Evaluating the Important Role of Women in Maintaining the Sustainability of SMEs
Main Article Content
Keywords
Business strategy, Competitive advantage, Digitalisation, Sustainability
Abstract
Small and Medium Enterprises (SMEs) play a significant role in driving economic growth; hence, research on the sustainability of SMEs is currently under discussion. Previous research found evidence that women’s role in the development of SMEs is still limited because most entrepreneurs are men. This is due to gender stereotypes, in which men tend to be more rational while women are more careful. Based on these problems, this research specifically tests the impact of digitalisation, business strategy, and competitive advantage on the sustainability of women-owned businesses. It also evaluated the digitalisation effect, business strategy, and competitive advantage on the sustainability of SMEs. It consisted of 150 female respondents who use e-commerce in Indonesia, and the focus was solely on women entrepreneurs, which has not been done in previous investigations. Furthermore, this study uses purposive sampling with specific criteria and hypothesis testing using SmartPLS. The results showed that digitalisation and business strategy affect competitive advantage, which also increases the sustainability of SMEs. This research is anticipated to assist SME owners, particularly women, in mastering technology to gain a competitive advantage and maintain sustainability.
Downloads
Download data is not yet available.
References
Alam, K., Ali, M. A., Erdiaw-Kwasie, M. O., Murray, P. A., & Wiesner, R. (2022). Digital transformation among SMEs: Does gender matter? Sustainability (Switzerland), 14(1), 1–21. https://doi.org/10.3390/su14010535
Budiarto, D. S., Prabowo, M. A., Uyob, S., & Diansari, R. E. (2022). Diversification strategy and its impact on sustainability: Research on Indonesian SMEs. International Journal of Applied Economics, Finance and Accounting, 13(1), 40–49. https://doi.org/10.33094/ijaefa.v13i1.612
Chan, R. C. H. (2022). A social cognitive perspective on gender disparities in self-efficacy, interest, and aspirations in science, technology, engineering, and mathematics (STEM): the influence of cultural and gender norms. International Journal of STEM Education, 9(37), 1–13. https://doi.org/10.1186/s40594-022-00352-0
Chinakidzwa, M., & Phiri, M. (2020). Exploring digital marketing resources, capabilities and market performance of small to medium agro-processors. A conceptual model. Journal of Business & Retail Management Research, 14(02), 1–15. https://doi.org/10.24052/jbrmr/v14is02/art-01
Dhameria, V., Ghozali, I., Hidayat, A., & Aryanto, V. D. W. (2021). Networking capability, entrepreneurial marketing, competitive advantage, and marketing performance. Uncertain Supply Chain Management, 9(4), 941–948. https://doi.org/10.5267/j.uscm.2021.7.007
Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 41(1), 15–21. https://doi.org/10.1016/j.kjss.2018.07.009
Engidaw, A. E. (2021). Exploring internal business factors and their impact on firm performance: Small business perspective in Ethiopia. Journal of Innovation and Entrepreneurship, 10(25), 1–17. https://doi.org/10.1186/s13731-021-00167-3
Farida, I., & Setiawan, D. (2022). Business strategies and competitive advantage: The role of performance and innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 1–16. https://doi.org/10.3390/joitmc8030163
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92–93(February), 1–18. https://doi.org/10.1016/j.technovation.2018.11.004
Games, D., & Rendi, R. P. (2019). The effects of knowledge management and risk taking on SME financial performance in creative industries in an emerging market: The mediating effect of innovation outcomes. Journal of Global Entrepreneurship Research, 9(1), 1–15. https://doi.org/10.1186/s40497-019-0167-1
García-Cornejo, B., Pérez-Méndez, J. A., Roibás, D., & Wall, A. (2020). Efficiency and sustainability in farm diversification initiatives in northern Spain. Sustainability (Switzerland), 12(10). https://doi.org/10.3390/SU12103983
