Sustainability Of Small And Medium Enterprises Research Articles

Crucial Factors Influencing the Success of SMEs in the Digital Transformation Era

Small and medium enterprises (SMEs) have an important role as the backbone of a country's economy. However, in the current digital era, there are many challenges faced by SMEs in adopting digital transformation. Assumed limited literature that discusses the success factors of digital transformation in SMEs. Therefore, this research aims to explore the important factors for the success of digital transformation in today's SMEs. The method used in this research is to search for articles relevant to the research topic using the Google Scholar database. The research results show that digital strategic planning, digital maturity, relationship capital, and collaborating with external digital innovation units are the keys to successful digital transformation in MSEs today. The results of this research will provide input to SMEs and the government in making decisions to achieve the success and sustainability of SMEs, as well as enrich the literature that examines digital transformation in SMEs.

Sustainability Practices of Small and Medium Enterprises (SMEs) in China: Basis for Strategic Plan

The study presents a comprehensive analysis of small and medium sized enterprises (SMEs) situated in Rizhao City, Shandong, China, focusing on their profiles, sustainability practices, challenges, and a proposed strategic plan. The respondents, SME managers, play a crucial role in shaping sustainability strategies. Among the key findings, 70% of surveyed companies adopt a corporate organizational structure, while 45% primarily operate in the manufacturing sector. SMEs in China exhibit a strong commitment to economic, social, and environmental sustainability practices, with notable percentages actively seeking cost reduction through sustainability, monitoring financial impacts, and investing in research and development for sustainable innovation. Economic challenges, including difficulties in securing funds for sustainable projects, dominate the SME landscape (88%). Social challenges emphasize meeting community expectations (80%), and environmental challenges center on reducing carbon footprints (90%). The proposed strategic plan advocates phased sustainability investments, diversification of funding sources, talent management, and a circular economy approach to address economic, social, and environmental challenges collectively. The study recommends internal reviews of organizational structures, cross-industry collaboration, exploration of alternative financing, and robust monitoring and evaluation systems to enhance SMEs' success in China's dynamic business environment. These recommendations underscore the importance of adaptive, innovative approaches to foster sustainability and resilience in SMEs while contributing to societal well-being and environmental conservation.

Government strategy to revive SMEs from post-COVID-19 collapse: Analysis of economic improvement for lower class communities in Jakarta, Indonesia

This research aims to determine the strategy of the Jakarta Provincial Government in increasing the resilience and growth of small and medium enterprises (SMEs) within a collaborative governance framework post-COVID-19. This study explores the effectiveness of SMEs and facilities in accessing financing and fostering collaborative partnerships between SMEs, government agencies, and financial institutions by utilizing USAID’s Theory of Change (TOC). This research uses a qualitative approach supported by in-depth interviews and Focus Group Discussions to enrich the insights of SME stakeholders, large companies, and SME actors and assess the impact of their roles. The results of this research highlight the critical role of SME Cooperative Banks (SCB) in improving SMEs’ access to credit and financial services, including collaborative governance frameworks and partnerships between SMEs, government agencies, and banks, which were identified as necessary to improve policy coherence and encourage conducive SME business environment conditions. The main findings of this research underscore the importance of the SCB model, demonstrating its potential to improve SME resilience and economic sustainability. This SCB model enriches the TOC indicators introduced by USAID. The study identifies gaps in digital infrastructure and market access that hinder SME growth and recommends targeted interventions to address these challenges. This study shows that SCB offers a promising pathway to increase the resilience and growth of SMEs in Indonesia, especially if accompanied by effective collaborative governance strategies. These initiatives can encourage inclusive economic development and strengthen the role of SMEs as drivers of the local economy. Recommendations include expanding the SCB model to other regions, encouraging digitalization, facilitating market access, advocating for a supportive policy framework, and integrating these strategies to advance the principles of USAID’s Theory of Change, fostering sustainable SME development and economic resilience.

