scholarly journals Critical Factors and their Correlation Affecting Green Industry Performance: Evidences from Small and Medium Enterprises

2021 ◽  
pp. 129-142
Author(s):  
Phurita Noranarttakun ◽  
Chanathip Pharino
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Small And Medium Enterprises ◽  
Electrical Equipment ◽  
Primary Data ◽  
Systematic Analysis ◽  
Product Certification ◽  
Green Industry ◽  
Medium Enterprises

Large companies have achieved excellent progress toward green production while small and medium enterprises (SMEs) showed limited progress. This research aims to investigate key factors affect different stages of enhancing green industry implementation particularly in SMEs. This study conducted a systematic analysis to offer recommendations to unlock the inhibitors of the green industry. The electronic products and electrical equipment manufacturing industry in Thailand was chosen as a case study. Questionnaires is the main approaches to collect primary data from SMEs. The structural equation model is developed to examine correlation and the degree of influencing factors. The model indicated that the latent factors’ influence on the decision-making of SMEs in applying the green industry reflected by the influence of eighteen observable variables and it suggests that the external contexts from stakeholder have a greater influence on the decision-making than the internal context as organizational resources and capabilities. Whereas the level of certification conform with green industry criteria has minor correlation with the decision-making of SMEs. Innovative policy strategy is recommended to create synergy between incentive-based instruments in term of product charges or product tax, subsidies and voluntary measure as product certification are recommended tools to enhance green industry adoption by SMEs.

scholarly journals External Funding And The Development Of Small And Medium-Sized Businesses In The City Of Makassar (Indonesia): An Explanatory Quantitative Study

2020 ◽  
Vol 41 (49) ◽  
pp. 104-113
Author(s):  
Salmiyah THAHA ◽  
◽  
Chalid I. MUSA ◽  
Basril BADO ◽  
◽  
...  
Keyword(s):  
Data Collection ◽  
Quantitative Study ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Survey Method ◽  
External Funding ◽  
Medium Enterprises ◽  
The City ◽  
Small And Medium Business

Academics are interested in exploring small and medium business actors both from a macro perspective that examines external factors in developing small and medium business actors, as well as from a micro perspective on internal determinants that contribute to the performance for small and medium enterprises. The purpose of this study was to analyze the effect of entrepreneurial character on external funding and the development of small and medium business actors. This research is a quantitative study that explains the influence of exogenous variables on endogenous variables. Research location in the city of Makassar, South Sulawesi. The population in this study were 136 entrepreneurs who made loans to banks (State-owned enterprises) in the city of Makassar. The sampling of this study used the census sampling method (saturated sample). The data collection method uses a survey method with primary data collection in the form of a questionnaire. Data analysis techniques using structural equation modelling. The results showed that the entrepreneurial character variable had a significant effect on external funding and the development of small and medium business actors. Therefore, based on research findings, efforts to enhance the development of small and medium business actors in further research can develop further models.

scholarly journals Impact of Financial Management Practices on SMEs Profitability with Moderating Role of Agency Cost

2017 ◽  
Vol 9 (1) ◽  
pp. 23-30 ◽  
Author(s):  
Saqib Muneer ◽  
Rao Abrar Ahmad ◽  
Azhar Ali
Keyword(s):  
Financial Management ◽  
Structural Equation ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Agency Cost ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Medium Enterprises ◽  
The Impact

The importance of Small and medium enterprises (SMEs) towards economic development and growth is considerable. Some SMEs are facing difficulties to their development due to the lack of financial resources and management experience. The objective of this study is to check the relationships of financial management practices on profitability of small and medium enterprises and also to check the impact of agency cost on this relationship. This study consists of data analysis of two hundred SMEs from Faisalabad Pakistan. The study used primary data predominantly. SPSS 23 is used for descriptive analysis and Structural Equation Model (SEM) through Partial Least Square (PLS) 3 for hypothesis testing. The findings of this study indicate the presence of positive relationship between financial management practices and SMEs profitability but agency cost as a moderator has no effect on this relationship. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings for sustainability of their business in Pakistan.

scholarly journals Determinants of the Performance of Small and Medium Enterprises (SMES) in Barru District

