IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-981-95-6415-6_78.html

Driving SME Performance: Innovation, Digital Capability, Resilience, and Leadership

In: Entrepreneurship and Human-Centric Business Strategies for Social and Economic Resilience

Author

Listed:
  • David Tjahjana

    (Multimedia Nusantara University)

  • Diena Dwidienawati

    (Bina Nusantara University, Business Management Program, BINUS Business School)

  • Mohammad Ichsan

    (Bina Nusantara University, Management Program, BINUS Business School)

  • Dyah Gandasari

    (Polbangtan Bogor)

Abstract

The important role of small and medium-sized enterprises (SMEs) is well recognized, yet many struggle to sustain their operations. This study aims to identify factors influencing SMEs’ performance by combining the resource-based view (RBV), resilience theory, and dynamic capability. A quantitative study involving 251 SMEs in Indonesia was conducted. Smart-PLS was used to analyze the measurement model of constructs and the structural model. This study revealed that digital capability, innovation capability, and organizational resilience strongly influence SMEs’ performance in Indonesia. Meanwhile, transformational leadership strongly and positively influences digital and innovation capabilities, as well as organizational resilience. This study also supports the positive influence of digital and innovation capabilities on organizational resilience. Furthermore, it reveals that digital capability has a positive association with innovation capability. However, this study fails to confirm a significant relationship between transformational leadership and firm performance. This study brings theoretical significance through the integration of RBV, particularly dynamic capability and resilience theory, providing insights into the complex factors affecting SMEs’ performance. It expands the existing literature by clarifying the interrelationships among digital capability, innovation capability, organizational resilience, and transformational leadership. From a practical standpoint, the study offers valuable guidance for SMEs, policymakers, and practitioners. Policymakers can develop targeted strategies to assist SMEs in cultivating digital and innovation capabilities, while practitioners can capitalize on the positive impact of transformational leadership in bolstering digital capability, innovation capability, and organizational resilience.

Suggested Citation

  • David Tjahjana & Diena Dwidienawati & Mohammad Ichsan & Dyah Gandasari, 2026. "Driving SME Performance: Innovation, Digital Capability, Resilience, and Leadership," Springer Proceedings in Business and Economics, in: Singha Chaveesuk & Seungwoo Shin & Sebastian Kot & Bilal Khalid (ed.), Entrepreneurship and Human-Centric Business Strategies for Social and Economic Resilience, pages 1265-1280, Springer.
    • Handle: RePEc:spr:prbchp:978-981-95-6415-6_78
    DOI: 10.1007/978-981-95-6415-6_78
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:spr:prbchp:978-981-95-6415-6_78. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.