Improving MSME Performance through Innovation and Superior Service Quality

Basri Bado; Samirah Dunakhir

doi:10.69725/jebi.v1i1.23

Authors

Basri Bado Faculty Of Economic and Business, Universitas Negeri Makassar, Makasar, Indonesia
Samirah Dunakhir Faculty Of economic and Business Universitas Negeri Makassar, Makassar,Indonesia

DOI:

https://doi.org/10.69725/jebi.v1i1.23

Keywords:

MSMEs, Innovation, Service Quality, Performance

Abstract

This study investigates the impact of innovation and service quality on the performance of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Polewali Mandar Regency. Using a sample of 97 respondents from a population of 3,222 MSMEs, data were collected through a Likert scale questionnaire. Results indicate that both innovation and service quality significantly contribute to MSME success, enabling businesses to adapt to market changes and meet customer expectations. Moreover, innovation acts as a mediator, enhancing the influence of service quality on MSME performance. These findings underscore the importance of investing in service quality and fostering an environment conducive to innovation to promote the competitiveness and sustainability of MSMEs in Polewali Mandar Regency. This study offers valuable insights for stakeholders and policymakers seeking to support MSME development in the region, emphasizing the pivotal role of innovation and superior service quality in driving business success.

Downloads

Download data is not yet available.

Author Biographies

Basri Bado, Faculty Of Economic and Business, Universitas Negeri Makassar, Makasar, Indonesia

Basri Bado
Lectuer
Faculty Of Economic and Business, Universitas Negeri Makassar, Makasar, Indonesia
Samirah Dunakhir , Faculty Of economic and Business Universitas Negeri Makassar, Makassar,Indonesia

Samirah Dunakhir
Lecture
Faculty Of economic and Business Universitas Negeri Makassar, Makassar,Indonesia

References

Amadasun, Donald O. E., and Ashley T. Mutezo. 2022. “Influence of Access to Finance on the Competitive Growth of SMEs in Lesotho.” Journal of Innovation and Entrepreneurship 11(1):1–20. doi: 10.1186/s13731-022-00244-1.

Amoah, John. 2021. “BARRIERS OF SMES ’ SUSTAINABILITY IN SUB -SAHARAN AFRICA : A PLS-SEM APPROACH.” INTERNATIONAL JOURNAL OF ENTREPRENEURIAL KNOWLEDGE 9(1):10–24. doi: 10.37335/ijek.v9i1.129.

Bhaskaran, Suku. 2006. “Incremental Innovation and Business Performance: Small and Medium-Size Food Enterprises in a Concentrated Industry Environment.” Journal of Small Business Management 44(1):64–80. doi: 10.1111/j.1540-627X.2006.00154.x.

DO, HANG, T. I. M. MAZZAROL, GEOFFREY N. SOUTAR, THIERRY VOLERY, and SOPHIE REBOUD. 2017. “ORGANISATIONAL FACTORS, ANTICIPATED RENTS AND COMMERCIALISATION IN SMEs.” International Journal of Innovation Management 22(02):1850018. doi: 10.1142/S1363919618500184.

Donkor, Jacob, George Nana Agyekum Donkor, Collins Kankam-Kwarteng, and Eunice Aidoo. 2018. “Innovative Capability, Strategic Goals and Financial Performance of SMEs in Ghana.” Asia Pacific Journal of Innovation and Entrepreneurship 12(2):238–54. doi: 10.1108/APJIE-10-2017-0033.

Exposito, Alfonso, and Juan A. Sanchis-Llopis. 2018. “Innovation and Business Performance for Spanish SMEs: New Evidence from a Multi-Dimensional Approach.” International Small Business Journal 36(8):911–31. doi: 10.1177/0266242618782596.

Getaneh Kebede, Abebe, Solomon Dubale Terefe, and Amare Werku Ijigu. 2024. “Linking Entrepreneurial Leadership to Quality Performance of Micro and Small-Scale Enterprises in Service Sector: The Mediating Role of Service Innovation.” Cogent Social Sciences 10(1). doi: 10.1080/23311886.2024.2339526.

Kankam, George. 2023. “Service Quality and Business Performance: The Mediating Role of Innovation.” Discover Analytics 1(1). doi: 10.1007/s44257-023-00006-7.