2019 ◽  
Vol 1 (4) ◽  
pp. 59-66
Author(s):  
Khaerunnisa Khaerunnisa ◽  
Jusni Jusni ◽  
Maat Pono
Keyword(s):  
Capital Accumulation ◽  
Manufacturing Industry ◽  
Small And Medium Enterprises ◽  
Personal Responsibility ◽  
Linear Regression Analysis ◽  
Primary Data ◽  
Market Demand ◽  
Business Climate ◽  
Good Investment ◽  
Medium Enterprises

This study aims to determine the Determinants of the Performance of Small and Medium Enterprises (SMEs) in Barru Regency. The method used in this study is a quantitative approach and the type of research conducted is survey research. The population used is Small and Medium Enterprises in the manufacturing industry sector in Barru Regency, which is 1672 business units. The number of samples is 94 small and medium enterprises. The data sources used are primary data and secondary data. Analysis of the data used is multiple linear regression analysis. The results of this study indicate that the aspects of finance, environment, marketing, human resources, entrepreneurial ability and economic aspects have a positive and significant effect on the performance of small and medium enterprises in Barru Regency. The greater the equity, loan capital, the level of profits and capital accumulation, the greater the performance of small and medium enterprises. The better the technology and quality control, the availability of business places, government policies, seasons and infrastructure, the better the performance of small and medium enterprises. The more market demand, the better competing pricing, promotion, distribution channels and marketing areas, the better the performance of small and medium enterprises. The better the level of formal education, leadership, experience in business and the amount of motivation and skills in the performance of small and medium enterprises. The greater the desire for achievement, personal responsibility, management ability and innovation ability, the better the performance of small and medium enterprises. the higher the level of income of the community, the availability of jobs, a business climate and good investment and the better the economic growth, the better the performance of small and medium enterprises.

scholarly journals Impact of ethical practices on small and medium enterprises’ performance in Saudi Arabia: An Partial Least Squares-Structural Equation Modeling analysis

2021 ◽  
Vol 52 (1) ◽  
Author(s):  
Turki S. Abalala ◽  
Mazharul M. Islam ◽  
Mohammad M. Alam
Keyword(s):  
Saudi Arabia ◽  
Structural Equation ◽  
Driving Forces ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Equation Modeling ◽  
Ethical Practice ◽  
Ethical Practices ◽  
Ethical Policy ◽  
Medium Enterprises

Purpose: The real challenge of establishing and maintaining business ethics in small and medium enterprises (SMEs) has become a global issue. We investigated the driving forces of ethical practices (EP) and its contribution to the overall performance in businesses.Design/methodology/approach: This study collected primary data from 117 small and medium enterprises (SMEs) in Saudi Arabia by using a well-designed questionnaire survey amongst SMEs and draw inferences using the structural equation modelling (SEM) analysis.Findings/results: Findings suggested that top management’s characters and ethical commitment, ethical policy and culture of the organisation and external pressure positively influence the ethical practice in the organisation, which leads to a significant positive impact on both financial and non-financial performances of SMEs. But the level of fraud and corruption and the level of monitoring show a mixed moderating effect on the relationships between ethical practice in the organisation and business performance.Practical implications: The findings of this research will help SMEs’ administrators and managers, as well as the companies to instil workplace ethics, which manages the level of business performance. The policymakers and other relevant authorities can also utilise the outcomes of this study to develop ethical policy guidelines and frameworks to improve SMEs’ competitiveness and sustain their companies in the long run.Originality/value: The unique feature of this research is that both the causes and effects of EP are considered in one integrated model. This gives a more vivid picture of the ethical issue in a business organisation.

scholarly journals Analyzing the drivers of sustainable value creation, partnership strategies, and their impact on business competitive advantages of small & medium enterprises: a PLS-model

2021 ◽  
Vol 2 (13 (110)) ◽  
pp. 55-66
Author(s):  
Ni Luh Putu Hariastuti ◽  
Pratikto Pratikto ◽  
Purnomo Budi Santoso ◽  
Ishardita Pambudi Tama
Keyword(s):  
Value Creation ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Small And Medium Enterprises ◽  
Critical Phenomenon ◽  
Sustainable Manufacturing ◽  
Production Equipment ◽  
Equation Modeling ◽  
Sustainable Value ◽  
Medium Enterprises

