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Success factors of SMEs: the case of Indonesia

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  • Mariyudi

Abstract

Small and medium enterprises (SMEs) are a business group which could survive when the economic crisis hit developing countries such as Indonesia. The purpose of the current study is to identify the enabling factors to innovativeness for SMEs in the emerging Indonesian market and to examine the relationship between innovativeness and business growth performance. Drawing upon the survey questionnaire data from 300 SMEs (with an acceptable response rate of 97.67%) in the Indonesian market, five research hypotheses are tested using a structural equation modelling technique. The results suggest that: first, the micro-environmental have a significant influence on firm's innovativeness and business growth performance, second, firm's innovativeness have a significant influence on firm's innovativeness, and finally, geographical clusters have a significant influence on firm's innovativeness and business growth performance. It is believed to be the first empirical research study examining SMEs' innovativeness and their business growth performance in the emerging Indonesian market.

Suggested Citation

  • Mariyudi, 2019. "Success factors of SMEs: the case of Indonesia," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 19(2), pages 204-231.
    • Handle: RePEc:ids:ijbire:v:19:y:2019:i:2:p:204-231
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    Cited by:

    1. Xu, Xiaoyan & Chung, Sai-Ho & Lo, Chris K.Y. & Yeung, Andy C.L., 2022. "Sustainable supply chain management with NGOs, NPOs, and charity organizations: A systematic review and research agenda," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    2. Marhanum Che Mohd Salleh & Mohammad Abdul Matin Chowdhury & Siti Salwani Razali & Nan Nurhidayu Megat Laksana, 2020. "Retirement Schemes, its Challenges and Ways of Reformation: A Cross-Border Study," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(9), pages 507-520, September.
    3. Oliphant, Elizabeth & Simon, Adam C., 2022. "The cost of sustainable palm oil: Should an Indonesian smallholder pursue RSPO-certification?," World Development Perspectives, Elsevier, vol. 26(C).
    4. Phelps, Jacob & Zabala, Aiora & Daeli, Willy & Carmenta, Rachel, 2021. "Experts and resource users split over solutions to peatland fires," World Development, Elsevier, vol. 146(C).
    5. Leijten, Floris & Sim, Sarah & King, Henry & Verburg, Peter H., 2021. "Local deforestation spillovers induced by forest moratoria: Evidence from Indonesia," Land Use Policy, Elsevier, vol. 109(C).

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