IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2022i1p627-d1019670.html
   My bibliography  Save this article

Business Agility and Competitive Advantage of SMEs in Makassar City, Indonesia

Author

Listed:
  • Muhammad Yusuf

    (Department of Management, Faculty of Economics and Business, University Bosowa, Makassar 90231, Indonesia)

  • Batara Surya

    (Department of Urban and Regional Planning, Faculty of Engineering, University Bosowa, Makassar 90231, Indonesia)

  • Firman Menne

    (Department of Accounting, Faculty of Economics and Business, University Bosowa, Makassar 90231, Indonesia)

  • Muhlis Ruslan

    (Department of Management, Faculty of Economics and Business, University Bosowa, Makassar 90231, Indonesia)

  • Seri Suriani

    (Department of Financial Management, Faculty of Economics and Business, University Bosowa, Makassar 90231, Indonesia)

  • Iskandar Iskandar

    (Department of Sociology, Faculty of Social and Political Sciences, University Bosowa, Makassar 90231, Indonesia)

Abstract

Corporate agility will encourage companies and economic enterprises to respond quickly to the dynamics of internal and external changes in the company. This study aims to analyze the effects of business innovation, CSR implementation, and digital transformation in improving business agility, with competitive advantage as a mediating variable. This study uses a quantitative approach with a survey method. Data were obtained through questionnaires distributed to 100 business units and SMEs as respondents in Makassar City. The results show that competitive advantage, digital transformation, and business innovation have a significant effect on business agility with a coefficient of determination of 72.4%, while CSR implementation and digital transformation have a negative correlation with SME business agility. Digital transformation, CSR implementation, and business innovation affect competitive advantage with a value of 53.9%, while digital transformation, CSR implementation, and business innovation affect business agility through corporate image. This study recommends the use of digital transformation and business innovation for small and medium enterprises (SMEs) to respond and adapt with business agility in Makassar City, Indonesia.

