Sustainability Of Small And Medium Enterprises Research Articles

Digitalization Adoption Barriers in the Context of Sustainability and Operational Excellence: Implications for SMEs

In the global landscape, small and medium enterprises (SMEs) are increasingly enhancing their adaptability to capitalize on evolving market prospects. Industry 4.0 technologies, with their primary focus on improving operational excellence, hold immense potential for contributing to the sustainability of SMEs. These technologies optimize resources, repurpose materials, enable remote working, and minimize waste, thereby fostering a resilient business environment. In the current study, the authors have utilized the Technology, Organization, and Environment (TOE) framework to conduct a comprehensive literature review and identified the key barriers. Research questions and hypothesis were formulated. A questionnaire-based survey was conducted, involving 205 discrete manufacturing SMEs. The authors evaluated the proposed hypotheses using the Partial Least Square Structural Equation Modeling (PLS-SEM) technique to gain insights into their causal relationships. Identified barriers are categorized as adoption barriers, lack of in-house technology skills, readiness barriers, and adverse operational realities. The authors observed that lack of strategic planning, inadequate focus on processes and performance monitoring results in barriers that hinder the digitalization of SMEs. Further results anticipate that operational realities have a direct relationship with readiness barriers of SMEs. This implies that challenges such as workforce turnover, pricing pressures, last-minute design changes, overdue payments, and outdated infrastructure can lead to operational difficulties, resulting in suboptimal strategies, business plans, and ineffective processes. The findings of the current study also imply that implementing shopfloor industrial Internet of things (IIoT) to track performance and interventions through digital definitions of products and manufacturing can further strengthen processes. By incorporating the findings from this study, SME stakeholders can develop strategies to achieve operational excellence while fulfilling their sustainability goals.

The integration of circular economy and digital transformation as a catalyst for small and medium enterprise innovation

AbstractThis study examines the integration of digital and circular economy (CE) strategies in small and medium enterprises (SMEs) and their impact on innovation. The research uses data from the Eurobarometer survey conducted by the European Commission, which includes a sample of 16,365 SMEs. Using a combination of regression analysis and machine learning tools, the results indicate that a high degree of digitalisation within SMEs enhances the integration of a CE orientation. However, it is not necessary for SMEs with advanced CE orientations to have high levels of digitalisation. Additionally, the study finds variability in the integration of digital and CE orientations among SMEs, identifying four distinct groups of companies with differing levels of compatibility. Moreover, SMEs that successfully integrate both digital and CE orientations are more likely to innovate, whereas those with poor integration exhibit a lower probability of innovation. These findings offer crucial insights for managers and policymakers aiming to bolster SME innovation, digitalisation and sustainability. The research underscores the need for a balanced integration of digital and CE orientations to enhance innovation and environmental impact in SMEs.

Capacity Building for Ubi Cilembu Roasted Sweet Potato Small and Medium Enterprises (SMEs) Community at Warung Salapan, Bandung, Through Accounting Information System 'SI APIK' and 'Green Accounting' to Support Sustainable Business

Cilembu Sweet Potato Roastery at Warung Salapan Bandung. Small and medium-sized enterprises (SMEs) operating in the culinary sector often encounter challenges in financial management due to the continued use of manual methods for financial record-keeping. Furthermore, environmental considerations are of paramount importance in this business, given that Cilembu Sweet Potato is the primary ingredient in the culinary products produced, and effective waste management is crucial for sustaining this business. The objective of this Community Service Activity (PKM) is to enhance financial management capabilities through the use of an Accounting Information System. Additionally, providing insights into green accounting can contribute to raising environmental awareness and responsibility among SME stakeholders, thus aiding in the reduction of the environmental impact resulting from business activities while promoting sustainable SMEs. This Community Service Activity offers various methods and approaches to address these issues. These include training sessions, which equip SME stakeholders with knowledge of green accounting and enhance their proficiency in the 'SI APIK' Accounting Information System. The outcomes of this activity reflect its positive contribution to supporting sustainable SME growth and promoting environmental awareness in Warung Salapan Bandung. It also empowers SME owners to manage their businesses more effectively. Additionally, it leads to increased empowerment of partners, higher revenues for partners engaged in the economic sector, and improved understanding and skills within the community.

Barriers to adaptation of environmental sustainability in SMEs: A qualitative study.

