• Title/Summary/Keyword: MSME Performance

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The Effects of Leadership Type of Micro, Small and Medium Enterprises Owners and Knowledge Management on Business Performance (소상공인 경영자의 리더십 유형과 지식경영이 경영성과에 미치는 영향)

  • Chun-Sub Um;Heon-soo Jeong;Sung-Sook Ahn
    • Journal of Information Technology Applications and Management
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    • v.30 no.1
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    • pp.97-114
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    • 2023
  • The purpose of this study is to derive practical implications by verifying the influence of MSME owners' leadership type and management performance on knowledge management. In addition, we tried to verify the mediating role of knowledge management between the leadership type and management performance of MSME owners. Leadership types were divided into transformational leadership and transactional leadership. Transformational leadership consisted of charisma and inspirational motivation, while transactional leadership consisted of situational rewards and management by exception. For data collection, we conducted a survey targeting workers in small businesses. After excluding insincere data that were inappropriate for analysis, we used the remaining 243 samples for empirical analysis. To test the hypothesis, we adopted regression analysis and three-step mediated regression analysis as analysis methods. As a result of the empirical analysis, all seven hypotheses derived were supported, and the main results are summarized as follows. First, we found that MSME owners' transformational leadership and transactional leadership had a positive effect on knowledge management and management performance. Second, we found that knowledge management of MSME owners had a positive effect on business performance. Third, both transformational leadership and transactional leadership of MSME owners were found to be partially mediated by knowledge management in relation to management performance. Based on these research results, we derived practical implications for MSME owners.

Ambidexterity and Leadership Agility in Micro, Small and Medium Enterprises (MSME)'s Performance: An Empirical Study in Indonesia

  • KUSTYADJI, Gatot;WINDIJARTO, Windijarto;WIJAYANI, Ari
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.7
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    • pp.303-311
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    • 2021
  • Ambidexterity and leadership agility have become the most researched topics to analyze their application in companies, especially in this dynamic era. Several researchers have analyzed it in large companies. However, only a few have discussed the two topics simultaneously and at the MSME level. This study aims to analyze the relationship between ambidexterity and leadership agility and innovation capability and performance at MSMEs in Yogyakarta and East Java, Indonesia. This study is analyzed by using quantitative methods with SEM (Structural Equation Model) methods. The data in this study is primary data that is obtained through distributing 230 questionnaires to MSME managers in Yogyakarta and East Java, Indonesia. From 230 questionnaires distributed, 200 questionnaires are returned and completed, so the response rate in this study is 86%. The results in this study indicate that ambidexterity and leadership agility have a significant effect on innovation capability and MSME performance. This study also proved that innovation capability has a significant effect on MSME performance. Therefore, it is recommended for MSME managers to develop ambidexterity and leadership agility so they can create innovation and good performance. In the end, this study has provided findings related to the combination of ambidexterity and leadership agility variables.

Quality of Entrepreneurship and Micro-, Small- and Medium-sized Enterprises' (MSMEs) Financial Performance in Indonesia

  • HANGGRAENI, Dewi;SINAMO, Timothy
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.4
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    • pp.897-907
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    • 2021
  • The purpose of this study is to investigate the quality of entrepreneurship - motivation, entrepreneurial orientation, and risk behavior - in relation to the odds of micro-, small- and medium-sized enterprises' (MSMEs) financial performance in Indonesia. Additionally, this paper investigates how these qualities apply for the current challenges perceived by MSMEs' entrepreneurs in Indonesia due to Covid-19 crisis; specifically, this paper examines the odds of MSMEs' financial performance during the pandemic in respect to when these qualities are implemented by the entrepreneurs. The empirical data was obtained from an online survey by means of a structured questionnaire. MSMEs surveyed were randomly selected on a national scale. To test the hypotheses, a quantitative approach is employed, using multinomial regression. The main result shows that, under normal economic environment, the more intrinsically-motivated and continuity-driven entrepreneur is, the more likely the MSME will achieve financial growth compared to remaining stagnant. To our surprise, innovativeness leads to less likelihood of MSME's financial growth, suggesting the significance of innovation does not apply to MSMEs in Indonesia. Lastly, MSMEs' risk behavior to operate in a stable business environment is found more likely to result in a better performance and is true for operational and financial risks, but not marketing risks.