Sustainable manufacturing is a critical phenomenon in the process of creating sustainable value. This is a way to increase innovation and resource quality. On the other hand, the partnership strategy is an important factor in efforts to improve company performance. The involvement of the partnership strategy is one of the factors that strengthen the achievement of sustainable values. Furthermore, this affects the sustainability of a manufacturing company's competitiveness, including Small and Medium Enterprises (SMEs). In this study, we focus on creating sustainable value and the role of partnership strategies in improving the business performance of SMEs engaged in the metal manufacturing industry. The Partial Least Squares (PLS) approach to Structural Equation Modeling (SEM) is used to evaluate relationships and effects based on survey data from small and medium industries. The results show that the creation of sustainable value, including products, processes, production, equipment, organization, and human values, has a significant impact (β=0.522; ρ<0.001) on increasing the competitiveness of small and medium enterprises. The effect of sustainable value creation on sustainable competitiveness is fully moderated by the partnership strategy (β=0.179; ρ=0.03), especially in the technology & equipment, and human resources. Apart from being a moderating variable, the partnership strategy has also been shown to significantly act as a partial mediating variable (β=0.135; ρ<0.05) for sustainable value creation in enhancing competitiveness. The partnership strategy's simultaneous involvement proves that the partnership strategy plays an important role in value creation to increase the competitiveness of sustainable manufacturing SMEs

STRATEGI PENINGKATAN KEUNGGULAN BERSAING IKM: PERAN PEMBELAJARAN ORGANISASI DAN INOVASI

2019 ◽  
Vol 4 (1) ◽  
pp. 45-56
Author(s):  
Edi Sugiono ◽  
Suryono Efendi
Keyword(s):  
Organizational Learning ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Equation Modeling ◽  
Medium Enterprises

This study aims to analyze the role of organizational learning and innovation in improving the competitive advantage of small and medium enterprises (SMEs) in the Mojokerto area. The study was conducted using primary data obtained from the distribution of questionnaires. In total, there were 100 IKM leaders in Mojokerto who became the respondents in this study. Hypothesis testing is done by using Partial Least Square Structural Equation Modeling (SEM-PLS). The results of the study show that organizational learning and innovation have a positive and significant effect on improving SMEs’ competitive advantage. The results of this study also prove that innovation can mediate the relationship between organizational learning and SMEs’ competitive advantage.

scholarly journals The Effect of Market Orientation on the Performance of Small and Medium Enterprises in Case of Amhara Region, Ethiopia

2020 ◽  
Vol 1 (1-2) ◽  
pp. 92-109
Author(s):  
Yissa Hassen ◽  
Amanpreet Singh
Keyword(s):  
Market Orientation ◽  
Structural Equation ◽  
Customer Orientation ◽  
Small And Medium Enterprises ◽  
Core Competencies ◽  
Superior Performance ◽  
Primary Data ◽  
Amhara Region ◽  
Competitor Orientation ◽  
Medium Enterprises

The study investigated the effect of market orientation on the performance of small and medium enterprises in case of Amhara Region, Ethiopia. Primary data was collected from a total of 250 owners/managers of small and medium enterprises using structured questionnaire. A multivariate data analysis technique of structural equation modelling was employed to analyse the data. The result indicated that customer orientation and interfunctional coordination dimensions of MO are significantly and positively affected small and medium enterprises performance. However, competitor orientation dimension was not found to have a positive and significant effect on the performance. The findings revealed that small and medium enterprises need to be more market oriented to realize superior performance. In addition, the different beta coefficient of market orientation indicated that new business ventures are highly recommended to conduct a market orientation profile and take care in investing their scarce resources. Moreover, the mixed results indicate that firms are advised to replicate market orientation to score superior performance with due care in considering the contexts and time in the industry they are operating and match strategies with their internal resources and core competencies. Finally, this study contributed to the almost wholly overlooked research on market orientation and performance linkages in Ethiopian case and the empirical context of this study is quite novel and helpful for developed nations firms who are trying to operate in emerging economies such as Ethiopia.

scholarly journals Financial Literacy and its Impact on Funding Source’s Decision-Making

2020 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Mirza Hedismarlina Yuneline ◽  
Usdi Suryana
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Secondary Data ◽  
Participation Rate ◽  
Primary Data ◽  
Funding Decision ◽  
Low Level ◽  
Literacy Level ◽  
Medium Enterprises

