THE 21ST CENTURY CAPABILITIES FOR IMPROVING SME PERFORMANCE Rara Dzikrina Istighfaroh, Shimaditya Nuraeni
School of Business and Management, Entrepreneurship, Bandung Institute of Technology – Indonesia
Abstract
Most of business in the world, including Indonesia, consists of SMEs (around 99% of the total enterprises). With this large number of SMEs must be balanced with good performance in order to sustain and beneficial for the nation, considering their contribution that almost two-third of the national GDP. In this modern era, where everything is connected, we cannot assess SMEs performance solely on conventional products but also need to add other abilities from a founder to be able to bring the company to continue and growth. This, marketing, innovation, learning, and digital capabilities are the key capabilities for the firms in their efforts to achieve superior performance especially in Indonesia. Thus, this research aimed to investigate to what extend founder capabilities are effective on SME performance. To answer the research objective, this research used quantitative method. To assess SMEs performance through founder capabilities in doing marketing, innovation, learning, and digital, a survey was conducted. The samples for the surveys was drawn from difference group of SMEs (micro, small and medium) and across industrial sector, approximately 100 samples were gained for the study. The questionnaire from the survey then analyzed using multiple linear regression to investigate the effect of independent variables (marketing, innovation, learning, and digital capabilities) toward dependent variable (SMEs performance). The author also uses Somers- D for knowing about the effect of control variables (SME industry).
Keywords: Small Medium Enterprise, SME performance, Innovation Capability, Learning Capability, Marketing Capability, Digital Capability
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