This study examines the antecedents of environmental sustainability in small and medium enterprises (SMEs) of a developing country and explores the specific internal and external factors for environmental sustainability. The study focused on SMEs in Balochistan, Pakistan, utilizing convenience and purposive sampling techniques to select a sample size of 30 SMEs. In-depth qualitative interviews were conducted using a semi-structured questionnaire. The results of the study revealed that lack of finance and education are major barriers to recognizing and addressing environmental sustainability issues, along with the lack of government support and regulations to ensure compliance with environmental safety laws, hence leading to low concern for sustainability practices among SMEs. Awareness and attitude of SME owners/managers, along with customer demand and government policies, influence the adoption of environmental sustainability practices. Overcoming financial constraints and promoting cooperation among stakeholders are key to fostering sustainable practices in SMEs. This research makes an important contribution to the sustainable management literature by providing new and in-depth insights into the barriers that impede environmental sustainability in SMEs of developing countries.

Exploring global practices in providing small and medium enterprises access to sustainable finance solutions

This study investigates the role of sustainable finance in enhancing the growth and sustainability of Small and Medium Enterprises (SMEs), focusing on the integration of environmental, social, and governance (ESG) principles. The main objectives were to map the current landscape of sustainable finance for SMEs, identify barriers to access, evaluate the impact of sustainable finance on SME growth, explore the role of digitalization, and provide policy recommendations. Through a mixed-methods approach combining literature review, case studies, and empirical analysis, the study offers a comprehensive overview of the global practices in sustainable finance for SMEs. Key findings reveal that while there is a growing availability of sustainable financial instruments, SMEs face significant challenges in accessing these resources due to a lack of awareness, stringent eligibility criteria, and complex application processes. The study also highlights the positive impact of sustainable finance on SME growth and sustainability, with digitalization playing a crucial role in enhancing access to finance. However, the effectiveness of these financial instruments and digital platforms varies significantly across different regions and sectors. Based on the findings, the study recommends that policymakers and financial institutions implement more inclusive policies and develop financial products that cater to the unique needs of SMEs. It also calls for increased efforts in capacity building to raise awareness among SMEs about the benefits of sustainable finance. Future research should focus on the long-term effects of sustainable finance on SME competitiveness and resilience, and the potential of public-private partnerships in facilitating access to sustainable finance.

The Effect of Green Creativity and Green Innovation on Green Competitive Advantage and Performance of Sustainable SMEs: The Moderation Role of Digital Empowerment

The Effect of Green Creativity and Green Innovation on Green Competitive Advantage and Performance of Sustainable SMEs: The Moderation Role of Digital Empowerment

Sustainable Small and Medium Enterprises (SMEs) in the times of COVID-19

COVID-19 has been a learning experience for all sectors of the economy. However, small and medium enterprises (SMEs) struggled to be resilient throughout the pandemic and beyond. Therefore, this research aims to explore, understand, analyze and provide recommendations to the beneficiaries of the research. The research adopts the mixed method approach utilizing both qualitative and quantitative methods to understand the business management variables and their link with Thai SMEs. The data collection involves a survey questionnaire, key informant interviews (semi-structured) and secondary data from various published research, government reports and regulations at the national and local levels in Thailand. The data analysis provided for the quantitative method with a statistical test of multiple regression. The qualitative data is categorized into themes to implement the collected interview data under the content analysis. It was found that SMEs face similar external factors, such as a lack of government support and inadequate strategies at both government and SME levels to cope with the COVID-19 pandemic. However, the internal factors, including marketing, supply chain, human resources, financial reporting and management, and managerial accounting, were also found to be highly significant in developing a sustainable enterprise.

Impact of Green Corporate Governance and Green Finance on Sustainable Performance: A case of Manufacturing SMEs of Pakistan

Impact of Green Corporate Governance and Green Finance on Sustainable Performance: A case of Manufacturing SMEs of Pakistan

Paradigmatic Transition: Social Entrepreneurship as a Catalyst for Enhancing the Competitiveness and Sustainability of SMEs in the Digital Business Context

In recent decades, there has been a paradigm shift in how we perceive business. It is no longer solely about profit-making but also about considering the social and environmental impacts of business activities. This research aims to delve deeper into how social entrepreneurship can be implemented in the context of digital business to support the competitiveness and sustainability of SMEs. The research method employed is a qualitative literature review drawing data from Google Scholar within the timeframe of 2020-2024. A qualitative approach is used to understand and analyze various perspectives, theories, research findings, and concepts relevant to the research topic. The study findings indicate that the paradigmatic transition occurring in the business world today reflects the rapid and complex global changes. The evolving digital era has triggered a shift from traditional business paradigms towards more inclusive and sustainable approaches. Social entrepreneurship emerges as a significant catalyst in strengthening the competitiveness and sustainability of micro, small, and medium enterprises (SMEs) in the digital business environment. It is important to understand that social entrepreneurship is not just about seeking financial profit alone but also about advocating for social and environmental change.

