MSMEs in Indonesia play a vital role in driving national economic growth, yet many continue to struggle with business independence, limiting their ability to survive and compete. This study aims to analyze how the business knowledge ecosystem, competitive advantage, and knowledge sharing interact in influencing MSME independence within a knowledge-based innovation ecosystem. Conducted in East Java Province, the region with the highest number of MSMEs in Indonesia, this study involved 400 MSME respondents selected using the Slovin formula. Data were collected through questionnaires and brief interviews and analyzed using Structural Equation Modeling with SmartPLS. The results show that the business knowledge ecosystem directly strengthens MSME independence and also indirectly enhances it through competitive advantage. Knowledge sharing likewise exerts a direct positive influence on MSME independence and moderates the relationship between the business knowledge ecosystem and MSME independence. However, knowledge sharing does not strengthen the influence of competitive advantage on MSME independence. These findings highlight the importance of integrated knowledge mastery covering production, marketing, finance, digital literacy, and competitive strategies in building sustainable MSME independence. This study contributes to business management knowledge by providing a comprehensive model that integrates multiple knowledge domains and knowledge-sharing activities. Practically, it offers insights for policymakers in designing strategies to develop knowledge-based innovation ecosystems that support MSME independence.
The literature on Industry 4.0 adoption has predominantly focused on large enterprises in developed economies, with limited empirical evidence from small and medium enterprises (SMEs) in developing economies, where organizational preparedness and resource constraints hinder technology incorporation. This study investigates the role of awareness, challenges, perceived benefits, and readiness in the adoption of Industry 4.0 technologies and their contribution to industrial sustainability among manufacturing SMEs in Pakistan. The objectives are to assess the relative influence of these factors on adoption status and to provide strategic recommendations for enhancing sustainable production and competitiveness. A descriptive cross-sectional research design was employed, and data were collected through an online survey of 200 SME managers in the manufacturing sector. Correlation and regression analyses were conducted using IBM SPSS to examine relationships between variables. The results indicate that awareness and understanding significantly influence the adoption of Industry 4.0, whereas challenges and perceived benefits show lower direct effects on adoption. The overall regression model explains 49.1% of the variance in adoption status, highlighting awareness as the primary driver. The findings emphasize the potential of Industry 4.0 to improve operational efficiency, optimize resource utilization, and support sustainable manufacturing in SMEs. The study offers actionable insights for policymakers and stakeholders by identifying low-cost, high-impact interventions such as targeted awareness campaigns, capacity building, and institutional support systems to accelerate digital transformation in developing economies.
Ethical leadership is a major factor in determining both moral and immoral behavior in organizations. It leads to a number of consequences, such as loyalty to the organization, job satisfaction, performance, pro-social helping actions, and employee deviance. The combined effect of moral leadership and social interaction is absent, though. This study, therefore, focuses on using VOS Viewer and Biblioshiny software to bibliometrically investigate the thematic trends and future directions on the subject matter. A total of 184 articles from the Web of Science database were analyzed. According to the study's findings, social interchange and moral leadership were associated with theme trends and important concepts. Additionally, it demonstrated four major clusters: leadership, social exchange theory, ethical leadership, and leader-member exchange. The study also demonstrates the value of combining social exchange and ethical leadership ideas to create a new concept, social exchange ethical leadership (SXEL). It further revealed a comprehensive framework that identifies the causes and effects of SXEL. The findings indicate that ethical leadership influences staff attitudes and behaviors and encourages customer-focused actions. Nevertheless, combining social interaction with moral leadership may produce diverse outcomes. The study establishes an integrated framework by emphasizing areas and gaps not previously investigated. This framework illustrates the antecedents and outcomes of SXEL and highlights the need for additional empirical testing of extraneous variables.