Factors Influencing the Sustainability of SMEs in Marginalized Areas: A Study of Dullu Municipality, Dailekh

This research scrutinizes the underlying factors influencing the sustainability of SMEs in marginalized areas, with a particular focus on dimensions such as creativity and innovation, resource availability, regulatory compliance, networking and collaboration, and market competitiveness. It is conducted in Dullu Municipality, Dailekh, and employs an explanatory research design complemented by quantitative methods. Convenience sampling methodology is employed to gather data from a sample of 225 SME proprietors, who are selected as respondents for the study, utilizing survey questionnaires. Inferential statistics, including correlation and regression analysis, reveal the significant impact of creativity and innovation, efficient resource availability, regulatory compliance, networking and collaboration, and market competition on sustainable SMEs. The findings of the study recommend that owners of SMEs give more priority to innovation, optimal utilization of resources, and fostering networks and collaboration among SMEs. Furthermore, policymakers are urged to design initiatives supporting regulatory compliance and incentivizing innovation. Future research is recommended to explore market dynamics and compliance barriers, informing strategies for sustainable SMEs in marginalized locales.

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.

THE EFFECT OF MICROFINANCE BANK LOAN ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NIGERIA

This paper evaluates the impact of microfinance bank loans on small and medium enterprises (SMEs) in Osun State, Nigeria. The SMEs encounter major difficulties when trying to obtain financing, which hampers their growth and contributions to the economy. Microfinance banks are crucial as they provide essential financial services tailored for SMEs, facilitating economic growth. A descriptive survey design was used so as to collect data from 150 randomly selected SME operators across various sectors in the Osun State. The findings show that microfinance loans significantly enhance SME performance leading to increased productivity, employment, and business expansion. However, high-interest rates & stringent loan conditions present substantial challenges that hinder optimal loan utilization. Study concludes that while microfinance bank loans positively influence SME growth, addressing these barriers could improve effectiveness & sustainability in SMEs. Enhancing loan terms could boost microfinance banks role in fostering long-term economic improvement in the region. This study empirically links the microfinance bank loans to SME performance, contributing to the literature on SME financing and economic development in Nigeria.

Navigating the Entrepreneurial Landscape: A Qualitative Exploration of SME Success Factors

This research aims to comprehensively analyze the critical success factors influencing small and medium enterprises (SMEs) through a qualitative exploration of existing literature and empirical studies. The study investigates key determinants such as access to finance, market conditions, regulatory environment, technological advancements, entrepreneurial capabilities, innovation, strategic planning, adaptability, and leadership qualities. Using a systematic literature review methodology, various sources including academic journals, industry reports, and case studies were analyzed to understand the interplay and relative importance of these factors across different contexts. The findings reveal that access to finance significantly impacts SME growth and innovation, emphasizing the role of supportive financial frameworks. Moreover, market orientation and adaptive capabilities emerge as crucial for SMEs to navigate competitive landscapes and capitalize on market opportunities. Innovation and strategic planning are identified as drivers of SME competitiveness, facilitating differentiation and sustainable growth. Leadership qualities, particularly transformational leadership, are shown to enhance organizational performance and foster innovation cultures within SMEs. The study contributes a nuanced understanding of SME success factors, offering insights for policymakers and entrepreneurs to develop targeted strategies that promote SME resilience and sustainability in dynamic global markets.