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Herrero, I. (2017). Family involvement and sustainable family business: Analysing their effects on diversification strategies. Sustainability (Switzerland), 9(11). https://doi.org/10.3390/su9112099
Isa, F. M., Muhammad, N. M. N., Ahmad, A., & Noor, S. (2021). Effect of ICT on women entrepreneur business performance: Case of Malaysia. Journal of Economics and Business, 4(1), 137–146. https://doi.org/10.31014/aior.1992.04.01.326
Jayeola, O., Sidek, S., Rahman, A. A., Bali Mahomed, A. S., & Jimin, H. (2020). Contextual factors and strategic consequences of cloud enterprise resource planning (ERP) adoption in Malaysian manufacturing SMEs: A conceptual framework. International Journal of Economics and Business Administration, 8(3), 176–201. https://doi.org/10.35808/ijeba/495
Jiménez-Zarco, A. I., Clemente-Almendros, J. A., González-González, I., & Aracil-Jordà, J. (2021). Female Micro-Entrepreneurs and Social Networks: Diagnostic Analysis of the Influence of Social-Media Marketing Strategies on Brand Financial Performance. Frontiers in Psychology, 12(April). https://doi.org/10.3389/fpsyg.2021.630058
Jin, Z., Navare, J., & Lynch, R. (2019). The relationship between innovation culture and innovation outcomes: exploring the effects of sustainability orientation and firm size. R&D Management, 49(4), 607–623. https://doi.org/10.1111/radm.12351
Khin, S., & Ho, T. C. (2020). Digital technology, digital capability and organizational performance: A mediating role of digital innovation. International Journal of Innovation Science, 11(2), 177–195. https://doi.org/10.1108/IJIS-08-2018-0083
Lestari, S. D., Leon, F. M., Widyastuti, S., Brabo, N. A., & Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. Journal of Asian Finance, Economics and Business, 7(6), 365–378. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.365
Manolova, T. S., Brush, C. G., Edelman, L. F., & Elam, A. (2020). Pivoting to stay the course: How women entrepreneurs take advantage of opportunities created by the COVID-19 pandemic. International Small Business Journal: Researching Entrepreneurship, 38(6), 481–491. https://doi.org/10.1177/0266242620949136
Mata, M. N., Falahat, M., Correia, A. B., & Rita, J. X. (2021). Impact of institutional support on export performance. Economies, 9(3), 1–14. https://doi.org/10.3390/economies9030101
Nawrocki, T. L., & Jonek-Kowalska, I. (2022). Is innovation a risky business? A comparative analysis in high-tech and traditional industries in Poland. Journal of Open Innovation: Technology, Market, and Complexity, 8(155), 1–29. https://doi.org/10.3390/joitmc8030155
Obal, M., Morgan, T., & Joseph, G. (2020). Integrating sustainability into new product development: The role of organizational leadership and culture. Journal of Small Business Strategy, 30(1), 43–57. https://libjournals.mtsu.edu/index.php/jsbs/article/view/1664
Pangboonyanon, V., & Kalasin, K. (2018). The impact of within-industry diversification on firm performance: Empirical evidence from emerging ASEAN SMEs. International Journal of Emerging Markets, 13(5), 998–1025. https://doi.org/10.1108/IJoEM-07-2017-0263
Pergelova, A., Manolova, T., Simeonova-Ganeva, R., & Yordanova, D. (2018). Democratizing entrepreneurship? Digital technologies and the internationalization of female-led SMEs. Journal of Small Business Management, 57(1), 1–26. https://doi.org/10.1111/jsbm.12494
Purwadi, P., Syaharuddin, Y., Ilmi, Z., & Sampeliling, A. (2022). Supporting logistics management to anticipate Covid-19 using the “Retail Direct Order” concept. Journal of Telecommunications and the Digital Economy, 10(3), 128–148. https://doi.org/10.18080/jtde.v10n3.519
Quaye, D., & Mensah, I. (2019). Marketing innovation and sustainable competitive advantage of manufacturing SMEs in Ghana. Management Decision, 57(7), 1535–1553. https://doi.org/10.1108/MD-08-2017-0784