The timeliness of management accounting information is considered a core characteristic reflecting the quality of the information system and serves as a foundation supporting enterprises in enhancing management effectiveness as well as optimizing operational efficiency. For labor export enterprises, the provision of timely information holds particular significance in helping managers respond to the uncertainty of the business environment and meet the requirements of international economic integration. Based on this, the study conducted a survey of 126 labor export enterprises in Vietnam and employed the PLS-SEM model to analyze the data. The overall analysis results indicate that timely management accounting information has a direct positive impact on operational efficiency, with a coefficient β = 0.398 (t = 6.299; p = 0.000), and even more strongly on management effectiveness (β = 0.566; t = 9.659; p = 0.000). The hypothesis regarding the indirect impact of timely information on operational efficiency through the mediating role of management effectiveness was also confirmed, with the coefficient β = 0.455 (t = 7.297; p = 0.000). However, this did not achieve statistical significance. The study not only adds empirical evidence on the role of timeliness in management accounting information but also offers practical recommendations to enhance the capability of providing timely information for enterprises in the specific context of the labor export industry. These findings suggest that the mediating role of management effectiveness may be context-dependent; therefore, subsequent studies should expand to different industries or business environments to verify and compare these results.
Rapid technological change and evolving employment conditions have intensified perceptions of job insecurity among employees, which in turn may weaken the discretionary effort and psychological readiness needed for innovative behavior. Drawing on the cognitive appraisal theory of stress, Maslow’s hierarchy of needs, and leadership style theory, this study examines the relationship between job insecurity and employee innovative behavior in Chinese companies, while also investigating the mediating roles of work engagement and transformational leadership. Survey data were collected from 252 Chinese employees and analyzed using SPSS and the PROCESS macro. The findings show that job insecurity is a significant negative predictor of innovative behavior, suggesting that employees who feel uncertain about the continuity or stability of their jobs are less likely to invest effort in generating, promoting, or implementing new ideas. Job insecurity also negatively predicts work engagement, and work engagement was found to mediate the relationship between job insecurity and innovative behavior. This result indicates that insecurity undermines employees’ levels of vigor, dedication, and absorption, which subsequently reduces their innovative contribution at work. In contrast, transformational leadership did not mediate the relationship between job insecurity and innovative behavior. However, it exerted a significant positive direct effect on innovative behavior. These findings imply that sustaining innovation requires organizations to reduce insecurity through supportive employment practices, clear communication, and resource provision, as leadership development alone may not be sufficient to neutralize the adverse innovation-related consequences of job insecurity.
This study aims to analyze the impact of board subcommittees (BS) on the financial performance (FP) of listed companies in the Vietnamese stock market from 2012 to 2023. It also investigates the moderating role of Chief Executive Officer duality (CEOD) in the relationship between BS and FP. Using panel data from 229 listed firms with 2,748 observations, the study applies Ordinary Least Squares (OLS), Fixed Effects Model (FEM), and Random Effects Model (REM). The most appropriate model is selected based on Generalized Method of Moments (GMM) tests. The findings indicate that BS significantly influences FP. Furthermore, CEOD plays a moderating role in this relationship, especially through profitability indicators. These results suggest that firms should strengthen the design and operation of BS and establish appropriate monitoring mechanisms when the Chief Executive Officer (CEO) holds concurrent positions to reduce excessive concentration of power and improve governance effectiveness.
Vietnam’s food and beverage (F&B) enterprises in the industry are expanding rapidly, creating both economic growth and environmental pressures due to the increasing amount of packaging waste. This situation is forcing companies to switch to environmentally friendly packaging, especially in large cities such as Ho Chi Minh City (HCMC). This study aims to identify and quantify the determinants influencing enterprises’ decisions to adopt green packaging, providing evidence for sustainable industrial transformation. Using a mixed-method approach, the research collected and analyzed 165 valid survey responses from managers and experts in food processing firms. Reliability and factor analyses confirmed the robustness of the measurement scales, while multiple regression identified five significant determinants: environmental assurance, producer awareness, legal policies, technical and technological requirements, and the cost of production and pricing. Among these, environmental assurance and producer awareness exerted the strongest influence, indicating that social and environmental pressures outweigh purely economic or technical concerns. Based on the analysis, the study proposed changes in technology and materials to produce green packaging, as well as raising awareness among F&B enterprises and consumers about legal policies related to packaging to protect the environment. This research offers managerial and policy implications for promoting sustainable packaging practices and supports the development of strategies that align industrial competitiveness with environmental responsibility in Vietnam’s food processing sector. It provides a comprehensive understanding of the behavioral and institutional drivers behind the adoption of green packaging in an emerging economy.
