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Article
Publication date: 2 January 2019

Adya Hermawati, Suhermin and Rahayu Puji

The purpose of this paper is to examine the influence of transglobal leadership on quality of work-life, job involvement and its impact on the performance of micro, small and…

Abstract

Purpose

The purpose of this paper is to examine the influence of transglobal leadership on quality of work-life, job involvement and its impact on the performance of micro, small and medium enterprises (MSMEs) employees throughout Malang Raya.

Design/methodology/approach

The population of the paper was all of MSME employees in Malang Raya and MSME developing in East Java regions, namely Sidoarjo, Pasuruan District, Pasuruan City, Kediri District, Jombang, Surabaya City, Blitar City and Blitar District. This paper uses GSCA for several reasons. First, it uses a structural model (involving several endogenous variables). Second, it involves unobservable variables that require a measurement model (variable measurement of the indicators). Third, it needs a comparative model testing that compares several groups of objects using the multigroup GSCA.

Findings

Transglobal leadership has a significant effect on quality of work life and job involvement in the five regions. It also has a significant effect on employee performance in the four regions, except Malang Regency. Quality of work life has a significant effect on job involvement in two regions, namely Malang City and Malang Regency, but not in the other three regions. Quality of work life and job involvement together has a significant effect on employee performance in all study sites.

Originality/value

These gaps motivate the researchers to comprehensively examine the relationship between QWL and employee performance, QWL and job involvement and job involvement and employee performance – these are the originality of the present study, in addition to different research locations. Small- and medium-sized enterprises (SMEs) in Malang are divided into three main groups, namely manufacturing business, merchandising business and service business.

Details

Research Journal of Textile and Apparel, vol. 23 no. 1
Type: Research Article
ISSN: 1560-6074

Keywords

Article
Publication date: 20 February 2019

Syapsan

The purpose of this paper is to determine the effect of service quality and innovation on competitive advantage and sustainable local economy, with marketing mix strategy as the…

4063

Abstract

Purpose

The purpose of this paper is to determine the effect of service quality and innovation on competitive advantage and sustainable local economy, with marketing mix strategy as the mediating variable (Study in small and medium enterprise (MSME) in Java and Sumatera).

Design/methodology/approach

The study population of this paper is the MSME in Sumatera and Java Islands in Indonesia, as the highest population in Indonesia in 2010–2016 (portion of MSME in Indonesia: Java 58.29 percent and Sumatera 22.22 percent, or total 80.51 percent), and total 16 province in Indonesia: Aceh, Sumatera Utara, Riau, Sumatera Barat, Jambi, Sumatera Selatan, Bengkulu, Lampung, Kep Riau, Kep Bangka Belitung (Sumatera Island), and Banten, DKI Jakarta, Jawa Barat, Jawa Tengah, Jawa Timur, DI Yogyakarta (Java Island). The analysis used in this study is a quantitative approach, namely, structural equation modeling based on variance, also known as the WarpPLS method.

Findings

The findings of this study are as follows: first, service quality has an influence on marketing mix strategies, meaning the application of service quality according to customer needs will create satisfaction. In other words, the better the quality of service provided, the higher the customer satisfaction will be. Second, the quality of service has a direct influence on creating a sustainable local economy, meaning that improving service quality to understand customer needs can enhance sustainable economic growth and competitive advantage through marketing mix strategies. This means that improving service quality in accordance with customer needs will improve the marketing mix strategy leading to a sustainable local economy. Third, the marketing mix strategy has a positive influence on the sustainable local economy, meaning that the higher the marketing mix strategy, the better the strategy for sustainable economic growth and competitive advantage will be.

Originality/value

The effect of marketing mix strategy as mediation (using the Sobel test) on the influence of service quality and product innovation on sustainable local economy and competitive advantage is shown in this study. No previous research studies this relationship at the research location: MSME in Indonesia, especially in Java and Sumatra Islands. Hence, this is one of few studies comprehensively evaluating the effect of service quality and innovation, toward competitive advantages and local sustainable economic: marketing mix strategy as mediating variable (study in MSME in Java and Sumatera).

