Productivity Of SMEs Research Articles

Digital Transformation as a Catalyst for SMEs Productivity and Profitability in the Digital Era

Digital Transformation as a Catalyst for SMEs Productivity and Profitability in the Digital Era

The Role of Technology and Automation in Streamlining Business Processes and Productivity for SMEs

Purpose: This research investigates the vital role of automation in enhancing business process efficiency and overall productivity within SMEs. It also discusses how technology can help overcome bottlenecks arising from human operation, resource limitation, and operational inefficiency, which have commonly been experienced by SMEs. Materials and Methods: The study combines an extensive review of existing literature with case studies from various industries to evaluate the effects of automation tools on SME operations. These tools range from cloud-based solutions to AI-powered systems, providing insights into their impact across different business processes. Findings: Research has shown that automation improves productivity in SMEs by up to 30%, reduces manual errors by 25%, and enhances data accuracy by improving employee focus on strategic tasks. In addition, the standardization of processes through automation ensures less variability in output. Automation also impacts customer experience positively by ensuring speed in service delivery and quality improvement in products. High upfront costs, however, combined with a shortage in skilled personnel and integrating new technologies with existing systems, remain barriers to wider adoption by SMEs. Implications to Theory, Practice and Policy: Accordingly, the study recommends that the following measures be taken to counteract the problems posed: phase in automation, cooperate with technology providers who will devise cost-effective solutions, and invest in comprehensive training programs to fill the skills gap. Government incentives, such as tax breaks and subsidies, could also push SMEs toward broader automation. Thereafter, successful integration of automation will enhance the competitiveness of SMEs and create a sustainable growth path in the digital economy.

Improving SMEs Business Productivity with Microsoft Excel Training in the Big Data Era

The business complexity requires business actors to have special skills in managing and analyzing data in Big Data. This community service aims to provide in-depth training on the use of Microsoft Excel as a platform for managing and analyzing data. The ability to manage and analyze data will greatly affect business productivity in facing the challenges and opportunities that exist in the Big Data era. Participants will be equipped with knowledge and practical skills in utilizing various relevant Excel features, including pivot tables, vlookup, if, and sophisticated data analysis techniques. This training uses a mentoring approach through several processes: preparation, implementation, mentoring and evaluation, and post training mentoring. The results reveal significant effects: awareness of technology to increase SMEs productivity is built; the competence of SMEs actors in using Microsoft Excel increases; and SMEs actors are able to increase efficiency and effectiveness in managing, processing, and analyzing data so that they can optimize the decision-making process more effectively and accurately. However, in-depth material is still needed, so further training is needed to deepen the knowledge and skills of SMEs actors. This is important for SMEs to respond to the challenges in the increasingly complex global market.

Does tax avoidance affect productivity in SMEs?

Does tax avoidance affect productivity in SMEs?

Pengaruh Program Pelatihan UMKM dalam Pemanfaatan Teknologi Digital terhadap Produktivitas UMKM Kerupuk Rajungan Desa Sukajaya, Cilamaya Kulon

Based on observations, it is known that the main problem is the lack of a thorough understanding of sales technology that can increase the productivity of the crab crackers. This research intends to see if there is an effect of training on the utilization of digital technology on the productivity of umkm crab crackers in Sukajaya Village, Cilamaya Kulon. The total sample in the research was 93 people. Using quantitative method with simple linear regression analysis. According to observations, it is known that the case in the research is the lack of skills and understanding of digital technology that can increase productivity. based on the results of the simple linear regression test for productivity of 37.587%, based on the research conclusion shows that work learning has an absolute impact on the sales productivity of crab cracker MSMEs in Sukajaya Village, Cilamaya Kulon. Based on the results of the coefficient of determination (R2) value of 0.298, this case states that job training has an impact on productivity in the crab cracker SMEs of Sukajaya Village, Cilamaya Kulon Cilamaya Kulon as much as 29.8% while as much as 70.2% is influenced by other causes that are not tested. The conclusion of the research shows that training has an absolute effect on productivity.

Productivity and economic growth of manufacturing SMEs in an Ecuadorian locality

Background: This study examines the relationship between competitiveness, external growth, productivity, and communication in manufacturing SMEs in a Ecuadorian locality from the perspective of entrepreneurs. Methods: Quantitative methods and a Likert scale were employed, for which an instrument was generated, whose reliability was determined by surveys to collect data on the perceptions and opinions of SME owners and managers. Results: The results revealed an interdependence between competitiveness and SME consumption, as well as a crucial relationship between external growth and the GDP of these companies. Additionally, an essential connection was found between improving productivity and effective communication in SMEs. Conclusions: Consequently, the importance of SMEs focusing their efforts on improving competitiveness, considering internationalization strategies, and recognizing communication as a key component for their business success is highlighted. This study provides a comprehensive insight into the challenges and opportunities facing manufacturing SMEs, offering a solid foundation for future research and actions aimed at promoting their development and economic growth.

