SME Owners Research Articles

Strategic Capabilities and Its Influence on Small and Medium Enterprises Competitive Performance: The Moderating Role of Dynamic Business Environment

Abstract
 At present majority of firms are operating in an evolving and vibrant environment that threatens their survival in the competitive economies. Also the increasing globalisation of business is being accelerated around the world and succeeding within a highly competitive environment calls for aggressive deployment of firms’ business strategy, core competences, resources allocation and utilisation that result to the firm attaining a comparative advantage over its competitors. However the erratic market and increasing competitions from multinational firms offering similar homogenous products is challenging to SMEs operation. Similarly, the market landscape for business operating locally or globally is relatively a complex one and a highly competitive avenue for SMEs to operate efficiently, because SMEs do have fewer resources and capabilities to deal with the market challenges as they arise. The study aimed at empirically analysing the influence of strategic capabilities on SMEs performance by developing a framework that takes into consideration the moderating effect of the business environment. The identified framework was validated from the empirical data gathered through the explorative questionnaire survey of 288 managers of manufacturing SMEs in Lagos State, Nigeria. The findings suggest that SMEs firms are able to address business environment challenges when they understand and explore the relevant strategic capabilities that can result to business growth and expansions. As a survival measure entrepreneurs and SMEs owners must be able to identify the pre-eminent capabilities i.e. resources, skills, competencies, knowledge that can be exercised operationally and utilised to achieve competitiveness and sustainability in the long run.

Assessing the Impact and Challenges of SMEs on Albania's Economy

The SME sector in Albania has a significant impact on the country's economy. The total number of economically active enterprises in Albania increased by 1.4% in 2021 compared to 2020, reaching 104,031 enterprises. Microenterprises experienced a decrease of 5.8% compared to 2016, while small and medium-sized enterprises showed growth with an increase of 27.09% and 23.24%, respectively, in 2021 compared to 2016. SMEs in Albania play a vital role in employment generation, accounting for 60.3% of total employment in the country. While microenterprises constitute over 92% of SMEs in Albania, they employ a relatively smaller proportion of the total number of employed individuals compared to their number. Small and medium-sized enterprises have shown an increasing trend in employment, with increases of 26.79% and 22.86% respectively compared to 2016. The SME sector in Albania contributes approximately 55% of the total turnover realized in the economy. Microenterprises will generate 21.97% of the total turnover, small enterprises will contribute 30.55%, and medium-sized enterprises will account for 26.50% of the turnover in 2021. The value added by SMEs in Albania has shown an increasing trend. Micro, small, and medium-sized enterprises experienced growth rates of 30.12%, 66.84%, and 66.63% respectively compared to 2016. Small enterprises consistently accounted for the highest percentage of investment during the analyzed years. However, there have been fluctuations, with large enterprises taking the lead in investment in 2017 and 2018. Overall, there has been a decreasing trend in investment growth in Albania, with negative growth rates observed in 2020 and 2021. Productivity: The labor productivity of SMEs in Albania has increased every year from 2016 to 2021. Larger enterprises generally exhibit higher labor productivity compared to smaller ones, benefiting from economies of scale, resource allocation, and access to advanced technologies and systems. Albania has made progress in implementing the Small Business Act (SBA) and has achieved high average scores in areas related to SME policy and support. Efforts to create a supportive ecosystem for SMEs include improvements in the institutional and regulatory framework, operational environment, public procurement, standards and technical regulations, and internationalization of SMEs. Limited accessibility to finance, technology, and knowledge remains a significant challenge for SMEs in Albania. Addressing this challenge requires efforts to improve access to finance through specialized lending programs and loan guarantee schemes and enhance financial literacy among SME owners. In conclusion, while SMEs in Albania make a significant contribution to the economy in terms of employment, turnover, and value-added, there are areas that require further attention and support, such as access to finance and investment. Efforts to address these challenges and promote a favorable environment for SMEs can contribute to their growth, competitiveness, and overall economic development.