Details

Benchmarking: An International Journal, vol. 26 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 27 February 2024

Aman Kumar Joshi, Rajesh Matai and Nagesh N. Murthy

This study aims to investigate the impact of information and communication technology (ICT) investment on the micro, small and medium enterprises (MSME) profitability in the…

Abstract

Purpose

This study aims to investigate the impact of information and communication technology (ICT) investment on the micro, small and medium enterprises (MSME) profitability in the Indian context.

Design/methodology/approach

This study used a framework based on the ICT investment and firm size, measuring the impact on profit before depreciation, interest, tax and amortisation of MSME by taking a random sampling of 300 Indian MSME manufacturing firm’s secondary data from the Prowess database. This framework was analysed using the design of experiment (DoE) technique.

Findings

The study showed that ICT investment has a significant positive relationship with profitability. This study examines the different ICT investment levels to predict investment strategies and fine-tune profit targets. The critical finding is that ICT investment maximises profit at one million rupees. This discovery aids MSME leaders’ sustainable business decision-making.

Research limitations/implications

This study has an explicit limit to the Indian context, where the firm requirements of countries are different, and these findings need to be validated with many operating variables and applied to more firms with more data. Even so, as a theoretical implication, this study took a novel approach to ICT adoption (through ICT investment) in the Indian MSME sector with guiding levels of ICT investment for each type of firm (i.e. micro, small and medium). This study opens new avenues for investigating researchers and stakeholders by exploring other factors responsible for ICT adoption.

Practical implications

This study uniquely provides practitioners with the functional level of ICT investment for MSMEs in the Indian context. These finding guides top management to make strategic ICT adoption decisions with information symmetry. At the same time, these findings suggest financial institutions astern their credit programme to provide credit for ICT investment in MSMEs.

Social implications

This study highlights the value of ICT as a practical resource for business owners that significantly makes MSMEs more informed and profitable, thus creating more jobs and incrementing the country’s gross domestic product (GDP).

Originality/value

This study offers unique empirical findings on how decision makers in MSMEs maximise profits through optimal ICT investment levels depending upon the firm size in an emerging economy like India. There is evidence in the study to conclude that ICT is a need of MSME and has implications for firm performance.

Details

The Bottom Line, vol. 37 no. 1
Type: Research Article
ISSN: 0888-045X

Keywords

Article
Publication date: 9 February 2022

Sumanjeet Singh, Pankaj Chamola, Vimal Kumar, Pratima Verma and Neha Makkar

Micro, small and medium enterprise (MSME) is the kingpin of Indian economy. It contributes to 48% of India's exports and provides employment to 110 million people. As a result…

1932

Abstract

Purpose

Micro, small and medium enterprise (MSME) is the kingpin of Indian economy. It contributes to 48% of India's exports and provides employment to 110 million people. As a result, it is critical to evaluate the obstacles, expose them and find a way to overcome the crisis due to the pandemic. The study aims to analyse the impact of financial and non-financial measures for the revival of MSME and its impact on firm sustainability and future opportunity as perceived by MSME owners/heads during the COVID-19 outbreak.

Design/methodology/approach

This study, based on a cross-sectional survey of 197 export-oriented Indian MSMEs, attempts to investigate covid crisis mitigation strategies/measures in the context of the COVID-19 crisis. The confirmatory factor analysis (CFA) model was applied to check model fit, and structural equation modelling (SEM) was employed for data analysis.

Findings

The results of this study show the financial and non-financial revival measures such as firm revival, marketing training, customer relationship management (CRM), financial incentive and firm support, extending worker social security and financial access and price control positively impact MSMEs' business sustainability and future opportunity as perceived by the respondents that lent good support to the hypothesis.

