Transformation of SMEs: Strengthening Entrepreneurship and Product Innovation as Key Drivers of Business Evolution

Bahtiar Herman, Shahid Bashir, Khaerunnisa Nur Fatimah Syahnur, Haslindah Haslindah, Yeni Absah

Abstract


The important role of Small and Medium Enterprises (SMEs) in driving economic growth requires a deep understanding of the factors that influence their performance. The number of samples in this study was 175 respondents, processed using the Structural Equation Modeling (SEM) method through the AMOS (Analysis of Moment Structure) program. This research explores the dynamics of entrepreneurial competence and product innovation as the main determinants of SME success. In the context of SMEs that have survived for two years in Gowa Regency, South Sulawesi, this research reveals that increasing entrepreneurial competence has a positive impact on business performance. Simultaneously, effective product innovation is proven to make a significant contribution to superior business outcomes. This study also highlights the mediating role of the market environment, demonstrating its influence on the relationship between entrepreneurial competence, product innovation, and business performance. These findings provide valuable insights for policy makers, educators and business actors who aim to increase the competitiveness and adaptability of SMEs amidst rapid business change.


Keywords


SMEs; Entrepreneurial Competence; Product Innovation; Business Performance; Market Environment

Full Text:

PDF

References


Abbas, J., Balsalobre-Lorente, D., Amjid, M. A., Al-Sulaiti, K., Al-Sulaiti, I., & Aldereai, O. (2024). Financial innovation and digitalization promote business growth: The interplay of green technology innovation, product market competition and firm performance. Innovation and Green Development, 3(1), 100-111.

Anatan, L., & Ellitan, L. (2023). Inovasi Adaptif UMKM di Era Normal Baru. Feniks Muda Sejahtera.

Arasti, Z., Tarzamni, E., & Bahmani, N. (2021). Networking activity of female entrepreneurs over time: An exploratory case study on female entrepreneurs from early-stage to establishment. In The Emerald handbook of women and entrepreneurship in developing economies (hal. 335–352). Emerald Publishing Limited.

Aulia, R., & Aslami, N. (2023). Peran manajemen perubahan dalam menghadapi tantangan dan mengoptimalkan peluang di era digital. Journal of Nusantara Economic Science, 1(2), 65–72.

Lestari, F., & Muttaqin, R. (2023). Inovasi Digital: Sebagai Kompetensi UMKM dalam Mempertahankan Resiliensi Entrepreneurship di Masa Endemi (Survei pada UMKM Juara Kabupaten Garut). JEMSI (Jurnal Ekonomi, Manajemen, dan Akuntansi), 9(5), 2004–2015.

Nurdina, N., & Ariprabowo, T. (2022). Penguatan Kompetensi Kewirausahaan dan Inovasi Produk sebagai Penentu Kinerja UKM. BBM (Buletin Bisnis & Manajemen), 8(1), 113–124.

Prasetyo, E. (2020). Peran Strategis Kewirausahaan dalam Mendukung Kebijakan Four Track Strategy di Indonesia. Jurnal Ekonomi dan Pembangunan Optimum, 10(1), 1–15.

Rambe, R., Jannah, A., & Dewi, R. (2023). STRATEGI PEMASARAN UMKM DIERA DIGITAL. Musytari: Neraca Manajemen, Akuntansi, dan Ekonomi, 2(12), 1–10.

Rustya, D. (2023). Pengembangan Kewirausahaan Berkelanjutan dalam Pendidikan: Pendekatan Berdasarkan Prinsip-prinsip Ekonomi Islam. Journal Islamic Banking, 3(2), 61–75.

Srimulyani, V. A., Hermanto, Y. B., Rustiyaningsih, S., & Waloyo, L. A. S. (2023). Internal factors of entrepreneurial and business performance of small and medium enterprises (SMEs) in East Java, Indonesia. Heliyon, 9(11).

Suhartini, Y., Muchlas, M., & Kuat, T. (2022). Kompetensi Kewirausahaan Kepala Sekolah dalam Mengembangkan Edupreneurship di Sekolah Menengah Kejuruan. Jurnal Pendidikan Dan Konseling (JPDK), 4(5), 4833–4849.

Sumarno, S., Gimin, G., Haryana, G., & Saryono, S. (2018). Desain pendidikan kewirausahaan mahasiswa berbasis technopreneurship. Jurnal Ekonomi Pendidikan Dan Kewirausahaan, 6(2), 171–186.

Suryana, A. T., & Burhanuddin, B. (2021). Pengaruh Kompetensi Kewirausahaan Terhadap Kinerja Usaha UMKM Kopi: Sebuah Tinjauan Teoritis dan Empiris. Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian Dan Agribisnis, 117–128.




DOI: http://dx.doi.org/10.26487/hebr.v7i3.5239

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Bahtiar Herman

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

______________________________________________________________________

Hasanuddin Economics and Business Review (ISSN Print: 2549-3221 | ISSN Online: 2549-323X ) is licensed under a Creative Commons Attribution 4.0 International License. Preserved in LOCKSS, based at Stanford University Libraries, United Kingdom, through PKP Private LOCKSS Network program.

 

Indexing and Abstracting: