Success factors of SMEs: the case of Indonesia

Mariyudi, Mariyudi

doi:10.1504/ijbir.2019.100074

Cited by 6 publications

(5 citation statements)

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“…First, the human capital of entrepreneurs is a pivotal aspect of entrepreneurship. Human capital has been empirically studied in SMEs that focus on service and innovation (Georgiadis and Pitelis, 2016; Mariyudi, 2019; Prajogo and Oke, 2016; van Uden et al , 2017), internationalization (Onkelinx, 2016) and growth and performance (El Shoubaki et al , 2020; Subagyo et al , 2020). Nonetheless, these studies have yet to recognize the strategic orientation dimensions that are represented by EO and MO.…”

Section: Introductionmentioning

confidence: 99%

“…This phase refers to an economy that has become more competitive and has more efficient production processes and increased product quality JRME 25,3 (Global Entrepreneurship Monitor, 2019). The failure to enhance this situation could conservatively decelerate the accumulation of resources and capabilities that are desired to boost innovation (Mariyudi, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…Nevertheless, SME barriers that include limited access to capital, business information, technology and skilled workers; difficulties in marketing and in obtaining raw materials; and government policies have been highlighted as problematic issue to cope with (Tambunan, 2019). According to Mariyudi (2019), SMEs have been known to focus mainly on head-to-head market competition that has reduced their existence in the local market. Thus, strategic orientation (i.e.…”

Section: Introductionmentioning

confidence: 99%

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Strategic orientation and its role in linking human capital with the performance of small and medium enterprises in Indonesia

Iqbal

Mawardi

Sanawiri

et al. 2023

JRME

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Purpose This study aims to investigate the ways that human capital influences the strategic orientation variables entrepreneurial orientation (EO) and market orientation (MO), which ultimately leverage the firm performance of small and medium enterprises (SMEs) in Indonesia. Design/methodology/approach This study used a quantitative method with a total of 274 SMEs in the Regency of Gresik, East Java, Indonesia, as the observable population. Furthermore, the identified samples obtained through the random sampling technique were determined using the Slovin formula with 163 SMEs used for analysis. As the means of analysis, this study used a statistical approach by using PLS-SEM statistics from SmartPLS software. This analytical tool has been proven to be a robust statistical tool that has been used in many marketing studies. Findings This study found that human capital is a key determinant of EO and MO as strategic orientations of SMEs. Furthermore, this study highlighted that SMEs’ strategic orientations (i.e. EO and MO) provide a valuable thrust that leverages firm performance. Moreover, the role of human capital in leveraging firm performance was found to be significant with the role of the joint effect of EO and MO as mediator. This implies that human capital is not solely a single determinant that leverages SMEs’ performance. Research limitations/implications There are few aspects of limitations in this research that could be enhanced by other scholars in the discipline of entrepreneurship. First, the strategic orientation concept being indicated by EO and MO had yet to provide a comprehensive view of strategic orientation. Second, this research used samples that represent the traditional furniture cluster in East Java and had yet to explore other clusters such as food processing and services cluster which may be relevant to the context of SMEs in Indonesia. Practical implications As a practical implication, this study would benefit policymakers in Indonesia, such as the Ministry for Cooperatives and SMEs to provide assistance to SMEs to progressively nurture capacity-building through formal and informal education to leverage human capital. Moreover, it could benefit other relevant businesses, such as national banks in Indonesia whose interests are significant, especially in providing financial access to SMEs in Indonesia. Social implications The social implication of this research lay the focus on the suggestion by which SMEs must be able to optimize their capabilities by enhancing levels of human capital particularly for traditionally managed SMEs. The ability to survive external pressures for would be able to contribute to the social well-being of their society as many people are dependent heavily in the operation of the SMEs. Originality/value The significance of this study is twofold. Although the use of human capital as a determinant of firm performance has been discussed in the literature, few studies to date has sought to predict human capital with EO and MO as mediators of firm performance. Furthermore, the joint impact of EO and MO as a strategic orientation needs to be holistically explored and explained, particularly in an emerging economy context.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Strategic orientation and its role in linking human capital with the performance of small and medium enterprises in Indonesia