Research limitations/implications

The study emphasizes management in association with government and financial institutions to design short-term as well as long-term strategies that may enhance their sustainability in the market. MSMEs are being forced to reassess their business strategy and modify their operating model as a result of the uncertain/unpredictable climate. Many levels of strategy aid in revitalizing the company and providing future possibilities to move forward if the government schemes positively impact the perception of entrepreneurs. Further, the study identifies the immediate measures to tide over the crisis over this sector and then furnishes recommendations for closing the identified gaps in the present understanding.

Originality/value

The impact of COVID-19 on Indian MSMEs and how these MSMEs are dealing with it are highlighted in this paper, which is quite scarce and insufficient to cover the gap. It also provides a comprehensive view of firm sustainability and perceived opportunity among MSMEs.

Details

Benchmarking: An International Journal, vol. 30 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 19 December 2022

Adi Saifurrahman and Salina H.J. Kassim

This study aims to explore and analyse the credit risk assessment procedure conducted by the Indonesian Islamic banks to address the issue of asymmetric information among their…

Abstract

Purpose

This study aims to explore and analyse the credit risk assessment procedure conducted by the Indonesian Islamic banks to address the issue of asymmetric information among their micro-, small- and medium-sized enterprise (MSME) clients. This study also investigates the gaps in credit risk assessment procedures by comparing Islamic banks’ practices and presenting several recommendations to reinforce the credit risk evaluation procedures and eventually promote more inclusion of the MSME segment into the Islamic financial services.

Design/methodology/approach

This paper adopts a qualitative method by implementing a multi-case study research strategy. The data were gathered primarily through an interview approach by incorporating purposive uncontrolled quota sampling.

Findings

The result of this study implies that the Islamic banks in Indonesia have their own unique approaches and strategies in assessing the credit risk and have several similarities in performing their evaluation procedures for the MSME. Despite seemingly adequate approaches and measures taken by the Islamic banks to eliminate the asymmetric information problem, the study identifies several gaps that occur within the Islamic banks’ methods of credit risk assessment.

Research limitations/implications

Since this study focuses on Indonesia and emphasises the two segments of Islamic banks, which consist of Islamic commercial and rural banks, in performing the MSME credit risk assessment; therefore, the findings of this study were limited around the observed Islamic banks within the MSME segment purview.

Practical implications

By referring to the recommendations as proposed by this paper, four implications could be expected from adopting these respective recommendations, among others: more effective evaluation procedures for the MSME, provision of a clear path and more efficient approach to assess the MSME units, lower financing cost and increase the confidence of Islamic banking industry in disbursing more financing to the MSME sector. This mechanism will potentially improve Islamic financial inclusion for the MSME due to the greater access to financial services; hence, the sector could contribute even more to Indonesia’s growing economy.

Originality/value

By incorporating a multi-case study among Indonesian Islamic banks pertaining to their methods in evaluating MSME customers, this study identifies several gaps affecting the effectiveness of MSME credit risk assessment. Furthermore, this study also presents a proposed framework to address these gaps accordingly by suggesting the salient strategies to minimise the issues of information asymmetry and enhance the MSME credit risk assessment procedure.

Details

Qualitative Research in Financial Markets, vol. 15 no. 3
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 28 July 2023

Satria Utama, Rizaldi Yusfiarto, Ruspita Rani Pertiwi and Annes Nisrina Khoirunnisa

The purpose of this study is to explore growth models based on “industry-based capabilities”, “resources-based capabilities” and “institution-based capabilities” in the context of

Abstract

Purpose

The purpose of this study is to explore growth models based on “industry-based capabilities”, “resources-based capabilities” and “institution-based capabilities” in the context of the determinants of micro, small and medium enterprises’ (MSMEs) actors’ intention to grow.

Design/methodology/approach

This study involved 188 owners/managers of MSMEs. The analysis was conducted using partial least squares structural equation modelling. Moreover, the importance-performance map analysis package is used to complement the study findings.

Findings

This study uses the framework of the resource-based view (entrepreneurial knowledge), industrial-based view (industrial linkage) and institutional-based view (government support and access to finance) as proxies of the tripod-based view framework. The findings show that entrepreneurial knowledge (skills, competencies and functional), government support, access to finance and industrial linkage (vertical and horizontal) significantly encourage MSMEs’ owner/manager growth intention.

