Dynamic Capabilities and SMES Performance: The Mediating Effect of Innovation (Study of SMES in Indonesia)

Fitriati, Titi Kurnia; Purwana, Dedi; Buchdadi, Agung Dharmawan

doi:10.2991/ahsr.k.200723.115

Cited by 5 publications

(6 citation statements)

References 17 publications

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“…Similar to resourcebased view theory, the competitive ability of MSMEs globally can create value in unique forms and ways that cannot be imitated by competitors (Fahy, 2010),which positively impacts increasing MSME financial performance. The results of this study are in line with Fitriati et al, (2020); Gómez and Ballard (2013);Hernández-Linares et al, (2020); Rehman and Saeed (2015); Rachel and Tallott (2016)who proved that dynamic capability can improve the MSMEs' financial performance.…”

Section: Template Of Jurnal Economiasupporting

confidence: 88%

The Impact of Digitalization on MSMEs’ Financial Performance: The Mediating Role of Dynamic Capability

Indriastuti

Kartika

2022

JECO

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The COVID-19 pandemic has negatively affected the 82.9% of MSMEs. They experienced a significant decrease in operating profit due to fixed production costs or increased production costs while the sales declined. Therefore, it requires various strategies to boost the financial performance of MSMEs through digitalization and dynamic capability. The sample consisted of 282 respondents from MSMEs in Central Java which then all primary data were processed using structural equation model analysis. The results of the study showed that digitalization and dynamic capability could enhance the MSMEs' financial performanceand the variable of dynamic capability succeeded in mediating the effect of digitalization on the MSMEs' financial performance. Keywords:digitalization, dynamic capability, MSMEs' financial performance Dampak Digitalisasi Terhadap Kinerja Keuangan UMKM: Peran Mediasi Kemampuan Dinamis AbstrakPandemi COVID-19 telah menyebabkan 82,9% UMKM mengalami dampak negatif yakni penurunan profit usahasecara signifikan akibat biaya produksi tetap atau bahkan meningkat sementara penjualan menurun. Oleh karena itu di butuhkan berbagai strategi untuk mendongkrak kinerja keuangan UMKM melalui digitalization dan dynamic capability. Sampel penelitian ini sebanyak 282 responden dari UMKM di Jawa Tengah yang kemudian semua data primer diolah menggunakan analisis Structural Equation Modeling. Hasil penelitian menunjukkan bahwa variabel digitalizationdan dynamic capability mampu meningkatkan kinerja keuangan UMKM serta variabel dynamic capability berhasil memediasi pengaruh digitalization dengan kinerja keuangan UMKM. Kata kunci:digitalization, dynamic capability, kinerja keuangan UMKM

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Section: Template Of Jurnal Economiasupporting

confidence: 88%

The Impact of Digitalization on MSMEs’ Financial Performance: The Mediating Role of Dynamic Capability

Indriastuti

Kartika

2022

JECO

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“…The results supported the notion that there is a significant relationship between four of the six dynamic capabilities (experience, skills, firm characteristics and knowledge) and the competitive advantage sustainability for pharmaceutical firms in Egypt. Fitriati, Purwana, and Buchdadi (2019) analyzed the linkage between DC and SME performance in Indonesia. Primary data through questionnaires and secondary data published by the Government of Indonesia were deployed for the study.…”

Section: Sustainability Of Performancementioning

confidence: 99%

“…Similarly, Orisa, Suwit and Wisanupong (2020) aver that, in the majority of developed and developing countries, SMEs are vital mechanisms through which their economies can take and sustain the path of growth. SMEs play this developmental role by being catalysts to employment creation for millions of people, absorbed in the formal and informal sectors (Fitriati, Purwana, & Buchdadi, 2019). However, this role is most times threatened by discontinuities and changes in the business environment where the SMEs operate.…”

Section: Introductionmentioning

confidence: 99%

“…Harleen and Deepti (2017) posit that it is the ability to respond creditably and timely to extraneous factors. When companies use specific resources to match existing market changes with the aim of adjusting to changes in the market, they are deploying the principles of DC (Fitriati, Purwana & Buchdadi, 2019). Therefore, it helps organizations to adjust to the environment which could be turbulent and unpredictable most times.…”

Section: Introductionmentioning

confidence: 99%

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SUSTAINABILITY OF THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs), A DYNAMIC CAPABILITY APPROACH

Nwosu¹,

Okeke²,

Ezeanolue³

2021

Int. j. manag. entrep. res

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Small and Medium Scale Enterprises (SMEs) in the southeast of Nigeria face great sustainability challenges, making most of them die within the first-fifth year of establishment. Therefore, this study examined how dynamic capability can help them sustain their performance. Specifically, the study looked at the nexus between sensing capability and performance sustainability of SMEs in Southeast Nigeria. The study employed the use of survey research design with a population of 200 owners of SMEs. Primary source (questionnaire) of data collection was used, which was subjected to both validity and reliability test. The data were analyzed through the use of Pearson Product Moment Correlation Coefficient and hypothesis tested at a 5% level of significance. The result indicated that Sensing Capability has a statistically significant relationship with the Performance Sustainability of small businesses in Southeast Nigeria (r = .909; p-value < 0.05). The study, therefore, concluded that the more firms are alert to the changes in their environment, the more they can sustain their performance and last longer in the environment. Among others, the study recommended that SMEs need to give equal attention to what is happening in their environment as they give to what is happening within their firms, as this will enable them to react swiftly to changes in the environment. Keywords: Dynamic Capability, Sustainability, Performance, Sensing Capability, SMEs and South-East Nigeria.

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“…However, on the other hand, SMEs face financial constraints that can hinder the growth of their competitiveness. This is caused by increasing competition in the market, so companies must have a strategy to maintain their business (Fitriati et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Does Financial Resource Development Effort Affect the Dynamic Entrepreneurial Capability and Performance of SMEs?

Mangifera,

Perwithosuci,

Aisyah

et al. 2024

JMUBH

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The changes and uncertainty of the business environment in the VUCA era are serious challenges that must be faced, especially for SMEs. The unpreparedness of business actors to face these changes can impact the decline in SME performance and business sustainability. SMEs must continue to adapt to all changes that occur in their capabilities. Thus, SME players must have a business strategy using their resources by increasing dynamic entrepreneurial capabilities supported by financial resources to compete in the market. This research aims to analyze the relationship between digital technology capability, relational capability, innovation capability, financial resource development, and SMEs’ performance in Surakarta. The results of 120 SME respondents in Surakarta show that dynamic entrepreneurial capability, in this case, is measured using the variables digital technology capability (DTC), relational capability (RC), and innovation capability (IC) which are proven to have a significant influence on SMEs performance and also the development of financial resources can only partially mediate digital technology capability, however Financial resource development cannot mediate the influence of relational capability or innovation capability on SMEs performance. This research implies that it is important for SMEs to have dynamic entrepreneurial capabilities and develop their financial resources to maintain and improve their business performance.

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Dynamic Capabilities and SMES Performance: The Mediating Effect of Innovation (Study of SMES in Indonesia)

Cited by 5 publications

References 17 publications

The Impact of Digitalization on MSMEs’ Financial Performance: The Mediating Role of Dynamic Capability

The Impact of Digitalization on MSMEs’ Financial Performance: The Mediating Role of Dynamic Capability

SUSTAINABILITY OF THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs), A DYNAMIC CAPABILITY APPROACH

Does Financial Resource Development Effort Affect the Dynamic Entrepreneurial Capability and Performance of SMEs?

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