Seclen-Luna, J. P., Castro Vergara, R. I., & Lopez Valladares, H. (2022). Effects of the use of digital technologies on the performance of firms in a developing country: Are there differences between creative and manufacturing industries? International Journal of Information Systems and Project Management, 10(1), 73–91. https://doi.org/10.12821/ijispm100104
Setyaningrum, R. P., & Muafi, M. (2022). The effect of creativity and innovative behavior on competitive advantage in womenpreneur. SA Journal of Human Resource Management, 20, 1–10. https://doi.org/10.4102/sajhrm.v20i0.2069
Shishko, B. (2022). Storytelling in the digital era: Perspectives on age and gender. Trames: A Journal of the Humanities and Social Sciences, 26(4), 397–411. https://doi.org/10.1057/9781137365293
Srikalimah, S., Wardana, L. W., Ambarwati, D., Sholihin, U., Shobirin, R. A., Fajariah, N., & Wibowo, A. (2020). Do creativity and intellectual capital matter for SMEs sustainability? The role of competitive advantage. Journal of Asian Finance, Economics and Business, 7(12), 397–408. https://doi.org/10.13106/JAFEB.2020.VOL7.NO12.397
Van Binh, T., Thy, N. G., Vu, P. M., Khoa, H. D., & Thong, N. D. (2022). Association of innovation and entrepreneurial orientation on SME performance: The case of Soc Trang Province Vietnam. International Journal of Management and Sustainability, 11(2), 92–102. https://doi.org/10.18488/11.v11i2.3051
Wang, C., Brabenec, T., Gao, P., & Tang, Z. (2021). The business strategy, competitive advantage and financial strategy: A perspective from corporate maturity mismatched investment. Journal of Competitiveness, 13(1), 164–181. https://doi.org/10.7441/joc.2021.01.10
Widjaja, A. W., & Sugiarto. (2022). Strategic orientation’s dilemma of batik retailers in Jakarta. Heliyon, 8(6), e09622. https://doi.org/10.1016/j.heliyon.2022.e09622
Yanto, H., Kiswanto, Baroroh, N., Hajawiyah, A., & Rahim, N. M. (2022). The roles of entrepreneurial skills, financial literacy, and digital literacy in maintaining MSMEs during the Covid-19 pandemic. Asian Economic and Financial Review, 12(7), 504–517. https://doi.org/10.55493/5002.v12i7.4535
Yousaf, Z., Radulescu, M., Sinisi, C. I., Serbanescu, L., & Păunescu, L. M. (2021). Towards sustainable digital innovation of SMEs from the developing countries in the context of the digital economy and frugal environment. Sustainability (Switzerland), 13(10). https://doi.org/10.3390/su13105715
Budiarto, D. S., Prabowo, M. A., Uyob, S., & Diansari, R. E. (2022). Diversification strategy and its impact on sustainability: Research on Indonesian SMEs. International Journal of Applied Economics, Finance and Accounting, 13(1), 40–49. https://doi.org/10.33094/ijaefa.v13i1.612
Chan, R. C. H. (2022). A social cognitive perspective on gender disparities in self-efficacy, interest, and aspirations in science, technology, engineering, and mathematics (STEM): the influence of cultural and gender norms. International Journal of STEM Education, 9(37), 1–13. https://doi.org/10.1186/s40594-022-00352-0
Chinakidzwa, M., & Phiri, M. (2020). Exploring digital marketing resources, capabilities and market performance of small to medium agro-processors. A conceptual model. Journal of Business & Retail Management Research, 14(02), 1–15. https://doi.org/10.24052/jbrmr/v14is02/art-01
Dhameria, V., Ghozali, I., Hidayat, A., & Aryanto, V. D. W. (2021). Networking capability, entrepreneurial marketing, competitive advantage, and marketing performance. Uncertain Supply Chain Management, 9(4), 941–948. https://doi.org/10.5267/j.uscm.2021.7.007
Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 41(1), 15–21. https://doi.org/10.1016/j.kjss.2018.07.009
Engidaw, A. E. (2021). Exploring internal business factors and their impact on firm performance: Small business perspective in Ethiopia. Journal of Innovation and Entrepreneurship, 10(25), 1–17. https://doi.org/10.1186/s13731-021-00167-3
Farida, I., & Setiawan, D. (2022). Business strategies and competitive advantage: The role of performance and innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 1–16. https://doi.org/10.3390/joitmc8030163
