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Enhancing competitiveness of Muslim clothing SMEs through entrepreneurial orientation and product innovation Fatmah, Dinda; Rahmah, Mirhamida; Aslikhah, Nurul; Soe, Htet Paing; Rahmah, Yusriyah
Asian Journal of Islamic Management (AJIM) VOLUME 6 ISSUE 2, 2024
Publisher : Faculty of Business & Economics, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/AJIM.vol6.iss2.art3

Abstract

Purpose – This study aims to explore the relationships between entrepreneurial orientation (EO), market orientation, product innovation, and competitive advantage within Muslim clothing SMEs. This study provides insights into how these factors interact and contribute to the overall success of these enterprises.Methodology – This quantitative study explores the relationships between entrepreneurial orientation, market orientation, product innovation, and competitive advantage in the Muslim clothing industry. Using a proportional sample of 103 employees from Muslim clothing SMEs in East Java, data were collected through a five-point Likert-scale questionnaire and analyzed via multiple regression to assess direct and mediating effects.Findings – The key findings reveal that entrepreneurial orientation positively impacts product innovation, indicating that entrepreneurial companies are more innovative. Additionally, EO significantly influences market orientation, making firms more responsive to their market needs. EO enhances competitive advantage, whereas market orientation negatively impacts it, suggesting that excessive focus on the market may hinder differentiation. Conversely, product innovation positively affects a firm’s competitive advantage. The study finds that market orientation does not mediate the relationship between EO and competitive advantage, whereas product innovation does.Implications – These findings provide practical insights for SMEs in the Muslim clothing industry. Companies should cultivate entrepreneurial orientation to boost innovation and competitive advantage, balancing market orientation to avoid stifling differentiation. Originality – This study contributes to the literature by investigating the intricate relationships between EO, market orientation, product innovation, and competitive advantage in Muslim Clothing SMEs, emphasizing the mediating role of product innovation.
The Role of Business Sustainability in Enhancing SME Competitiveness Through Working Capital and Digital Technology Rahmah, Mirhamida; Fatmah, Dinda; Aslikhah, Nurul; Soe, Htet Paing; Rahmah, Yusriyah; Rahmah, Zakiyah Zulfa; Purnama, Chamdan
Jurnal Manajemen dan Keuangan Vol 14 No 2 (2025): Journal Management and Finance
Publisher : Program Studi Manajemen Fakultas Ekonomi Universitas Samudra

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33059/jmk.v14i2.12569

Abstract

This study aims to analyze the role of business sustainability as a mediating variable in the relationship between working capital and digital technology on the competitiveness of SMEs in Indonesia. The study is motivated by the growing awareness of the importance of sustainable business practices amidst dynamic market challenges and global environmental pressures. Using a quantitative approach and path analysis techniques based on Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from 200 SMES actors in the halal fashion and food sectors through structured questionnaires. The findings indicate that business sustainability acts as a significant mediator, strengthening the indirect influence of working capital and digital technology on competitiveness. These results affirm that sustainability is not merely a social responsibility, but a strategic resource that enhances the competitive position of SMEs. The adoption of digital technology and efficient working capital management will yield stronger competitive advantages when directed toward sustainability goals. This research contributes to the SMES literature and offers practical insights for business actors and policymakers in designing sustainable and competitive business strategies.