Latifah, Lyna, Doddy Setiawan, Y. Anni Aryani, and Rahmawati Rahmawati. 2021. “Business Strategy – MSMEs’ Performance Relationship: Innovation and Accounting Information System as Mediators.” Journal of Small Business and Enterprise Development 28(1):1–21. doi: 10.1108/JSBED-04-2019-0116.

Mag, Otto-von-guericke-universität, and Lucas Hopkins. 2014. “Partial Least Squares Structural Equation Modeling ( PLS-SEM ): An Emerging Tool in Business Research Partial Least Squares Structural Equation Modeling ( PLS-SEM ) An Emerging Tool in Business Research.” (August 2016). doi: 10.1108/EBR-10-2013-0128.

Manuele, Fred A. 2013. “Preventing Serious Injuries and Fatalities.” Professional Safety (May):51–59.

McGrath, Simon, and Ramsarup. 2020. “Vocational Education and Training for African Development: A Literature Review.” Journal of Vocational Education and Training 72(4):465–87. doi: 10.1080/13636820.2019.1679969.

Mongkol, Kulachet. 2021. “THE INFLUENCE OF DYNAMIC CAPABILITIES ON PERFORMANCE OF SMALL AND MEDIUM FIRMS : THE CASE OF THAI SMES.” International Journal of Entrepreneurship 25(7):4675.

Nakku, Victoria B., Frank W. Agbola, Morgan P. Miles, and Amir Mahmood. 2020. “The Interrelationship between SME Government Support Programs, Entrepreneurial Orientation, and Performance: A Developing Economy Perspective.” Journal of Small Business Management 58(1):2–31. doi: 10.1080/00472778.2019.1659671.

Nonaka, Ikujiro, and Hirotaka Takeuchi. 2021. “Humanizing Strategy.” Long Range Planning 54(4):102070. doi: 10.1016/j.lrp.2021.102070.

Origanum, L., and Ziziphora L. Volatile. 2022. “Control of Postharvest Gray Mold at Strawberry Fruits Caused by Botrytis Cinerea and Improving Fruit Storability Through.”

Paula Monteiro, Albertina, Joana Vale, Eduardo Leite, Marcin Lis, and Joanna Kurowska-Pysz. 2022. “The Impact of Information Systems and Non-Financial Information on Company Success.” International Journal of Accounting Information Systems 45(April 2021):100557. doi: 10.1016/j.accinf.2022.100557.

Richard, Pierre J., Timothy M. Devinney, George S. Yip, and Gerry Johnson. 2009. “Measuring Organizational Performance: Towards Methodological Best Practice.” Journal of Management 35(3):718–804. doi: 10.1177/0149206308330560.

Shahzad, Asif. 2014. “Linking Organizational Justice with Organization Citizenship Behaviors: Collectivism as Moderator.” Pakistan Journal of Commerce and Social Sciences.

Sivakami, B. U., and M. Suresh. 2023. “Factors Influencing MSMEs Performance.” (2020):1471–79.

Warrier, Uma, Padmalini Singh, Chuah Wei Jien, Daisy Mui Hung Kee, Goi Zi Yi, Tan Woei Jiann, Tan Yong Liang, Suji Nair, and Rajesh Kumar Nair. 2021. “Swapnil Digambar Lokhande 11 , Varsha Ganatra 12 School of Management.” International Journal of Tourism & Hospitality in Asia Pacific 10(5):7.

Waruhiu, Henry. 2014. “Rebalancing the Balanced Scorecard: A Sequel to Kaplan and Norton.” European Journal of Business and Management 6(29):2014.

Yahaya, Hassan Dauda, and Gunalan Nadarajah. 2023. “Determining Key Factors Influencing SMEs’ Performance: A Systematic Literature Review and Experts’ Verification.” Cogent Business and Management 10(3). doi: 10.1080/23311975.2023.2251195.

Yingfei, Yang, Zhang Mengze, Lin Zeyu, Bae Ki-Hyung, Andrianarivo Andriandafiarisoa Ralison Ny Avotra, and Ahsan Nawaz. 2022. “Green Logistics Performance and Infrastructure on Service Trade and Environment-Measuring Firm’s Performance and Service Quality.” Journal of King Saud University - Science 34(1):101683. doi: https://doi.org/10.1016/j.jksus.2021.101683.