Fostering Digital Innovation and Sustainable SMEs: The Complementary Roles of Offline and Online Social Capital

Fostering Digital Innovation and Sustainable SMEs: The Complementary Roles of Offline and Online Social Capital

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

Interlinking networking capabilities, knowledge worker productivity, and digital innovation: a critical nexus for sustainable performance in small and medium enterprises

PurposeAs sustainable performance has a central role in the small and medium enterprises (SMEs) performance literature, this study aims to examine the influence of networking capabilities in enhancing sustainable performance through knowledge workers’ productivity and digital innovation. It also examines the sequential mediating role of knowledge workers’ productivity and digital innovation on networking capabilities and SMEs’ sustainable performance relationship.Design/methodology/approachData were collected from 308 knowledge workers in the information technology sector and analyzed using the Hayes Process Macro bootstrapping method to test the proposed hypotheses.FindingsResults indicate that knowledge workers’ productivity and digital innovation individually and sequentially mediate the relationship between networking capabilities and SME’s sustainable (economic and environmental) performance, surprisingly, they do not act as a mediator between networking capability and SME’s social performance. SMEs should prioritize investments in the professional development of their knowledge workers through training and skill enhancement programs. This investment equips knowledge workers with the tools to effectively use the knowledge and resources acquired through networking. Thus, knowledge workers may improve performance by using these resources to tackle challenges.Research limitations/implicationsAlthough this research focused on this specific context, it is prudent to acknowledge that additional factors may also exert influence on sustainable performance within SMEs, factors that managers may consider when making decisions. Methodologically, the cross-sectional design of this research poses a potential limitation, as it does not allow for the complete elimination of endogeneity concerns. However, it is worth noting that scholars have endorsed the use of cross-sectional data in cases where management researchers aim to expand beyond well-documented and longitudinal data sets.Practical implicationsThis research offers practical recommendations for SMEs to improve their sustainable performance through networking. SMEs should seek partnerships with complementary knowledge to improve operations and for other performance-oriented benefits.Originality/valueThis study adds significantly to the literature on sustainable SME performance by studying the interdependent effects of networking capabilities. It also represents the individual and sequential mediation mechanism that links networking capabilities to SME success through knowledge worker productivity and digital innovation.

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

The present research looks into the effect of green corporate governance (GCG) and green finance (GF) on the sustainable performance of manufacturing small and medium enterprises (SMEs) in Pakistan. Given the increasing level of sustainability, understanding the correlation between corporate governance, financial strategies, and the performance of sustainable businesses becomes important. The study applies quantitative methods with PLS-SEM SmartPLS. The research population consists of manufacturing SMEs operating in Pakistan. SMEs in the manufacturing sector are a mixture of different industries such as textiles, electronics, food processing, automotive, etc. SMEs, defined as those with fewer than 250 employees, significantly contribute to industrial production, job creation, and the economy of Pakistan. Findings indicate that both GCG and GF have strong positive links with sustainable performance. Green finance (β = 0.428, p <0.001) and green corporate governance (β = 0.289, p < 0.001) are the main driving forces of sustainable performance. These results bring to light the fact that integrating the consideration of environmental issues into governance and financial decision-making will lead to greater sustainability in SMEs. The study has generated useful data for policymakers, industry suppliers, and academia in terms of applicable techniques for making the manufacturing SMEs sector in Pakistan and elsewhere sustainable.

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.

Cost of Quality and Financial Performance of Small and Medium Enterprises

This study delves into the complex interplay between the cost of quality elements—specifically, prevention, appraisal, and failure costs—and the financial performance of Small and Medium Enterprises (SMEs). By employing empirical analysis based on 246 completed questionnaires from various sectors within Ghana's SME landscape, the research endeavors to illuminate the critical associations between these cost factors and financial outcomes. The Partial Least Structural Equation Model (PLS-SEM) technique was utilized to scrutinize these relationships. The findings reveal a significant positive correlation between prevention and appraisal costs with improved financial performance, while failure costs exhibit a negative association. These outcomes substantiate the vital role of resource allocation and strategic management of quality costs in shaping the financial health of SMEs. The implications extend to both academia and practical business strategies, highlighting the need for a balanced approach in resource allocation and the significance of preventive measures in fostering enhanced financial performance for SMEs. The study underscores the importance of proactive quality management and strategic decision-making in driving the financial success and sustainability of SMEs in today's competitive business environment.

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

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