The influence of ethnic culture orientation on SME performance in Indonesia: The mediating role of resource orchestration capability as a strategic tool
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Author(s)Muhammad Basyir ,FaisalLink to ORCID Index: https://orcid.org/0000-0002-6727-0123
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Mahdani IbrahimLink to ORCID Index: https://orcid.org/0000-0001-6462-5067
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Mirza TabraniLink to ORCID Index: https://orcid.org/0009-0009-2240-9556
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DOIhttp://dx.doi.org/10.21511/ppm.23(2).2025.60
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Article InfoVolume 23 2025, Issue #2, pp. 826-837
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4 Downloads
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Creative Commons Attribution 4.0 International License
This study aims to examine how ethnic culture orientation influences the performance of small and medium enterprises (SMEs) in Western Indonesia, particularly through the mediating role of resource orchestration capability as a strategic management tool. The analysis involved 232 SME owners and managers operating in food processing, handicrafts, and traditional textiles, i.e., industries known for their strong cultural foundations. Respondents were selected using purposive sampling to ensure they had embedded ethnic culture values in their business practices. Data collection was conducted from June to August 2024 using structured questionnaires distributed via Google Forms and WhatsApp. The data were analyzed using structural equation modeling (SEM) with AMOS. Results show that ethnic culture orientation significantly affects both resource orchestration capability (β = 0.336; p = 0.002) and SME’s performance (β = 0.213; p = 0.012), while resource orchestration capability has a strong impact on SME’s performance (β = 0.785; p < 0.001). Mediation analysis reveals that resource orchestration capability fully mediates the relationship between ethnic culture orientation and SME’s performance, as the indirect effect is significant (p < 0.001), and the direct effect becomes insignificant. These findings underscore the importance of developing strategic capabilities that align with cultural values to improve SME’s performance in culturally rich regions.
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JEL Classification (Paper profile tab)M13, L26, M14, D24
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References36
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Tables4
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Figures2
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- Figure 1. Research framework
- Figure 2. Indirect effects
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- Table 1. Demographic profile of respondents
- Table 2. Construct validity and reliability
- Table 3. Relationship among constructs
- Table A1. Measurement scale and questionnaire items
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Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini ,
Arief Helmi ,
Meydia Hassan ,
Yevis Marty Oesman
doi: http://dx.doi.org/10.21511/im.17(3).2021.02
Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 5012 Downloads: 1864 TO CITE АНОТАЦІЯThe risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.
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Human resource management in promoting innovation and organizational performance
I Gede Riana ,
Gede Suparna ,
I Gusti Made Suwandana ,
Sebastian Kot ,
Ismi Rajiani
doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10
Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 107-118 Views: 4209 Downloads: 977 TO CITE АНОТАЦІЯHuman resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.
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An assessment of informal SMEs’ potential in an African economy – theoretical and conceptual framework
Public and Municipal Finance Volume 7, 2018 Issue #2 pp. 1-13 Views: 3893 Downloads: 623 TO CITE АНОТАЦІЯInformal Small and Medium Enterprises (SMEs) play a key role in their respective economies over the world particularly in the African continent. This paper reviews various theories on SMEs towards understanding the potential of the informal sector in the context of African countries. The paper uses a theoretical approach for the purpose of assessing the challenges that have affected the development of the informal SMEs sector over the years in both the developing and developed world. Economically developing countries in Africa pose unique challenges to informal SMEs development compared to the developed countries. The paper reviews the theories that define the rise to informality in Africa by identifying the key determinants for the emergence of informal SMEs. A conceptual framework for assessing informal SME’s potential for Africa is developed. The conceptual framework is based on the Fishbone diagram developed by Kaoru Ishikawa (1986). This paper discusses the intricacies of the applicability of the proposed conceptual framework to assess the potential of the informal SMEs in Africa and the way forward for the formalization debate.