The Effect of Financial and Taxation Literation on Competitive Advantages and Business Performance: A Case Study in Indonesia

  • RESMI, Siti;PAHLEVI, Reza Widhar;SAYEKTI, Frans
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.2
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    • pp.963-971
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    • 2021
  • This study aims to determine the effect of financial literacy and taxation on competitive advantage, in order to determine the effect of financial literacy and taxation on the performance of MSMEs, and to determine the effect of competitive advantage on the performance of MSMEs. This study uses primary data through a questionnaire. The population is Creative MSME actors in DIY. Creative MSMEs in Yogyakarta were chosen because Yogyakarta is an area that is rich in traditional culture and various characters of its inhabitants, thus encouraging the development of the potential of Creative MSMEs. This research uses primary data sources on Creative MSMEs in Yogyakarta. The samples were determined by the proportional simple random sampling technique; taking a sample of 20% of the total Creative MSMEs in each district/city. The samples that deserve to be respondents in this study were 210 samples of Creative MSMEs actors in DIY. The statistical technique for analyzing data is the AMOS Structural Equation Modeling (SEM). The results showed that financial literacy had an effect on the competitive advantage and performance of MSMEs, tax literacy had an effect on competitive advantage, competitive advantage had an effect on the performance of MSMEs. However, tax literacy has no effect on the performance of MSMEs.

The Influence of Financial Inclusion on MSMEs' Performance Through Financial Intermediation and Access to Capital

  • RATNAWATI, Kusuma
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.205-218
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    • 2020
  • This study aims to analyze the influence of financial inclusion on micro-, small-, and medium-sized enterprises' (MSMEs) performance and examine the mediation role of financial intermediation and access to capital. The object of this study is MSMEs in Malang, Indonesia. The sample consists of 100 MSME actors in Malang City, which is determined using Roscoes theory. The data is collected using Simple Random Sampling method, by distributing questionnaire measured with Likert scales. The hypotheses proposed in this study are examined using Partial Least Square (PLS) model. The results of this study show that financial inclusion influences MSMEs' performance both directly and indirectly through mediation from financial intermediation and access to capital. The direct influence means that the efforts to increase access to financial services, especially access to credit financing for MSMEs, will be able to increase market share, number of workers, sales, as well as profit of the MSMEs. Increased financial inclusion has a major impact on improving MSMEs' performance through financial intermediation compared to access to capital. This means that the increase of financial access for MSMEs followed by an increase in financial intermediation in the form of a financial service approach to MSMEs will improve MSMEs' performance.

Social Media Marketing and Business Performance of MSMEs During the COVID-19 Pandemic

  • SYAIFULLAH, Jahid;SYAIFUDIN, Makmun;SUKENDAR, Markus Utomo;JUNAEDI, Junaedi
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.2
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    • pp.523-531
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    • 2021
  • This study aims to examine the role of social media marketing on the performance of micro-, small and medium-sized enterprises (MSMEs) during the COVID-19 pandemic. This research method uses a quantitative approach and the analytical tool used is Structural Equation Modeling (SEM) based on Partial Least Square. The sampling technique used purposive sampling and the sample in this study was MSMEs who use social media for marketing. The social media used are Facebook, Instagram, and Whatsapp. The number of samples in this study was 254 MSMEs. Data collection used online questionnaires. The research findings show that the use of social media marketing is influenced by compatibility, perceived usefulness, and perceived ease-of-use. The results of this study indicate that the use of social media for marketing has a positive effect on the performance of MSMEs, especially in increasing sales, customer relationships, productivity, and creativity. This means that the better the management of social media for marketing, the better the performance of MSMEs will be. The theoretical contribution to this research is built on the TAM and UTAUT theories and their impact on social media marketing on MSMEs in developing countries that are living through the COVID-19 pandemic.

The Role of SMT and Business Network Accentuation on Value Distribution and Performance Consequences

  • GALIB, Mukhtar;HAERANI, Siti;MAMIMG, Jumidah;RAZAK MUNIR, Abdul
    • Journal of Distribution Science
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    • v.20 no.5
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    • pp.97-104
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    • 2022
  • Purpose: This study intends to analyze the effect of competitor pressure and customer pressure on social media technology use and the value of the business network and their implications for marketing performance. Research design, and methodology: A constructed questionnaire was conducted with 90 respondents of MSME's Business Actors in South Sulawesi Partial Least Square (PLS) analysis was applied to analyze and verify all the data. Results: Competitor pressure has a significant effect on social media technology, Competitor pressure has a positive and significant impact on business network accentuation. Customer pressure has a positive and significant impact on social media technology. Customer pressure has a positive and significant impact on business network accentuation. Social media technology utilization has a significant impact on Business Network Accentuation. Social media technology utilization has a significant effect on Marketing Performance. Business Network has a significant effect on Marketing Performance. Conclusions: It is an important thing for MSMEs to increase the use of social media technology to meet the demands of consumers and pressure from competitors. The use of social media technology must be implemented effectively and efficiently so that it can be utilized as an effective tool for distributing the value that own by a company to improve the company's marketing performance.