Suggested Citation

  • Muhammad Yusuf & Batara Surya & Firman Menne & Muhlis Ruslan & Seri Suriani & Iskandar Iskandar, 2022. "Business Agility and Competitive Advantage of SMEs in Makassar City, Indonesia," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:627-:d:1019670
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/1/627/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/1/627/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Priyanka Jain & Vishal Vyas & Ankur Roy, 2017. "Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(1), pages 1-23, March.
    2. Ardic, Oya Pinar & Mylenko, Nataliya & Saltane, Valentina, 2011. "Small and medium enterprises : a cross-country analysis with a new data set," Policy Research Working Paper Series 5538, The World Bank.
    3. Halkias, Georgios & Davvetas, Vasileios & Diamantopoulos, Adamantios, 2016. "The interplay between country stereotypes and perceived brand globalness/localness as drivers of brand preference," Journal of Business Research, Elsevier, vol. 69(9), pages 3621-3628.
    4. Shun-Pin Chuang & Sun-Jen Huang, 2018. "The Effect of Environmental Corporate Social Responsibility on Environmental Performance and Business Competitiveness: The Mediation of Green Information Technology Capital," Journal of Business Ethics, Springer, vol. 150(4), pages 991-1009, July.
    5. Muddassar Sarfraz & Wang Qun & Muhammad Ibrahim Abdullah & Adnan Tariq Alvi, 2018. "Employees’ Perception of Corporate Social Responsibility Impact on Employee Outcomes: Mediating Role of Organizational Justice for Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    6. Ploypailin Kijkasiwat & Pongsutti Phuensane, 2020. "Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance," JRFM, MDPI, vol. 13(5), pages 1-15, May.
    7. He, Hongwei & Kim, Sumin & Gustafsson, Anders, 2021. "What can we learn from #StopHateForProfit boycott regarding corporate social irresponsibility and corporate social responsibility?," Journal of Business Research, Elsevier, vol. 131(C), pages 217-226.
    8. Mikalef, Patrick & Pateli, Adamantia, 2017. "Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA," Journal of Business Research, Elsevier, vol. 70(C), pages 1-16.
    9. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    10. Kambeiz Talebi & Arash Rezazadeh & Amer Dehghan Najmabadi, 2015. "SME alliance performance: the impacts of alliance entrepreneurship, entrepreneurial orientation, and intellectual capital," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 24(2), pages 187-207.
    11. Thorsten Koch & Josef Windsperger, 2017. "Seeing through the network: Competitive advantage in the digital economy," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-30, December.
    12. Ludovica Moi & Francesca Cabiddu, 2021. "Leading digital transformation through an Agile Marketing Capability: the case of Spotahome," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1145-1177, December.
    13. Jensen, Jonathan A. & Cobbs, Joe B. & Turner, Brian A., 2016. "Evaluating sponsorship through the lens of the resource-based view: The potential for sustained competitive advantage," Business Horizons, Elsevier, vol. 59(2), pages 163-173.
    14. Francisco Musiello-Neto & Orlando Lima Rua & Mario Arias-Oliva & Amélia Ferreira Silva, 2021. "Open Innovation and Competitive Advantage on the Hospitality Sector: The Role of Organizational Strategy," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    15. Ki‐Hoon Lee & Ji‐Whan Kim, 2011. "Integrating Suppliers into Green Product Innovation Development: an Empirical Case Study in the Semiconductor Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 20(8), pages 527-538, December.
    16. Anindita Chakravarty & Rajdeep Grewal & V. Sambamurthy, 2013. "Information Technology Competencies, Organizational Agility, and Firm Performance: Enabling and Facilitating Roles," Information Systems Research, INFORMS, vol. 24(4), pages 976-997, December.
    17. Margarida Rodrigues & Mário Franco & Rui Silva & Cidália Oliveira, 2021. "Success Factors of SMEs: Empirical Study Guided by Dynamic Capabilities and Resources-Based View," Sustainability, MDPI, vol. 13(21), pages 1-17, November.
    18. Lin, Chin-Huang & Yang, Ho-Li & Liou, Dian-Yan, 2009. "The impact of corporate social responsibility on financial performance: Evidence from business in Taiwan," Technology in Society, Elsevier, vol. 31(1), pages 56-63.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandra ZBUCHEA & Florina PÎNZARU, 2017. "Tailoring CSR Strategy to Company Size?," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(3), pages 415-437, September.
    2. Muhammad Khalid Anser & Zahid Yousaf & Abdul Majid & Muhammad Yasir, 2020. "Does corporate social responsibility commitment and participation predict environmental and social performance?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2578-2587, November.
    3. Muhammad Anwar & Sher Zaman Khan & Najib Ullah Khan, 2018. "Intellectual Capital, Entrepreneurial Strategy and New Ventures Performance: Mediating Role of Competitive Advantage," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(1), pages 63-94, March.
    4. Jajja, Muhammad Shakeel Sadiq & Asif, Muhammad & Montabon, Frank & Chatha, Kamran Ali, 2020. "The indirect effect of social responsibility standards on organizational performance in apparel supply chains: A developing country perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 139(C).
    5. Zhenghui Li & Gaoke Liao & Khaldoon Albitar, 2020. "Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1045-1055, March.
    6. Ciampi, Francesco & Faraoni, Monica & Ballerini, Jacopo & Meli, Francesco, 2022. "The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    7. Faisal Mahmood & Faisal Qadeer & Usman Sattar & Antonio Ariza-Montes & Maria Saleem & Jaffar Aman, 2020. "Corporate Social Responsibility and Firms’ Financial Performance: A New Insight," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    8. Javier Martínez‐Falcó & Bartolomé Marco‐Lajara & Patrocinio Zaragoza‐Sáez & Luis A. Millán‐Tudela, 2023. "Analyzing the effect of Corporate Social Responsibility on Green Innovation Performance in the Spanish wine industry: A structural equation modeling analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 985-1006, October.
    9. Víctor Meseguer-Sánchez & Francisco Jesús Gálvez-Sánchez & Gabriel López-Martínez & Valentín Molina-Moreno, 2021. "Corporate Social Responsibility and Sustainability. A Bibliometric Analysis of Their Interrelations," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    10. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    11. Sang-Uk Jung & Valeriia Shegai, 2023. "The Impact of Digital Marketing Innovation on Firm Performance: Mediation by Marketing Capability and Moderation by Firm Size," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    12. Joanna Sawicka & Elżbieta Marcinkowska, 2023. "Environmental CSR and the Purchase Declarations of Generation Z Consumers," Sustainability, MDPI, vol. 15(17), pages 1-14, August.
    13. Bilal Fayiz Omar & Nidal Omar Zallom, 2016. "Corporate social responsibility and market value: evidence from Jordan," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 14(1), pages 2-29, July.
    14. Wu, Chia-Ming & Hu, Jin-Li, 2019. "Can CSR reduce stock price crash risk? Evidence from China's energy industry," Energy Policy, Elsevier, vol. 128(C), pages 505-518.
    15. Achi, Awele & Adeola, Ogechi & Achi, Francis Chukwuedo, 2022. "CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility," Journal of Business Research, Elsevier, vol. 139(C), pages 771-781.
    16. Cheng, Cong & Zhong, Huihui & Cao, Liebing, 2020. "Facilitating speed of internationalization: The roles of business intelligence and organizational agility," Journal of Business Research, Elsevier, vol. 110(C), pages 95-103.
    17. Miguel Ángel Martín Valmayor & Beatriz Duarte Monedero & Luis A. Gil-Alana, 2021. "The Social Balance Sheet as Part of the Annual Report in Financial Institutions. A Case Study: Banco Bilbao Vizcaya Argentaria (BBVA)," Sustainability, MDPI, vol. 13(6), pages 1-14, March.
    18. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    19. Muhammad Anwar & Sher Zaman Khan & Syed Zulfiqar Ali Shah, 2018. "Big Data Capabilities and Firm’s Performance: A Mediating Role of Competitive Advantage," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-28, December.
    20. Ma Degong & Farid Ullah & Muhammad Sualeh Khattak & Muhammad Anwar, 2018. "Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs," Sustainability, MDPI, vol. 10(11), pages 1-16, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:627-:d:1019670. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.