scholarly journals Trust, Commitment and Competitive Advantage in SMEs Export Performance

2017 ◽  
Vol 19 (1) ◽  
pp. 1 ◽  
Author(s):  
Md Daud Ismail ◽  
Syed Shah Alam ◽  
Roshayati Bt Abdul Hamid

The entry of small businesses into international markets has intensified. However, despite the growing presence of small businesses in international markets, studies into their international behavior, particularly regarding the effect of international relationships on international outcomes, remain limited. This study investigates the cross-border relationships of Small and Medium Enterprises (SMEs) by examining the effects of the dimensions of the key relationship on the competitive advantage and performance of SMEs in export markets. These dimensions include trust and commitment. Results indicate that trust is significantly related to commitment and export performance. Commitment is positively related to competitive advantage but not to export performance. Trust affects competitive advantage through commitment. The effect of commitment on export performance is mediated by competitive advantage. The methodology and results are presented. The conclusion, implications, and limitations of this study are also discussed.

2019 ◽  
Vol 4 (3) ◽  
pp. 23-25
Author(s):  
YAKUBU SALISU

S mal l and medium enterprises (SMEs) in developing economies nowadays experience s strong competitions both locally and at the global markets . Consequently, Hall and Wagner, (2012) demonstrated the needs for an analysis of specific s trategic capabilities required for sustainable development of small businesses . Despite the interest stimulated by the works of numerous scholars (Ma, 2004, Teece, 1992) , there have been limited researches that attempted to examine and demonstrated the factors influencing competitive advantage of SMEs i n developing economies . Devlin and Ennew, (1997) advocated t hat market driven competition arena and source of competitive advantage are easily recogniza ble for particular market . Th is study concep tualized six capabilities as strategic capabilities which can efficiently enhance SMEs competitive advantage at local an d international markets. The results from the comfirmatory factor analysis through Cronbach’s alpha demonstrated the reliability of the items measuring; innovation capability, learning capability, managemnt capability, marketing capability, relational capa bility and technological capability as determinants of SMEs competitive advantage in developing economies.


2015 ◽  
Vol 12 (4) ◽  
pp. 175-184
Author(s):  
Johannes Arnoldus Wiid ◽  
Michael Colin Cant ◽  
Carly Prinsloo

Competition among small businesses are high, as small businesses compete for market share which larger business do not engage with. A definite competitive advantage that small and medium enterprises (SMEs) can rely on is service quality (Kasul & Motwani in Anuar & Yusuff 2011:328; Tseng & Wu 2014:77). SMEs do not necessarily understand service standards and how to ensure that the service standard is implemented. The research utilised a quantitative research design whereby the data was collected by means of a 5-point Likert scale survey known as the SERVQUAL model. The results indicate that there are discrepancies between dimensions those owners feel should be adhered to and the extent to which they perceive their businesses to adhere to these dimensions.


2020 ◽  
Vol 4 (1) ◽  
pp. 11-19
Author(s):  
Mudiantono Soekirman ◽  
Fajar Ayu Suryani

Business competition in the current era of globalization requires companies to have a strategy to win the market. Strategic management has an important role for the survival of the company. The existence of such competition is also felt by small businesses such as Small and Medium Enterprises (SMEs). The increase in the number of SME units in Central Java was not followed by an increase in average sales of SMEs. This study aims to analyze the effect of distribution channel, ERP implementation and entrepreneurial orientation on marketing performance with competitive advantage as an intervening variable. The population in this study were small and medium enterprises owners in Central Java. Six hypothesis were formulated for this study. To test those hypothesis, this study used 104 respondent. Structural Equation Model (SEM) was applied to this study using AMOS 24  as a tool. The results of this study shows that competitive advantage is the most variable in influencing the marketing performance, while this  competititve advantage has entrepreneurial orientation as highest variable in influencing it. This study suggests that if SMEs want to increase their marketing performance, they must increase  their competitive advantage. This competitive advantage can be increase by increasing the entrepreneurial orientation.