ISM Application Tool, A Contribution to Address the Barrier of Information Security Management System Implementation

  • Chandra, Nungky Awang;Sadikin, Mujiono
    • Journal of information and communication convergence engineering
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    • v.18 no.1
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    • pp.39-48
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    • 2020
  • Information-security management systems (ISMSs) are becoming very important, even for micro, small, and medium enterprises (MSMEs). However, implementing an ISMS is not an easy task. Many obstacles must be overcome, e.g., complexity, document tracking, competency management, and even changing cultures. The objective of our study is to provide ISMS application tools, based on ISO 27001:2013 ISM frameworks. The application was developed on the Odoo Open Enterprise Resource Planning platform. To validate its feasibility for future improvement, the application was implemented by an MSME company. For this implementation, information-security-related users gave their feedback through a questionnaire. The distributed feedback questionnaire consists of nine assessment parameters, covering topics from the application's technical aspects to users' experiences. Based on the questionnaire feedback, all users of the application were satisfied with its performance.

Trade performance of India & China in MSME (Micro, Small & Medium Enterprises) Sector: A Case Study

  • Ghoshal, Moloy
    • Asia Pacific Journal of Business Review
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    • v.2 no.2
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    • pp.45-59
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    • 2018
  • Globalization is swapping the every possible corner of the globe steadily yet gradually. Mammoth like companies are penetrating the threshold of potential nations as freelancers and exploiting every inch of feasibility to carry out commercial activities. Undoubtedly, the entire world is experiencing the glare of new horizon. Even laggards nations are also turning out to be a country of immense potential and dynamism. They too, have awakened miserably to comprehend their self worth and entity while bearing the torch of Globalization. The shed of globalization have not only sprinkled capitalistic or mercantilist but even countries like China - once a hardcore communist country is also not remaining untouched with it. Albeit, the Dragon responding affirmatively to the hot current of Globalization yet their way is un-orthodoxical, strange and inventive. This case study discussed on major areas where India, the largest democracy in the world and six largest economy in the world are facing steep competition from China.

Seismic structural demands and inelastic deformation ratios: Sensitivity analysis and simplified models

  • Chikh, Benazouz;Laouami, Nacer;Mebarki, Ahmed;Leblouba, Moussa;Mehani, Youcef;Kibboua, Abderrahmane;Hadid, Mohamed;Benouar, Djillali
    • Earthquakes and Structures
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    • v.13 no.1
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    • pp.59-66
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    • 2017
  • Modern seismic codes rely on performance-based seismic design methodology which requires that the structures withstand inelastic deformation. Many studies have focused on the inelastic deformation ratio evaluation (ratio between the inelastic and elastic maximum lateral displacement demands) for various inelastic spectra. This paper investigates the inelastic response spectra through the ductility demand ${\mu}$, the yield strength reduction factor $R_y$, and the inelastic deformation ratio. They depend on the vibration period T, the post-to-preyield stiffness ratio ${\alpha}$, the peak ground acceleration (PGA), and the normalized yield strength coefficient ${\eta}$ (ratio of yield strength coefficient divided by the PGA). A new inelastic deformation ratio $C_{\eta}$ is defined; it is related to the capacity curve (pushover curve) through the coefficient (${\eta}$) and the ratio (${\alpha}$) that are used as control parameters. A set of 140 real ground motions is selected. The structures are bilinear inelastic single degree of freedom systems (SDOF). The sensitivity of the resulting inelastic deformation ratio mean values is discussed for different levels of normalized yield strength coefficient. The influence of vibration period T, post-to-preyield stiffness ratio ${\alpha}$, normalized yield strength coefficient ${\eta}$, earthquake magnitude, ruptures distance (i.e., to fault rupture) and site conditions is also investigated. A regression analysis leads to simplified expressions of this inelastic deformation ratio. These simplified equations estimate the inelastic deformation ratio for structures, which is a key parameter for design or evaluation. The results show that, for a given level of normalized yield strength coefficient, these inelastic displacement ratios become non sensitive to none of the rupture distance, the earthquake magnitude or the site class. Furthermore, they show that the post-to-preyield stiffness has a negligible effect on the inelastic deformation ratio if the normalized yield strength coefficient is greater than unity.