scholarly journals The Influence of Business Environment and Capabilities on Transient Competitive Advantage and Their implications for Business Performance of Micro, Small and Medium Enterprises in Indonesia

2018 ◽  
Vol 7 (4.34) ◽  
pp. 340
Author(s):  
Nurul Hermina ◽  
Adjeng Mariana ◽  
Keni Kaniawati

Micro, small and medium enterprises (MSME – Indonesian: UMKM – Usaha Micro, Kecil dan Menengah) are the key to increase growth, create employment, act as the source of people’s income, to fulfil the need of goods and services, to increase the added values which eventually influence the economic growth. This research is aimed to explain how business environment and capability influence the competitive advantage which plays an important role that determines the business performance of MSME. The total sample able to be collected with web-based design is 56 MSME/UMKM from all over Indonesia. The analysis technique used is structural equation modeling (SEM). The study proves that business environment does not significantly influence the business performance of MSME/UMKM. However, this variable contributes significant indirect influence with a greater level than its direct influence. The finding indicates that improvement in business environment will be able to boost the business performance if it is combined with the improvement in competitive advantage of the MSME/UMKM.   

2021 ◽  
Vol 16 (1) ◽  
pp. 213-229
Author(s):  
Mulyana Mulyana ◽  
Wasitowati Wasitowati

This study aims to examine the effect of collaborative networks on business performance. This study tries to find a collaborative network format that can improve business performance. The respondents in this study were 295 owners of the fashion sector SMEs in Central Java, Indonesia. Data analysis used the Structural Equation Modeling (SEM) approach. The results showed that collaborative networks (CN) significantly influence innovation capability (IC), competitive advantage (CA), and business performance (BP). Furthermore, the capability of innovation and competitive advantage also significantly influence business performance. Innovation capabilities and competitive advantages can mediate the relationship between collaborative networks and business performance.


2019 ◽  
Vol 8 (2) ◽  
pp. 38-45
Author(s):  
Rudy Santosa Sudirga

The research of factors that determine the performance improvement of small and medium enterprises in Jakarta is based on the background of increasing small and medium enterprises sector in Jakarta. The benefits of this study are to find out what factors are most influential on the performance of small and medium enterprises in Jakarta. The authors took a number of 200 samples of small and medium enterprises in Jakarta, and the research data analysis technique is multiple regression with Structural Equation Modelling IBM SPSS Amos version 23. The results of respondents who answered the questions were dominated by respondents with a high school education background 152 people (76%), with ages ranging between 41–50 years 117 people (58.5%), and having income turnover above 90 million rupiah per month 122 people (61%), so it can be categorized that the majority of small and medium business entrepreneurs are educated in high school and are still in the productive age range. The results showed that the Business/Product Innovation, Business Competence, Business Capital, and Population had a significant effect on Business Performance, while variables Environmental Factors have no significant effect on Business Performance.


2021 ◽  
Vol 4 (2) ◽  
pp. 120-127
Author(s):  
Mochammad Rifky Pamungkas ◽  
Muhamad Rizal ◽  
Ria Arifianti ◽  
Asmaul Husna

Covid-19 penetrates into Indonesia to have an impact on Business, Micro, Small and Medium Enterprises (MSMEs). One of the MSMEs affected by the Covid-19 pandemic is the Cibaduyut Shoe Industry Center. This has an impact on business, marketing, information and the competitiveness of MSME players in Cibaduyut. So the research objective is to find and determine the effect of entrepreneurial orientation, marketing performance, and ICT capabilities on competitive advantage. The research method used is quantitative with the research sample being SMEs in Cibaduyut and analysis using Structural Equation Modeling-Partial Least Square. While the results of the study provide results for the greatest influence on the ICT capability variable of 44.9%. The conclusion in this study is that the entrepreneurial orientation variable and marketing performance do not have a significant effect on competitive advantage, while the ICT capability variable has a significant effect.


