Business Performance of MSMES in Traditional Market: an Analysis of Strategic Management Aspect

Rahmawati Rahmawati; Siti Arifah; Bambang Pujiasmanto; Francisca Sestri Goestjahjanti; Siti Nurlaela; Nurul Badriyah

doi:10.15294/jdm.v14i2.42889

Business Performance of MSMES in Traditional Market: an Analysis of Strategic Management Aspect

Rahmawati Rahmawati⁽¹⁾, Siti Arifah⁽²⁾, Bambang Pujiasmanto⁽³⁾, Francisca Sestri Goestjahjanti⁽⁴⁾, Siti Nurlaela⁽⁵⁾, Nurul Badriyah⁽⁶⁾,

DOI: https://doi.org/10.15294/jdm.v14i2.42889

(1) Universitas Sebelas Maret
(2) Universitas Tidar
(3) Universitas Sebelas Maret
(4) Universitas Insan Pembangunan Indonesia
(5) Universitas islam Batik
(6) Universitas Islam Lamongan

Abstract

This study aims to analyze the performance of MSME businesses in the Bahulak Market, Karungan Plupuh, Sragen, from a strategic management perspective. This research uses quantitative methods. Primary data sources were obtained by distributing questionnaires to business actors and MSME owners in Karungan Village, Plupuh, Sragen. The population that was the target of this study were SMEs registered in Karungan Village with a total of 74 businesses. The sampling technique used is simple random sampling. Data analysis used the Structural Equation Modeling (SEM) approach. This study succeeded in concluding that the production strategy, HR strategy, and development research strategy have a positive effect on business performance. In addition, business actors in the Bahulak Plupuh Market in Sragen still need assistance from various related parties to further develop the business they are running. This research is important to be carried out to encourage the Pasar Bahulak Tourism Village, including that the products produced are absorbed by the market.

Keywords

Bahulak market; business performance; MSME; strategic management

Full Text:

PDF

References

Ahmad, Y., & Khan, M. R. (2022). How Business Strategy Drives Human Resource Practices in Small and Medium Enterprises? Evidence from Pakistani Autoparts Industry. Interna- tional Journal of Organizational Analysis.

Budiarto, R., Putero, S. H., Suyatna, H., Astuti, P., Saptoadi, H., Ridwan, M. M., & Susilo, B. (2018). Pengembangan UMKM antara Kon- septual dan Pengalaman Praktis. UGM Press.

Cardona Arenas, C. D., Quintero Renaud, S., Mora Quintero, M. C., & Castro Cardona, J. (2022). E-Commerce Influence on the Financial Per- formance of SMEs in the City of Manizales, Colombia.

Innovar, 32(84), 75-96. Chen, Y., Harncharnchai, A., & Saeheaw, T. (2022). Social Media Marketing Strategy Framework of SMEs Using Customer Knowledge Management. Proceeding. Joint International Conference on Digital Arts, Media and Technology with ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering, ECTI DAMT & NCON 2022, January. IEEE.

Chladkova, H., & Formankova, S. (2016). Strategy for SMEs in the Area of Primary Agricultural Production. Agricultural Economics, 62(9), 395-406.

Hamdana, H., Murwani, F., Sudarmiatin, S., & Hermawan, A. (2022). The Effects of Financial and Technology Literacy on the Sustainability of Indonesian SMEs: Mediating Role of Supply Chain Practice. Uncertain Supply Chain Management, 10(4), 1449-1456.

Ibidunni, A. S., Kehinde, O. J., Ibidunni, O. M., Olokundun, M. A., Olubusayo, F. H., Salau, O. P., Borishade, T.T., & Fred, P. (2018). Data on the Relationships between Financing Strategies, Entrepreneurial Competencies and Business Growth of Technology-Based SMEs in Nigeria. Data in brief, 18, 988-991.

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. The Journal of Asian Finance, Economics and Business, 7(6), 365-378.

Lorincová, S., Hitka, M., Štarchoň, P., & Stachová, K. (2018). Strategic Instrument for Sustainability of Human Resource Management in Small and Medium-Sized Enterprises using Management Data. Sustainability, 10(10), 3687.

