Strategies and Innovations for Enhancing Sustainable Performance in SMEs During The 4.0 Digital Business Era
Keywords: Business model innovation, Competitive advantage, Technological capability, Learning capability, Relational capability
Abstract
Purpose – This research aimed to examine the impact of business model innovation (BMI), competitive advantage (CA), learning capability (LC), technological capability (TC), and relational capability (RC) on small and medium-sized enterprises (SMEs) sustainable performance (SP). Additionally, the mediating role of LC in the relationship between TC and RC, as well as the SP of SMEs is explored.
Methodology – This research uses primary data obtained from a questionnaire completed by 210 respondents. Purpose sampling which focuses on culinary SMEs is adopted, specifically in Batam City, and has been operating for at least 3 years.
Findings – The result showed a significant impact of CA, TC, LC, and RC on the SP of SMEs in Batam City. Furthermore, there is no significant influence from BMI, and LC is identified as a mediating factor in the relationship between TC and SP.
Originality – The research reports the latest information and analysis related to factors that can help SMEs maintain their SP. These include the absence of the role of BMI and the discovery of the mediating impact of LC and TC on the SP of SMEs.
Downloads
References
Ahmed, W., Najmi, A., Mustafa, Y., & Khan, A. (2019). Developing model to analyze factors affecting firms’ agility and competitive capability. Journal of Modelling in Management, 14(2), 476–491. https://doi.org/10.1108/JM2-07-2018-0092
Alfulailah, F., & Soehari, T. D. (2020). The Effect of Innovation, Information Technology, and Entrepreneurial Orientation on Business Performance. Akademika, 9(02), 161–176. https://doi.org/10.34005/akademika.v9i02.914
Anggraeni, S. (2023). Kenali Penyebab Ekonomi Global Gelap di Tahun 2023. https://www.pajakku.com/read/6375d801b577d80e80d439aa/Kenali-Penyebab-Ekonomi-Global-Gelap-di-Tahun-2023---
Autio, E., Fu, K., Smit, W., Muftiadi, A., Chiyachantana, C., Prasarnphanich, P., Habaradas, R., Petalcorin, C., Jinjarak, Y., & Park, D. (2022). Adoption of digital technologies, business model innovation, and financial and sustainability performance in startup firms. 1–46.
Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66(January), 101635. https://doi.org/10.1016/j.techsoc.2021.101635
Bashir, M., Alfalih, A., & Pradhan, S. (2022). Sustainable business model innovation: Scale development, validation and proof of performance. Journal of Innovation & Knowledge, 7(4), 100243. https://doi.org/10.1016/j.jik.2022.100243
Bekteshi, S. A. (2019). Research in Business & Social Science The impact of education and training on export performance of SMEs. 8(6), 272–277.
Bilan, Y., Hussain, H. I., Haseeb, M., & Kot, S. (2020). Sustainability and economic performance: role of organizational learning and innovation. Engineering Economics, 31(1), 93–103. https://doi.org/10.5755/j01.ee.31.1.24045
Chen, I. S. N., Fung, P. K. O., & Yuen, S. S. M. (2019). Dynamic capabilities of logistics service providers: antecedents and performance implications. Asia Pacific Journal of Marketing and Logistics, 31(4), 1058–1075. https://doi.org/10.1108/APJML-12-2017-0308
Chen, S., & Zheng, J. (2022). Influence of Organizational Learning and Dynamic Capability on Organizational Performance of Human Resource Service Enterprises: Moderation Effect of Technology Environment and Market Environment. Frontiers in Psychology, 13(April). https://doi.org/10.3389/fpsyg.2022.889327
Cuandra, F. (2021). Analisis Tingkat Penjualan Melalui Faktor Internal Maupun Faktor Eksternal terhadap UMKM Kuliner Kota Batam. Jurnal Progres Ekonomi Pembangunan (JPEP), 6(2), 123. https://doi.org/10.33772/jpep.v6i2.19794
Dwikat, S. Y., Arshad, D., & Mohd Shariff, M. N. (2022). The Influence of Systematic Strategic Planning and Strategic Business Innovation on the Sustainable Performance of Manufacturing SMEs: The Case of Palestine. Sustainability (Switzerland), 14(20). https://doi.org/10.3390/su142013388
Giraldi, L., Coacci, S., & Cedrola, E. (2023). How relational capability can influence the success of business partnerships. International Journal of Productivity and Performance Management, ahead-of-p(ahead-of-print). https://doi.org/10.1108/IJPPM-01-2022-0012
Guo, H., Guo, A., & Ma, H. (2022). Inside the black box: How business model innovation contributes to digital start-up performance. Journal of Innovation & Knowledge, 7(2), 100188. https://doi.org/10.1016/j.jik.2022.100188
Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate Data Analysis: A Global Perspective.
Hair, J F, Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications. https://books.google.co.id/books?id=JDWmCwAAQBAJ
Hair, Joseph F, C.Black, W., Babin, B. J., & Anderson, R. . (2014). Multivariate Data Analysis (Seventh Ed). Pearson Education Limited.