Pemanfaatan Google My Business Untuk Meningkatkan Perekonomian Masyarakat Pada BUMDes Sumber Rejeki Desa Karangkemojing Kecamatan Gumelar

The community service activity, focusing on the utilization of Google My Business to enhance the economy of BUMDes Sumber Rejeki in Karangkemojing Village, aims to improve the skills of local SME owners in introducing their businesses to a broader market. The training content is designed to enable the community to reach a wider audience, with the expectation of boosting the village's income. The goal is for participants to effectively utilize Google My Business as a promotional tool for the village to external audiences, emphasizing appealing designs and quality content. The execution method involves community service at Bina Sarana Informatika University, collaborating with the managers of BUMDes Karangkemojing Village. The training covers content creation and product promotion using Google My Business, accompanied by monitoring and evaluation stages. Solutions offered include learning how to create engaging content and effective promotion management. The anticipated outcomes encompass press releases in online and electronic media, along with an increase in the income of BUMDes managers who have been equipped with knowledge and technology. This, in turn, is expected to enhance the well-being of the local community in Karangkemojing Village.

Implementation of Marketing Strategy Innovation and Business Model Development: Study of SMEs in Tourism Village

This research aims to formulate marketing strategies and develop business models for SMEs in Tourism Village, that is Ngargogondo Village. This research was conducted based on a qualitative descriptive approach for exploratory purposes. Primary data was obtained based on interviews and observations, secondary data was obtained from literature and government documents. Data was analyzed based on SWOT analysis and Business Model Canvas (BMC). The research results show that SMEs in Ngargogondo Village need to improve product aspects, marketing communication aspects and distribution aspects. The products offered require increased innovation and diversification to support the value proposition. In marketing, social media influencers are needed to increase audience awareness of these SME products and to improve distribution channels. The research results provide managerial implications for SME owners to implement innovative marketing strategies. By implementing the proposed strategy related to marketing aspects, SMEs in Ngargogondo Village are expected to develop and be sustainable to support Borobudur as a national tourism strategic area. The research results also provide theoretical implications in the form of methods that can be used to formulate marketing strategies and develop SME business models. Future research can replicate the method or combine it with other strategy formulation tools.

Performance of Women-Led Smes in Indonesia: The Role of Financial Inclusion, Financial Literacy, and Technology adoption

Purpose: Women entrepreneurs have an important role in increasing economic growth. This research aims to explore the relationship between financial literacy, technology adoption, financial inclusion and women SME performance. Theoretical framework: Resource based theory is used as the theory underlying the influence of technology adoption on financial inclusion. The Technology Acceptance Model (TAM) theory explains the influence of technology adoption on company performance. Upper echelon theory is used as the basis for the relationship between financial literacy, financial inclusion and SME Design/methodology/approach: The population was women-owned SMEs in Indonesia. A total of 250 female SME owners were drawn as respondents. This study used convenience sampling method. Data were collected using a structured questionnaire. Findings: The results showed the contribution of financial literacy and technology adoption to financial inclusion. There is an influence of technology adoption on the performance of women's SMEs. The direct influence of financial literacy on SME performance is not supported. The mediating role of financial inclusion in the effect of financial literacy and technology adoption on the performance of women's SMEs is supported. The direct influence of financial literacy on SME performance is not supported. Research, Practical & Social implications: This study can provide a real contribution to the government in developing women-owned SMEs by paying attention to financial literacy, technology adoption and financial inclusion of women SME owners Originality/value: This research provided novelty by examining the mediating role of financial inclusion in the effect of financial literacy and technology adoption on the performance of women's

The Role of Perceived Organizational Support, Corporate Social Responsibility and Work Ethics on Smes Performance

