Empowerment of Small and Micro Enterprises (SMEs) in Indonesia: The Impact Venture Capital Assistance, Entrepreneurial Orientation, and Digital Transformation on the Performance of SMEs

Saefudin; Siska Arbianti

doi:10.56741/jmsd.v3i03.676

Authors

Saefudin
sasep8556@gmail.com
University of Muhammadiyah Karanganyar
Siska Arbianti Sebelas Maret University

DOI:

https://doi.org/10.56741/jmsd.v3i03.676

Keywords:

Business performance, Digital transformation, Entrepreneurial orientation, LazisMu, Venture Capital

Abstract

This study investigates the impact of venture capital assistance from LazisMu, entrepreneurial orientation, and digital transformation on the performance of Micro Small Enterprises (SMEs) in Karanganyar Regency. A quantitative approach was used by collecting data from 122 SME respondents who received assistance from LazisMu and have adopted digitalization in the marketing of their products. The data was analyzed using the Smart PLS method to test the relationship between variables. The results showed that business capital assistance from LazisMu has a significant effect on SME performance. However, entrepreneurial orientation has no significant effect. In contrast, digital transformation has a significant impact by improving the operational efficiency and business strategy of SMEs, helping them compete more effectively in a competitive market. This research provides important insights for LazisMu policies and similar institutions to support SMEs more effectively with follow-up research and qualitative approaches to understand more deeply the influence factors.

Downloads

Download data is not yet available.

Author Biographies

Saefudin, University of Muhammadiyah Karanganyar

is a lecturer in the Department of Digital Business at the University of Muhammadiyah Karanganyar. He holds a Bachelor's degree in Management from the University of Technology Yogyakarta, and an MBA from the University of Gadjah Mada, Indonesia. With a focus on Business Digitalization and Management, he has contributed significantly to these fields through his writings. (email: Sasep8556@gmail.com).

Siska Arbianti, Sebelas Maret University

is a graduate student in Management at the University of Sebelas Maret Indonesia. Her undergraduate degree is in accounting from Mulawarman State University. Her areas of interest are finance and marketing. (email: Siskaarbianti@gmail.com).

References

Sari PA, Sari WP. The small firm performance and entrepreneurial competence revealed through competitiveness framework: A case study of MSMEs in Indonesia. Model Econ Growth Contemp Indones. 2022; 1–24. DOI: https://doi.org/10.1108/978-1-80262-431-120221001

Kyal H, Mandal A, Kujur F, Guha S. Individual entrepreneurial orientation on MSME’s performance: the mediating effect of employee motivation and the moderating effect of government intervention. IIM Ranchi J Manag Stud. 2022; 1(1): 21–37. DOI: https://doi.org/10.1108/IRJMS-07-2021-0041

Omri A, Frikha M. Failure Factors in Tunisian Micro-enterprises: Introspection through Cognitive Mapping. J Small Bus Entrep. 2011; 24(4): 493–512. DOI: https://doi.org/10.1080/08276331.2011.10593550

Perekonomian KKB, Indonesia R. Perkembangan UMKM sebagai Critical Engine Perekonomian Nasional Terus Mendapatkan Dukungan Pemerintah. J Public Adm Res Theory [Internet]. 2022; Available from: https://www.ekon.go.id/publikasi/detail/4593/perkembangan-umkm-sebagai-critical-engine-perekonomian-nasional-terus-mendapatkan-dukungan-pemerintah

Sudrajat A, Megawati L, Munasto D. The Influence of Business Capital and Marketing Strategy on The Development of Msmes. Qual - Access to Success. 2022; 23(190): 355–61. DOI: https://doi.org/10.47750/QAS/23.190.37

Kurdi S, Saefudin, Nurkholik. The Impact Of Baznas Venture Capital, Entrepreneurship Motivation, And Digital Technology Entrepreneurship On Micro-Enterprise Performance In Kendal Regency. J Mantik. 2022; 6(36): 2264–72.

