SME Owners Research Articles

Can Online Commerce Help SME Owners in the Wood Industry Weather the COVID-19 Crisis?

Can Online Commerce Help SME Owners in the Wood Industry Weather the COVID-19 Crisis?

Can Online Commerce Help SME Owners in the Wood Industry Weather the COVID-19 Crisis?

Petang and Abiansemal Sub-Districts, Badung Regency, which are dominated by wood craft industry players in the SMIs sector as the backbone of the economy, are seriously affected not only in terms of total production and trade value but also on the number of workers who have lost their jobs due to this pandemic. The concept of business resilience in direct relation to the company's ability and resilience in the face of the Covid-19 pandemic is very important in mediating E-Commerce Based entrepreneurship. This condition will help SMEs to implement various policies in an effort to improve the quality of life of business actors. In this article, a literature review and interaction of quality of life, business resilience and E-Commerce Based entrepreneurship will be discussed.

Accountants and small businesses: toward a resource-based view

PurposeSmall- and medium-sized enterprises (SMEs) carry huge economic importance worldwide. At the same time, SMEs face specific challenges, some of which may be alleviated by employing accountants. However, research on the role and impact of accountants in SMEs has long remained fragmented and scarce. This paper aims to encourage more research on accountants in SMEs by providing the first comprehensive and systematic review of relevant research.Design/methodology/approachBased on systematic review methods, the authors critically examine 68 research articles dealing with accountants in SMEs.FindingsThe review identifies three dominant roles for accountants in SMEs: providers of reporting services, sources of SME owners’ self-validation and translators between capital providers and SMEs and advisors. Implicitly, many studies assume a value-enhancing effect of employing accountants in SMEs regardless of these specific roles. At the same time, available studies seldom make use of existing theoretical frameworks to more closely analyze the value-enhancing potential of human resources such as accountants. The authors, thus, propose the resource-based view as a robust theoretical framework to improve theory building in research on accountants in SMEs.Originality/valueTo the best of the authors’ knowledge, this paper is the first systematic review of accountants in SMEs. In addition, the authors develop a resource-based model on accountants in SMEs to guide future research on this topic.

ASSESSMENT OF INVESTMENT D ECISIONS AND FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN FEDERAL CAPITAL TERRITORY, NIGERIA

This study evaluated the Assessment of Investment Decisions and Financial Performance of Small and Medium Enterprises in the Federal Capital Territory, Nigeria. Multi-stage sampling technique was adopted and used. Data were collected through the use of structured questionnaires from 400 sampled SMEs. Data were analyzed using, Descriptive Statistics, Correlation Matrix and Logit Regression Model. The results show there is a positive correlation between annual return i.e. financial performance and new property acquisition and a negative correlation existed with new plant and acquisition. The result of the logit model shows that the factors influencing investment decisions among SMEs were the coefficient of education (P<0.01) probability level. The coefficient of the competition level was negative and statistically significant at (P <0.05). Furthermore, the coefficient of the initial investment capital (P<0.05). The coefficient of the infrastructure was positive and statistically significant at (P<0.05). Therefore, the study recommends that Policy should be formulated towards educating and training SMEs owners to have more knowledge about business enterprise operations in order to be able to assess their financial performance, external funding and capital should be provided to SMEs at a lower and affordable interest rate, SMEs owners should be encouraged to be willing to invest more into their business to expand their business for more profit, local polices and local infrastructure to enhance SMEs participation in Federal Capital Territory AMAC should be provided. Media blitz could also be harnessed to augment policy awareness among SMEs.

Pengaruh Fintech Terhadap Kinerja Keuangan Umkm Dengan Literasi Keuangan Sebagai Variabel Moderasi

This study aims to examine the role of financial literacy in moderating the effect of fintech to financial performance. Quantitaive approach and primary data are used in this research. The primary data is obtained from questionare. The sampling method is quota sampling. Sample consist of 60 Balinese Culinary SMEs in Sarbagita area which then divided into 15 samples for each area such as Denpasar, Badung, Gianyar and Tabanan. Furthermore, data is analyzed using multivariate analysis named SEM PLS. The result shows that fintech has a positif and significant effect to financial performace. Another result shows that financial literacy can moderate (strengthen) the positif effect of fintech to financial performance. These results support the planned behavior and financial innovation theory. SMEs owners with high financial literacy rate can optimaly use the effectiveness of fintech in order to increase their financial performance

