A three-dimensional model of MSME performance: an agenda for further research

Authors

  • Maria Rio Rita Faculty of Economics and Business, Satya Wacana Christian University http://orcid.org/0000-0003-2232-5132
  • Andrew Thomas Thren Faculty of Humanities, Bina Nusantara University

DOI:

https://doi.org/10.26740/bisma.v12n1.p1-14

Abstract

This paper discusses company performance measurement literature as well as surveys the development of the newest literature about this topic. The purpose of this research is to produce a new measurement of MSME performance by inputting the entrepreneurial performance element, besides the financial measurement element and the market element. Qualitative research with a meta-synthesis method was used in this research to produce a new and wider viewpoint and understanding of the MSME performance measurement dimension. This entrepreneurial dimension can supplement the previously developed company performance measurement indicators. This study provides a performance measurement model modification that can be applied in Micro, Small, and Medium-sized Enterprises (MSMEs).
 
Keywords

MSMEs; performance; entrepreneurial dimension; financial dimension; market dimension

Author Biographies

Maria Rio Rita, Faculty of Economics and Business, Satya Wacana Christian University

Management Department

Andrew Thomas Thren, Faculty of Humanities, Bina Nusantara University

English Literature Department

References

<p class="EndNoteBibliography">Adina-Simona, P. (2013). Performance Indicators for Smes Accesing EU Funds. <em>Analele Universitatii Maritime Constanta, 14</em>(19), 319-322.</p><p class="EndNoteBibliography">Baluku, M. M., Kikooma, J. F., &amp; Kibanja, G. M. (2016). Psychological capital and the startup capitalentrepreneurial success relationship. <em>Journal of Small Business &amp; Entrepreneurship, 28</em>(1), 27-54.</p><p class="EndNoteBibliography">Brancati, E. (2014). Innovation Financing and the Role of Relationship Lending for Smes. <em>Small Business Economics, 44</em>(2), 449-473. doi:10.1007/s11187-014-9603-3</p><p class="EndNoteBibliography">Brignall, T., Fitzgerald, L., Johnston, R., &amp; Silvestro, R. (1991). Performance measurement in service businesses. <em>Management Accounting, 69</em>(10), 34.</p><p class="EndNoteBibliography">Brouthers, K. D., &amp; Nakos, G. (2004). SME entry mode choice and performance: A transaction cost perspective. <em>Entrepreneurship Theory and Practice, 28</em>(3), 229-247.</p><p class="EndNoteBibliography">Campello, M. (2006). Debt Financing: Does it Boost or Hurt Firm Performance in Product Markets? <em>Journal of Financial Economics, 82</em>(1), 135-172. doi:10.1016/j.jfineco.2005.04.001</p><p class="EndNoteBibliography">Chittithaworn, C., Islam, M. A., Keawchana, T., &amp; Yusuf, D. H. M. (2011). Factors affecting business success of small &amp; medium enterprises (SMEs) in Thailand. <em>Asian Social Science, 7</em>(5), 180-190.</p><p class="EndNoteBibliography">Chong, H. G. (2008). Measuring performance of small-and-medium sized enterprises: the grounded theory approach. <em>Journal of Business and Public affairs, 2</em>(1), 1-10.</p><p class="EndNoteBibliography">Comeig, I., B. Del Brio, E., &amp; O. Fernandez-Blanco, M. (2014). Financing successful small business projects. <em>Management Decision, 52</em>(2), 365-377.</p><p class="EndNoteBibliography">Dahiya, S., &amp; Ray, K. (2012). Staged Investments in Entrepreneurial Financing. <em>Journal of Corporate Finance, 18</em>(5), 1193-1216. doi:<a href="http://dx.doi.org/10.1016/j.jcorpfin.2012.07.002">http://dx.doi.org/10.1016/j.jcorpfin.2012.07.002</a></p><p class="EndNoteBibliography">Dencker, J. C., &amp; Gruber, M. (2015). The effects of opportunities and founder experience on new firm performance. <em>Strategic Management Journal, 36</em>(7), 1035-1052.</p><p class="EndNoteBibliography">Eggert, A., Thiesbrummel, C., &amp; Deutscher, C. (2014). Differential effects of product and service innovations on the financial performance of industrial firms. <em>Journal of Business Market Management, 7</em>(3), 380-405.</p><p class="EndNoteBibliography">Gharakhani, D., &amp; Mousakhani, M. (2012). Knowledge management capabilities and SMEs' organizational performance. <em>Journal of Chinese Entrepreneurship, 4</em>(1), 35-49.</p><p class="EndNoteBibliography">Gumbus, A., &amp; Lussier, R. N. (2006). Entrepreneurs use a balanced scorecard to translate strategy into performance measures. <em>Journal of Small Business Management, 44</em>(3), 407-425.