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92–93(February), 1–18. https://doi.org/10.1016/j.technovation.2018.11.004
Games, D., & Rendi, R. P. (2019). The effects of knowledge management and risk taking on SME financial performance in creative industries in an emerging market: The mediating effect of innovation outcomes. Journal of Global Entrepreneurship Research, 9(1), 1–15. https://doi.org/10.1186/s40497-019-0167-1
García-Cornejo, B., Pérez-Méndez, J. A., Roibás, D., & Wall, A. (2020). Efficiency and sustainability in farm diversification initiatives in northern Spain. Sustainability (Switzerland), 12(10). https://doi.org/10.3390/SU12103983
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Herrero, I. (2017). Family involvement and sustainable family business: Analysing their effects on diversification strategies. Sustainability (Switzerland), 9(11). https://doi.org/10.3390/su9112099
Isa, F. M., Muhammad, N. M. N., Ahmad, A., & Noor, S. (2021). Effect of ICT on women entrepreneur business performance: Case of Malaysia. Journal of Economics and Business, 4(1), 137–146. https://doi.org/10.31014/aior.1992.04.01.326
Jayeola, O., Sidek, S., Rahman, A. A., Bali Mahomed, A. S., & Jimin, H. (2020). Contextual factors and strategic consequences of cloud enterprise resource planning (ERP) adoption in Malaysian manufacturing SMEs: A conceptual framework. International Journal of Economics and Business Administration, 8(3), 176–201. https://doi.org/10.35808/ijeba/495
Jiménez-Zarco, A. I., Clemente-Almendros, J. A., González-González, I., & Aracil-Jordà, J. (2021). Female Micro-Entrepreneurs and Social Networks: Diagnostic Analysis of the Influence of Social-Media Marketing Strategies on Brand Financial Performance. Frontiers in Psychology, 12(April). https://doi.org/10.3389/fpsyg.2021.630058
Jin, Z., Navare, J., & Lynch, R. (2019). The relationship between innovation culture and innovation outcomes: exploring the effects of sustainability orientation and firm size. R&D Management, 49(4), 607–623. https://doi.org/10.1111/radm.12351
Khin, S., & Ho, T. C. (2020). Digital technology, digital capability and organizational performance: A mediating role of digital innovation. International Journal of Innovation Science, 11(2), 177–195. https://doi.org/10.1108/IJIS-08-2018-0083
Lestari, S. D., Leon, F. M., Widyastuti, S., Brabo, N. A., & Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. Journal of Asian Finance, Economics and Business, 7(6), 365–378. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.365
Manolova, T. S., Brush, C. G., Edelman, L. F., & Elam, A. (2020). Pivoting to stay the course: How women entrepreneurs take advantage of opportunities created by the COVID-19 pandemic. International Small Business Journal: Researching Entrepreneurship, 38(6), 481–491. https://doi.org/10.1177/0266242620949136
Mata, M. N., Falahat, M., Correia, A. B., & Rita, J. X. (2021). Impact of institutional support on export performance. Economies, 9(3), 1–14. https://doi.org/10.3390/economies9030101
Nawrocki, T. L., & Jonek-Kowalska, I. (2022). Is innovation a risky business? A comparative analysis in high-tech and traditional industries in Poland. Journal of Open Innovation: Technology, Market, and Complexity, 8(155), 1–29. https://doi.org/10.3390/joitmc8030155
Obal, M., Morgan, T., & Joseph, G. (2020). Integrating sustainability into new product development: The role of organizational leadership and culture. Journal of Small Business Strategy, 30(1), 43–57. https://libjournals.mtsu.edu/index.php/jsbs/article/view/1664
Pangboonyanon, V., & Kalasin, K. (2018). The impact of within-industry diversification on firm performance: Empirical evidence from emerging ASEAN SMEs. International Journal of Emerging Markets, 13(5), 998–1025. https://doi.org/10.1108/IJoEM-07-2017-0263
Pergelova, A., Manolova, T., Simeonova-Ganeva, R., & Yordanova, D. (2018). Democratizing entrepreneurship? Digital technologies and the internationalization of female-led SMEs. Journal of Small Business Management, 57(1), 1–26. https://doi.org/10.1111/jsbm.12494
