The Disruption Challenge in Building Business Viability of SMEs Through Virtual Capital Ownership (original) (raw)
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Jurnal Manajemen dan Pemasaran Jasa
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Success in Challenging Times: SMEs - generating and harnessing social capital
This study focuses on the ways in which SMEs use and benefit from social capital. Social capital is created through both offline activities such as networking events, and online activities including social media use. Offline and online networking activities are not mutually exclusive alternatives. Successful SMEs network with a number of different communities integrating a combination of both offline and online methods. SMEs’ websites are crucial and need to be optimised to improve search engine positioning. Social media sites, such as Facebook and LinkedIn are used widely to both showcase the business and build relationships with customers, but are not considered a substitute for face-to-face networking. The most popular reason for SMEs using social media is to develop their business image or to market products. The fast, easy and low cost access to people and businesses provided by Web 2.0 and social media helps them do this better. Online networking can enable SMEs to overcome the drawbacks of traditional face-to-face contact, such as limited numbers and diversity, and the associated high costs(15). SMEs that proactively engage with social media can systematically raise their profiles to successfully compete with larger organisations(15). The study reveals that few SMEs claim to be experts in social media use. IT and social media are regarded as necessary evils and SMEs consider that there is no choice but to engage very proactively in these areas. However, there is a need to manage this engagement strategically, along with traditional networking, to avoid a disproportionate amount of resource being dedicated to this area. Face-to-face (offline) networking events remain the most important form of all types of SME networking with roughly two thirds of SMEs devoting one to six hours per week to this activity. In general, locally oriented SMEs without a scalable business offering prefer face-to-face networking events, whereas globally oriented non-scalable SMEs additionally put significant effort into social media. Networks included customers, associates and former employees who had moved on to become independent contractors. Networking is about making contacts outside the SME who can offer feedback or advice or be used to outsource work. These networks are regarded as a ‘community of people’ who might join in with a new business proposal or be used to provide external expertise. The methods SMEs use to increase social capital, must be fit for purpose and appropriate to their business model. Social media are complementary to, rather than a substitute for, traditional networking and events. The challenge facing SMEs is how best to integrate their online and offline activities to complement their business and generate social capital. This article explores how this can be done to best effect.
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This study examines technology in mediating human capital, customer capital, and organizational capital on SMEs' performance during Covid-19. To test the hypothesis, the PLS-SEM method was applied. Data collection was conducted by sharing questionnaiers to 150 owners of small industrial cluster in East Java, Indonesia.The empirical results show that human capital and technology usage directly affect significantly on SMEs' performance. Furthermore, technology usage has a significant influence in mediating human capital on firms' performance. We provide implications for using technology for practice and using a socio-technical approach by SMEs to face challenges related to their work organization in response to COVID-19 while maintaining their activities. We hope that our reflection will be a source of thought for scholars and practitioners to explore further using technology for SMEs to secure business continuity during COVID-19.JEL Classification: O2, O34, M21How to Cite...
Influence of Social Capital on Small and Medium Enterprises Performance in Wakiso District, Uganda
2023
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Small and Medium-scale Enterprises (SMEs) are one of the driving forces for economic development by enhancing national production, creating income, employment, and mitigating poverty in any country. Social capital is defined as the total stock of relationships that an individual possesses. In the Sri Lankan context, much attention has not been paid to social capital. The objective of this study is to recognize the interrelation between the social capital concept and the performance of SMEs and how social capital impacts SMEs in Sri Lanka. The study was conceptualized using 03 variables; network ties, trust, and shared vision, and a dependent variable is the performance of small and medium-scale enterprises. A self-administered questionnaire was applied to collect primary data for the present study. Survey data were collected from 384 SME owners through the simple random sampling technique. The trustworthy and shared vision has the highest impact on the performance of SMEs based on t...
Social Capital and Organizational Sustainability: Case of Malaysian SMEs
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SMEs due to their size and resources are vulnerable to sudden economic changes. Large numbers of SMEs disappear within first five years of their operations and to remain operational these small enterprises need to position themselves in such a way to cater for the needs of the ever changing customer demands. The present study is an attempt to investigate the relationship and influence of social capital and its three dimensions on the sustainability of SMEs in Malaysia. The results indicate that social capital as a construct has a significant relationship and influence on sustainability of SMEs. However, multiple regression results indicate that structural and relational social capital have significant influence on sustainability but cognitive social capital is insignificant. The results are significant for the owners/managers of SMEs and how they operate their enterprises. Future recommendations are also provided for researchers interested in the subject area.
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As per newspapers and national news reports, small and medium-sized enterprises (SMEs) in Indonesia, currently 26,574 in number, are spreading widely. The transformation of SMEs to large, mature business entities is slow. This study investigates the sluggish transformation of SMEs in Indonesia and offers new explanations for the sluggishness, focusing on knowledge empowerment instead of financial aspects. A new development model was constructed with an aim to enhance SMEs. This study serves as research with a paradigm of constructivism, prioritizing knowledge empowerment. Executive officers of SMEs should aim for the construction of conceptual knowledge of social networks and social cognition in a sequential-ordered logic to achieve organizational readiness and readiness for change. They, moreover, internalize these concepts to transform SMEs into large, mature business entities with high levels of competitiveness, leadership engagement, dynamic capabilities, and profound sustainabilities.
Effect of Social Capital on SMEs Performance: Does Innovation Matter?
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The study investigated how social capital influences firms to generate higher performance through innovation among SMEs in Ghana. The study employed a quantitative approach. The study employed stratified sampling to sample 240 respondents from 240 SMEs in the Eastern Region of Ghana. Primary data was gathered using a questionnaire adapted from previously validated instruments. The data gathered was analyzed using Partial Least Square (PLS) of the Structural Equation Model (SEM). The findings proved internal and external factors of the SMEs were found to be strengthened through innovation initiatives of the SMEs. The social capital initiatives of the SMEs positively and significantly enhanced the innovation practices of the SMEs. The result showed internal and external social capital initiatives of the SMEs were positively and significantly associated with the innovation practices of the firms. It concludes that the effect of social capital among SMEs on firm performance is indirectly through their level of innovation practices. The results provide empirical support to the validation of existing theories that a company's utilization of important values offer some level of competitive advantage for superior performance in an industry. We therefore recommended that Owners and Managers of SMEs take advantage of their internal social resources as well as building strategic external capital in the quest to remain competitive and enhance profitability.
Indonesian Journal of Business and Entrepreneurship, 2023
Various economic problems can be solved with good entrepreneurship. SMEs are part of entrepreneurship that plays an essential role in the economy, including reducing unemployment and improving a country's economy. Environmental conditions that are VUCA (Volatility, Uncertainty, Complexity, Ambiguity) make SMEs have obstacles such as lack of competence, capacity, knowledge and skills of SME actors to adapt in running a business. The ability of SMEs to be able to continue to run their business makes SMEs must have dynamic capabilities that come from internal and external SMEs. Therefore, the purpose of this paper is to review the relevant literature in determining the theories that can shape the dynamic capabilities of SMEs. Based on a literature review, this research generated the result that entrepreneurial orientation (internal) and social capital (external) is critical in developing SMEs' dynamic capability.