2021 ◽  
Vol 8 (3) ◽  
pp. 327
Author(s):  
Nur Sugiarti ◽  
R. Moh. Qudsi Fauzi

ABSTRAKPenelitian ini menguji pengaruh kewirausahaan Islam, entrepreneurial orientation, dan market orientation terhadap kinerja Usaha Mikro Kecil dan Menengah (UMKM). Penelitian ini dilakukan pada UMKM yang tergabung dalam One Kecamatan One Center of Entrepreneurship Indonesia (OK Oce Indonesia). Jumlah sampel dalam penelitian ini adalah 142 responden. Penelitian ini berdasarkan pendekatan kuantitatif melalui kuesioner yang diberikan kepada pemilik sekaligus pengelola UMKM. Data dianalisis menggunakan Structural Equation Modeling (SEM) dari software AMOS. Hasil penelitian menunjukkan bahwa terdapat hubungan positif signifikan antara kewirausahaan Islam, orientasi kewirausahaan dan orientasi pasar terhadap kinerja UMKM. Temuan penelitian ini menegaskan bahwa kewirausahaan Islam merupakan faktor penting di antara faktor-faktor lain yang memengaruhi kinerja UMKM. Selain itu, temuan ini berkontribusi pada literatur kinerja UMKM yang dapat membantu pemilik sekaligus pengelola UMKM untuk meningkatkan kinerja bisnisnya.Kata Kunci: kewirausahaan Islam, orientasi wirausaha, orientasi pasar, kinerja. ABSTRACTThis study examines the effect of Islamic entrepreneurship, entrepreneurial orientation and market orientation on performance of micro, small, medium enterprises (MSMEs). This study is conducted on MSMEs  that are participate in One Kecamatan One Center of Entrepreneurship Indonesia (OK Oce Indonesia). Total sample  in this study is 142 respondents. The study based on quantitative approach through a questionnaire administered on the owner-managers of MSMEs. Data are analyzed using Structural Equation Modeling (SEM) of the AMOS software. The result showed that there is a significant positive relationship between Islamic entrepreneurship, entrepreneurial orientation and market orientation on MSMEs performance. The findings of this study confirm that Islamic entrepreneuship is an important factor among other factors that have influenced over MSMEs performance. Moreover, this findings contribute to MSMEs performance literature that can help MSMEs owner-managers to improve their business performance. Keywords: Islamic entrepreneurship, entrepreneurial orientation, market orientation, performance.


2019 ◽  
Vol 9 (8) ◽  
pp. 1782
Author(s):  
Nikous Soter SIHOMBING ◽  
Anton SIHOMBING

The purpose of this study is to obtain empirical evidence and find clarity of phenomena and conclusions about the influence of business environment and innovation spirit to competitive advantage and its implications on marketing performance. This research uses descriptive and verification method, with data analysis technique of Structural Equation Modeling (SEM) LISREL program, that is collecting, presenting, analyzing, doing model measurement, and hypothesis testing, and making conclusion and suggestion. The population is owner / leader of SMI weaving ulos which is targeted group by Industry and Trade Office of North Sumatera Province, while sample selection is done proportional cluster stratified random sampling and sample determination by Slovin formula.  The results of this study showed that the business environment, innovation spirit, competitive advantage, and overall marketing performance are in good category. Similarly, the verify analysis proves empirically that (1) the business environment and innovation spirit significantly and positively affect the simultaneous competitive advantage, where the innovation spirit has a dominant influence, (2) the business environment has a significant and positive influence on the competitive advantage, (3) innovation spirit significantly and positively influence to competitive advantage, (4) competitive advantage significantly and positively influence to marketing performance.


2020 ◽  
Vol 12 (10) ◽  
pp. 4019
Author(s):  
Anna Irimiás ◽  
Ariel Mitev

The purpose of this paper is to capture firms’ perceptions on the relationship between change management, digitalization, business performance, and green development. The adaptation of digital technologies has challenged the business environment, leading to a major incorporation of the role of entrepreneurs in the process of fostering green development. Building on data from a survey study with 270 Small and Medium Enterprises (SMEs) and large companies located in a relatively developed Hungarian region and adopting the Strategic Action Field (SAF) theory, firms’ perceptions on change management, digital maturity, and green development were explored. The data was analyzed using partial least squares structural equation modelling (PLS-SEM). Results revealed that change management has a direct positive effect on digital maturity and on business performance and has a small effect on companies’ commitment towards green development. This paper contributes to the debate on the relationship between digitalization and green development within entrepreneurial organizations.