This study examines how perceived market uncertainty (PMU) influences the strategic adaptation speed (SAS) of small and medium-sized enterprises (SMEs) and how this mechanism contributes to their long-term survival in volatile environments. Drawing on dynamic capabilities theory, we analyze cross-sectional data from 385 Ecuadorian SMEs and apply Structural Equation Modeling (SEM) to test both direct and mediating effects. Results show that higher PMU significantly accelerates SAS (β = 0.42, p < 0.001), and SAS explains most of the positive influence of PMU on SME survival, accounting for 77% of the total effect. Firms exhibiting faster strategic responses, such as redesigning business models, accelerating product modifications, and forming timely alliances, were 2.7 times more likely to withstand economic shocks than slower-adapting firms. These findings reframe uncertainty not merely as a destabilizing force but as a trigger that activates adaptive routines and strengthens organizational continuity. Theoretically, the study provides one of the first empirical validations of the PMU–SAS–Survival pathway in an emerging economy, highlighting the role of time-sensitive strategic decisions in resilience building. A key policy implication emerges from the evidence: programs that combine agile financing instruments with capability-development training can enhance SMEs’ adaptive speed and reinforce their resilience to persistent market turbulence.
The research investigates the direct and indirect relationships among the Human Development Index (HDI), Regional Original Revenue (PAD), General Allocation Fund (DAU), inflation, Gross Regional Domestic Product (GRDP), and local government accountability, with transparency as an intermediary variable. Based on institutional theory, stakeholder theory, and agency theory, it presents an original integrative conceptual approach on how socioeconomic and fiscal variables interact with financial affairs and governance within the Indonesian fiscal system. A quantitative explanatory research approach and path analysis were conducted based on a sampled secondary data source gathered from 33 Indonesian provinces from 2014 to 2024. The results show that HDI and DAU significantly improve local government accountability variables directly and indirectly via transparency. Moreover, PAD contributes significantly to transparency but not accountability. By contrast, inflation and GRDP have no significant effects on transparency but have slightly considerable direct effects on accountability. The results confirm transparency’s very significant and direct effects on accountability, emphasizing transparency and openness within financial statements. It shows fiscal transfers and developments are most effectively made and on accountability mediated and facilitated by transparency. It develops an original integrative theoretical structure among institutional theory, stakeholder theory, and agency theory, illustrating fiscal and developmental forces and factors, and strengthening and maintaining transparency and accountability within the Indonesian fiscal system.
The prevailing approach in green innovation research merges adoption and generation into a single measurement, and while traditional innovation studies indicate that these modes can have dissimilar antecedents, this distinction remains unexplored for green innovation. Addressing this gap, this study draws on institutional theory to examine which specific institutional actors: state authorities (environmental tax), corporate customers, and contact networks, are universal in driving both adoption and generation of green innovation, and which are mode-specific. Analyzing a sample of 1,116 Russian small- and medium-sized enterprises (SMEs) using logistic regression, we separately model green innovation adoption and generation as functions of tax, customer pressure, and network membership. We find that environmental tax is positively associated with both adoption and generation of green innovation, while pressure from corporate customers only stimulates adoption, not generation. Notably, contact networks have a positive effect on adoption but a negative effect on generation. By explicitly distinguishing between these two innovation modes, the study clarifies contradictory findings in green innovation literature and offers a more robust methodological approach to the use of institutional theory in green innovation research. For policymakers in emerging and developing economies, the results imply that different institutional actors require tailored interventions: taxes can drive both diffusion and novelty, customer pressure is suitable for spreading existing practices, and networks should be redesigned to avoid discouraging in-house innovation while still promoting adoption.
