research results indicate that green innovation is expected to be a transformation of the re-establishment of global developments beneficial for future generations and can be used for SMEs, also playing a prominent role in maintaining economic stability. Novelty and scientific contribution of 61.1% as a pillar of national economic growth to accelerate the sustainable development progress.

Effects of supply chain transparency, alignment, adaptability, and agility on blockchain adoption in supply chain among SMEs

This study aims to investigate the extent to which the contributions of blockchain technology to supply chain parameters influence blockchain adoption among SMEs. Drawing on contingency theory, the study investigates the moderating effect of market turbulence. The data were collected from 204 SMEs in Malaysia’s manufacturing sector and analysed using the partial least squares technique. The results showed that the intention of SMEs’ managers to adopt blockchain is influenced by the contributions of blockchain to supply chain transparency and agility. Supply chain transparency, alignment, adaptability, and agility are interrelated. Market turbulence moderates positively the association between agility and intention to adopt blockchain. This study extends the literature by decomposing the concept of relative advantages and investigating the influences of blockchain benefits on blockchain adoption. The moderating effect of market turbulence indicates that the influence of blockchain on agility is more important for SMEs operating in a turbulent environment than the SMEs in a stable market. The findings help the policymakers and blockchain vendors in developing effective plans and strategies to speed up the adoption of blockchain among SMEs. Furthermore, the results give confidence to the managers and owners of SMEs that blockchain can be a valuable competitive advantage source.

Human Capital dan Kinerja UKM: Peranan Praktik Akuntansi Manajemen sebagai Pemediasi

This study aims to examine the role of Management Accounting Practice (PAM) as a mediator in the relationship between human capital and SME performance. The study population is SMEs in the province of East Java, the sample technique using convenience sampling method. The data collection method uses e-survey via Whatapss and Line social media because it is the most popular in Indonesia. The data that was collected was 108 SMEs. Hypothesis testing uses partial least squares – structural equation modeling (PLS-SEM). The test results show that human capital has a significant and positive effect on SME performance, PAM has a significant and positive effect on SME performance, and PAM has a role as a partial mediation between PAM and SME performance. The research results have theoretical implications, namely human capital is an antecedent variable that influences the use of PAM and PAM has a role as a partial mediation. Meanwhile, the practical implication is that human capital in the context of SME owners has an important role for the survival of SMEs during a pandemic. And the use of PAM will help SMEs to be able to maintain their viability.
 Keywords: Covid-19 pandemic; Human Capital; Management Accounting Practices; SMEs’ Performance

Effect of Entrepreneurial Strategies on the Performance of Smes in Kogi State, Nigeria

This study investigated the effect of entrepreneurial strategies on the performance of SMEs in Kogi State. This study adopted survey research design to achieve its aim. The population of the study was 844; from which the sample size of 260 was selected. Multi-stage sampling technique was used. The analytical technique that was employed to achieve the study’s objectives was multiple regression analysis. Findings show that product differentiation strategy, adaptation strategy, human resource strategy, and entrepreneurial marketing strategy have significant weak effects on the return on investment of SMEs in Kogi State. Findings further show that product differentiation strategy, human resource strategy, entrepreneurial marketing strategy and adaptation strategy have significantly strong effects on the market share of SMEs in Kogi State. The study concluded that entrepreneurial strategies have the propensity to increase the business performance of SMEs. The study recommended that SME owners should adopt the combination of entrepreneurial marketing strategy and product differentiation strategy to achieve increasing return on investment, market share and competitive advantage of SMEs in Kogi State; and give less attention to the adoption of both adaptation strategy and human resource strategy.

THE IMPACT OF BRAND AUTHENTICITY AND BRAND COMMUNITY ON BRAND TRUST AND MSME GROWTH IN BUKALAPAK PARTNER APPLICATION USERS

The massive growth of SMEs gave an opportunity to the tech industry in creating innovations. Applications with advanced and user-friendly features offered SMEs owners an opportunity to enlarge their businesses. This study’s objective is to discuss the impact of brand authenticity and brand community towards brand trust and SME growth in case of users of Mitra Bukalapak applications. This study uses bootstraping methods as the framework of theory analysis. In data collection, the study is using purposive sampling methtods to 362 community members of Mitra Bukalapak users. The result of this study found that brand consistency, brand customer orientation, brand community has a positive impact on brand trust, and brand trust has a positive impact on SME growth. Therefore, the study will contribute to current knowledge in the tech industry to build the brand and provide information on the impact of brand value development for the SME owners.