STRATEGI GREEN ACCOUNTING SEBAGAI BAGIAN PENERAPAN ETIKA BISNIS PADA UMKM

The existence of SMEs is expected to boost the country's economy. This is evident from BPS data that SMEs in Indonesia account for 60% of state revenue. The growth of SMEs which continues to increase, seems to leave a negative impact on the surrounding environment. The fact that can be seen is from the disposal of production waste from a business. The application of environmental accounting will encourage the ability to minimize the environmental problems it faces. SMEs can use a green accounting strategy, namely by including environmental costs in the accounting system used. The existence of a green accounting strategy used in SMEs can increase the value of business ethics. This study uses the literature study method as the main source of data collection. In Indonesia, SME owners consciously understand the importance of being responsible for the environment, but SME owners do not understand how to report environmental costs. Most of the SME owners apply green accounting but do not report on the financial statements.

Indonesia Reaps the Benefits of Business Performance SME Manufacturing Industry Technology Revolution

The purpose of this study is to determine the extent to which SMEs in Indonesia apply lean manufacturing and industrial technology 4.0. The results of this study indicate that Indonesian SMEs partially and simultaneously have a positive impact. Lean manufacturing systems have an important relationship with the three pillars of Industry 4.0. Excluding equipment and methods and product design. Respondents in the study were 25 SME owners, directors, managers, and deputy managers, the statements and interview questions were based on all aspects of lean manufacturing. in this study only 3 indicators out of 9 Industry 4.0 indicators, namely, additive manufacturing, augmented reality, and simulation in Indonesian SMEs. This research uses SPSS software version 20.0 and E-Views version 10.0.

Entrepreneurial Resilience In MSMEs Food in Disaster-Prone areas in West Sumatra

This study resulted in the effect of social capital, entrepreneurial experience and knowledge on entrepreneurial resilience. West Sumatra is one of the disaster-prone areas in Indonesia, so it is necessary to examine whether social capital, entrepreneurial experience and knowledge have an influence on entrepreneurial resilience with the case of food SMEs. We need to do this research to find out whether in disaster areas social capital, experience and knowledge contribute to creating entrepreneurial resilience. This study used 384 samples of food SMEs spread over 5 disaster areas in West Sumatra. Data were collected using a questionnaire which was processed using the SPSS tool with the questionnaire measurement scale being the Likert scale. The unit of analysis is the owner of food SMEs in West Sumatra specifically in disaster areas. By collecting as many as 384 respondents it is believed to be representative because the number of food MSMEs is definitely not contained in any information because it is rapidly growing. The results of the study reveal that the variables of social capital, entrepreneurial experience and knowledge have an effect on entrepreneurial resilience by 43.4%, while the rest are influenced by other variables that have not been taken into account in this study. Further research can be done by including other variables such as business performance, or entrepreneurial orientation.

Values Creation and Sustainable SMEs Operational Resilience in the new normal: Empirical evidence from Nigeria

This study investigated the relationships between value creation and sustainable SMEs operational resilience in Nigeria. The study adopted a cross-sectional research design. Four hundred and twenty (420) SMEs operators were recruited for the study using purposive and convenient sampling methods. Smart PLS (3.0) was adopted as a statistical tool for the analysis. The findings revealed that value creation had a considerable influence on sustainable SMEs operational resilience. This study contributes to the existing knowledge on the established business models and SMEs’ resilience in a developing economy like Nigeria. This study recommends that the owners of SMEs should be flexible and constantly review their business models in line with the new trend in the business world to create values for the existing and potential customers. The study concludes that value creation contributes significantly to Nigeria's sustainable SMEs operational resilience.

Examining Entrepreneurial Success Factors of Women-Owned SMEs in Rattan Craft

The rattan craft industry is one of the most significant contributors to the economy, and women own this business. However, the success of the rattan craft SME is influenced by internal and external factors. This study aims to determine the effect of the personal aspects, environmental aspects, and government support on entrepreneurial success in rattan craft SME women. Data collection was carried out using a questionnaire. The sample used was 100 women SME owners of rattan craft. The sampling technique in this study is to use the accidental sampling technique. The analytical method used is multiple linear regression analysis (SPSS). The results showed that personal and environmental aspects, as well as support from the government, determine the success of rattan craft SMEs that belong to women entrepreneurs. The most considerable influence is from the personal aspect, in which family background and support play an essential role.