2020 ◽  
Vol 37 (4) ◽  
pp. 167-175
Author(s):  
Henry Boateng ◽  
Ramanah Visnupriyan ◽  
Kwame Simpe Ofori ◽  
Robert Ebo Hinson

The purpose of this study was to examine the relationship between some elements of social capital, knowledge quality, and Small and Medium Enterprises (SMEs)’ innovativeness and export performance. Data were collected from owners/managers of SME exporters in Ghana. Structural Equation Modeling was used for the data analysis. The results indicate that the elements of social capital facilitate access to quality knowledge which consequently improves SMEs’ innovativeness. The study also shows that SMEs’ innovativeness affects their export performance.


2020 ◽  
Vol 38 (1) ◽  
Author(s):  
Mark Walter

Global trade has changed rapidly, and in some ways dramatically, since the Great Recession began in 2008. Two sometimes competing factors are at play: the slowdown in globalization due primarily to protectionist measures employed at the national level and the new international opportunities created by technology and regulatory environment reform. Both factors present unique benefits and challenges for micro, small and medium enterprises (MSMEs)1 engaging in or planning to engage in cross-border trade. Barriers to MSME cross-border trade remain high, with one of the highest being the lack of cross-border access to commercial justice for smaller participants. There is a decreased incentive for small businesses to engage in trade and global value chains, or to use arm’s length contracts in such cases, where there is little potential for resolving disputes through litigation, arbitration or mediation. One solution that is gaining significant attention in legal, business and technology circles is Online Dispute Resolution (ODR), which is, in turn, driving legal harmonization that benefits MSMEs. This paper is a discussion of the evolution of a new generation of micro and small cross-border entrepreneurs, the growth of and rationale for improved access to commercial justice, the role the CISG should play in technology-assisted dispute resolution and, more generally, in establishing an environment conducive to MSME growth.


Author(s):  
irah Ayu Putri Trarintya ◽  

This study aims to explain the effect market orientation, entrepreneurship orientation and competitive advantage on performance. The population in this study was all Micro, Small and Medium Enterprises enrolled in Bali. Samples taken based on probability sampling techniques are simple random sampling, where researchers provide equal opportunities for each member of the population (employees) to be chosen as samples randomly regardless of the strata in the population itself with a total sample of 100 enterprises. This examination tried by quantitative techniques with SEM-PLS investigation. The consequences of theory testing demonstrate that 1 of 5 speculations were dismissed. Market orientation not impacts on performance. Market orientation and business enterprise orientation has positive and significant impact to competitive advantage. Business orientation and competitive advantage has positive and significant impact to performance. The example utilized in this examination is restricted with regards to Micro Small and Medium Enterprise. Proposals for further research by including another variable that was not recently contemplated. Useful ramifications in this examination is industry administrators ought to adjust their CPMS to incorporate estimates explicit to intra-hierarchical business enterprise and development and should seek after more noteworthy comprehension of changing client inclinations. This examination offers performance to improve business orientation and item advancement with the goal that it will expand competitive advantage which effects on MSMEs performance.


Author(s):  
Hui Nee Au Yong ◽  
Ke Xin Liew

The main purpose of this study is to seek industrial players' inputs on fiscal and monetary policies necessary to enhance SME export performance. The authors use survey data from 215 small and medium enterprises having export markets. They report the most essential governmental export support policies from the perspective of the industry players. The study revealed that accessing to financing is the top request to the government. Other policy recommendations are related to market access, human capital development, tax regimes, infrastructure and technology adoption, legal and regulatory environment, and monetary policies. This study gives implications for Malaysia External Trade Development Corporation (MATRADE) policymakers and export-oriented small and medium enterprises (SMEs). The study contributes to the Malaysian SMEs in relation to inputs to the government to improve their export performance especially using e-commerce.


