The effect of innovation on increasing business performance of SMEs in Indonesia: Study of SMEs manufacturing industry sector in West Java, Indonesia

Herlinawati, Erna; Suryana,; Ahman, Eeng; Machmud, Amir

doi:10.1201/9781003131465-141

Cited by 18 publications

(17 citation statements)

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“…There is evidence that risk-taking can positively affect firm performance (Akinwande and Akinola, 2021;NuelOkoli et al, 2021) and competitive advantage (Hock-Doepgen et al, 2021). However, risk-taking can also be negatively associated with firm performance (Herlinawati et al, 2019;Garba, 2020). Finally, some entrepreneurs tend to avoid risk while preferring proven strategies that bring in expected profits (Covin and Slevin, 1989).…”

Section: Literature Review 21 Risk-taking and Performance Under Crisi...mentioning

confidence: 99%

Impact of entrepreneurial orientation on performance and moderating role of crisis perception: multi-method examination

Suder

2023

JOCM

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PurposeThis study aims to examine the role of the dimensions of entrepreneurial orientation (EO) under turbulent market conditions and reveal the role of an entrepreneur's perception of a crisis in shaping the impact of EO on firm performance.Design/methodology/approachThis study uses partial least squares structural equation modeling (PLS-SEM), multiple linear regression (MLR) and fuzzy-set qualitative comparative analysis (fsQCA). The study sample was comprised of 117 one- and two-star hotels that were operating in Poland.FindingsThe results showed that proactiveness and risk-taking significantly affected firm performance. Furthermore, the results revealed that an entrepreneur's perception of a crisis moderated the impact of risk-taking and proactiveness on firm performance. In particular, the findings suggested that, in firms where the crisis strongly influenced their operations, performance was affected by proactiveness, while in those firms where the crisis influenced their operations to a low or moderate degree, performance was affected by risk-taking. Furthermore, fsQCA unveiled the role of innovativeness, which (along with risk-taking) is a sufficient condition that leads to firm performance.Originality/valueTwo characteristics make this study original: first, it investigates EO under turbulent market conditions, and second, it analyzes the role of an entrepreneur's perception of crisis consequences for business operations. The study contributes to the literature on entrepreneurship and crisis management with findings on the different roles of EO dimensions under crisis conditions and an observation about the moderating role of an entrepreneur's perception of the impact of a crisis on operational management and how this perception differentiates the impact of risk-taking and proactiveness on firm performance.

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Section: Literature Review 21 Risk-taking and Performance Under Crisi...mentioning

confidence: 99%

Impact of entrepreneurial orientation on performance and moderating role of crisis perception: multi-method examination

Suder

2023

JOCM

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“…This is considered to be the role of microfinance institutions, which go beyond just disbursing funds to also act as a catalyst for SMEs' empowerment in areas like marketing, human resource management, and financial management. Small and medium-sized businesses (SMEs) who have received financing haven't shown a lot of expansion or increase in their performance (Herlinawati et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…In this study, the aspects of entrepreneurial abilities were measured (Kuriloff et al, 1993), This are the four essential skills that entrepreneurs need to succeed in business: technical competence, marketing competence, financial competence, and human relations competence. Additional prior research (Suryana, 2014) refers to study results that indicate the focus of microfinance organizations is more on channeling funds than it is on enhancing managerial, marketing, production, and financial management capabilities, such that after receiving funding, only financial performance improved (Herlinawati et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

The Model for Improving Business Performance Using Microfinancial Institutions and Entrepreneurship Competencies

Herlinawati

Sumawidjaja²,

Sudaryo³

et al. 2023

Sosiohumaniora

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This paper will assess & present empirical evidence on the issue in order to better understand how Microfinance Institutions (MFIs) mediate entrepreneurial talents. The role of MFIs is evaluated based on their functions as a source of finance, facilitators for financial management, managerial management, and marketing management. Sales growth, profit growth, asset growth, employee growth, and market share growth are all ways to gauge a company’s performance. While entrepreneurial ability is assessed using technical, marketing, financial, and interpersonal abilities. The research approach is explanatory, with data collected through questionnaires and interviews. A sample of 150 SMEs sampled the population of 34,816 SMEs in West Java’s Greater Bandung region, Indonesia, using a proportionate random sampling approach. Structural Equation Modeling and a 5-point Likert scale were used to analyze the data collected (SEM). According to the findings, microfinance institutions can help businesses succeed by a small but significant amount. Business performance is positively and significantly impacted by entrepreneurial talents. The MFIS’s significance in influencing entrepreneurial skills expands in relation to corporate performance.

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“…This also applies to creative ceramic small and medium industries (SMEs) in Bali. The need for basic improvements in terms of raw materials, production process technology, and the commercialization of creative ceramic products must be carried out by ceramic creative SMEs in Bali, especially in facing this increasingly competitive business competition [8][9][10][11][12][13][14][15][16][17]. One of the efforts that can be made by ceramic creative SMEs in Bali is to make the maximum use of local Balinese raw materials as alternative materials.…”

Section: Introductionmentioning

confidence: 99%

Potential clay from Bali to support clean production in the Bali ceramic industry

Prayasa,

Winantari,

Kristyawan

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

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The challenges for the Bali ceramics industry come from the emission side of the materials, production, and waste processing. In the future, the Balinese ceramics industry must develop to be greener and more sustainable. One of the way is reducing emissions from raw materials process. This research was conducted with the aim of mapping the potential of clay that can be used as a raw material for making ceramics, especially those from Bali. The method used was to review the literature on ceramic raw materials and conducted a survey to compile flow diagrams of materials, energy, and emissions from ceramic production in Bali. Then calculated the carbon dioxide (CO2) emissions that arise with the clay scheme come from inside and outside Bali. The results of the study indicate that there is potential for the use of clay from Buleleng and Tabanan areas, which can reduce carbon dioxide (CO2) emissions of the Balinese ceramic industry. However, its use needs to be re-examined from a process perspective because it has a higher iron oxide (Fe2O3) composition.

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The effect of innovation on increasing business performance of SMEs in Indonesia: Study of SMEs manufacturing industry sector in West Java, Indonesia

Cited by 18 publications

References 0 publications

Impact of entrepreneurial orientation on performance and moderating role of crisis perception: multi-method examination

Impact of entrepreneurial orientation on performance and moderating role of crisis perception: multi-method examination

The Model for Improving Business Performance Using Microfinancial Institutions and Entrepreneurship Competencies

Potential clay from Bali to support clean production in the Bali ceramic industry

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