Objective: The aim of this research is to analyze the relationship between perceived organizational support on performance, corporate social responsibility on performance and work ethics on SMEs performance. This research highlights the importance of perceived organizational support, corporate social responsibility and work ethics in improving SMEs performance Method: This research uses a quantitative approach with a survey method by distributing questionnaires. The respondents of this research are 490 SMEs owners in Indonesia. The selection of respondents for this research will use convenience sampling. The instrument will be measured using a Likert scale with an interval of 1 to 5. Data analysis is carried out using the Partial Least Square (PLS) method using SmartPLS version 3 software. PLS is one of the partial least square Structural Equation Modeling (SEM) completion methods which in this case is more compared to other SEM techniques. Results: The results of the analysis show the p value < 0.50 and T value > 1.96 so that hypothesis 1 is accepted, namely perceived organizational support has a positive and significant relationship with performance, the p value < 0.50 and T value > 1.96 so that hypothesis 2 is accepted, namely corporate social responsibility has positive and significant relationship to performance and p value < 0.50 and T value > 1.96 so that hypothesis 3 is accepted, namely work ethics has a positive and significant relationship to performance. Conclusion: The results of the analysis show that perceived organizational support has a positive and significant relationship to performance, corporate social responsibility has a positive and significant relationship to performance and work ethics has a positive and significant relationship to performance. Companies can increase perceived organizational support, CSR and work ethics by improving environmental, social and economic performance, which can ultimately improve company performance. CSR is aimed at stakeholders, must be able to meet the expectations and needs of stakeholders. CSR activities can improve the company's image, because external stakeholders provide a good assessment of the company, as a result more consumers will buy the company's products or services so that the company's financial performance will increase.

The influence of meaningful work on the mental health of SME employees in the COVID-19 era: can coping strategies mediate the relationship?

BackgroundStress, depression, and anxiety are prevalent issues among SME employees during the COVID-19 pandemic. Even while having meaningful work that expressively contributes to individual growth has been related to improving mental health, employees’ work may also need to adopt coping strategies to increase outcomes. The purpose of this study was to examine the relationship between meaningful work (positive meaning, meaning-making, and greater good motivations) and mental health, as well as coping strategies (problem-focused and emotion-focused) as a mediator of this relationship.MethodsMeaningful work, coping strategies, and mental health were evaluated in empirical research based on a sample of 462 SME employees working in Malaysia. Structured questionnaires were used to collect the data and analyze it through Structural Equation Modelling (SEM) using AMOS 21.0.ResultsThe findings of the study show the importance of meaningful work in influencing the mental health of SME employees, particularly during a crisis like the COVID-19 pandemic. This suggests that the more they value and see their work as meaningful, the more capable they are of dealing with limitations and mental health problems associated with crises. The study also discovered a partial mediating role for coping strategies between employees’ mental health and meaningful work.ConclusionThis study encourages employees to constantly feel connected and discover continued possibilities to work and learn even during crisis situations. In order to improve human resource efficiency in emerging markets, managers and owners of SMEs must implement the model developed by the researchers.

The effect of ability, motivation and opportunity (AMO) on SMEs' innovation performance

While there is extensive research on SMEs' innovation, limited attention has been given to the specific implications of HRM practices in fostering innovation in this sector. This represents a critical gap, considering the unique challenges faced by SMEs in managing their human resources. Accordingly, in this study, we developed and validated a conceptual model that evaluates the ability of SMEs to enhance their innovation and innovation performance through the adoption of HRM practices that relate to employees' abilities, motivations and opportunities (AMO). Data was collected through a survey of manufacturing SMEs in France. Overall, the findings contribute to the literature by shedding light on the mediating role of innovation between HR‐enhancing practices and innovation performance in SMEs. In addition, the analysis highlights the importance of HRM practices in shaping workforce capabilities and influencing organizational performance. Moreover, it emphasizes the importance of structured HRM practices in attracting and retaining high‐quality human resources, akin to larger companies. These findings have practical implications for SME owners, managers and policymakers seeking to foster innovation and enhance organizational performance in the SME context.

Feasibility Study of Digital Administration and Digital Marketing of SMEs Products at The Investment Gallery of Manado State Polytechnic

