Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilities
This article aims to explore the factors influencing MSMEs – Micro, Small, and Medium Enterprises production process improvement using variables of VRIO (Value Rarity, Inimitability, and Organization) resources and capabilities, foreign market knowledge, and internationalization. This research is co...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2020-05-01
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| Series: | Business: Theory and Practice |
| Subjects: | |
| Online Access: | https://www.tede.vgtu.lt/index.php/BTP/article/view/11652 |
| _version_ | 1797333522220843008 |
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| author | M. Elfan Kaukab Wiwiek Rabiatul Adawiyah Refius Pradipta Setyanto Agus Suroso |
| author_facet | M. Elfan Kaukab Wiwiek Rabiatul Adawiyah Refius Pradipta Setyanto Agus Suroso |
| author_sort | M. Elfan Kaukab |
| collection | DOAJ |
| description | This article aims to explore the factors influencing MSMEs – Micro, Small, and Medium Enterprises production process improvement using variables of VRIO (Value Rarity, Inimitability, and Organization) resources and capabilities, foreign market knowledge, and internationalization. This research is conducted in 150 exporting-MSMEs samples in Central Java, Indonesia. The main analysis applied in this research is multiple regressions. The result shows that VRIO resources and capability, foreign market knowledge, and internationalization, significantly influenced production process improvement. It emphasizes that degree of internationalization only weakly influencing process improvement. The more important factors are internal factors like knowledge, resources, and capability. The result obtained can be used as the basis to develop the strategy of capability improvement for MSMEs in designing internationalization strategy. The strategy will closely relate to MSMEs’ process improvement to compete in international market. This research provides two contributions. First, the internationalization of handicraft MSMEs does not strongly define MSMEs production process improvement. Second, process improvement can be accelerated by gaining market knowledge and exploiting valuable, rare, inimitable, and organized resources and capabilities. |
| first_indexed | 2024-03-08T08:05:09Z |
| format | Article |
| id | doaj.art-f8b1b69ee29346db9218333a7664c786 |
| institution | Directory Open Access Journal |
| issn | 1648-0627 1822-4202 |
| language | English |
| last_indexed | 2024-03-08T08:05:09Z |
| publishDate | 2020-05-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Business: Theory and Practice |
| spelling | doaj.art-f8b1b69ee29346db9218333a7664c7862024-02-02T11:17:37ZengVilnius Gediminas Technical UniversityBusiness: Theory and Practice1648-06271822-42022020-05-0121110.3846/btp.2020.11652Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilitiesM. Elfan Kaukab0Wiwiek Rabiatul Adawiyah1Refius Pradipta Setyanto2Agus Suroso3Faculty of Economics and Business, Universitas Sains Al-Qur’an Jawa Tengah, IndonesiaFaculty of Economics and Business, Universitas Jenderal Soedirman, Purwokerto, IndonesiaFaculty of Economics and Business, Universitas Jenderal Soedirman, Purwokerto, IndonesiaFaculty of Economics and Business, Universitas Jenderal Soedirman, Purwokerto, IndonesiaThis article aims to explore the factors influencing MSMEs – Micro, Small, and Medium Enterprises production process improvement using variables of VRIO (Value Rarity, Inimitability, and Organization) resources and capabilities, foreign market knowledge, and internationalization. This research is conducted in 150 exporting-MSMEs samples in Central Java, Indonesia. The main analysis applied in this research is multiple regressions. The result shows that VRIO resources and capability, foreign market knowledge, and internationalization, significantly influenced production process improvement. It emphasizes that degree of internationalization only weakly influencing process improvement. The more important factors are internal factors like knowledge, resources, and capability. The result obtained can be used as the basis to develop the strategy of capability improvement for MSMEs in designing internationalization strategy. The strategy will closely relate to MSMEs’ process improvement to compete in international market. This research provides two contributions. First, the internationalization of handicraft MSMEs does not strongly define MSMEs production process improvement. Second, process improvement can be accelerated by gaining market knowledge and exploiting valuable, rare, inimitable, and organized resources and capabilities.https://www.tede.vgtu.lt/index.php/BTP/article/view/11652handicraft MSMEprocess improvementforeign market knowledgeVRIO resourcesand capabilityMSMEs internationalization |
| spellingShingle | M. Elfan Kaukab Wiwiek Rabiatul Adawiyah Refius Pradipta Setyanto Agus Suroso Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilities Business: Theory and Practice handicraft MSME process improvement foreign market knowledge VRIO resources and capability MSMEs internationalization |
| title | Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilities |
| title_full | Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilities |
| title_fullStr | Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilities |
| title_full_unstemmed | Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilities |
| title_short | Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilities |
| title_sort | accelerating small firms production process improvement through international market knowledge and valuable rare inimitable and organized resources and capabilities |
| topic | handicraft MSME process improvement foreign market knowledge VRIO resources and capability MSMEs internationalization |
| url | https://www.tede.vgtu.lt/index.php/BTP/article/view/11652 |
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