Small and Medium Enterprises (SMEs) plays a significant role for the economic development of a country. Specifically, the existence of SMEs is to contribute in poverty alleviation through job creation. However, not many SMEs can survive and grow their business due to limited access to obtain resources such as financial, technological, and human resources. One of the factors that inhibit the development of MSMEs in Indonesia is the lack of knowledge and management of personal finance. In addition, the participation rate of SMEs to financial institutions is still very low, with only 30% able to access financing. This study aims to analyse the level of financial literacy, the factors that affect the level of financial literacy, and the correlation between the level of financial literacy (proxied by general knowledge, risk management, savings and credits, and investment) with funding decision. The data used are primary data and secondary data, with data collection methods conducted in this study are literature studies, interviews and questionnaires with SMEs in Bandung, Indonesia, with a sample used as many as 97 respondents. The respondents’ financial literacy in low level on general financial knowledge, savings & credits, and investment. But they have medium financial literacy level on insurance. The data processed using discriminant analysis, shows that the average financial literacy level which is in low level and has no effect on funding decision-making.

scholarly journals Decision on Halal Certification of Food and Beverage Products Processed by UMKM Products in Tangerang City - Study of Religiosity, Regulation, and Branding

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Aulia Ramadhan ◽  
Edy Yusuf Agung Gunanto
Keyword(s):  
Manufacturing Industry ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
City Government ◽  
Primary Data ◽  
Food And Beverage ◽  
The Government ◽  
Medium Enterprises

The city of Tangerang with the motto akhlakul karimah and the majority of the population is Muslim, which is 1,587,270 or 88.25%, so it pays great attention to the halalness of the products in circulation. The government requires that every product that enters, circulates, and is traded in the territory of Indonesia must be halal certified, including products of Micro, Small, and Medium Enterprises (MSMEs). There are 11,746 MSMEs in Tangerang City and the leading sectors that can be developed are the service sector and manufacturing industry. This study aims to determine the effect of economic factors, religiosity, socio-culture, regulation, and branding on the decision of MSMEs to carry out halal certification. This study uses primary data with a data collection method in the form of a questionnaire. The population in this study is UMKM which has been halal certified with the facilitation of the Tangerang City Government in 2019. The population is 100 MSMEs and 80 MSMEs are sampled. This study uses multiple linear regression analysis is processed using SPSS version 22. The results of the analysis of this study indicate that the most dominant variable partially has a positive and significant effect on the decision of MSMEs to carry out halal certification is branding. This proves that the halal label can be used as a good image for MSMEs to consumers. The variables that partially have a positive and significant effect on the decision of MSMEs to carry out halal certification, then, are religiosity and regulation. Meanwhile, the socio-culture and economy partially do not affect the decision of MSMEs to carry out halal certification. Simultaneously, the results obtained are that economy, religiosity, socio-culture, regulation, and branding affect the decision of MSMEs to carry out halal certification.

scholarly journals Operations Management and Performance of Manufacturing Small and Medium Enterprises in Kenya

2018 ◽  
Vol 7 (2) ◽  
pp. 1-13
Author(s):  
Mwamisha D Mkala ◽  
Kenneth L Wanjau ◽  
Teresia N Kyalo
Keyword(s):  
Firm Performance ◽  
Operations Management ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Manufacturing Competitiveness ◽  
The Government ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

Manufacturing small and medium enterprises (SMEs) are the breeding ground for human capital competencies, creativity and innovation, which are important inputs for manufacturing competitiveness. In Kenya, manufacturing SMEs contribute 14% of gross domestic product (GDP), and train and employ 30% of the workforce. However, their growth and competitiveness are undermined by challenges in the firms’ operations management. Consequently, the firms struggle to survive as competitive enterprises, both domestically and globally. The purpose of this study was to establish how entrepreneurial orientation (EO) enhances the relationship between operations management and firm performance. Quantitative primary data were collected from managers of 83 firms registered by the Kenya Association of Manufacturers in the food and beverage sub-sector using a self-administered questionnaire. Structural equation modelling was used to analyse the data for relationships between the study variables. The study found a positive relationship between operations management and EO, and between EO and firm performance. The study also found that EO is a mediator of the relationship between operations management and performance of manufacturing SMEs in Kenya. The study recommends that for manufacturing SMEs to effectively deploy operations management competencies and gain global competitiveness, they must engage EO as a strategy to foment organisational experimentation and exploration and commercialize the resultant innovations. At the macroeconomic level, the government should support manufacturing SMEs through enactment and promotion of policies that enable operations managers to exploit their firm’s EO stock.

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