</p><p class="EndNoteBibliography">Harris, L. C. (2001). Market orientation and performance: objective and subjective empirical evidence from UK companies. <em>Journal of Management Studies, 38</em>(1), 17-43.</p><p class="EndNoteBibliography">Hmieleski, K. M., &amp; Baron, R. A. (2009). Entrepreneurs' Optimism and New Venture Performance: A Social Cognitive Perspective. <em>Academy of Management journal, 52</em>(3), 473-488. doi:10.5465/AMJ.2009.41330755</p><p class="EndNoteBibliography">Hudson, M., Smart, A., &amp; Bourne, M. (2001). Theory and practice in SME performance measurement systems. <em>International journal of operations &amp; production management, 21</em>(8), 1096-1115.</p><p class="EndNoteBibliography">Jarvis, C. B., MacKenzie, S. B., &amp; Podsakoff, P. M. (2003). A critical review of construct indicators and measurement model misspecification in marketing and consumer research. <em>Journal of Consumer Research, 30</em>(2), 199-218.</p><p class="EndNoteBibliography">Johnsen, G. J., &amp; McMahon, R. G. (2005). Owner-manager gender, financial performance and business growth amongst SMEs from Australias business longitudinal survey. <em>International Small Business Journal, 23</em>(2), 115-142.</p><p class="EndNoteBibliography">Jungman, H., Okkonen, J., Rasila, T., &amp; Seppä, M. (2004). Use of performance measurement in V2C activity. <em>Benchmarking: An International Journal, 11</em>(2), 175-189.</p><p class="EndNoteBibliography">Kaplan, R. S. (2009). Conceptual foundations of the balanced scorecard. <em>Handbooks of management accounting research, 3</em>, 1253-1269.</p><p class="EndNoteBibliography">Kaplan, R. S., &amp; Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part I. <em>Accounting horizons, 15</em>(1), 87-104.</p><p class="EndNoteBibliography">Kaplan, R. S., Norton, D. P., &amp; Rugelsjoen, B. (2010). Managing alliances with the balanced scorecard. <em>Harvard Business Review, 88</em>(1), 114-120.</p><p class="EndNoteBibliography">Kim, G., Shin, B., &amp; Grover, V. (2010). Research note: Investigating two contradictory views of formative measurement in information systems research. <em>MIS quarterly</em>, 345-365.</p><p class="EndNoteBibliography">Kölling, A. (2015). Does Public Funding Work? A Causal Analysis of the Effects of Economic Promotion with Establishment Panel Data. <em>Kyklos, 68</em>(3), 385-411. doi:10.1111/kykl.12088</p><p class="EndNoteBibliography">Laitinen, E. K. (2002). A dynamic performance measurement system: evidence from small Finnish technology companies. <em>Scandinavian Journal of Management, 18</em>(1), 65-99.</p><p class="EndNoteBibliography">Lee, S., &amp; Persson, P. (2016). Financing from family and friends. <em>The Review of Financial Studies, 29</em>(9), 2341-2386.</p><p class="EndNoteBibliography">Mallick, S., &amp; Yang, Y. (2011). Sources of Financing, Profitability and Productivity: First Evidence from Matched Firms. <em>Financial Markets, Institutions and Instruments, 20</em>(5), 221-252. doi:10.1111/j.1468-0416.2011.00170.x</p><p class="EndNoteBibliography">McMahon, R. G. P. (2007). Ownership structure, business growth and financial performance amongst SMEs: From Australia's business longitudinal survey. <em>Journal of Small Business and Enterprise Development, 14</em>(3), 458-477.</p><p class="EndNoteBibliography">Melgarejo, Z., Simon, K., &amp; Arcelus, F. J. (2010). Differences in financial performance amongst Spanish SMEs according to their capital-ownership structure: A descriptive analysis. <em>Annals of Public &amp; Cooperative Economics, 81</em>(1), 105-129. doi:10.1111/j.1467-8292.2009.00407.x</p><p class="EndNoteBibliography">Nguyen Anh, H., &amp; Toshitsugu, O. (2014). Credit Participation and Credit Source Selection of Vietnam Small and Medium Enterprises. <em>South East Asian Journal of Management, 8</em>(2), 104-128.</p><p class="EndNoteBibliography">Park, S., Lee, H., &amp; Chae, S. W. (2017). Rethinking balanced scorecard (BSC) measures: formative versus reflective measurement models. <em>International Journal of Productivity and Performance Management, 66</em>(1), 92-110.</p><p class="EndNoteBibliography">Peel, M. J., &amp; Bridge, J. (1998). How planning and capital budgeting improve SME performance. <em>Long Range Planning, 31</em>(6), 848-856.