Pengaruh Transformasi Digital Pada Produktivitas Dan Profibilitas Perusahaan Kecil dan Menengah (UKM)

This study aims to analyze the effect of digital transformation on productivity and profitability of SMEs in the trading sector in Surabaya City. Data were collected through a survey involving 50 SMEs that have adopted digital technology. The results show that the use of digital technologies, including e-commerce, inventory management systems, and online payments, significantly improves the operational efficiency and profitability of SMEs. Most SMEs reported increased sales and profit margins after adopting digital technologies. However, lack of technological know-how and budget constraints are the main challenges in the digital transformation process. Therefore, support from the government and relevant institutions is needed to provide training and financial assistance to encourage wider adoption of digital technologies. This research provides an in-depth insight into the benefits and challenges of digital transformation for SMEs in Surabaya, and provides recommendations to accelerate the adoption of digital technology among SMEs

The Role of Ai in Transforming Smes: Opportunities and Challenges

Artificial Intelligence (AI) systems assist in enhancing data analysis with meaningful insights and promote real-time decision construction that implements blockchain technology in data security. This factor guides SMEs in managing big data by usage of predictive analysis and algorithms in reducing operational complexity in the USA. There are 33.2 million SMEs in the US and contribute 50% of the overall GDP in this country as per the 2023 report [1]. The application of AI and automation technology leads to improved work distribution and enhanced overall performance in handling the SME's services. This factor encouraged operational facilities to use the real-time tracking system and promote the level of the smart manufacturing process. The primary research used 101 participants to conduct a survey on SME employees for the transformation of SMEs with AI in analyzing opportunities and challenges. This analysis reflects that most of the employees felt encouraged to adopt AI and blockchain in expanding the overall productivity of USA SMEs.

The Production Efficiency of Small Medium Enterprises in West Sumatera Province

The purpose of this study is to determine the effect of capital, labor, and resources on the technical efficiency production of SMEs in West Sumatra and to see whether the SMEs production in West Sumatra is technically efficient. The type of data used in this study is panel data for 19 regencies/cities in West Sumatra from 2015 to 2021 using the Stochastic Frontier Analysis (SFA) approach. This research examines production efficiency technically at SMEs in the West Sumatra region. The result of this study indicates that the production factors of capital and resources have a positive and significant effect on the production of SMEs in West Sumatra, while labor has a negative and insignificant effect on the production of SMEs in West Sumatra. The result of the technical efficiency calculation shows that the mean level of technical efficiency of the SMEs production in West Sumatra from 2015 to 2021 is 0.543 or 54.3 percent, which means that production in SMEs is technically inefficient. This research implies that the government can compile regulations and road maps that can increase the productivity of SMEs in the West Sumatra region, and for SMEs to be able to engage more broadly with sustainable programs for production efficiency such as attending training and business guidance, using the rural business credit program from the government, as well as establishing cooperation partners for raw materials with other SMEs.

Product Quality of SMEs Food Production in The Perspective of Islamic Economics

This study aims to determine the quality of SMEs product in the food industry which are widely spread in Mataram City. The focus of the research is on tempeh product which are one of the leading products in the city. In addition to analyzing the quality of tempeh products, this study also analyzes aspect of quality of this product from an Islamic economic perspective. In determining respondents as data sources in this study, researchers used purposive sampling techniques. To answer the problem posed, the analysis tool used is the Ideal-Point Model, which is a consumer evaluation of what is perceived with what is desired. This model measures the difference between what is perceived and what consumers want. The result shows that the product quality of SME tempeh is very good. This is indicated by the quality value being at the upper interval class which means that the quality of the tempeh product is in accordance with the wishes of consumers. Based on the Islamic view, respondents have the perception of tempeh products as products with halal ingredients, a good process, and are a valuable offer and useful.

