• Title/Summary/Keyword: SME performance

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Analysing the Influence of Technology on the Business Performance of Rattan Processing SME's in South Kalimantan

  • Wiratmadja, Iwan Inrawan;Govindaraju, Rajesri;Setiawati, Evy
    • Industrial Engineering and Management Systems
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    • v.10 no.2
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    • pp.104-108
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    • 2011
  • Technology is one of the major competitive advantages for small and medium enterprises (SME), especially ones operating in the manufacturing sector. Increasing technological capabilities is the basis for SME's business performance improvement. The main problem of SME's is a limitation in the areas of production facilities, technology, and human resources. Some of these constraints cause a decline in business performance and competitiveness of SME's. In this case analysis of technology components has to be carried out to determine the effect of technology on SME's business performance improvement. This study aims to measure the components of technology and to analyze the influence of each technology component on business performance of rattan processing SME's in South Kalimantan. The assessment is carried out on the technoware, humanware, inforware, and orgaware components using the technometric method (UNESCAP). Business performance is measured through a combination of financial and non-financial aspects deducted from financial and marketing figures. Analysis of the influence of technology components on business performance of SME's is done using the Structural Equation Model (SEM) with Partial Least Square software (PLS). Data is collected through interviews and questionnaires from 21 rattan processing SME's in South Kalimantan that produce rattan furnitures. The results show that the value of the contribution of technology (TCC) to the performance of rattan processing SME's in South Kalimantan is still quite low. Analysis of the results shows a direct influence of technoware and humanware on business performance, while orgaware influences business performance indirectly through humanware.

Performance Evaluation of SME Banking in Bangladesh using Stochastic Frontier Analysis

  • Hossain, M.K.;Hossain, M.A.;Baten, M.A.
    • Asia-Pacific Journal of Business
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    • v.7 no.1
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    • pp.31-42
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    • 2016
  • Small and Medium Enterprises (SMEs) are suitable to provide employment with lower investment in densely populated countries like Bangladesh. A stochastic frontier model is used to evaluate performance of SME Banking of the commercial banks in Bangladesh. Input (Total Deposit, Cost of Fund and Salary Expenditure) and output (Finance to SME) data are collected on 45 banks which are dealt with SME for 13 quarters from $1^{st}$quarter of 2010 to $2^{nd}$quarter of 2013. Average performance of the SME banking is 0.716 in Bangladesh. That is, banks have opportunity to increase 30% performance in SME banking from the same inputs. Bangladesh Development Bank has lowest performance (0.540) while Eastern bank has the highest performance (0.753). Highest (0.743) and lowest (0.662) performance is observed during the second quarter of 2013 and fourth quarter of 2010 respectively. Inefficient Bank might be benefited by following the rules of efficient banks.

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Do Risk-Taking, Innovativeness, and Proactivity Affect Business Performance of SMEs? A Case Study in Bangladesh

  • RAHAMAN, Md. Atikur;LUNA, Kaniz Fatema;PING, Zhao Lin;ISLAM, Mohammad Saiyedul;KARIM, Md. Mobarak
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.5
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    • pp.689-695
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    • 2021
  • In the current technology-driven era, Small and medium enterprises (SMEs) have been deemed as one of the leading and prominent drivers of sustainable economic progress in emerging and developing economies such as in the Bangladesh context. Hence, it is of significance to understand what might fuel accelerating performance of SME business as increased SME performance will bring about more sustainability and strong development of SME sector within the country, through which more employment is anticipated to be generated. Therefore, the current study examines the impact of three factors: risk-taking, innovativeness, and proactiveness on SME performance in Bangladesh. The study has gathered data from SME entities in Dhaka city of Bangladesh, by applying a non-probability sampling strategy. 250 SME owners were contacted to act as respondents and finally, 180 SME owners fully completed the survey questionnaire, indicating that the final sample size is n=180. SPSS is used as a purpose of testing the hypotheses by considering a 5% significance level as acceptance criteria of the hypothesis. Hierarchical regression analysis was run to understand the impact of control variables and independent variables on SME performance and found that age of business, risk-taking, innovativeness, and proactiveness have an important impact on SME performance in Bangladesh.