The Influence of Entrepreneurial Orientation an Innovation Capability by Absorptive and Networking Capability: A Case Study of Tempe Chips SMES in Malang

This study aims to analyze the effect of entrepreneurial orientation, absorptive capability, and networking capability on innovation capability; examine the effect of entrepreneurial orientation on innovation capability mediated by absorptive capability and networking capability. The sample in this study was 89 owners of SME owners of tempeh chips in the Sanan Industrial Center of Malang. Data analysis using Partial Least Squares (PLS). The results show that entrepreneurial orientation has a direct positive effect on innovation capability; entrepreneurial orientation does not affect absorptive capability; entrepreneurial orientation has a direct positive effect on networking capability; absorptive capability has a direct positive relationship to innovation capability; networking capability has a direct positive impact on innovation capability; entrepreneurial orientation does not affect innovation capability through absorptive capability; entrepreneurial orientation has a positive effect on innovation capability through networking capability.

Knowledge Resources, ICT, and Their Links With SME Performance: The Role of Absorptive Capacity

In the industrial revolution 4.0, firms and SMEs are required to have dynamic capabilities to respond to environmental changes and increasing competitive pressures. Reconfiguring ICT and knowledge resources and capabilities is a must for firms in order to achieve performance and competitive advantages. This study aimed to bridge the research gap between knowledge resources and performance with absorptive capacity as an intervening variable. Moreover, this study also examined the effect of knowledge resources and ICT on absorptive capacity and performance. This study collected primary data from SMEs in Jepara, Rembang, and Semarang, Indonesia, through questionnaires, in-depth interviews, and focus group discussions. 285 SME owners participated. The data were analyzed employing SEM with multiple regression, which revealed that ICT significantly affected absorptive capacity and SME performance. Knowledge resources had a significant effect on absorptive capacity and SME performance. Furthermore, absorptive capacity had a significant effect on SMEs performance.
 Keywords: knowledge resource, ICT, dynamic capability, performance, SMEs

Ordinal Logit Modelling of Socio-Economic Determinants of Tax Evasion Among SMEs in Ghana: Evidence from Sunyani Municipality

Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent. Taxes are mostly difficult to take from the informal sector since individuals must honour them through self-payment. Due to this, some individuals and cooperate bodies fails to pay voluntarily thereby evading tax. Thus, this paper sought to assess the key determinants of tax evasion and its effect on the Ghanaian economy based on evidence from Sunyani Municipality. The study therefore employed primary source of data collection. Cluster sampling technique was first utilized to group the respondents and subsequently applied systematic random sampling to select the final sample of 250 respondents. The results indicated that nine key determinants of tax evasion were identified. These include waste and corruption by government, complex tax system, high tax burden, compromised tax agents, inadequate tax education, non-consideration of taxpayers’ view, lesser punishment for tax evaders, owners’ unawareness to pay tax and the notion of only the rich pays tax. However, seven of these tax evasion determinants were significantly affecting or influencing the Ghanaian economy whereas the remaining two determinants of tax evasion were found not to contribute significantly, in terms of effect, on the economy. Also, the finding shows that tax evasion does not really depend on the type of business engaged in by SME owners.

Entrepreneurial competencies and performance of Ugandan SMEs: the mediating role of firm capabilities

The purpose of this study was twofold; (1) to establish the direct influence of Entrepreneurial competencies and Firm capability on SME Performance and (2) to examine the mediating role of Firm capability between Entrepreneurial competencies and SME Performance. A cross-sectional and explanatory design was utilized to collect and analyze data from 314 SMEs in Uganda. The sample size was proportionally distributed amongst three SME subsectors; manufacturing, trade, and restaurants. A positive and significant influence of entrepreneurial competencies and firm capabilities on SME performance was established. Among the seven entrepreneurial competencies understudy, innovative competency is highly associated with SME performance than other competencies. Interestingly, firm capabilities were found to be a powerful predictor of SME performance than entrepreneurial competencies. In addition, a partial and significant mediating role of firm capabilities was also found. Theoretically, the study provides maiden evidence of the indirect influence of a firm’s capabilities on the association between entrepreneurial competencies and SME performance. In practice, managers and SME owners should address their competency deficiencies to develop more capabilities like management and marketing capabilities which could enhance SME performance. The study provides initial evidence for the mediating role of firm capabilities in the association between entrepreneurial competencies and firm performance.