The challenges for SMEs in Indonesia are growing, especially in terms of competing in an increasingly competitive and dynamic market. One of the efforts that SMEs can undertake to enhance their competitiveness is by leveraging digital technology in managing their businesses, from administrative systems to digital marketing activities for SME products. Therefore, this research aims to conduct a feasibility study of digital administration and digital marketing systems for SME products, with the research location being the Investment Gallery of the State Polytechnic of Manado, which serves as a showcase and sales platform for local SMEs' flagship products, managed by the Marketing Laboratory of the Manado State Polytechnic (Polimdo).This research was conducted using a survey method involving respondents from SMEs participating in the Manado State Polytechnic (Polimdo) Investment Gallery. The collected data were analyzed using both quantitative and qualitative descriptive analysis. The observational results indicate that the majority of SMEs participating have knowledge of digital technology, but only a small portion have implemented it in their businesses.In this context, the use of digital administration and digital marketing systems can help SMEs optimize their administrative processes and enhance efficiency in managing their businesses. Additionally, the use of digital technology can assist SMEs in expanding their markets and increasing their sales. However, despite the significant benefits of using digital technology in SMEs, there are still some challenges to overcome, such as the limited technological knowledge of SME owners. Therefore, the implementation of digital administration and digital marketing systems for SMEs requires a suitable approach to ensure optimal benefits.

Financial Literacy and Entrepreneurial Risk Attitude of Selected Small and Medium Sized Enterprises in Nigeria

Abstract The importance of financial literacy as a source of information for making financial decisions has been acknowledged, but little research has been done on how it affects SMEs’ attitudes about taking risks. In order to examine the financial literacy and risk-taking behavior of small and medium-sized firms in Ekiti State, Nigeria, the research created an integrated model from a knowledge-based viewpoint. A survey research design was used for this study with a multi-stage sampling procedure. The study analyzed the primary data collected from the questionnaire. 154 managers and owners of SMEs in Ado-Ekiti, Ekiti State, made up the sample. According to the results of multiple regression, financial behavior, knowledge, and attitude all have a positive and substantial impact on how risk-averse small and medium-sized businesses in Ekiti State, Nigeria, are about taking risks. The study’s findings revealed that a high level of financial management literacy has a critical and significant influence on enhancing the entrepreneur’s risk-taking attitude, which leads to the growth of small businesses.

Comparative Study on Workforce Transformation Strategy and SME Policies in Indonesia and Malaysia

Abstract This study aims to compare efforts to digitise SMEs in Indonesia and Malaysia, particularly in the Central Java and Kuala Terengganu regions, especially in the cultural context and perceptions of SME owners, in terms of workforce transformation. Data were collected on the creative industry SMEs in Central Java and Kuala Terengganu, with a sample size of 241 at each location. The collected data were then analysed using the ANOVA difference test and the SPSS regression test. This study’s results prove differences in the levels of agile leadership, organisational ambidexterity and workforce transformation in SMEs in Central Java, Indonesia and Kuala Terengganu, Malaysia. Agile leadership and organisational ambidexterity have also been shown to positively and significantly affect workforce transformation. The results of this study contribute to improving the theoretical understanding of SME workforce transformation in Indonesia and Malaysia, particularly the development of academic science in management. In addition, this study also provides information, recommendations, and references to SME entrepreneurs related to strategic planning to optimise performance in maintaining the sustainability of their businesses. This study also provides a practical contribution as a reference for improving the performance of SMEs in Indonesia and Malaysia.

Green Entrepreneurial Self-efficacy and Environmental Performance of SMEs: Mediating and Moderating Role of Green Innovation and Green Purchase Behaviour

Purpose: The main purpose of this study is to investigates how green entrepreneurial self-efficacy (GESE) influences environmental performance (EP) in the Gauteng province: the mediating and moderating role of green innovation (GI) and green purchase behaviour (GPB).
 Design/methodology/approach: The study followed the quantitative research design and a self-administered questionnaire was employed during the data collection process. Data was collected from one hundred ninety-five SME owners in a cross-sectional survey. The participants of this study were in the retail, service and manufacturing sectors. The data was analysed using SmartPLS 4.0.
 Findings: The empirical findings of this study show that there is a significant positive relationship between GESE and the EP of SMEs. The study further shows that the relationship between GESE and EP is partially mediated by GI and the relationship is also moderated by GPB at an average weight.
 Research limitations/implications: The study has the following limitations and suggests some new study areas. First, the cross-sectional nature of the survey limits the ability to separate cause-and-effect relationships, and a longitudinal study will help to improve the results. Second, the survey was done on firms in one industry and one country. To improve the generalisability of the findings, further studies can include other industries in other countries.
 Originality/value: This paper fills a gap in the literature by exploring external business variables mediating and moderating the relationship between GESE and EP and contributes to the discussion on the contradictory results regarding the relationship between GESE and EP.