Hair, Joseph F, Ringle, C. M., & Sarstedt, M. (2017). Partial Least Squares Structural Equation Modeling (Issue September). https://doi.org/10.1007/978-3-319-05542-8
Haseeb, M., Hussain, H. I., Kot, S., Androniceanu, A., & Jermsittiparsert, K. (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability (Switzerland), 11(14). https://doi.org/10.3390/su11143811
Hooi, L. W. (2021). SME performance: does organizational learning capability really matter? International Journal of Organizational Analysis, 29(5), 1093–1116. https://doi.org/10.1108/IJOA-12-2019-1962
Jiang, X., Lin, G. H., Huang, J. C., Hu, I. H., & Chiu, Y. C. (2021). Performance of Sustainable Development and Technological Innovation Based on Green Manufacturing Technology of Artificial Intelligence and Block Chain. Mathematical Problems in Engineering, 2021. https://doi.org/10.1155/2021/5527489
Laasonen, V. (2022). Exposing the role of relational capabilities in business–research–government cooperation: examples from the transition towards a bioeconomy in Finland. European Planning Studies. https://doi.org/10.1080/09654313.2022.2112152
Lady, Lady, Calystania, V., Vira, V., Novia, J., Stephanie, S., & Sisca, V. (2023). Implementation and Enhancement of Social Media Marketing Strategy on Batam Micro, Small, and Medium Enterprise. Inovbiz: Jurnal Inovasi Bisnis, 11(1), 74–89.
Latifi, M. A., Nikou, S., & Bouwman, H. (2021). Business model innovation and firm performance: Exploring causal mechanisms in SMEs. Technovation, 107(February). https://doi.org/10.1016/j.technovation.2021.102274
Liao, H.-K., Liao, C.-W., Chen, C.-C., & Chen, T.-W. (2023). Examining the Impact of Internationalization and Competitive Advantages on Enterprise Performance in Taiwan’s Computer Numerical Control Machine Industry. Sustainability, 15(21), 15652. https://doi.org/10.3390/su152115652
Madhavan, M., Sharafuddin, M. A., & Chaichana, T. (2022). Impact of Business Model Innovation on Sustainable Performance of Processed Marine Food Product SMEs in Thailand—A PLS-SEM Approach. Sustainability (Switzerland), 14(15). https://doi.org/10.3390/su14159673
Mai, Y., Yang, H., & Zhang, G. (2021). Does business model innovation enhance the sustainable development of new ventures? Understanding an inverted-U relationship. Sustainability (Switzerland), 13(1), 1–19. https://doi.org/10.3390/su13010262
Mariana, H., & Noviyanti, S. (2022). Pentingnya Peran dan Kontribusi UMKM dalam Pemulihan Ekonomi Indonesia. https://money.kompas.com/read/2022/02/04/070800426/pentingnya-peran-dan-kontribusi-umkm-dalam-pemulihan-ekonomi-indonesia
Md Hassan, S. A., & Ibrahim, A. (2022). Firm’s Technological Capabilities towards Technology Transfer Performance in Malaysian Manufacturing Companies: The Antecedents That Lead to Successful Development of Firm’s Technological Capabilities. International Journal of Industrial Management, 14(1), 491–505. https://doi.org/10.15282/ijim.14.1.2022.7060
Medeiros Vila Nova, S. da R., & Bitencourt, C. C. (2020). Technology Capability and Information Sharing: Effects on the Sustainable Environmental Performance of Industrial Companies. Brazilian Journal of Management / Revista de Administração Da UFSM, 13, 1175–1191. https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=asn&AN=150181278&site=ehost-live&scope=site&custid=s6390179%0A10.5902/1983465944272
MJNews.id. (2023). Pengembangan UMKM di Kota Batam Perlu Peningkatan Kualitas SDM. https://www.mjnews.id/2023/02/pengembangan-umkm-di-kota-batam-perlu-peningkatan-kualitas-sdm/
Omar, M. K., Yusoff, Y. M., & Zaman, M. D. K. (2019). The Effect of Organizational Learning Capability as a Mediating Variable in the Relationship between Green Intellectual Capital and Business Sustainability: Evidence from the Manufacturing Sector. International Journal of Academic Research in Business and Social Sciences, 9(6), 584–599. https://doi.org/10.6007/ijarbss/v9-i6/5974
Owuori, P. J., Ngala, M., & Obwatho, S. (2020). Technological Capability and Sustainability. Journal of Human Resource & Leadership, 4(3), 1–16.