Increasing SMEs Productivity Through Digital Transformation Adoption of Software as a Service and Development of Entrepreneurial Attitudes

This study aims to test the influence digital transformation adoption of Software as a Service cloud accounting services and development of entrepreneurial attitude to productivity SMEs in Lubuklinggau as measured by indicators make transactions easier, speeds up transactions, providing additional profits when completing transaction, increase efficiency in do transaction For variables digital transformation, adoption of Software as a Service cloud accounting services. Planning indicators, beliefs, orientation on task, taking risk, leadership, And honesty For variables development of entrepreneurial attitude . As well as indicator efficiency, effectiveness, and economical for variables SMEs productivity. This research uses the Purposive Sampling method. Deep sample study was 37 respondent SMEs in Lubuklinggau. Data used in this research was primary data obtained from distribution questionnaire directly. This study used a quantitative approach. Analysis data was done using Smart PLS 3. The results of this study indicate that the effect of digital transformation adoption of Software as a Service cloud accounting services and the development of entrepreneurial attitudes on productivity of SMEs in Lubuklinggau influential positive. This study was expected can provide benefits for SMEs in Lubuklinggau with the digital transformation of adopting Software as a Service cloud accounting services so that realization enhancement productivity Which Good and develop attitude entrepreneurial with Good so that productivity increase with good too.

The effect of innovative mindset and behavior on innovation performance and competitive advantage: a case of halal SMEs owner-managers from Malaysian energy-intensive industry

Malaysia was ranked 32nd on the Global Competitiveness Index in 2022, which denotes that the level of R&D and productivity in SMEs in Malaysia needs to be improved. Therefore, more research is needed to ensure it remains competitive in the global halal marketplace by using innovative concepts as a culture to promote energy-intensive halal SMEs. This study examines the sequential influence of an innovative mindset, behavior, and performance on competitive advantage among SME owner-managers embarking on halal businesses. Data were gathered from SME owner-managers from the halal energy-intensive industry by conducting a self-administered and online-based survey involving 140 respondents. Data were analyzed with the partial least squares technique (SmartPLS 3.0). The results of this study show that innovative behavior was a direct result of an innovative mindset. On the other hand, innovative behavior produced innovation performance, which in turn produced a competitive advantage. This study shows that SMEs owner-managers of halal energy-intensive industries need possess both innovative behavior and innovative attitude as valuable assets. Moreover, a key component in their ability to gain a competitive advantage is their performance in innovation.

A methodology to customise commercial products of SMEs

Product development durations are being drastically reduced, thanks, amongst other reasons, to the use of design automation techniques. But this trend is observed in large companies and to a much lesser extent in SMEs. This article seeks to research the possibility of finding suitable automation technologies for this type of enterprises. Automating the development of commercial offers in SMEs can be a good starting point to the change in this trend. Focusing on this objective, the necessary requirements that a tool of this type must have are established. Different models of assistants have been developed and analysed on different products, deducing from their results an ideal system architecture and methodology. This solution is based on design tables, a technology that links data from a spreadsheet, implements the company’s design process, with parameters of a three-dimensional CAD model, which represents the solution. The rest of the documents that constitute the commercial offer and the possibility of linking them with verification tools are derived from this design core. The main conclusion is the current viability of this method, anticipating the improvement of many aspects, mainly highlighting the link with the rest of the life cycle phases through interoperability tools.

Improving productivity in SMEs by the implementation of Six Sigma: human resource management implications

Improving productivity in SMEs by the implementation of Six Sigma: human resource management implications

Environmental Campaign and Customer Decision: The Role of Social Media Engagement and E-Trust of Customers

The environmental issue has become a primary concern on social media, prompting SMEs to integrate it into their market approach strategies. In line with the phenomenon that is occurring, the purpose of this research is to examine the role of social media involvement in brand awareness, e-trust, and consumer decision-making. This study is an examination of consumers with a focus on SMEs in Bandung City who conduct environmental campaigns using social media. A survey was conducted on 123 consumers using an online questionnaire, and the data was processed using a path analysis approach. The research analysis is conducted based on the hypothesis testing of the study. The research findings highlight the impact of implementing environmental campaigns on social media on brand awareness and consumer e-trust. Social media indirectly supports consumer purchasing behavior of SMEs products because of environmental concerns. Companies engaged in sustainable business practices and environmental concern can build a positive image in the perceptions of consumers. Social media provides a forum where consumers may share information and experiences, making the reputation of a company critically important.