Factors Affecting Small and Medium-Sized Enterprises Financial Resilience Post Covid-19 Pandemic in South Africa

This research paper aims to investigate the factors influencing the financial resilience of SMEs in South Africa in the aftermath of the COVID-19 pandemic. The study focuses on three primary factors: access to loans, the interest rates applied to these loans, and the structure of repayment plans. To achieve this purpose, a quantitative research methodology, guided by the positivism philosophical framework, was employed. The research selected 310 respondents who were SME owners representing various sectors. The data collection and analysis methods primarily involved multivariate regression analysis. The research revealed that access to loans, interest rates on loans, and the design of repayment plans exerted positive and statistically significant effects on the financial resilience of SMEs in the post-COVID-19 period. These factors displayed probability values of 0.005 and absolute values of 0.448, 0.456, and 0.432, respectively. These findings underscore the crucial role of these factors in determining the financial stability of SMEs. The study's implications are twofold. First, it suggests that financial institutions should streamline the process for SMEs to access financing, making it more accessible and accommodating. Furthermore, these institutions should tailor loan repayment options to better align with the unique needs of SMEs. Second, the research underscores the importance of offering financial education and support services to assist SMEs in enhancing their financial management skills and adaptability within the post-pandemic economic landscape.

Entrepreneurial Marketing Skills and Growth of Small and Medium Plastics Manufacturing Enterprises in Nigeria

Purpose: The purpose of this study was to determine the influence of entrepreneurial marketing skills on growth of small and medium plastic manufacturing enterprises in Nigeria.
 Methodology: Descriptive research design was applied by the study. The study target population was 18,476 plastics manufacturing SMEs in LAGOS State, Nigeria. Based on Yamane Formula adopted the sample size for this study was 397 respondents. Random sampling was used to select the 392 plastics manufacturing SMEs. The study therefore randomly selected 392 plastics manufacturing SMEs from a list of total lists of these is 18476 plastics manufacturing SMEs in LAGOS State, Nigeria. The study used semi structured questionnaires to collect primary data. The study used SPSS version 27 software to analyse the data. Both descriptive and inferential analyses were carried out. Results from analysed data were presented in tables and figures.
 Results: The inferential statistics results revealed a positive and significant relationship between entrepreneurial marketing skills on growth of small and medium plastic manufacturing enterprises in Nigeria at p<0.05. Entrepreneurial marketing g skills on growth of small and medium plastic manufacturing enterprises had a Pearson’s correlation of r=0.808 (p=0.000). The correlation results implied that implied that entrepreneurial marketing skills had very strong positive correlation with growth of small and medium plastic manufacturing enterprises in Nigeria. The finding implied that improving the marketing skills for SMEs entrepreneurs would results to high growth of heir enterprises. The R2 for the model was 0.653 indicating that 65.3% of growth of SMEs is explained by entrepreneurial marketing skills other factors held constant. This was a sign that the model was appropriate for establishing the relationship between entrepreneurial marketing skills on growth of small and medium plastic manufacturing enterprises in Nigeria. 
 Unique Contribution to Theory, Practice and Policy: Life Cycle Theory used in this study may be used to anchor future studies on describing the different stages of corporate life. The study recommends that SMEs owners should invest in capabilities that will enable gather market information in the industry they operate. This will ensure that marketing approach and their entire growth model is streamlined to optimize market segment that have the largest potential for growth. According to the study, policy makers should formulate policies that will ensure that SMEs are trained on entrepreneurial marketing skills and financial management to equip them with adequate skills need to grow their businesses.