Climate volatility and environmental degradation have increased the pressure for organizational adjustment, especially in resource-based economies like Iraq. Conventional market-based solutions are insufficient for addressing complex ecological issues, necessitating the development of collaborative governance systems that incorporate multi-level stakeholder participation and technological integration. This paper discusses the impact of strategic alliances on environmental recovery outcomes in the Iraqi beverage production industry, examining how different types of alliances can be more effective in ecological adaptation. A quantitative study involving 68 respondents from two Iraqi beverage companies, Al-Waha and Al-Diyar, was conducted. The sampling approach was convenience sampling, targeting organizational members with strategic decision-making authority, including board members and department heads with at least five years of experience in alliance formation, environmental compliance, and operational risk management. The study evaluated four types of alliances, investment, project, marketing, and technical, and five environmental factors: cultural, technological, social, economic, and behavioral, using structured questionnaires organized into dimensions of strategic alliance and environmental adaptation. Structural Equation Modeling was employed to analyze correlations between alliance dimensions and adaptation results. The findings indicated high effectiveness scores across all alliance types, with technical alliances receiving the highest recognition. Similar ratings were observed for environmental adaptation factors. Correlation analysis revealed significant positive relationships between strategic alliances and environmental recovery, with marketing alliances demonstrating the strongest correlation. The study concludes that strategic alliances play a vital role in environmental recovery within the Iraqi manufacturing sector by facilitating access to specialized environmental knowledge, technologies, and stakeholder networks that are often not internalized within individual organizations.
This study addresses a critical gap in the corporate finance literature by empirically investigating the causal link between Environmental, Social, and Governance (ESG) performance and firm profitability, as measured by Return on Equity (ROE), within the heterogeneous economies of Indonesia, Malaysia, and Singapore. Going beyond simple correlation, we advance the discourse by examining a theoretically salient moderating variable: firm size, a relationship that has received limited attention, particularly in the under-researched Southeast Asian context. Utilizing a comprehensive panel dataset of 1,420 publicly listed companies from 2012 to 2023, we employ sophisticated econometric methodologies, including First-Difference GMM (FD-GMM) and System GMM (SYS-GMM), to mitigate endogeneity and dynamic panel bias. Our main findings, derived from the robust SYS-GMM model, reveal a positive and statistically significant effect of ESG scores on ROE across all three countries, providing strong empirical support for the "doing well by doing good" hypothesis. Crucially, our analysis yields a novel and counterintuitive finding: the moderating effect of firm size on the ESG-ROE relationship is statistically insignificant. This result challenges the prevailing notion that only larger, resource-rich firms can effectively translate ESG investments into financial gains. It suggests that the positive financial spillovers of ESG practices are universal and not contingent on a firm's scale. The consistency of these findings was validated through a series of robustness checks. This research makes three key contributions: (1) it provides rigorous, methodologically advanced evidence from a globally underrepresented region; (2) it introduces new empirical insights on the non-conditional nature of the ESG-profitability nexus; and (3) it offers valuable implications for investors and policymakers, demonstrating that ESG can be a universal value driver, thereby strengthening the case for integrated sustainability strategies across diverse corporate landscapes.
The accelerating pace of digital transformation and globalization has placed significant pressure on organizational innovation sustainably. This study investigates the extent to which Digital Leadership (DL), IT Support (ITS), and Knowledge Sharing (KS) contribute to the development of Organizational Learning Capability (OLC). The research was conducted in South Korea’s Daegu Industrial Area, with a focus on the automobile industry. The survey consisted of a total of 355 respondents, providing insights into their perceptions of IT support, digital leadership, and knowledge-sharing practices within their organizations. The study employed partial least squares structural equation modeling (PLS-SEM) to analyze research data. Grounded in the Resource-Based View (RBV) theory, the study found that both DL and ITS substantially and positively influence KS, which in turn substantially influences OLC. Moreover, the analysis revealed that KS fully mediates the relationships between DL and OLC, as well as between ITS and OLC. These findings emphasize the central role of KS in boosting sustainable OLC. The findings provide meaningful understanding for managers seeking to align KS initiatives with their organizations' strategic objectives. By simultaneously examining the interrelationships among DL, ITS, KS, and OLC, this study extends prior empirical research and provides actionable recommendations for strengthening sustainable OLC in digitally advanced business settings. The study provides useful insights to foster OLC by replacing old and obsolete learning methods to remain sustainably competitive in terms of innovation and creativity. However, the digital work environment of South Korea may limit the applicability of the findings to other work environments.