Implementation of CSR Practices by SME Owner Managers: A Cognitive Mapping Approach

Cette étude exploratoire vise à analyser les processus décisionnels des dirigeants de petites et moyennes entreprises (PME) concernant leur engagement en matière de responsabilité sociale des entreprises (RSE). La question de recherche est la suivante : Qu’est-ce qui incite les propriétaires-dirigeants de PME à se décider en faveur de l’engagement RSE ? En utilisant la cartographie cognitive comme un outil pour analyser les modèles cognitifs des dirigeants, cette recherche démontre que les dirigeants de PME sont motivés par un ensemble de raisons diverses pour intégrer la RSE dans leur entreprise. Pour certains managers, l’engagement dans les pratiques de RSE est une initiative stratégique – pour atteindre les objectifs de l’entreprise et améliorer son image – tandis que pour d’autres, l’intégration de la RSE est une conviction personnelle plutôt qu’une initiative stratégique. La principale contribution de cette étude réside dans la proposition d’une approche cognitive utilisant des cartes mentales pour analyser les schémas cognitifs des dirigeants de PME dans les prises de décisions en matière d’engagement RSE. D’un point de vue théorique, l’analyse des schémas cognitifs démontre l’importance de la cognition dans la mise en œuvre de la RSE par les PME et souligne à quel point il est essentiel de considérer la vision idiosyncrasique d’un dirigeant pour comprendre sa prise de décision. Au niveau managérial, la mobilisation des cartes cognitives dans l’approche RSE pourrait permettre aux dirigeants de PME d’identifier les éléments clés de leurs stratégies RSE, et ainsi de mieux comprendre leur structure de pensée, notamment sur les décisions RSE. Cette étude présente certaines limites, encourageant des recherches futures. Le caractère exploratoire de la recherche, avec l’analyse de deux cas, constitue un échantillon de petite taille. Les recherches futures peuvent utiliser la cartographie cognitive pour créer plusieurs cartes de différents dirigeants de PME afin de mener une analyse comparative de leur engagement en matière de RSE.

Can playing defense yield gains? Examining the relationships among regulatory focus, innovation, and SME performance

ABSTRACT Innovativeness and performance are keys to understanding the capability of SMEs. However, scant research examines the motivational frames that enhance behaviors, such as innovation, in SMEs. Regulatory focus theory provides the lens through which to we examined how SME owner motivation impacts innovation and firm performance, given that the SME owner primarily displays either a promotion or prevention focus. As such, we hypothesize the moderating effects of dominant regulatory foci radical on the relationship between innovation and SME performance. Based on a sample of 422 small business owners, we find a positive and significant direct relationship between both incremental and radical innovation on performance. Further, we report that prevention focus heightens the positive relationship between incremental innovation and performance, while radical innovation negatively impacts the relationship between radical innovation and performance; thus, highlighting the critical nature of strategic alignment that exists between regulatory focus strategy, innovation type and performance outcomes. This study brings the entrepreneur back into focus for small business research and investigates the intersection of firm-level and individual-level units of analyses.

SMEs’ Innovativeness and Technology Adoption as Downsizing Strategies during COVID-19: The Moderating Role of Financial Sustainability in the Tourism Industry Using Structural Equation Modelling

This study aims to identify why firms, specifically SMEs in the hospitality and tourism industry, downsized during the recent global economic distress caused by COVID-19. This study applied a quantitative methodology by distributing online questionnaires to SME owners and managers who operate in the tourism industry of the UAE. We analysed the collected data using structural equation modelling. A total of 320 questionnaires were analysed using the PLS-SEM analytic tool. Our findings revealed that the investigated constructs, namely financial sustainability, SMEs’ innovativeness, and technology adoption predict the implementation of downsizing strategies during economic distress. However, financial sustainability failed to expedite SMEs’ innovativeness and technology adoption during this period. Therefore, the findings of this study show the impacts of financial strength, technology adoption, and innovativeness on implementing downsizing strategies, and provide suggested recommendations in light of the observed results.

The Role of Leader Member Exchange (LMX), Organization Citizenship Behavior (OCB) on Organizational Commitment and Performance: An Empirical Study on Indonesian SMEs

The purpose of this research is to analyze the relationship between leader member exchange (LMX) on organizational citizenship behavior (OCB), organizational commitment on organizational citizenship behavior (OCB), leader member exchange (LMX) on performance, organizational commitment on performance and OCB on performance. This study used a quantitative method and the respondents to this study were 370 SMEs owners in Jabotabek who were selected using a simple random sampling method. Research data was obtained by distributing questionnaires online through social media. The questionnaire was designed using a Likert scale from 1 to 7. Data analysis used a structural equation model (SEM) with the data processing tool SmartPLS 3.0 software. The stages of testing the data are validity, reliability and hypothesis testing. The independent and dependent variables in this study are LMX, OCB, Organizational Commitment and performance. The results of this study indicate that leader member exchange (LMX) has a positive and significant effect on organizational citizenship behavior (OCB), organizational commitment has a positive and significant effect on organizational citizenship behavior (OCB), Leader member exchange (LMX) has a positive and significant effect on performance, Organizational commitment has a positive and significant effect on performance, OCB has a positive and significant effect on performance.