Implications of the Fourth Industrial Revolution on Small and Micro Enterprises’ Productivity in Mankweng Township

Purpose: The hegemony of SMEs in Mankweng Township has sparked the interest of researchers who aim to align them with the 4IR. The purpose of this study is to examine and provide constructive criticism on how the 4IR affects the productivity of SMEs. The argument is that SMEs in Mankweng Township are technologically lagging, resulting in low productivity. The research encompasses both positive and negative impacts of the 4IR on SMEs' productivity. The prevalence of SMEs in the area can be attributed to growth centres like the University of Limpopo, Mankweng Hospital, and Paledi Mall. These institutions attract students and employees, sustaining the local economy. Nonetheless, most SMEs in the Township are traditional and lack sophisticated technology. They are mainly located in South Africa's townships and rural regions, where they are easily accessible to the local communities. The growth of the 4IR has compelled these SMEs to adapt their conventional business practices to align with the rapidly changing technology.
 Design/Methodology/Approach: This study employed a quantitative approach to accomplish its objectives.
 Findings: The research findings demonstrate that some SMEs are currently underperforming, experiencing a decline in customers due to limited financial resources, human resources and a lack of advanced technology amongst others.
 Implications/Originality/Value: To address this issue, the study suggests that various stakeholders, including individuals, the private sector, and the government, should actively collaborate and provide concerted efforts and resources to support the growth and development of SMEs.

How Does Psychological Empowerment Affect Entrepreneurial Orientation at Women-Owned SMEs in Indonesia?

Objective - This research is conducted with a focus on women-owned SMEs in Indonesia, which play a crucial role in driving the nation's economic progress. The study aims to determine whether the psychological empowerment and entrepreneurial orientation of women who own and operate SMEs can be enhanced to encourage further economic development. Methodology/Technique – This study employs quantitative analysis, with primary data collected through a questionnaire survey. The survey garnered responses from 796 participants selected via quota sampling from 3 major densely populated provinces in Indonesia, namely West Java Province, West Sumatra Province, and Yogyakarta D.I. Province. Structural Equation Modeling was used to test the model. Finding – The results of the analysis reveal that women's psychological empowerment has a significant impact on entrepreneurial orientation. Interventions designed to bolster psychological empowerment and entrepreneurial orientation are expected to enhance the productivity of women-led SMEs. The research has yielded an alternative model for improving the performance of female entrepreneurs in the SME sector to boost competitiveness by fostering increased entrepreneurial intentions. Novelty – In the framework of social cognitive theory, Women's Psychological Empowerment represents a psychological asset that enables individuals, particularly female SME operators, to address challenges in their environments proactively. This empowerment is associated with a positive orientation towards entrepreneurial behavior. The study has yielded a model that aims to augment the capabilities of women SME entrepreneurs, thereby preparing them to thrive within the digital economy ecosystem. Type of Paper: Empirical JEL Classification: L2, L26 Keywords: Psychological Empowerment; Entrepreneurial Orientation; Women-Owned SMEs; Gender Reference to this paper should be referred to as follows: Kadiyono, A,L; Cahyono, A.B.F. (2023). How Does Psychological Empowerment Affect Entrepreneurial Orientation at Women-Owned SMEs in Indonesia?, GATR-Global J. Bus. Soc. Sci. Review, 11(4), 93–106. https://doi.org/10.35609/gjbssr.2023.11.4(3)

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.

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.

Productivity Effect of Efficiency Wages at Small and Medium-Sized Manufacturing Enterprises: the Case of Vietnam

Purpose: This paper aims to investigate whether efficiency wages for production workers have a positive effect on labor productivity in Vietnam's manufacturing SMEs.
 Design/methodology/approach: The research analyzes the panel data of manufacturing SMEs collected by UNU-Wider in Vietnam in 2011, 2013, and 2015.
 Findings: The panel-data analysis results for 6,953 observations show that efficiency wages increase labor productivity.
 Research limitations/implications: The scope of this study is limited to Vietnam's manufacturing SMEs. Future studies should include replicating the research model in the service sectors and other countries.
 Originality/value: Previous studies on Vietnamese manufacturing SMEs did not disclose the impact of efficiency wages on firm-level labor productivity using the SME panel datasetVietnam's. The novelty of this study is the introduction of the efficiency wages as an explanatory variable forto labor productivity. The study results shed light on organizational behavior in rational salary decisions. Many of SMEs have decided to pay lower than the average sector wage. NeverthelsessStill, the regression analysis indicates that salary growth improves per-worker productivity. This discovery allows researchers to investigate why SMEs have decided not to raise worker wages significantly while wage increases helps boost labor productivity. As a practical contribution, the study result recommends that for higher labor productivity at lower labor costs, manufacturing SMEs can raise their workers' salaries based on the average sector wage instead of benchmarking them with the average nation-level wages.