Logistic Capability and Total Quality Management Practice on SME's Performance

  • MARJAN, Yakuttinah;HASANAH, Uswatun;MULIATIE, Yurilla Endah;USMAN, Indrianawati
    • Journal of Distribution Science
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    • v.20 no.7
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    • pp.97-105
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    • 2022
  • Purpose: This study aims to analyze and prove the effect of logistic capability and Total Quality Management practices on Micro, Small and Medium Enterprises (SME) performance directly or mediated by non-financial performance. Research design, data and methodology: This study tested the hypothesis using Hierarchical multiple regression analysis, the method of data collection in this study was using questionnaire, the sampling technique was purposive sampling technique, with SME that has been established for more than 5 years and manufacturing. The data analyzed were 180 respondents using SPSS 25. Results: The findings showed that logistic capability has direct and indirect effects on SME financial performance and has a positive effect on SME financial performance mediated by non-financial performance. While the total quality management practices have a positive effect on SME financial performance mediated by non-financial performance. Thus, companies can achieve maximum financial performance if they invest in developing employee knowledge and concerning on non-financial actions, such as employee satisfaction, innovation and proactively seeking market opportunities. Conclusions: In conclusion, one of the main factors that companies need to consider to improve financial performance is non-financial performance in mediating the effect of logistic capability and TQM practices on the financial performance of SMEs.

The Role and Moderating Effect of Community on SMEs' Innovation and Performance: An Empirical Study in Indonesia

  • NOYA, Sunday;TANEO, Stefanus Yufra M.;MELANY, Melany;MAULANA, M. Rizki Alim
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.9
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    • pp.291-298
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    • 2022
  • The most crucial elements of SME growth and development are performance and innovation. In actuality, SMEs find it challenging to enhance their performance and innovation due to limited access to resources. Collaboration with other SMEs in the form of local communities can be an alternative solution to gaining access to external resources. Unfortunately, not many studies have explored the role of the local SME community in the development of innovation and performance of SMEs. This study tries to fill this gap by examining the role of local communities in expanding SMEs' access to resources, in their efforts to improve innovation and performance. Data was collected using an online questionnaire distributed to food and beverage SMEs in Malang Regency. As many as 150 questionnaires were received and considered valid for statistical data analysis using the WarpPLS program. The results show that the SME community plays an important role in improving the innovation and performance of food and beverage SMEs. It is also found that innovation can be a good mediator of community relations with the performance of SMEs. Furthermore, it is also confirmed that the SME community moderates the relationship between innovation and the performance of food and beverage SMEs.

Case Study for Restructuring Informatization Level Indices of Small and Medium sizd Enterprises (중소기업정보화 수준 조사 지표 개선 사례 연구)

  • Yang, Hee-Dong;Kim, Ki Ho;Han, Hyun-Soo
    • Journal of Information Technology Applications and Management
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    • v.19 no.4
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    • pp.197-212
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    • 2012
  • In this paper, we report the public IT policy case results to restructure informatization level indices for small and medium sized enterprise(SME). The indices restructuring project was initiated by TIPA with the group of experts during 2011, and the newly amended indices was employed as the formal instrument to measure SME informatization level. The critical drivers to reform the indices include simplification for more accurate measurement of SME informatization level, reshaping key representative indices of smart IT to better publicize SME's interest toward advanced IT, and systematic reconfiguration of performance measures which reflect business performance enhancement effect through IT investment. Indeed, the IT performance indices are unified to incorporate the instrument for general SME informatization level survey and IT adoption subsidy's effectiveness appraisal. The procedures and details of logic illustrated in this paper provides useful insight for successful implementation of SME informatization as well as for the better policy deployment of IT subsidization for SMEs.

The Effect of Promotion and Job Training on Job Satisfaction of Employees: An Empirical Study of the SME Sector in Bangladesh

  • RAHAMAN, Md. Atikur;UDDIN, Md. Sayed
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.2
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    • pp.255-260
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    • 2022
  • SME sector's success also depends on its employees' job satisfaction as satisfied employees are likely to be more productive at the workplace and positively enhance SME business performance. Small and medium firms are the heart of the economy, and employees are the main and valuable asset for the SME firms. If SME business managers can increase employee satisfaction, then SMEs' performance will also increase in the future. Hence, the current study aims to determine the job satisfaction of SME employees by analyzing the impact of job training (JT) and promotion (PRO) opportunities on employee job satisfaction. Purposive sampling is applied in the study, and 202 SME employees have participated as sample respondents. The final sample size is n = 202. SPSS 26.0 version is used to analyze the hypotheses. The study findings show that both job training (JT) and promotion (PRO) have a positive effect on SME employee job satisfaction. It does indicate that SME managers need to provide necessary training programs and timely promotion to their current working employees to keep them satisfied with their job. Promotion and effective job training will certainly enhance employees' job satisfaction. The study has also offered a few strategic implications for SME business managers.