Investigating the role of e-commerce application and digital marketing implementation on the financial and sustainability performance: An empirical study on Indonesian SMEs ,

The paper examined the influence of digital marketing and e-commerce on marketing performance and sustainability of the small and medium enterprises (SMEs). This research is quantitative research using a questionnaire approach method. Quantitative research is a research method based on the philosophy of positivism, used to research certain populations or samples, collecting data using research instruments, quantitative or statistical data analysis, with the aim of testing predetermined hypotheses. The sampling technique in this research is non-probability sampling. The respondents of this research were 580 SME owners in Indonesia. Research data was obtained by distributing online questionnaires via social media. The questionnaire was designed using a Likert scale from 1 to 7 and the analysis of research data used structural equation modeling (SEM). Based on the research results, it is concluded that digital marketing had a positive and significant relationship to marketing performance, E-Commerce had a positive and significant relationship with marketing performance, Digital marketing had a positive and significant relationship with business sustainability. In SMEs, E-Commerce had a positive and significant relationship with business sustainability in SMEs.

Towards Sustainable Small and Medium Enterprises (SMEs): Awareness and Overcoming Challenges

Towards Sustainable Small and Medium Enterprises (SMEs): Awareness and Overcoming Challenges

Identifying the drivers of commitment to organizational sustainability in SMEs: the role of entrepreneurial orientation, organization climate and innovative workplace behavior

The adoption of sustainable practices is increasingly becoming important for organisations. Intuitively, such practices necessitate employee’s commitment to strategic goals related to the firm’s sustainable performance. However, research discussing employee commitment to organisational sustainability is mainly skewed towards large corporates, often neglecting the specifics of small and medium enterprises (SMEs). Addressing this gap, the current study’s purpose is to examine the role of entrepreneurial orientation, organisational climate, and innovative workplace behaviour (IWB) on employee’s commitment to sustainability in the SMEs. The current study employs a comparative case-based approach using data collected from eight SMEs in the food processing industry in India. The study’s findings suggest that a firm’s entrepreneurial orientation and organisational climate are prerequisites for promoting and developing IWB among employees, which ultimately translates into their commitment to a firm’s sustainable performance. The research findings have implications for SME managers, operations managers, and business improvement specialists in the food processing industry.

The Influence of Green Intellectual Capital on Sustainable SMEs

Environmental degradation is a global issue that invites attention from various groups, including small and medium enterprises (SMEs). To preserve the environment and build a sustainable business, it is necessary to optimize environmentally friendly resources. Green intellectual capital, which includes green human capital, green structural capital, and green relational capital, can be practiced by SMEs in maintaining sustainable business. The research aims to empirically prove the influence of green intellectual capital on sustainable SMEs. The research adopted a quantitative method with a self-administered survey. The research sample consisted of 157 respondents who were SMEs in Madiun of Indonesia. Furthermore, the data were analyzed using Smart-PLS 3.0 to prove the hypothesis. The results show that green human capital and green relational capital do not have a significant influence on sustainable SMEs. Meanwhile, green structural capital has a significant influence on sustainable SMEs. This implies that SMEs must pay attention to the internal organizational management system in practicing environmentally businesses.

Development strategies for creative small and medium enterprises (SMEs): A Quintuple Helix Model approach to support smart city initiatives

This study explores the development of Creative Small and Medium-Sized Enterprises (SMEs) in the food, textile, and handicraft sectors in Jambi City, employing the quintuple helix model to align with the Smart City concept. The research gathered primary data through surveys, interviews, and focused group discussions (FGDs). The study encompassed a diverse range of stakeholders from the specified sectors, with a sample size of 100 individuals. A mixed-method research approach was adopted, integrating both qualitative and quantitative methods. Analytical tools such as the Likert scale, SWOT analysis, and the quintuple helix model were employed for data analysis and interpretation. The findings reveal that many participants in these sectors were women, predominantly with high school-level education. The age group of 46-55 years was most represented among the respondents. Notably, the food sector emerged as the dominant industry among the studied SMEs, attributed to its relative ease of establishment and cost-effectiveness compared to the textile and handicraft sectors. The study also examined the perceptions of the roles of quintuple helix actors (government, academia, industry, society, and social environment) in the development of these SMEs. The findings indicate a generally positive perception, suggesting effective fulfillment of roles by these actors. This collaborative effort within the quintuple helix framework has positively impacted the development of creative SMEs in Jambi City, contributing significantly to the Smart City initiative. The study underscores the importance of such collaboration in fostering the growth and sustainability of creative SMEs in the context of urban development.