Family determinants of entrepreneurial success - The mediational role of self-esteem and achievement motivation

The aim of the study was to empirically verify the model of family determinants of entrepreneurial success, thus analyzing the importance of different paths of parental influence on business effectiveness with the mediating role of self-esteem and achievement motivation. The study was conducted in Poland, on a group of 400 entrepreneurs (SME owners) who have been running their business in Poland for at least 3 years, randomly selected from CEIDG (Central Registration and Information on Business in Poland) electronic register of entrepreneurs. In the study the following tools were used: Questionnaire of Entrepreneurial Success by Staniewski et al.; Personal Data Sheet, created by the authors for the purposes of the study; Retrospective Evaluation of Parental Attitudes Questionnaire by Plopa (2008); Entrepreneur’s Family Communication Questionnaire by Staniewski et al. (2023); Rosenberg's Self-Esteem Scale (Polish version by Łaguna et al., 2007); Achievement Motivation Inventory (abbreviated version) created by Schuler et al. (adapted to Polish by Klinkosz & Sękowski (2013). The initially proposed model fell short in fitting data satisfactorily, although it was in general agreement with them. A modified and simplified version of the model, proved to be a better representation of the collected data and confirmed the general theoretical assumption posed in this work.

Balanced Scorecard and Competitive Strategies of Small and Medium Manufacturing Organizations

The competition between Jordanian Small and Medium Manufacturing Enterprises (SMMEs) and imported products from foreign countries especially from China is increasing, so Jordanian SMMEs have to use different strategic tools to be able to compete with imported products. Therefore, this research purpose is to explore the effect of using a Balanced Scorecard (BSC) as a strategic tool on Jordanian SMMEs’ competitive strategies. The study uses a quantitative descriptive and cause-effect approach, and it is cross-sectional research. Exactly 120 managers and owners from 100 SMMEs completed a questionnaire. Then questionnaires were checked and coded against SPSS. The results show that implementing the BSC affects the competitive strategies of Jordanian manufacturing SMMEs, where the BSC has assigned the greatest weight to the focus strategy, the cost leadership strategy, and finally the differentiation strategy. Moreover, the customer perspective has the highest impact on competitive strategies, then the financial perspective, followed by the learning and growth perspective, and finally the internal processes perspective. This article illustrates how using a BSC is essential to measure and manage organizational performance via analyzing weaknesses and strengths, which helps to achieve competitive strategies. Therefore, owners and managers should use BSC as a strategic tool before setting strategic goals and objectives to achieve a competitive strategy. Finally, this research will help managers and owners of SMEs to improve their competitive position compared to foreign companies.

Influence of UTAUT, perceived compatibility, and perceived credibility on m-commerce adoption

The adoption of mobile commerce (m-commerce) transaction is still not equal to an extremely potential market for online business in developing countries such as Malaysia. This research aims to examine the adoption of m-commerce transaction by SMEs in the service sector by extending the unified theory of acceptance and use of technology (UTAUT). Additional variables of perceived compatibility and perceived credibility were added to the traditional UTAUT which originally consisted of performance expectancy, effort expectancy, social influence, and facilitating conditions. Therefore, the purpose of this study is to examine the relationship between performance expectancy, effort expectancy, social influence, facilitating conditions, perceived compatibility and perceived credibility toward m-commerce adoption. This study implemented a quantitative approach and the data was collected from 245 SMEs who had previously used m-commerce. The result shows that performance expectancy, perceived compatibility, and perceived credibility have a significant influence on SMEs' mobile adoption, whereas effort expectancy, social influence, and facilitating conditions don't have a significant influence on SMEs' m-commerce adoption. In fact, SME owners believe that using electronic money in their business operations will improve their performance. IT professionals could intensify efforts to deploy m-commerce technology in the business organization to enhance productivity performance improvement of m-commerce transaction adoption. In fact, companies would benefit by making m-commerce transaction systems more helpful, secure, and compatible to use. By recognizing the factors that influence the adoption of m-commerce could help in addressing the challenges and barriers they present. Therefore, this research confirms the need to extend the traditional UTAUT in terms of m-commerce adoption.