Jiang X, Liu H, Fey C, Jiang F. Entrepreneurial orientation, network resource acquisition, and firm performance: A network approach. J Bus Res. 2018; 87: 46–57. DOI: https://doi.org/10.1016/j.jbusres.2018.02.021

de Jong JPJ, Parker SK, Wennekers S, Wu CH. Entrepreneurial Behavior in Organizations: Does Job Design Matter? Entrep Theory Pract. 2015; 39(4): 981–95. DOI: https://doi.org/10.1111/etap.12084

Ribeiro MA, Adam I, Kimbu AN, Afenyo-Agbe E, Adeola O, Figueroa-Domecq C, et al. Women entrepreneurship orientation, networks and firm performance in the tourism industry in resource-scarce contexts. Tour Manag [Internet]. 2021; 86(March):104343. Available from: https://doi.org/10.1016/j.tourman.2021.104343 DOI: https://doi.org/10.1016/j.tourman.2021.104343

Kominfo. Kenaikan Jumlah UMKM Go Online Jadi Hasil Konkret Pembahasan Transformasi Digital di KTT G20. 2023.

Agrawal P, Narain R. Digital supply chain management: An Overview. IOP Conf Ser Mater Sci Eng. 2018; 455(1): 0–6. DOI: https://doi.org/10.1088/1757-899X/455/1/012074

Al Mulhim AF. Smart supply chain and firm performance: the role of digital technologies. Bus Process Manag J. 2021; 27(5):1353–72. DOI: https://doi.org/10.1108/BPMJ-12-2020-0573

Huang J, Henfridsson O, Liu MJ, Newell S. Growing on Steroids: Rapidly Scaling the User Base of Digital Ventures Through Digital Innovation. MIS Q. 2017; 41(1): 301–14. DOI: https://doi.org/10.25300/MISQ/2017/41.1.16

Felício JA, Couto E, Caiado J. Human capital, social capital and organizational performance. Manag Decis. 2014; 52(2): 350–64. DOI: https://doi.org/10.1108/MD-04-2013-0260

Prakasa Y. Exploring the Impact of Social Capital on Entrepreneurial Orientation and Business Performance (Study on Members of MSMEs Communities in Malang). Profit. 2018; 12(1): 20–31. DOI: https://doi.org/10.21776/ub.profit.2018.012.01.3

Pozzo DN, Roa IG, Beleño CAG, Orfale HJ, Gomez AJR, Vladimir Cudris Guerrero. The impact of entrepreneurial orientation on innovation performance: A study on micro, small and medium-sized enterprises (MSMEs) in the Colombian Caribbean. Procedia Comput Sci. 2023; 224: 502–6. Available from: https://doi.org/10.1016/j.procs.2023.09.072 DOI: https://doi.org/10.1016/j.procs.2023.09.072

Anderson BS, Kreiser PM, Donald F. Kuratko, Jeffrey S. Hornsby, Eshima Y. The Effect of Firm Compensation Structures on the Mobility and Entrepreneurship of Extreme Performers. Strateg Manag J. 2014; 920(October): 1–43.

Verhoef PC, Bijmolt THA. Marketing perspectives on digital business models: A framework and overview of the special issue. Int J Res Mark [Internet]. 2019; 36(3): 341–9. Available from: https://doi.org/10.1016/j.ijresmar.2019.08.001 DOI: https://doi.org/10.1016/j.ijresmar.2019.08.001

Creswell, W J. Research Design Qualitative, Quantitative, and Mixes Methods Approaches. SAGE Publications, Inc. 2014.

Hair JF, Jr., Hult GTM, Ringle CM, Sarstedt M. A primer on partial least squares structural equations modeling (PLS-SEM). Sage Publications. J Tour Res. 2021. DOI: https://doi.org/10.1007/978-3-030-80519-7

Putri K, Pradhanawarti A, Prabawani B. Pengaruh Karakteristik Kewirausahaan, Modal Usaha Dan Peran Business Development Service Terhadap Pengembangan Usaha. J Ilmu Adm Bisnis. 2014; 4(24): 1–10. Available from: https://ejournal3.undip.ac.id/index.php/jiab/article/view/6575

Al-Momani L, Haddad S, Sharabati AAA, Hashesh MA. The moderation role of entrepreneurial orientation on the influence of innovation on pharmaceutical SMEs’ performance. J Open Innov Technol Mark Complex. 2023; 9(2). DOI: https://doi.org/10.1016/j.joitmc.2023.100074

Zhang Y, Wang J. Research on influencing factors and path of digital transformation of manufacturing enterprises. Kybernetes. 2023. DOI: https://doi.org/10.1108/K-06-2023-1042