Maury, B. (2022). Strategic CSR and Firm Performance: the Role of Prospector and Growth Strategies. Journal of Economics and Business, 118, 106031.

Mersha, T., & Sriram, V. (2019). Gender, Entrepreneurial Characteristics, and Success: Evidence from Ethiopia. Thunderbird Interna- tional Business Review, 61(2), 157-167.

Nikolova-Alexieva, V., Alexieva, I., Valeva, K., & Petrova, M. (2022). Model of the Factors Affecting the EcoInnovation Activity of Bulgarian Industrial Enterprises. Risks, 10(9), 178.

Pangemanan, S. A., & Walukow, I. M. (2018). Marketing Strategy Analysis for Small and Medium Scale Business Enterprise (SMEs) for Home Industry Furniture in Leilem, the Regency of Minahasa. In Journal of Physics: Con- ference Series, 953(1).

Park, W., & Byun, C. G. (2022). Effect of Managerial Compensation and Ability on the Relationship between Business Strategy and Firm Value: for Small and Medium-Sized Enterprises (SMEs). Sustainability, 14(8), 4689.

Qureshi, K. M., Mewada, B. G., Alghamdi, S. Y., Almakayeel, N., Qureshi, M. R. N., & Mansour, M. (2022). Accomplishing Sustainability in Manufacturing System for Small and Medium-Sized Enterprises (SMEs) through Lean Implementation. Sustainability, 14(15), 9732.

Raimo, N., De Turi, I., Rubino, M., & Vitolla, F. (2021). Which Italian SMEs Fall in Love with Digitalization? an Exploration into the Determinants. Meditari Accountancy Research.

Rakshit, S., Islam, N., Mondal, S., & Paul, T. (2022). An Integrated Social Network Marketing Metric for Business-to-Business SMEs. Journal of Business Research, 150, 73-88.

Saleh, H. (2019). Enhance Small Medium Enterprise (SMEs) Family Business in Malaysia Through E-Marketing Strategies. International Journal of Scientific & Technology Research, 9(2), 3374-3377.

Sekaran, U., & Bougie, R. (2016). Research Methods for Business: a Skill Building Approach. John Wiley & Sons. Selig, G. (2014). Critical Success Factors for Winning Entrepreneurs and the Role of an Incubator in Accelerating the Growth of Start-Ups and Early-Stage Companies. Proceedings. Zone 1 Conference of the American Society for Engineering Education, ASEE Zone 1 2014, April. IEEE.

Seraj, A. H. A., Fazal, S. A., & Alshebami, A. S. (2022). Entrepreneurial Competency, Financial Literacy, and Sustainable Performance—Examining the Mediating Role of Entrepreneurial Resilience among Saudi Entrepreneurs. Sustainability, 14(17), 10689.

Shkabatur, J., Bar-El, R., & Schwartz, D. (2022). Innovation and Entrepreneurship for Sustainable Development: Lessons from Ethiopia. Progress in Planning, 160, 100599.

Sudrajat, A., Megawati, L., & Munasto, D. (2022). The Influence of Business Capital and Marketing Strategy on The Development of MSMEs. Quality-Access to Success, 23(190).

Syahbudi, M., & Ma, S. E. I. (2021). Ekonomi Kreatif Indonesia: Strategi Daya Saing UMKM Industri Kreatif Menuju Go Global (Sebuah Riset Dengan Model Pentahelix). Merdeka Kreasi Group.

Syaifudin, R., Shodiqin, A., & Nase, N. (2022). Peran Usaha Kecil dan Menengah (UKM) dalam Meningkatkan Kesejahteraan Masyarakat. Tamkin: Jurnal Pengembangan Masyarakat Islam, 7(3).

Tam, S., & Gray, D. E. (2016). Organisational Learning and the Organizational Life Cycle: the Differential Aspects of an Integrated Relationship in SMEs. European Journal of Training and Development, 40(1), 2-20.

Zhou, M., Zhou, Y., Zhang, J., Obschonka, M., & Silbereisen, R. K. (2019). Person–City Personality Fit and Entrepreneurial Success: an Explorative Study in China. International journal of psychology, 54(2), 155-163.