2021 ◽  
Vol 22 ◽  
pp. 334-349
Author(s):  
Riyan Harbi Valdiansyah ◽  
Yvonne Augustine

SMEs are the backbone in driving the Indonesian economy and play an essential role in creating jobs throughout Indonesia. Indonesian SMEs are the key to designing inclusive development through the merger of large & small businesses so that economic equity can touch all levels of society. This study examines several factors of Indonesian SMEs' organizational performance, such as beyond budgeting, competitor accounting, and transparency through competitive advantage. This research was conducted by distributing online questionnaires to business owners, financial managers, or financial supervisors of SMEs in Indonesia spread across six islands. A total of 155 questionnaires were obtained in this study and analysed by SMART PLS 3.2.9. The results show that beyond budgeting and transparency influence competitive advantage, while competitor accounting does not. Other results show that competitor accounting, transparency, and competitive advantage influence business performance, while beyond budgeting does not. Path analysis in this study shows that competitive advantage mediates beyond budgeting and transparency, while competitor accounting is not mediated. Researchers are aware that this study has limitations in data dissemination and was distributed during the COVID-19 pandemic conditions, which allowed for differences in results with other similar studies. Hopefully, with this research that practitioners will be able to provide other views beyond budgeting, competitor analysis, and the side of transparency for Small and Medium Enterprises in Indonesia. Policymakers can encourage SMEs to be more innovative and responsive to science through programs to increase business scale, considering the contribution of SMEs to Indonesia's gross domestic product.  Further research is expected to analyze more deeply what factors affect the competitive advantage and organizational performance of small and medium enterprises, such as the availability of working capital, SME access to banks, how digitalization plays a role, etc.


Author(s):  
Tukhas Shilul Imaroh ◽  
Katri Widiyani

Business competition continues to increase, so that MSMEs must continue to have a competitive advantage and performance. The advantages of an economy are not only derived from technology, let alone natural resources. The latest sources of competitive advantage are product innovation and design. Micro, Small and Medium Enterprises (MSMEs) as part of the economy must also increase their competitiveness by making innovations. Competitive advantage based on innovation and product design should be prioritized because it has durability and a longer period of time. Likewise, the MSME group in West Sumatra tries to preserve local wisdom with various regional characteristics, but still has many limitations including facilities and ideas for business development. The group of wisdom preservation craftsmen is one part of the creative industry sub-sector in the form of the craft creative industry which can be integrated through micro, small, or medium enterprises (MSMEs). This is also directly proportional to the existence of Presidential Regulation Number 28 of 2008 concerning National Industrial Policy which is also regulates the creative industry for the development and determination of the guideline map. Therefore this research aims to improve the performance and competitive advantage of MSMEs through innovation and product design. This research is included in TKT 2, namely formulating the concept of technology and its application to the object of UMKM


2019 ◽  
Vol 118 (2) ◽  
pp. 94-97
Author(s):  
Mohammad Mabrur Taufik ◽  
DewiPuspaningtyas Faeni

Small and Medium Enterprises and Indonesian Cooperatives (SMESCO) are strategies in promoting and introducing Indonesia's superior products to the international community. Through SMESCO, SME owners can work together on standardization of SME products, SME quality standardization and at the same time a forum for fostering SMEs to market their products, through human resource development programs including seminars, training, workshops and product introduction through online shops and mentoring programs. The research aims to prove and analyse the influence of: innovation strategies on the performance of SMEs in SMESCO Indonesia directly or through competitive advantage; innovation strategy towards competitive advantage; competitive advantage towards the performance of SMEs at SMESCO Indonesia. The research population is all SME companies that partner with SMESCO Indonesia. Sampling is done by probability sampling with a simple random sampling method. Data analysis using Structural Equation Modelling-Partial Least Squares, a sample of 147 small and medium business owners at SMESCO Indonesia. The results of the study prove: (1) The innovation strategy does not directly have a significant effect on the increasing performance of SME companies in SMESCO Indonesia but has a significant effect through competitive advantage; (2) Competitive advantage has a significanteffect on the increasing performance of SMEs in Indonesia.


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