Oyewobi, L. O., Adedayo, O. F., Olorunyomi, S. O., & Jimoh, R. (2021). Social media adoption and business performance: the mediating role of organizational learning capability (OLC). Journal of Facilities Management, 19(4), 413–436. https://doi.org/10.1108/JFM-12-2020-0099
Phangestu, J., Kountur, R., & Prameswari, D. A. (2020). The Moderating Effect of Entrepreneurial Leadership and Competitive Advantage on the Relationship Between Business Model Innovation and Startup Performance. Journal of Business & Retail Management Research, 14(03), 53–62. https://doi.org/10.24052/jbrmr/v14is03/art-06
Pigola, A., Rezende DA COSTA, P., & Antonio Ribeiro SERRA, F. (2021). Relational Capabilities under Moderating and Mediating Effects to Understand their Impacts on Firm Financial Performance. International Journal of Business, Economics and Management, 8(5), 332–357. https://doi.org/10.18488/journal.62.2021.85.332.357
Pusung, C. S., Narsa, N. P. D. R. H., & Wardhaningrum, O. A. (2023). Innovation, Competitive Strategy and Msme Performance: a Survey Study on Culinary Smes in Indonesia During the Covid-19 Pandemic. Business: Theory and Practice, 24(1), 160–172. https://doi.org/10.3846/btp.2023.16676
Ryu, D., Baek, K. H., & Yoon, J. (2021). Open innovation with relational capital, technological innovation capital, and international performance in SMEs. Sustainability (Switzerland), 13(6), 1–13. https://doi.org/10.3390/su13063418
Salisu, Y., & Abu Bakar, L. J. (2020). Technological capability, relational capability and firms’ performance: The role of learning capability. Revista de Gestao, 27(1), 79–99. https://doi.org/10.1108/REGE-03-2019-0040
Santika, E. F. (2023). Pelanggan dan Omzet UMKM Kuliner Meningkat dengan Delivery Online Dibanding Offline. https://databoks.katadata.co.id/datapublish/2023/02/08/pelanggan-dan-omzet-umkm-kuliner-meningkat-dengan-delivery-online-dibanding-offline
Saudi, M. H. M., Sinaga, O., Gusni, & Zainudin, Z. (2019). The effect of green innovation in influencing sustainable performance: Moderating role of managerial environmental concern. International Journal of Supply Chain Management, 8(1), 303–310.
Silva, P. M., Santos, J. F., & Pêgo, R. (2023). Digital Orientation and Company’s Performance. The Mediating Role of Relational Capacity. Journal of Relationship Marketing, 22(4), 238–253. https://doi.org/10.1080/15332667.2023.2237848
Tufan, C., & Mert, I. S. (2023). The sequential effect of absorptive capacity, strategic agility, and sustainable competitive advantage on sustainable business performance of SMEs. Environmental Science and Pollution Research, 30(19), 55958–55973. https://doi.org/10.1007/s11356-023-26207-x
Valdez-Juárez, L. E., & Castillo-Vergara, M. (2021). Technological capabilities, open innovation, and eco-innovation: Dynamic capabilities to increase corporate performance of smes. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1–19. https://doi.org/10.3390/joitmc7010008
Wang, W., Zhang, D., Wang, H., Zhu, Q., & Morabbi Heravi, H. (2023). How do businesses achieve sustainable success and gain a competitive advantage in the green era? Kybernetes, 52(9), 3241–3260. https://doi.org/10.1108/K-07-2021-0614
Wicaksono, A., Gunawan, I. D., & Husin, Z. (2020). Analysis the Effect of Information Technology Capability, Business Innovation, Digital Disruption and Digital Disruption Reactions on Sustainable Banking Performance. American Research Journal of Business and Management, 6(1), 1–16. https://doi.org/10.21694/2379-1047.20012
Wu, Y., Gu, F., Ji, Y., Guo, J., & Fan, Y. (2020). Technological capability, eco-innovation performance, and cooperative R&D strategy in new energy vehicle industry: Evidence from listed companies in China. Journal of Cleaner Production, 261, 121157. https://doi.org/https://doi.org/10.1016/j.jclepro.2020.121157
Yusoff, Y. M., Omar, M. K., & Kamarudin, M. D. (2019). Does organizational learning capability allow improving business sustainability? A quantitative analysis in the manufacturing SME context. IOP Conference Series: Materials Science and Engineering, 469(1). https://doi.org/10.1088/1757-899X/469/1/012015
Zgrzywa-Ziemak, A., & Walecka-Jankowska, K. (2020). The relationship between organizational learning and sustainable performance: an empirical examination. Journal of Workplace Learning, 33(3), 155–179. https://doi.org/10.1108/JWL-05-2020-0077
Zhang, L., Yang, X., Zhu, S., & Xia, Z. (2023). Business Model Innovation and Performance of Startups: The Moderating Role of External Legitimacy. Sustainability, 15(6), 5351. https://doi.org/10.3390/su15065351
Zhou, N., Pan, L., Tian, Y., Zhu, N., Cai, X., & Gao, J. (2023). How sustainable business model innovation and green technology innovation interact to affect sustainable corporate performance. Frontiers in Environmental Science, 11(January), 1–22. https://doi.org/10.3389/fenvs.2023.1049295
Copyright (c) 2024 Fendy Cuandra, Candy Candy
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.