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Journal : STI Policy and Management Journal

Strategic Pathways to SMEs’ Competitiveness: The Roles of Financial Practices, Market Orientation, and Accounting Information Systems within Emerging Markets Abubakar, Herminawaty; Faridah, Faridah; S, Nurhidayanti
STI Policy and Management Journal Vol 10, No 1 (2025): STI Policy and Management
Publisher : National Research and Innovation Agency, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14203/STIPM.2025.418

Abstract

Small and Medium Enterprises (SMEs) play a vital role within emerging economies, such as Indonesia, yet many struggle to maintain competitiveness due to limited internal capabilities and uneven digital adoption. While market orientation and financial practices have been widely studied, few studies have examined how these strategic elements interact, particularly in the context of emerging markets where digital infrastructure and managerial resources are often constrained. This study addresses this gap by investigating the direct and indirect effects of Market Orientation and Strategic Financial Practices on Competitive Advantage, using Indonesia’s retail SMEs as the empirical setting. Grounded in Resource-Based View and Dynamic Capabilities Theory, the model incorporates three mediators: Innovation, Resource Allocation, and Financial Reporting Quality, and examines the moderating role of Accounting Information Systems (AIS). Data were collected from 500 SMEs managers and analyzed using Structural Equation Modeling (SEM). The results confirm the significant impact of both market and financial capabilities on Competitive Advantage, and demonstrate how these relationships are amplified by innovation, effective resource use, and financial transparency. AIS also positively moderates the financial strategy–performance link, highlighting its role in digital transformation. This study provides a holistic framework for enhancing SMEs’ competitiveness and offers practical insights for policymakers and SMEs development programs.
Co-Authors Abduh, Tahmrin Abdul Karim Adiatsya, Andi Al Hijas Aditya Halim Perdana Kusuma Putra Putra Akbar AM, Syamsul Amalia, Intan Fauzia Ardasanti, Andi Arifin Arifin Arlitha, St. Arlitha Ashawir, Ashawir Azizah, Alya Nur Bahar, Bachtiar Baharuddin, Sitti Mujahida Baharuddin, Sitti Mujahida Baharuddin Mujahida Bimantara, Andi Oscar Bulqis, St. Annisa Tri Cakranegara, Pandu Adi Chahyono, Chahyono Citra Arta, Deddy Novie Didipu, Fajrin Abd Rahman Fadel Fadel Fadel, Fadel Faridah Faridah Ferdy Leuhery Hasanuddin Remmang, Hasanuddin Hernita Hikmah Hikmah I Gede Arya Pering Arimbawa Ibrahim Ibrahim Indah Syamsuddin Iwan Perwira Jumarding, Ahmad Kahar, Reski Muthiah Kila, Yustiani Randa Kusumaningrum, Retno Ayu Kuswinton Laming, Ripa Fajarina Layuk, Intan Rante Lubritami, Radhiah Manda, Darmawati Mangampang, Seber Mardap, Erwin Ma’Ruf, Muh Amar Misrah Misrah Muhammad Basri Muhammad Basri Muhammad Idris Muhammad Yusuf Mujahida, Sitti Mukhtar Galib Nabilah, Firdah Nur Naninsih nur, Indrayani Nurhidayanti S. Nurhidayanti.S, Nurhidayanti.S Palin, Yusuf Adma Palipada Palisuri, Palipada Palloan, Warshi Pammai, Jesia Pertiwi, Ika Pradana, Muhammad Rafly Adryan Ramadani, Andi Nur Randa, Esra Remmang , Hasanuddin Ruslan, Muhklis Ruslan, Muhlis S, Nurhidayanti Salam, Ermawati Abdul Setiawan, Lukman St. Hatidja Sudarmi Sudarmi Sudarmi Sudarmi Sukmawati Mardjuni, Sukmawati Sukmawati Sukmawati Sukmawati Sukmawati Suriani , Seri Suriani, Seri Suriani, Seri - Tampang, Santi Tampatonda, Yelmarista Yoyana Tandepadang, Gustary Victory Tandiongan, Idith Gavrilla Tasbillah, Tasbillah Thanwain Thanwain Thanwain, Thanwain Triawan Supriadi Vano, Vinson Wiharja, Elizabeth Lisya Yunus, Muh. Kafrawi Zainal, Nur Annisa Zoraya, Gilang Dewi Zulfani Irliandani