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Article
Publication date: 10 October 2024

Gimin Gimin, Caska Caska, Henny Indrawati and Muhammad Yasin

This study aims to analyze the determinants of small and medium enterprise (SME) sustainability through online marketing technology innovation.

Abstract

Purpose

This study aims to analyze the determinants of small and medium enterprise (SME) sustainability through online marketing technology innovation.

Design/methodology/approach

The study was conducted through a survey in Siak Regency and Dumai City, Riau Province, Indonesia. The study population is small entrepreneurs doing online marketing. The determination of this survey area is by considering: the use of online marketing technology in this area is relatively more developed than other regions; Siak Regency and Dumai City are very prospective to be used as small business development areas based on online marketing; and the sample was determined by purposive random sampling with the criteria of small entrepreneurs who have tried to do online marketing for at least six months. Based on these criteria, there are 301 small entrepreneurs who conduct online marketing as a sample.

Findings

The sustainability of SMEs is directly and indirectly influenced by government support, human resource quality, innovation costs, economic conditions and business partners through online marketing technology innovations. Online marketing strategy through targeting, segmentation and positioning marketing strategies. Implementation of online marketing technology innovation models: increased government support; improvement of human resources; provision of innovation cost allocation; government policies in maintaining economic stability; and increase in business partners.

Research limitations/implications

Limited access to data can limit the interpretation of correlations between the variables studied. This limitation is because the available data is limited to certain periods and certain geographical regions. In addition, research time constraints limit the ability to conduct more in-depth interviews and obtain additional data relevant to the topic being studied.

Practical implications

Practical implications: 1) Targeting marketing strategy is a staged strategy to select a target market. The target market for SME products is intermediary consumers (agents) and end consumers; 2) Segmenting marketing strategy is a stage strategy to determine market segments. The market segment of SME products is based on consumer characteristics, namely, the local market and markets outside the region. SME product market segments based on consumer response characteristics, namely, market segments based on product benefits and consumer loyalty; 3) Positioning marketing strategy is a strategy for the development stage of each product detail placement and the development of a 4P mix strategy, namely, product, price, place and promotion.

Social implications

The implementation of this research policy is: increased government support in facilitating online marketing; increased human resources in online marketing; provision of cost allocation of innovation in online marketing; government policy in maintaining economic stability; and increased business partners in online marketing. Model implementation requires mentoring and training through cooperation with business partners.

Originality/value

The sustainability of SMEs requires online marketing technology innovation. These findings can help provide an alternative solution to the weak resources of SMEs. With the discovery of the determining factor for the sustainability of SMEs, it can accelerate the SME digitalization program.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 30 November 2020

Henny Indrawati, Caska and Suarman

This study aims to analyze the inhibiting factors of small and medium enterprises (SMEs’) technology innovation, supporting institutions for SMEs technology innovation…

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Abstract

Purpose

This study aims to analyze the inhibiting factors of small and medium enterprises (SMEs’) technology innovation, supporting institutions for SMEs technology innovation development, SMEs’ technology innovation development model and strategies for developing SMEs in technology innovation.

Design/methodology/approach

This is a mixed-method research project conducted through a survey of SMEs in Riau Province, Sumatera Indonesia (primarily in the districts of Siak, Kampar and Pelalawan) from April to July 2019. SMEs that have been operating for at least five years were chosen purposively as samples. Based on the requirement, there are 277 entities used in this study. A focus group discussion (FGD) was also conducted to formulate SME models and development strategies in technological innovation. In addition, in-depth interviews and observations were also carried out on technological innovations undertaken by respondents.

Findings

It was found that there are five inhibiting factors of SMEs’ technology innovation: government support, quality of human resources, funding of technological innovation, economic conditions and business partners. The biggest inhibiting factor remains to be the funding of technological innovation. Therefore SMEs provide independent technological innovation costs to develop technological innovations for business sustainability. Supporting institutions for developing SME technology innovation consist of government institutions, private institutions, financial institutions (banks) and nonbank financial institutions. To survive and excel amid competition, SMEs need to pay attention to technological innovation. The business strategy that needs to be done is to improve services to consumers and improve their attitude toward innovation in the implementation and development of SMEs’ businesses.

Research limitations/implications

This research is limited to research on the inhibiting factors for SME technology innovation from the aspect of the production sector. This research has not studied various business fields in the trade, service and digital SME sectors. Future studies can reveal factors inhibiting SME technological innovation, except production aspects and various SME business fields. In addition, this study has not analyzed the cost of technological innovation provided by SMEs. Therefore, future studies could also reveal the large costs of technological innovation provided by SMEs.