Iqbal

Mawardi

Sanawiri

et al. 2023

JRME

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“…Economically, MSMEs play a role as heroes in securing the Indonesian economy during the Asean Financial Crisis in 1997-1998 [3]. When the economic crisis hit developing countries such as Indonesia, small and medium enterprises or SMEs are a business group which could survive well [4]. This is evidenced by the high number of labor absorption in 1997 and 1998.…”

Section: Introductionmentioning

confidence: 99%

Inequality Impact of MSME Assistance in Indonesia on Urban Migration in the Post Pandemic Era

Nurwaesari¹,

Maulidiyah²,

Fitri³

2021

Proceedings of the 2nd International Indonesia Conference on Interdisciplinary Studies (IICIS 2021)

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Since the Covid-19 outbreak, MSMEs have become one of the most affected economic sectors. In August 2020, the Central Government of Indonesia officially launched a special program to help MSMEs namely the Direct Cash Assistance (DCA) amounting to 2.4 million rupiah, which later this amount reduced to 1.2 million rupiah in the early 2021. This study aims to recommend what things need to be prepared by policy makers if there is an increase in urban migration in Indonesia after pandemic era. The study uses two indicators in evaluating DCA Program namely the Distribution of Direct Cash Assistance, especially the distribution mechanism from government to the end users, and The Realization Number of Recipients by using the Objective-Oriented Evaluation Approach. In addition, the SWOT method is also used to analyze this DCA program. This research found that during August 2020 to March 2021, the distribution of assistance to MSME players in Eastern Indonesia was only reached 5 percent due to infrastructure constraints and incomplete database. In this finding, the researchers predict that there will be an increase of urban migration because the rising of unemployment and economic growth is still difficult to crawl up. Infrastructure constraints in remote areas in Indonesia encourage more people to migrate to urban areas in the post pandemic period.

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“…In Indonesia, MSMEs play an essential role in national economic development. Innovation is one of the factors that cause MSMEs to have a competitive advantage and contribute to economic development and performance growth (Mariyudi, 2019).…”

Section: Introductionmentioning

confidence: 99%

Assessment of Career Ambition of Head of Farm Families for their Children: A Case of Farmers in South Western Nigeria

Eyinade¹,

Akharume²

2020

TJSSR

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In early 60s and 70s, agriculture is one of the key sectors of the Nigerian’s economy. The decline in agricultural production is attributed to the drudgery nature of traditional farming system mostly practice by farmers in the country and the influence of rural farmers on career choice of their children. The study therefore aims to assess the influence of head of farm families in career choice for their children using a descriptive statistics. Simple random sampling technique was used in selecting 120 rural farmers from Oyo State in Nigeria. Results show that 50% of the respondents were in their active age, 86.7% were married, 61.7% of the respondents had a household size of 3-6 family members, and 45.8% of the respondents had no formal education. The results of the Chi-square analysis further reveal that variables such as age, marital status, and household size, level of education, secondary occupation and membership of social organisation were statistically significant at 1% signifying that all the socio-economic variables have a significant relationship with the choice of career for the farmer’s children. To unlock farmers’ perspective on career choice ambition choosing for their children, the study suggests that more attention should be paid to improve traditional farming systems by several stakeholders and government, by providing farm equipment such as tractor and other farm implements which can make farming less rigorous, profitable and enjoyable to the rural youths in the rural communities.

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Success factors of SMEs: the case of Indonesia

Cited by 6 publications

References 0 publications

Strategic orientation and its role in linking human capital with the performance of small and medium enterprises in Indonesia

Strategic orientation and its role in linking human capital with the performance of small and medium enterprises in Indonesia

Inequality Impact of MSME Assistance in Indonesia on Urban Migration in the Post Pandemic Era

Assessment of Career Ambition of Head of Farm Families for their Children: A Case of Farmers in South Western Nigeria

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