</p><p class="EndNoteBibliography">Phillips, B., &amp; Shanka, T. (2002). <em>Balanced Scorecard (BSC) Measures in Small and Medium Enterprises (SMEs)An Exploratory Study.</em> Paper presented at the Proceedings of the Australian and New Zealand Marketing Academy Conference (ANZMAC).</p><p class="EndNoteBibliography">Pratono, A. H., &amp; Mahmood, R. (2016). Entrepreneurial Orientation and Firm Performance: How Can Micro, Small and Medium-Sized Enterprises Survive Environmental Turbulence? <em>Pacific Science Review B: Humanities and Social Sciences</em>. doi:10.1016/j.psrb.2016.05.003</p><p class="EndNoteBibliography">Prieto, I. M., &amp; Revilla, E. (2006). Learning capability and business performance: a non-financial and financial assessment. <em>The Learning Organization, 13</em>(2), 166-185.</p><p class="EndNoteBibliography">Priyanto, S. H., Damayanti, T. W., Franksiska, R., &amp; Rita, M. R. (2018). <em>How Entrepreneurship Affects Wellbeing: A Substantive Theory.</em> Paper presented at the 7th UNS SME's Summit and Awards. International Conference on Small and Medium Enterprise Empowerment, UNS Inn Surakarta. Indonesia.</p><p class="EndNoteBibliography">Richard, O. C. (2000). Racial diversity, business strategy, and firm performance: A resource-based view. <em>Academy of Management journal, 43</em>(2), 164-177.</p><p class="EndNoteBibliography">Russo, A., &amp; Tencati, A. (2009). Formal vs. informal CSR strategies: Evidence from Italian micro, small, medium-sized, and large firms. <em>Journal of Business Ethics, 85</em>, 339-353.</p><p class="EndNoteBibliography">Sels, L., De Winne, S., Delmotte, J., Maes, J., Faems, D., &amp; Forrier, A. (2006). Linking HRM and small business performance: An examination of the impact of HRM intensity on the productivity and financial performance of small businesses. <em>Small Business Economics, 26</em>(1), 83-101.</p><p class="EndNoteBibliography">Shouming, C., Zhiguo, L., Redd, T., &amp; Sibin, W. U. (2013). Laotian Entrepreneurs' Optimism and New Venture Performance. <em>Social Behavior &amp; Personality: an international journal, 41</em>(8), 1267-1278. doi:10.2224/sbp.2013.41.8.1267</p><p class="EndNoteBibliography">Taghizadeh, S. K., Rahman, S. A., &amp; Ramayah, T. (2017). Innovation-driven planned behaviour towards achieving the wellbeing of the Malaysian SMEs <em>Handbook of research on small and medium enterprises in developing countries</em> (pp. 280-296): IGI Global.</p><p class="EndNoteBibliography">Torugsa, N. A., ODonohue, W., &amp; Hecker, R. (2012). Capabilities, proactive CSR and financial performance in SMEs: Empirical evidence from an Australian manufacturing industry sector. <em>Journal of Business Ethics, 109</em>(4), 483-500.</p><p class="EndNoteBibliography">Trinh, H. T., Kakinaka, M., Kim, D., &amp; Jung, T. Y. (2017). Capital Structure and Investment Financing of Small and Medium-Sized Enterprises in Vietnam. <em>Global Economic Review, 46</em>(3), 325-349. doi:10.1080/1226508X.2017.1340184</p><p class="EndNoteBibliography">Walsh, D., &amp; Downe, S. (2005). Metasynthesis method for qualitative research: a literature review. <em>Journal of advanced nursing, 50</em>(2), 204-211.</p><p class="EndNoteBibliography">Wehinger, G. (2012). Bank deleveraging, the move from bank to market-based financing, and SME financing. <em>OECD Journal: Financial Market Trends, 2012</em>(1), 65-79.</p><p class="EndNoteBibliography">Winton, A., &amp; Yerramilli, V. (2008). Entrepreneurial Finance: Banks versus Venture capital. <em>Journal of Financial Economics, 88</em>(1), 51-79. doi:10.1016/j.jfineco.2007.05.004</p>Wu, D. (2009). <em>Measuring performance in small and medium enterprises in the information and communication technology industries.</em> RMIT University Retrieved from researchbank.rmit.edu.au

Downloads

Additional Files

Published

2019-10-17

How to Cite

Rita, M. R., & Thren, A. T. (2019). A three-dimensional model of MSME performance: an agenda for further research. BISMA (Bisnis Dan Manajemen), 12(1), 1–14. https://doi.org/10.26740/bisma.v12n1.p1-14

Issue

Vol. 12 No. 1 (2019)

Section

Articles

License

Copyright Notice.

The copyright of the received article once accepted for publication shall be assigned to the journal as the publisher of the journal. The intended copyright includes the right to publish the article in various forms (including reprints). The journal maintains the publishing rights to the published articles.

 
Abstract views: 2188 , PDF Downloads: 806 , PDF Downloads: 0