Practical implications

Firstly, this study suggests that MSMEs actors focus on developing entrepreneurial knowledge to boost the skills, competencies and functionalities needed to improve their business capabilities, directly affecting their growth intention. Secondly, this study indicates that the growth intention of MSME players, besides increasing internal capacity, must also be supported by the external environment, such as financial institutions, government and industrial linkage.

Originality/value

This study offers a tripod-based view as a framework for MSMEs’ actors’ intention to grow, where the constructs in the model used so far have not been explored comprehensively in the context of MSMEs. So, the built model brings more relevant factors to explain this topic from various perspectives.

Details

Journal of Asia Business Studies, vol. 18 no. 1
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 13 August 2020

Shreeranga Bhat, E.V. Gijo, Anil Melwyn Rego and Vinayambika S. Bhat

The aim of the article is to ascertain the challenges, lessons learned and managerial implications in the deployment of Lean Six Sigma (LSS) competitiveness to micro, small and…

1196

Abstract

Purpose

The aim of the article is to ascertain the challenges, lessons learned and managerial implications in the deployment of Lean Six Sigma (LSS) competitiveness to micro, small and medium Enterprises (MSME) in India and to establish doctrines to strengthen the initiatives of the government.

Design/methodology/approach

The research adopts the Action Research methodology to develop a case study, which is carried out in the printing industry in a Tier III city using the LSS DMAIC (Define-Measure-Analyze-Improve-Control) approach. It utilizes LSS tools to deploy the strategy and to unearth the challenges and success factors in improving the printing process of a specific batch of a product.

Findings

The root cause for the critical to quality (CTQ) characteristic, turn-around-time (TAT) is determined and the solutions are deployed through the scientifically proven data-based approach. As a result of this study, the TAT reduced from an average of 1541.2–1303.36 min, which in turn, improved the sigma level from 0.55 to 2.96, a noteworthy triumph for this MSME. The company realizes an annual savings of USD 12,000 per year due to the success of this project. Top Management Leadership, Data-Based Validation, Technical Know-how and Industrial Engineering Knowledge Base are identified as critical success factors (CSFs), while profitability and on-time delivery are the key performance indicators (KPIs) for the MSME. Eventually, the lessons learned and implications indicate that LSS competitiveness can be treated as quality management standards (QMS) and quality tools and techniques (QTT) to ensure competitive advantage, sustainable green practices and growth.

Research limitations/implications

Even though the findings and recommendations of this research are based on a single case study, it is worth noting that the case study is executed in a Tier III city along with novice users of LSS tools and techniques. This indicates the applicability of LSS in MSME and thus, the modality adopted can be further refined to suit the socio-cultural aspects of India.

Originality/value

This article illustrates the deployment of LSS from the perspective of novice users, to assist MSME and policymakers to reinforce competitiveness through LSS. Moreover, the government can initiate a scheme in line with LSS competitiveness to complement the existing schemes based on the findings of the case study.

Details

The TQM Journal, vol. 33 no. 2
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 8 June 2022

Vimal Kumar, Pratima Verma, Ankesh Mittal, Juan Alfredo Tuesta Panduro, Sumanjeet Singh, Minakshi Paliwal and Nagendra Kumar Sharma

This study aims to identify how ICT appeared as an emergent business strategy and to investigate the impact of ICT adoption factors on the perceived benefits of micro, small and…

Abstract

Purpose

This study aims to identify how ICT appeared as an emergent business strategy and to investigate the impact of ICT adoption factors on the perceived benefits of micro, small and medium enterprises (MSMEs).

Design/methodology/approach

A total of 393 responses from Indian small and mid-size enterprises (SMEs) were collected for the final analysis. The study presents the partial least-squares structural equation modeling with the Chi-square test and descriptive analysis as a methodology based on numerous independent variables and one dependent variable.