CONSTRUCTIVE CONFLICTS AND ORGANIZATIONAL-LEARNING IN SMALL AND MEDIUM FIRMS IN KOGI STATE

This study focuses on constructive conflicts and organizational learning within SMEs in Kogi State. It examines the effects of trust and credibility, teamwork, performance improvement and common goals on constructive conflicts within SMEs in Kogi State; and ascertained the relationship between gender diversity and constructive conflicts within SMEs in Kogi State. The study uses a survey research approach and multi-stage sampling was adopted, the sample size of 367 was selected. Data were analyzed using both descriptive statistics, Stepwise Multiple Regression (SMR) and Pearson Correlation Matrix. Findings show that trust and credibility, teamwork, performance improvement and common goals have strong and significant effects on constructive conflicts within SMEs in Kogi State. Further, it shows that gender diversity has a significant relationship with constructive conflicts within SMEs in Kogi State. The study concluded that manageable amount of conflict is productive and recommended that SME owners and managers should be committed to long-term constructive conflict approaches, and should pay attention to gender diversity as a critical group contingency.

Impact of Government Support, Business Style, and Entrepreneurial Sustainability on Business Location of SMEs in South Africa’s Mpumalanga Province

Finance, incubation, managerial support initiatives, and technological innovation have all been identified as major drivers of SMEs’ business location. Despite the importance of SMEs, little attention has been paid to business research regarding the impact of government support, business style, and entrepreneurial sustainability on SME activities in rural, semi-urban, and urban areas. Identifying the necessary support for SMEs in rural, semi-urban, and urban areas is critical for the government as well as stakeholders and SME owners in assessing their survival status and other goal-setting achievements. The article’s central question is whether government support, business style, and entrepreneurship sustainability affect SME operations differently depending on location (rural, semi-urban, or urban). The MANOVA technique was used for the analysis to determine whether there is a significant difference between groups on a composite dependent variable as well as the univariate results for each dependent variable separately. Because conducting a series of studies (ANOVA) reveals the possibility of an inflated Type 1 error, MANOVA is preferred. The test re-test reliability method (trustworthiness assessment of the questionnaire) and the Cronbach Alpha test (internal consistency of instrument sections) yielded satisfactory results of 0.70 and 0.875, respectively. Government support (GS), business style (BS), and entrepreneurial sustainability were used as dependent variables (SE). The independent variable was the business location. On the combined dependent variables, there was a statistically significant difference between SME location: F (3, 902) = 20.388, p = 0.001, Wilks’ Lambda = 0.88, partial eta squared = 0.06. When the results for the dependent variables were considered separately, they all reached statistical significance, using a Bonferroni adjusted alpha level of 0.017. BS: F (1, 904) = 13.29, p ≤ 001, partial eta squared = 0.03. GS: F (1, 904) = 30.28, p ≤ 0.001, partial eta squared = 0.06. SE: F (1, 904) = 8.08, p ≤ 0.001, partial eta squared = 0.02. The findings show that locational effects on government support have a knock-on effect on the business plan and long-term entrepreneurship. As a result, the government must reconsider its rural activities to ensure that support is distributed equitably across levels of location.

Factors Affecting Success and Survival of Small and Medium Enterprises in the Middle East

SMEs are one of the leading solutions for reducing unemployment and poverty and boosting economic growth. Due to this, the determinants of the survival and success of SMEs have received increasing scrutiny in recent years. Empirical evidence has been uncovered in different countries. Enriching this growing body of evidence, this paper explores the internal and external factors that affect the survival and success of SMEs in the middle eastern country of Oman. We used a quantitative approach to collect the data by distributing a survey questionnaire among SME owners and prospective entrepreneurs. The survey was distributed in different industries throughout Oman. The findings, based on 344 responses, show that for SME survival and success, the education system needs intervention. Other areas of intervention include transforming Omani business culture, focusing on managerial skills, and improving the procedures required for establishing a business. These findings offer vital implications for Oman’s economy and for SME owners. The findings of this study can help policymakers make the appropriate interventions at various levels to enhance SME survival and success in Oman. The study also provides insights for existing and prospective entrepreneurs to bridge the skillset gaps to keep pace with ever-changing market demands.