Purwadi, P., Syaharuddin, Y., Ilmi, Z., & Sampeliling, A. (2022). Supporting logistics management to anticipate Covid-19 using the “Retail Direct Order” concept. Journal of Telecommunications and the Digital Economy, 10(3), 128–148. https://doi.org/10.18080/jtde.v10n3.519
Quaye, D., & Mensah, I. (2019). Marketing innovation and sustainable competitive advantage of manufacturing SMEs in Ghana. Management Decision, 57(7), 1535–1553. https://doi.org/10.1108/MD-08-2017-0784
Seclen-Luna, J. P., Castro Vergara, R. I., & Lopez Valladares, H. (2022). Effects of the use of digital technologies on the performance of firms in a developing country: Are there differences between creative and manufacturing industries? International Journal of Information Systems and Project Management, 10(1), 73–91. https://doi.org/10.12821/ijispm100104
Setyaningrum, R. P., & Muafi, M. (2022). The effect of creativity and innovative behavior on competitive advantage in womenpreneur. SA Journal of Human Resource Management, 20, 1–10. https://doi.org/10.4102/sajhrm.v20i0.2069
Shishko, B. (2022). Storytelling in the digital era: Perspectives on age and gender. Trames: A Journal of the Humanities and Social Sciences, 26(4), 397–411. https://doi.org/10.1057/9781137365293
Srikalimah, S., Wardana, L. W., Ambarwati, D., Sholihin, U., Shobirin, R. A., Fajariah, N., & Wibowo, A. (2020). Do creativity and intellectual capital matter for SMEs sustainability? The role of competitive advantage. Journal of Asian Finance, Economics and Business, 7(12), 397–408. https://doi.org/10.13106/JAFEB.2020.VOL7.NO12.397
Van Binh, T., Thy, N. G., Vu, P. M., Khoa, H. D., & Thong, N. D. (2022). Association of innovation and entrepreneurial orientation on SME performance: The case of Soc Trang Province Vietnam. International Journal of Management and Sustainability, 11(2), 92–102. https://doi.org/10.18488/11.v11i2.3051
Wang, C., Brabenec, T., Gao, P., & Tang, Z. (2021). The business strategy, competitive advantage and financial strategy: A perspective from corporate maturity mismatched investment. Journal of Competitiveness, 13(1), 164–181. https://doi.org/10.7441/joc.2021.01.10
Widjaja, A. W., & Sugiarto. (2022). Strategic orientation’s dilemma of batik retailers in Jakarta. Heliyon, 8(6), e09622. https://doi.org/10.1016/j.heliyon.2022.e09622
Yanto, H., Kiswanto, Baroroh, N., Hajawiyah, A., & Rahim, N. M. (2022). The roles of entrepreneurial skills, financial literacy, and digital literacy in maintaining MSMEs during the Covid-19 pandemic. Asian Economic and Financial Review, 12(7), 504–517. https://doi.org/10.55493/5002.v12i7.4535
Yousaf, Z., Radulescu, M., Sinisi, C. I., Serbanescu, L., & Păunescu, L. M. (2021). Towards sustainable digital innovation of SMEs from the developing countries in the context of the digital economy and frugal environment. Sustainability (Switzerland), 13(10). https://doi.org/10.3390/su13105715
Article Sidebar
Published
Jun 28, 2023
Article Details
How to Cite
Budiarto, D. S., Prabowo, M. A., & Azman, N. B. (2023). Evaluating the Important Role of Women in Maintaining the Sustainability of SMEs. Journal of Telecommunications and the Digital Economy, 11(2), 180–193. https://doi.org/10.18080/jtde.v11n2.664
Issue
Section
Special Issue: Women’s Participation in the Digital Economy and Digital Society
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright Telecommunications Association Inc.
Author Biographies
Dekeng Setyo Budiarto, Universitas PGRI Yogyakarta
Dekeng Setyo Budiarto (dekengsb@upy.ac.id)
Faculty of Business, Universitas PGRI Yogyakarta, Indonesia
Muhammad Agung Prabowo, Universitas Sebelas Maret Surakarta
Muhammad Agung Prabowo (muhammadgung@staff.uns.ac.id)
Faculty of Economics and Business, Universitas Sebelas Maret Surakarta, Indonesia
Norhidayah Binti Azman, Management and Science University, Malaysia
Norhidayah Binti Azman (norhidayah_azman@msu.edu.my)
Faculty of Business and Professional Studies, Management and Science University, Malaysia