Fostering Entrepreneurship through the Assessment of Business Risks for SMEs in V4 countries

SME owners and managers are intuitively aware of risks but do not make sufficient efforts to assess them realistically and implement strategies to reduce them. The relationship between SME risk perception and the consistency of this perception during the length of their business has not been investigated yet. The main aim of this article is to identify the most significant risks in the SMEs, to analyze the dependence among the degree of intensity of the observed financial, market and economic risks and the SME timeframe by selected statistical methods and tools. Building upon the empirical research implemented in 2017- 2018 and 2019-2020, it is possible to consider the market, financial and economic risks as the crucial risks negatively affecting the current business environment of the SMEs. The secondary aim of the article is to evaluate and compare the results of our research with the results of identical investigations in the Czech Republic, Hungary, and Poland. Drawing from these findings, market risks affect the SME business environment highly negatively and are considered the most significant risks in all the examined countries. SME entrepreneurs in the V4 countries should thus increasingly support the process of applying risk management to ensure higher stability, performance and resilience of their businesses. The results are valuable for SMEs and institutions providing business support to strengthen the competitiveness of entrepreneurs in the V4 countries. Concerning their impact, they are significant at the national and international level of the V4 countries and can assist SMEs in gradually moving towards the global trends in this field.

Effect of Digital Financial Innovation on the Financial Performance of Small and Medium Enterprises in Nairobi City Centre, Kenya

The study's objective is to determine how digital financial innovation has affected financial performance of SMEs in Nairobi City Centre, Kenya. The research was focused on evaluating the effect of digital payment systems, mobile banking, and online lending on SMEs' financial performance. The research was grounded on Technology Acceptance Model (TAM), Schumpeter's Theory of Innovation, and Diffusion of Innovation (DOI) theories to provide a conceptual framework for understanding the effect of digital financial innovation on SMEs performance. A descriptive research design was employed to analyze the data gathered from the target population, which consisted of SME owners in the retail industry located in Nairobi City Centre. The sample size was 300 SMEs, selected through a simple random sampling technique to ensure a representative representation of businesses based on their size and industry. The primary research instrument used will be a questionnaire, which allows the collection of quantitative and qualitative data on SMEs' utilization and experiences with digital financial innovations. The results revealed that digital payment systems, mobile banking, and agent banking did not have statistically significant relationships with SMEs' financial performance, as evidenced by their respective p-values (0.773, 0.090, and 0.405). These findings suggest that the adoption and utilization of these digital financial services alone do not significantly influence SMEs' financial outcomes. In contrast, online lending was found to have a positive and statistically significant effect on financial performance, with a p-value of 0.042. This implies that SMEs in the retail sector in Nairobi City Centre can potentially improve their financial performance by actively engaging in online lending activities. However, it is important to note that the overall model's R-squared value was low at 5.2%, indicating that the independent variables collectively explained only a small proportion of the variance in financial performance. The F-statistic (1.231) was statistically insignificant with a p-value of 0.303, suggesting that the predictors had an insignificant combined effect on explaining financial performance. In conclusion, while online lending shows promise as a means to enhance financial performance, SMEs should adopt a comprehensive financial management approach that considers various factors beyond just digital financial services to achieve sustained improvements in their financial outcomes.

Perceived enablers and barriers impacting sustainability of small‐and‐medium sized enterprises: A quantitative analysis in four European countries

AbstractSmall and medium‐sized enterprises (SMEs) often lag behind major corporations in implementing sustainability management practices, limiting their capacity to mitigate negative social and environmental impacts. A notable challenge is the lower percentage of SMEs with sustainability objectives. This research aims to examine the links among sustainability practices and performance of European SMEs. In addition, the causal relationships between enablers/barriers for sustainability practices are also examined. To achieve these objectives, a quantitative research approach was employed. Data were collected from 420 SMEs located in the United Kingdom, France, Spain, and Greece using a structured questionnaire. Statistical modeling and inference were used to analyze the responses, separately for each of the four countries. The study revealed several significant findings. Strong relationships were identified between enablers/barriers and sustainability practices. The study found consistent links between supply chain sustainability practices and SME performance across all participating countries. The research highlighted similarities and differences in findings across various economies and geographical regions. The study's findings have important implications; For policymakers insights from this research can inform policy decisions aimed at promoting sustainability among SMEs, thus contributing to broader social and environmental goals. For SME owners and managers the findings offer guidance for improving sustainable performance through operational, planning, and strategic decisions. Policymakers should consider initiatives that encourage SMEs to adopt sustainability practices. SME owners and managers should prioritize supply chain sustainability and work on overcoming barriers identified in this study. Further research should explore specific strategies for enhancing sustainability practices in different regions and economies.