The research proposes to explore the nexus between Commitment to Organizational Career (COC) and Career Growth (CG). It also examines the role of Intention to Quit (IQ) amid COC and CG among IT professionals. The antecedents of the study variables (COC, CG, and IQ) were validated using Exploratory Data Analysis. The relationships among the study variables were identified using SEM. Multiple regression analysis was adopted to examine the mediating role of IQ. COC is a single-factor construct; career growth comprises dual factors (professional development, compensation, and career goals), while IQ is a single-factor variable. The results confirm that COC influences CG; the impact of COC on CG is significant and inverse. Notably, the role of IQ is non-significant in the relationship between COC and CG. The study provides practical insights by examining the proposed mediation model and could make at least three contributions. Firstly, it explored and validated the antecedents of variables (COC, CG, and IQ). Secondly, it expanded the understanding and influence of COC on CG. Thirdly, it suggests mechanisms to drive COC to mitigate impediments to CG and reduce IQ, which can help HR professionals design effective career advancement policies. Thus, leveraging insights from this study, organizations fostering career growth and minimizing turnover risks can create a sustainable and committed workforce.
This paper examines whether CEOs with STEM backgrounds have a relationship with corporate financial distress, using 2022 data from Sustainalytics ESG Risk Ratings. Our findings reveal that companies led by STEM CEOs exhibit a statistically higher Altman Z-Scores, indicating a lower risk of financial distress. It shows that STEM CEOs contribute to financial resilience through structured innovation, operational efficiency, and disciplined investment strategies because of their analytical minds and long-term orientation. The study finds that STEM CEOs are more likely to adopt data-driven and future-driven decision-making frameworks, which help maintain financial stability even in volatile markets. Our heterogeneity analysis reveals that the positive impact of STEM leadership is more significant among firms in developed countries, firms led by male CEOs, smaller firms, firms with smaller boards, and firms with lower levels of innovation. These results are robust to multiple tests, including Coarsened Exact Matching (CEM), Propensity Score Matching (PSM), and Two-Stage Least Squares (2SLS) instrumental variable regression. This study contributes to the leadership and corporate finance literature by showing how a STEM CEO’s educational background can impact firm-level financial outcomes. The findings also offer practical implications for corporate governance, talent selection, and policy interventions to promote financial resilience through STEM leadership.
This study explores the role of human resource capabilities as a catalyst for innovation strategy and their influence on the performance of Batik Small and Medium Enterprises (SMEs) in East Java, Indonesia. Using a quantitative approach, data were collected from 249 Batik SME owners and analyzed through Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that human resource competencies significantly and positively affect various dimensions of innovation strategy, including product, process, technological, organizational, and service innovations. These innovation strategies, in turn, enhance firm competitiveness and performance. Furthermore, the relationship between innovation and performance is moderated by marketing strategy, underscoring its strategic importance in maximizing innovation outcomes. Importantly, the study highlights how human resource-driven innovation promotes sustainability by supporting environmentally responsible practices, social inclusion, and cultural heritage preservation. By integrating the Resource-Based View and Dynamic Capabilities theories, this research demonstrates that human capital, particularly in traditional, labour-intensive sectors, forms the basis of multidimensional and sustainability-oriented innovation. The study contributes to the innovation literature by showing that different types of innovation follow distinct paths toward competitiveness and performance. It also challenges assumptions that marketing strategies always amplify innovation outcomes. In the context of sustainability research, the study underscores how culturally rooted human innovation in Batik SMEs fosters economic resilience, environmental consciousness, and socio-cultural continuity. These insights offer practical implications for SMEs, policymakers, and development agencies aiming to enhance the competitiveness and sustainability of heritage-based industries in evolving market landscapes.
Low-carbon cities represent a vital agenda of sustainable development, aligned with the United Nations Sustainable Development Goals (SDGs) and prioritized under the 12th Malaysia Plan. Although many local authorities have initiated programs to promote low-carbon development, limited secured funding remains a constraint. To attract private investment, effective communication, especially through public documents like annual reports, remains essential but is currently underutilized. Past research has found that disclosure of low-carbon initiatives by Malaysian local authorities is often limited, inconsistent, and varies widely. This is partly due to differences in how report preparers interpret and balance local priorities with global sustainability expectations. Consequently, stakeholders may face difficulties in evaluating these initiatives during the decision-making process. This study examines the annual reports of Malaysian local authorities, focusing on three objectives: to assess the comprehensiveness of disclosure, evaluate compliance with reporting guidelines, and identify variations in reporting practices. The analysis highlights similarities in core content elements but reveals differences in how low-carbon initiatives are reported, the level of compliance with guidelines, stakeholder inclusion, and the use of financial indicators. These variations reflect the differing contexts, capacities, and strategic priorities of local jurisdictions. The study offers insights into the current state of sustainability reporting among Malaysian local authorities and serves as a benchmark to improve transparency and consistency. It highlights the need for transparent and comprehensive reporting to meet stakeholder expectations and strengthen commitment to the SDGs, while also acting as a critical step toward securing private financing for sustainable development initiatives.