Sustainable SMEs Performance and Green Competitive Advantage: The Role of Green Creativity, Business Independence and Green IT Empowerment

This study aims to examine and analyze the influence of green creativity and business independence on competitive advantage moderated by green IT empowerment. The research population is all creative SMEs in the Tangerang, Yogyakarta and West Java regions. Samples were taken from part of the population using purposive sampling technique. The target sample in this study is 400 SMEs. However, there were only 272 SMEs who completely filled out the questionnaire and were thus analyzed. The results of the study concluded that green creativity had a significant negative influence on the performance of sustainable SMEs and a significant positive influence on green competitive advantage. Business independence had a significant positive influence on the performance of sustainable SMEs and a significant positive influence on green competitive advantage. The research results indicate that green IT Empowerment did not moderate the relationship between green creativity and sustainable SME performance and weakened the relationship between green creativity and green competitive advantage. Likewise, the research results indicate that green IT empowerment did not moderate the relationship between business independence and sustainable business performance; it moderated the positive relationship between independence and green competitive advantage.

Sustainability of SMEs during COVID-19 Pandemic

Small and Medium Enterprises (SMEs) are vital to the Philippine economy, as the COVID-19 pandemic became more widespread, business activity was negatively impacted, strict quarantine measures were implemented, business operating hours were shortened, and the demand for labor from rural and remote areas decreased. With these new solutions, new measures and protocols are adopted and enforced to protect the safety of employees and consumers. The objective of this study is to determine how the COVID-19 pandemic affected the business sustainability of SMEs. The variables used to assess the impact on businesses are supply chain, business relations, resurging, cash flow, and work remotely. This study focuses solely on registered SMEs that existed before the pandemic and were still operational when the study was conducted. Survey questionnaires were used to gather data from business owners. Responses from the participants were presented in tabular form, along with brief explanations of the results. Statistical evaluation of the hypothesis was conducted using a one-way ANOVA and a two-sample T-test. The results showed the assessment of SME owners regarding the impact of the five variables on the sustainability of their businesses. Importantly, the study highlighted additional measures that can be used to better analyze and evaluate which areas of businesses are impacted by the COVID-19 pandemic and how to keep those businesses afloat.

Leveraging SMEs technologies adoption in the Covid-19 pandemic: a case study on Twitter-based user-generated content

The COVID-19 pandemic has caused many entrepreneurs and small and medium enterprises (SMEs) to adapt their business models and business strategies to the consequences caused by the pandemic. In order to identify the main innovations and technologies adopted by SMEs in the pandemic, in the present study, we used a database of 56,941 tweets related to the coronavirus to identify those that contained the hashtag #SMEs. The final sample was analyzed using several data-mining techniques such as sentiment analysis, topic modeling and textual analysis. The theoretical perspectives adopted in the present study were Computer-Aided Text Analysis, User-Generated Content and Natural Language Processing. The results of our analysis helped us to identify 15 topics (7 positive: Free support against Covid-19, Webinars tools, Time Optimizer and efficiency, Business solutions tools, Advisors tools, Software for process support and Back-up tools; 4 negative: Government support, Payment systems, Cybersecurity problems and Customers solutions in Cloud, and and 4 neutral: Social media and e-commerce, Specialized startups software, CRMs and Finance and Big data analysis tools). The results of the present study suggest that SMEs have used a variety of digital tools and strategies to adapt to the changing market conditions brought on by the pandemic, and have been proactive in adopting new technologies to continue to operate and reach customers in a connected era. Future research should be directed towards understanding the long-term effects of these technologies and strategies on entrepreneurial growth and value creation, as well as the sustainability of SMEs in the new era based on data-driven decisions.