The Effect of Perceived Value of Education Training for Small and Medium Sized Enterprise (SME) Cooperatives on Job Performance

  • Byoung-Jo HWANG;Chang-ki HONG
    • The Journal of Economics, Marketing and Management
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    • v.11 no.3
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    • pp.11-23
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    • 2023
  • Purpose: This study empirically studied the effects of the perceived value of education and training on SME cooperative on job performance. Research design, data and methodology: From November 7 to 9, 2022, a survey was conducted targeting members and executives of SME cooperatives in their 20s and 60s across the country, and a total of 217 people were used for the final analysis. Verification of the research model was performed using SPSS & AMOS. Frequency analysis was conducted to examine the sample characteristics. Results: First, perceived value (functional value, service performance value, emotional value, convenience value) did not have a significant effect on organizational commitment. Second, perceived value (functional value, service performance value, emotional value, convenience value) were found to have a significant positive (+) effect on job satisfaction. Third, job satisfaction was found to have a significant positive (+) effect on organizational commitment. Fourth, organizational commitment was found to have a significant positive (+) effect on job performance. Fifth, job satisfaction was found to have a significant positive (+) effect on job performance. Conclusions: These results suggest that the perceived value of SME cooperative education and training can affect organizational commitment and job performance through job satisfaction, so it is necessary to strengthen online education and training to meet the emotional response of training subjects along.

Scapular muscle endurance, shoulder pain, and functionality in patients with rotator-cuff-related shoulder pain: a matched, case-control study

  • Ugur Sozlu;Selda Basar;Ulunay Kanatli
    • Clinics in Shoulder and Elbow
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    • v.27 no.1
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    • pp.52-58
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    • 2024
  • Background: Deficiency in scapular muscle endurance (SME) is a risk factor for rotator-cuff-related shoulder pain (RCRSP). However, the exact relationship among SME, pain, and functionality remains unclear. This study aims to compare SME, pain, and functionality in RCRSP patients to those in age-sex-matched healthy controls. Methods: Twenty-three patients with RCRSP and 23 age-sex matched healthy controls were included in the study. SME was measured using a 1-kg dynamometer. Self-reported pain level was assessed using a visual analog scale. The Functional Impairment Test-Hand, Neck, Shoulder, and Arm (FIT-HaNSA) was also used to assess functional impairment. Results: The control group had higher SME and total FIT-HaNSA scores than the patient group (P<0.05). There was a statistically significant and positive correlation between SME and FIT-HaNSA scores in both groups (P<0.05). Conclusions: SME was affected by RCRSP. Pain and functional impairment were correlated with low SME.

The Role of Local Government in Improving Resilience and Performance of Small and Medium-Sized Enterprises in Indonesia

  • TANEO, Stefanus Yufra M.;NOYA, Sunday;MELANY, Melany;SETIYATI, Etsa Astridya
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.3
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    • pp.245-256
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    • 2022
  • During the COVID-19 pandemic, several studies focused on financial programs and SMEs' performance, but research on the relationship between non-financial programs, resilience, and SMEs' performance is still sparse. This study fills the gap by analyzing the role of local government in increasing SME resilience and performance by purchasing products (through civil servants) from SMEs and by facilitating online training to SMEs. This study also investigates the role of the local government in strengthening the relationship between resilience and SME performance. Data was collected using an online questionnaire distributed to SMEs in Malang Regency. As many as 410 questionnaires were received and eligible for statistical analysis using WarpPLS. The results show that resilience is positively and significantly related to the performance of SMEs. The local government programs have been proven to improve SME performance directly and indirectly through resilience. Local government programs are not proven to strengthen the relationship between resilience and the performance of SMEs, indicating that the role of government in developing countries such as Indonesia is more appropriate to be "rowing rather than steering" not "steering rather than rowing".