THE IMPACT OF ENTREPRENEURIAL MARKETING ON FIRM PERFORMANCE: MEDIATING EFFECT OF NETWORK DIVERSITY AND LEARNING CAPACITY; MODERATING EFFECT OF COMPETITIVE INTENSITY

This study investigates the role of entrepreneurial marketing as a predictor of firm performance. The research integrates variables of the dynamic interaction: mediating role of diversity of network and learning capability, moderating role of competitive intensity on the relationship between entrepreneurial marketing and performance of the firm.The study is explanatory in nature. To ensure the accuracy of quantitative results based on the experience of study participants, we employed a mixed method of qualitative and quantitative data collection. Data was collected in two stages: 1) field survey, 2) interviews of SMEs owners in Oman. The sample was purposively drawn from SMEs managers perceived to be knowledgeable about the tourism industry.No significant relationship was found between entrepreneurial marketing and firm performance. In addition, it was found that network selection mediates the relationship between entrepreneurial marketing and firm performance; however, learning capability does not.This study adds to the literature of the Omani market context on a strategic issue and provides managers with useful insights. Mixed methods provide a methodological contribution to understanding the dynamic relationship between variables presented in the entrepreneurship literature.

The Utilization of E-Commerce in The SMEs Development to Support Smart Village in Turi District, Sleman Regency

Smart Village in Turi District is a village development concept which supported by the utilization of technology, such as utilization of e-commerce by SMEs owners in Turi District. We found that SMEs owners in study area need to improve the utilization of technology such as e-commerce in order to promote Smart village concept. This research using quantitative analysis to compare utilization rate of e-commerce in each villages in study area. We also analyse the impact of e-commerce to the income of SMEs owners using ordinal regression and the marketing reach of SMEs using GIS for spatial analysis, with this method we provide the new results of the similar research. In addition, we identify the roles of stakeholders on utilization of e-commerce by qualitative descriptive analysis based on in-depth interview. This research shows that the utilization rate of e-commerce in four villages is various. It has effect on increasing income that experienced by SMEs owners tends to vary from one to another. The utilization of e-commerce affect on marketing reach which showed by the marketing area difference through spatial analysis using GIS. Based on our identification, several stakeholders supported the utilization of e-commerce on SMEs with their respective roles.

SME Engagement with Open Innovation: Commitments and Challenges towards Collaborative Innovation

The open innovation concept is a comparatively new model, and there is an absence of empirical evidence to support a conclusive determination of the factors that affect open innovation, especially in terms of behaviour and costs. Researchers have proposed a variety of methods and techniques for characterising open innovation, but those metrics are overly broad because new approaches that demonstrate current practices were not included. As a result, it is critical to recognise new methods in developing countries to assist SMEs in understanding open innovation and its practices. As such, this study aims to bridge the gap in the literature pertaining to behavioural and cost factors that impact the adoption of open innovation, with an appropriability regime as a moderating factor in determining the success of adoption. This research was undertaken to study the effects of organisational citizenship behaviours, organisational culture, managerial ties, and transactional costs (the predictor variables) on the adoption of open innovation (the criterion variable) and to study the moderating role of an appropriability regime on these relationships. The research used cross-sectional data from a survey of 376 SMEs in Malaysia. This study used quantitative methodology and suitable statistical methods; 376 SME owners, managers, and high-ranking executives participated and completed the survey. A simple random sampling technique was used, and PLS–SEM regression was employed to test the related hypothesis variables. The theories adopted in this research, namely the social exchange theory and the actor–network theory, pave the way for quantitative research. The results revealed that organisational citizenship behaviours predict open innovation positively and significantly. A highly integrative culture was also found to relate positively to open innovation. In addition, managerial ties and transactional costs were found to facilitate open innovation. With respect to open innovation, appropriability regimes were found to strongly moderate the relationships between managerial ties and transactional costs. However, appropriability regimes did not strongly moderate the relationships between organisational citizenship behaviours and organisational culture.