Author(s):  
Danjuma Tali Nimfa

The purpose of this study is to investigates the effect of organisational culture on the sustainable growth of SMEs; mediating role of innovation competitive advantage. The electrical products small and medium enterprises was the realm of this study. The partial least squares structural equation modelling (PLS-SEM) via SmartPLS was employed to test the hypotheses. Finding of this study revealed that organisational culture has a direct positive significant effect on sustainable growth of SMEs and innovation competitive advantage. Moreover, the study confirmed that innovation competitive advantage has a direct positive significant relationship with sustainable growth of SMEs. Furthermore, the findings established that innovation competitive advantage has fully mediates the relationship between organisational culture and sustainable growth of electrical manufacturing SMEs in Nigeria. This study sets out purposeful measures to encourage owner-mangers of the electrical manufacturing SMEs to maintain as well as installing innovative organisational culture that enhance efficient sustainable growth of SMEs and embedding innovation competitive advantage as a viable strategic mechanism in the enterprise. This study is distinctive because it tries to fill the small and medium enterprises gaps through encouraging managers of the electrical manufacturing SMEs to always strategize for better sustainable growth in the rapidly changing business environment. Keywords: Organisational culture, Sustainable growth of SMEs, Innovation competitive advantage, PLS-SEM (SmartPLS).


2021 ◽  
Vol 7 (2) ◽  
pp. 157
Author(s):  
Sara Shabbir ◽  
Rizwan Qaiser Danish ◽  
Muqqadas Rehman ◽  
Muhammad Hasnain ◽  
Humaira Asad

This study is designed to test an empirical investigation of the environmental turbulence and fear in predicting entrepreneurial improvisation in small and medium enterprises (SMEs) in Pakistan. This research aims to analyze whether the emotional response of fear drives the decision-makers of SMEs towards the use of improvisation strategy in a turbulent environment in an uncertain business world or not. The target population for this study includes owners, managers, and directors of SMEs listed in the Chambers of Commerce of capital cities of Pakistan. Data were collected through a quantitative survey from 433 respondents by using the cluster sampling technique. Structural equation modeling (SEM) was used to test the hypotheses of the study and conduct path analysis. The findings of this study reveal that environmental turbulence leads the decision-makers towards the use of improvisation strategy by managing their emotions of fear rather than sticking to the plans in SMEs in Pakistan. Moreover, the emotional response of fear in entrepreneurs mediates the relationship between environmental turbulence and entrepreneurial improvisation in SMEs in Pakistan. This study contributes to the field of SMEs by suggesting that entrepreneurs can compete in the frequently changing business world through improvisation. This study helps the Small and Medium Enterprises Development Authority (SMEDA) to understand the importance of entrepreneurial improvisation during uncertainties in the complex business environment, which leads the organization towards innovation.


2020 ◽  
Vol 23 (1) ◽  
pp. 19
Author(s):  
Astrid Puspaningrum

This study aims to analyze competitive advantage as a variable that mediates the effect of market orientation on marketing performance. This research population is 113,000 SMEs (Small And Medium Enterprises) located in Malang City, which are engaged in food processing, handicrafts, and clothing business units with an observation sample of 100 SMEs. The data analysis technique used in this study is Structural Equation Modeling. The results of this study indicate that SMEs' performance will increase if they can carry out processes and activities related to creating and satisfying customer needs. Besides, market-oriented SMEs contribute to competitive advantage by creating product uniqueness, product quality, and competitive prices, ultimately affecting the performance of SMEs. In order to improve SMEs' performance, efforts must be made to develop marketing strategies, such as paying attention to market orientation, focusing on customer orientation, competitor orientation, and inter-functional coordination, and developing or innovating new products.


2017 ◽  
Vol 4 (1) ◽  
pp. 17
Author(s):  
Febrina Mahliza ◽  
Wahyu Budi Priatna ◽  
Burhanuddin Burhanuddin

Micro, small and medium enterprises (MSMEs) has an important role in the national economy. Many MSMEs in Indonesia are family businesses, one of them is “tofu” production in Bogor. Although these businesses are constrained by the prices of raw materials, most of them can survive. The purpose of this study were (1) to analyze the characteristics of the “tofu” business (2) analyze the influence of the family and the economic environment on the performance of the “tofu” business. 114 respondents are collected using purposive sampling method. Data are analyzed using the approach of Structural Equation Modeling (SEM). This study shows that based on the revenue, “tofu” businesses are micro, small and medium enterprises. The results also suggest that the culture and economic environment significantly affect the business performance. Culture can improve business performance, while the economic environment can decrease the business performance.


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