Findings

The findings indicate that ICT adoption during and following the COVID-19 pandemic is constant in nature of the enterprise. Moreover, the results indicate that different adoption of ICT factors influence on perceived benefits of organizational performance of Indian MSMEs that lent good support except for the regulatory framework.

Research limitations/implications

The implications of the current research help Indian MSMEs to take investment decisions in various technologies that help the organization. Furthermore, managers and practitioners help the organization in deciding which technology adoption factors are more critical to the betterment of the organization.

Originality/value

The study found certain ICT adoption factors that have a significant role in organizational performance in Indian MSMEs. Moreover, during COVID-19, investigate ICTs' role as a business strategy.

Details

Benchmarking: An International Journal, vol. 30 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Open Access
Article
Publication date: 13 December 2021

Hitesh Kyal, Anirban Mandal, Fedric Kujur and Sriparna Guha

This research would like to address the issues associated with individual entrepreneurial orientation, which involves entrepreneurial leadership and entrepreneurial ability as the…

4042

Abstract

Purpose

This research would like to address the issues associated with individual entrepreneurial orientation, which involves entrepreneurial leadership and entrepreneurial ability as the key determinants of MSME growth. It will also explore both mediating and moderating roles of employee motivation and government intervention, respectively during the pandemic situation.

Design/methodology/approach

A purposive sampling technique was applied during pilot study and during the final data collection phases. Exploratory Factor Analysis (EFA) was conducted using varimax rotation to reduce a large number of variables into a smaller set of interpretable underlying factors. Further CFA and SEM are respectively applied to examine the psychometric properties of the scales and test the hypotheses of the research model.

Findings

The study's findings revealed a favourable association between entrepreneurial orientation, business financing, management, market practices, and MSME growth performance. The results support the notion that government policy plays a significant role as a full moderator.

Practical implications

Although the MSME sector receives government support, its implementation requires a skilled leader who can run the business profitability. The findings support this objective.

Originality/value

This paper seeks to give important insights into one of the understudied but quickly expanding MSME entrepreneurship, and how this environment influences individual entrepreneurial orientation and the formation of entrepreneurial leadership. This opens up a previously unexplored area for fresh insights and future study on enhancing entrepreneurship development research and practice for the MSME sector.

Details

IIM Ranchi journal of management studies, vol. 1 no. 1
Type: Research Article
ISSN: 2754-0138

Keywords

Open Access
Article
Publication date: 26 March 2019

Jorge Aníbal Restrepo-Morales, Osmar Leandro Loaiza and Juan Gabriel Vanegas

This paper aims to study the influence of innovation on micro, small and medium-sized enterprises (MSME) performance in Colombia through the 403 MSMES survey analysis. In…

4961

Abstract

Purpose

This paper aims to study the influence of innovation on micro, small and medium-sized enterprises (MSME) performance in Colombia through the 403 MSMES survey analysis. In particular, this paper measures the effect of participation in R&D alliances, product innovation and process innovation on it.

Design/methodology/approach

MSME performance is measured through a composite index, estimated through principal components analysis using polychoric correlations, which is based on eight self-reported assessments of MSME performance. Then, this measure of performance is related to MSME participation in R&D alliances and the product and process development stance of the MSME based on an adaptation of the Miles and Snow business classification scheme, by means of an ANOVA and a linear regression.

Findings

Colombian SMEs are not significantly benefitted from participation on R&D alliances. Instead, their performance appears to be dependent upon their internal innovation efforts directed to product development. Moreover, the results suggest that imitators get a performance almost as high as innovators.

Originality/value

Innovation activities in Colombian SMEs are carried out informally, as they are mostly uninterested to engage in R&D activities and to develop new products by own initiative. Moreover, few of them have an R&D department. In regard to technology, results suggest that almost half of SMEs are classified as followers, namely, they use the same technology as competitors.

Details

Journal of Economics, Finance and Administrative Science, vol. 24 no. 47
Type: Research Article
ISSN: 2077-1886

Keywords

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