Originality/value

This research investigates barriers hindering the SMEs’ technological innovations in Southeast Asia, including Indonesia as a maritime country. It also formulates strategies to reduce the barriers to SME’s technological innovation and contributes to the development of knowledge of technological innovations in SMEs. Moreover, this paper involves investigating government support from a nonfinancial aspect. To the best of the authors’ knowledge, this aspect has not been much discussed by studies on innovation at SMEs till now.

Details

International Journal of Innovation Science, vol. 12 no. 5
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 11 December 2018

Caska and Henny Indrawati

This paper aims to analyze sustainability level of crispy palm tankos mushroom business; institutions involved in the development of crispy palm tankos mushroom business in Riau…

Abstract

Purpose

This paper aims to analyze sustainability level of crispy palm tankos mushroom business; institutions involved in the development of crispy palm tankos mushroom business in Riau Region; nutritional composition, sensory assessment both descriptively and hedonically, and also designing the suitable and hygienic packaging for crispy palm tankos mushroom in Riau; institutional structuring model involved in the development of crispy palm tankos mushroom business in Riau; and strategies to improve the quality of crispy palm tankos mushroom in Riau.

Design/methodology/approach

This study is quantitative research conducted by survey. The research was conducted in Indragiri Hulu, Pelalawan, Kampar and Siak, Riau Province, Indonesia from April to August 2017. The study population is all producers producing crispy oil palm mushroom in the research area. The sample was determined purposively with the criterion of the producers who have been running their business for at least 5 years. Based on the criterion, there were 225 producers included as the sample.

Findings

This study found that business sustainability is the main concern of micro business of crispy palm tankos mushroom in Riau Province. Although local government lack of support, the average value of business sustainability is in the very high category. In addition due to the excellent business support quality, business sustainability is supported by the family environment, independence and business progress. There are two institutions involved in the development of makers business to date, they are informal financial institutions that help makers to increase business capital, and retailers who help makers deliver products to consumers. The results of nutritional composition analysis of crispy palm tankos mushroom showed that the crispy tankos mushroom is a product with good nutrition value for consumption by the community. The implication of this study is to improve the quality of the tankos mushroom crispy palm in terms of color according to the choice of the panelists.

Originality/value

Originality of this study aims to provide strategic formulation to use local resources and improve the economic actors of the home industry of crispy palm tankos mushroom processing in Riau. This research is conducting a structure to the institutions involved in the development of crispy palm tankos mushroom and improving the product quality. This research contributes to the development of science, especially economic development, particularly the development of small industries.

Details

Journal of Science and Technology Policy Management, vol. 10 no. 2
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 21 August 2023

Henny Indrawati, Caska Caska, Neni Hermita, Sumarno Sumarno and Almasdi Syahza

An important global issue is the harm that businesses are posing to the environment. However, the impact of small and medium enterprises’ (SMEs) operations on the environment…

Abstract

Purpose

An important global issue is the harm that businesses are posing to the environment. However, the impact of small and medium enterprises’ (SMEs) operations on the environment often goes unnoticed, and their willingness to adopt green innovations is limited. Therefore, this study aims to examine the factors influencing the adoption of green innovation among SMEs in Indonesia.

Design/methodology/approach

The research used a survey to investigate SMEs operating in the pineapple-based food sector, which is a leading commodity in Riau Province, Sumatera, Indonesia. Specifically, the research focused on the districts of Kampar, Siak and Dumai, with data collecting taking place from April to August 2022. SMEs were selected purposively based on a minimum operational tenure of 10 years. A total of 225 respondents met the selection criteria and participated in this study. The research data were collected through a questionnaire. To analyse the data, the study used structured equation modelling with partial least squares.

Findings

There are three categories of factors influencing SMEs to adopt green innovations: technological, environmental and organizational. Of these factors, organizational factors emerge as the primary determinant of green innovation adoption among SMEs in the country.

Research limitations/implications

The generalizability of the findings in this study is limited due to the specific focus on food sector SMEs in Riau Province. To obtain more generalized results, it is recommended that future research be conducted on SMEs across different sectors in other cities and countries.

Originality/value

This study provides a deeper understanding of the specific dimensions of organizational factors that play a crucial role in driving green innovation adoption, especially within the context of SMEs in the food sector in Indonesia.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 15 February 2021

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

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Abstract

Design

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Findings

Technological innovation in SMEs in Indonesia is hindered by 5 main factors, which are addressed in this briefing.

Originality

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 37 no. 4
Type: Research Article
ISSN: 0258-0543

Keywords

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