This study aims to investigate the impact of technological innovation (TI) on the performance of small and medium-sized enterprises (SMEs), while exploring the mediating roles of digital transformation (DT) and resource integration (RI), and the moderating effects of strategic orientation (SO) and market dynamics (MD). A quantitative research design was adopted using a structured questionnaire distributed to employees working in various Chinese companies. The population consisted of full-time employees across diverse industries in urban China. A sample of 412 respondents was selected using stratified random sampling to ensure representation across sectors. A structured questionnaire was administered to key managerial respondents, and the data were analyzed using SmartPLS structural equation modeling (SEM). Measurement scales were adapted from established studies to ensure validity and reliability of constructs. The results confirmed that TI has a significant positive impact on SME performance. Additionally, DT and RI were found to mediate this relationship effectively. The moderating analyses revealed that SO and MD significantly strengthen the positive effect of TI on performance, underscoring the importance of internal strategic alignment and responsiveness to external environments. This study advances the literature by integrating Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) to explain how SMEs can leverage innovation for superior outcomes. Beyond theoretical contributions, the findings provide practical guidance for SME managers and policymakers on embedding innovation strategies, fostering digital transformation, and aligning resources to enhance sustainability and long-term growth in volatile markets.
This study aims to empirically assess the effect of ethical leadership in corporate tax leaders on corporate transparency, ESG management, and corporate performance. The research model was constructed, and hypotheses were formulated for structural equation analysis. This study used a total of 262 questionnaires collected from tax leaders in large South Korean companies. A research model was designed using structural equations, and results were derived through confirmatory factor analysis, correlation analysis, and path analysis. The analysis results verified that ethical leadership had a positive effect on corporate transparency and ESG management. However, ethical leadership in tax leaders had no direct impact on corporate performance. This study also proved that this leadership can be positively influenced by corporate transparency and ESG management activities and is not a direct determinant of corporate performance. Additionally, corporate transparency had no direct effect on corporate performance; however, it can be affected along with ESG management as a mediated factor through which the ethical leadership of tax leaders influences corporate performance. These results indicate that the implication is that ethical leadership in corporate tax management impacts corporate performance when corporate transparency and ESG management activities are reinforced, and its effectiveness is maximized as well. Further, it suggests that corporate tax leaders have a crucial role in maintaining financial transparency, fair tax management, and social responsibility.
Small and micro enterprises (SMEs), serving as a major catalyst for economic and social advancement, play an irreplaceable role in promoting employment, technological innovation, and stimulating market vitality. Team performance is a key indicator for measuring the sustainable development level of SMEs, and the effectiveness of internal teams has a significant influence on determining their competitive standing and long-term development path. Charismatic leadership, as an important leadership style, is considered to have a unique role in motivating employees, promoting innovation, and facilitating team development through personal charm, influence, and appeal. This research centers on SMEs in China and explores how charismatic leadership affects team performance, particularly emphasizing the role played by team learning and team cohesion as intermediaries in this connection. The study gathered data via responses to a structured questionnaire completed by managers and employees within SMEs in Guangdong Province. The analysis shows that: (1) Charismatic leadership clearly enhances team performance in SMEs; (2) Team learning and team cohesion act as intermediaries through which charismatic leadership positively impacts team performance. The study clarifies the process through which charismatic leadership enhances team performance by fostering team learning and improving team cohesion, thereby not only enriching the theoretical framework regarding leadership behaviors and team effectiveness but also offering practical insights for SMEs to improve team performance and achieve sustainable development by cultivating charismatic leaders.