Analyzing the impact of GLSS implementation over sustainability in Pakistani SMEs

PurposeGreen, lean and six sigma (GLSS) practices are widely used and well accepted techniques that have the capability to improve the economic, social and environmental performance of Pakistani small and medium enterprises (SMEs). However, implementation of these practices in an integrated approach has not yet been witnessed in Pakistani SMEs due to a variety of challenges. To overcome the implementation challenges, this study has analyzed the impact of GLSS implementation over the sustainability in Pakistani SMEs.Design/methodology/approachThis study consists of two phases. In phase 1, interviews were conducted to scrutinize the elements of GLSS implementation to simplify the model and in phase 2, a questionnaire survey was conducted to collect the data from the SMEs. The partial least squares structural equation modeling (PLS-SEM) approach is used to analyze the relationships among the latent variables and constructs.FindingsResults showed that, leadership for GLSS, understanding GLSS techniques and technology upgradation are considered the most important elements for GLSS implementation in Pakistani SMEs. The environmental and social perspectives have been given more weightage compared to economical perspective. This inferred that there is a need to focus more on environmental and social perspectives in SMEs as compared to economic perspectives to achieve sustainable growth. Moreover, the results of the hypothesis testing revealed that GLSS implementation has a significant positive impact over the sustainability in SMEs considering the Pakistani scenario (β = 0.529, STDEV = 0.078, t = 6.81, p = < 0.001).Originality/valueThis study is the first of its kind for Pakistani SMEs. The structural model developed in this study for Pakistani SMEs will help practitioners to understand the important elements of GLSS implementation and sustainability dimensions.

Explaining sustainability performance and maturity in SMEs – Learnings from a 100-participant sustainability innovation project

Small and medium enterprises (SMEs) are the backbone of many economies and shape the sustainability of both production and consumption. SMEs differ drastically in their sustainability performance and maturity. The objective of this paper is to assess what aspects of SMEs' activities, including their links to stakeholders in their supply chains, explain a company's sustainability performance. Using a literature-based theoretical framework for assessing SME sustainability performance and maturity, the study conducts a survey with participants in a 100-company sustainability innovation project conducted in the Greater Copenhagen region. The sample of companies reaches across several industries including construction, hotel/conference, information technology, and manufacturing. The study analyses survey data using paired sample t-tests and regression analyses. The results show that the following factors help explain the sustainability performance and maturity of SMEs in the sample: the degree of customer involvement in product and process development; engaging, communicating and partnering with customers; customer segmentation, technology and innovation as constituent parts in the business strategy; and the amount of time dedicated specifically to commercial and marketing efforts and process development. The study shows that devoting time and resources to engage with customers in product and process development will lead to increased sustainability performance and maturity. These results contrast with the traditional norm that companies develop as a reaction to changing customer requirements. The novelty of this study lies in bringing to light the aspects within the management of SMEs contribute to explaining their sustainability performance, and thus can be used to guide improvements. Unveiling this allows SMEs to deploy sustainability-focused action.

The Role of Entrepreneurial Competencies: Successful Key Smes a Literature Review

Purpose: SMEs have been shown in various previous studies to contribute significantly to GDP and survive in different economic conditions. However, entrepreneurs must possess key competencies to be competitive and stay in the long run. This paper aims to describe the role of entrepreneurial competencies in SMEs success through a literature review. Theoretical framework: This study provides a summary of the literature on entrepreneurial competence topics which include knowledge, attitudes and skills which are the basis for effective business performance, potential for success in work, creating a business environment to increase entrepreneurial will. The important role of entrepreneurial competence is part of the literature review providing a strong basis for further research Desain/metodologi/approach: By conducting a literature review and analyzing empirical data, we seek to deepen our understanding of entrepreneurial competence and identify its key role in the success of SMEs. Finding: Our findings suggest that entrepreneurial competencies, including business skills, management, human relations, conceptual understanding, and attitude, are crucial to the success of SMEs. Developing these competencies can lead to more competitive and sustainable SMEs businesses, ultimately contributing to national economic growth. Research, Practical & Social implications: This study contributes to a better understanding of the important role of entrepreneurial competence in achieving maximum performance in an effort to develop entrepreneurial attitudes and behavior skills which form the basis of economic growth and become the main competence for developing employability in society. Originality/value: The added value of this study serves as a guide on how important the role of entrepreneurial competence is in achieving entrepreneurial success. Continuous improvement of entrepreneurial competence in business is urgently needed to achieve maximum performance for SMEs in Indonesia so that they can grow and develop as pillars of economic growth.