The Effect of Entrepreneurial Factors on the Realization of Sustainable Development Goals (SDG) and Sustainability in Indonesia’s SMEs
DOI:
https://doi.org/10.21512/bbr.v13i3.8524Keywords:
entrepreneurial factors, Sustainable Development Goals (SDG), sustainability, Small and Medium- Sized Enterprises (SMEs)Abstract
The International Monetary Fund (IMF) predicts Indonesia with lower economic growth than other countries in South Asia. This problem can be addressed by understanding the values of Sustainable Development Goals (SDG) 8 about decent work and economic growth. However, previous research has not identified entrepreneurial factors that drive SDG 8 and how they affect sustainability. The research aimed to analyze the interrelationships of entrepreneurial factors in realizing SDG 8 and sustainability scientifically and systematically to fill the gap. The research applied a quantitative method. Small and Medium-Sized Enterprises (SMEs) in Bandung were selected as the research population using the purposive sampling method. Questionnaires were distributed to 153 SMEs as a data collection method. A seven-point Likert scale was used to measure respondents’ agreement for each item or statement. Then, the data were processed using PLS-SEM. The research finds that entrepreneurial intentions and behavior are entrepreneurial factors with a significant positive effect on SDG 8. In addition, SDG 8 has a significant positive effect on sustainability (social, economic, and environmental). Last, the research also contributes to increasing the entrepreneurs’ awareness in understanding the importance of motivation, entrepreneurial intentions, and SDG 8 to realize sustainable SMEs.
Plum Analytics
References
Adawiah, A., Echdar, S., Umar, A., Ardianto, S. Y., & Putranto, S. Y. (2020). Strategies for improving business performance through entrepreneurial competence, market orientation, and entrepreneurial motivation (Study on SME Coffee Shops in Makassar City). Academy of Entrepreneurship Journal, 26(4), 1–15.
Agrawal, S., & Singh, R. K. (2020). Outsourcing and reverse supply chain performance: A triple bottom line approach. Benchmarking: An International Journal, 28(4), 1146–1163. https://doi.org/10.1108/BIJ-09-2020-0498
Ahmed, G., Amponsah, C. T., & Johnson, D. S. (2019). Gender differences in entrepreneurial attitudes and intentions: The case of Brand Dubai. International Journal of Business and Emerging Markets, 11(4), 315–334. https://doi.org/10.1504/IJBEM.2019.105230
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211.
Anand, A., Argade, P., Barkemeyer, R., & Salignac, F. (2021). Trends and patterns in sustainable entrepreneurship research: A bibliometric review and research agenda. Journal of Business Venturing, 36(3), 1–24. https://doi.org/10.1016/j.jbusvent.2021.106092
Anjum, T., Heidler, P., Amoozegar, A., & Anees, R. T. (2021). The impact of entrepreneurial passion on the entrepreneurial intention; moderating impact of perception of university support. Administrative Sciences, 11(2), 1–14. https://doi.org/10.3390/admsci11020045
Awallia, A. F., & Famiola, M. (2021). The model of green behavioural intention among women entrepreneur: A quantitative study. Indonesian Journal of Business and Entrepreneurship, 7(3), 217–226. https://doi.org/10.17358/ijbe.7.3.217
Ayed, T. L. (2020). Extending the debate over entrepreneurial education effectiveness: The case of a Saudi university. Education + Training, 62(7/8), 805–823. https://doi.org/10.1108/ET-12-2019-0273
Baciu, E. L., Vîrgă, D., Lazăr, T. A., Gligor, D., & Jurcuț, C. N. (2020). The association between entrepreneurial perceived behavioral control, personality, empathy, and assertiveness in a Romanian sample of nascent entrepreneurs. Sustainability, 12(24), 1–16. https://doi.org/10.3390/su122410490
Bao, J., & Dou, J. (2021). The formation of subsequent entrepreneurial intention: Happiness matters. Sustainability, 13(21), 1–19. https://doi.org/10.3390/su132112323
Chin, W., Cheah, J. H., Liu, Y., Ting, H., Lim, X. J., & Cham, T. H. (2020). Demystifying the role of causal-predictive modeling using partial least squares structural equation modeling in information systems research. Industrial Management & Data Systems, 120(12), 2161–2209. https://doi.org/10.1108/IMDS-10-2019-0529
Fischer, D., Mauer, R., & Brettel, M. (2018). Regulatory focus theory and sustainable entrepreneurship. International Journal of Entrepreneurial Behavior & Research, 24(2), 408–428. https://doi.org/10.1108/IJEBR-12-2015-0269
Font, X., Garay, L., & Jones, S. (2016). Sustainability motivations and practices in small tourism enterprises in European protected areas. Journal of Cleaner Production, 137(November), 1439–1448. https://doi.org/10.1016/j.jclepro.2014.01.071
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
Gieure, C., Del Mar Benavides-Espinosa, M., & Roig-Dobón, S. (2020). The entrepreneurial process: The link between intentions and behavior. Journal of Business Research, 112(May), 541–548. https://doi.org/10.1016/j.jbusres.2019.11.088
Gódány, Z., Machová, R., Mura, L., & Zsigmond, T. (2021). Entrepreneurship motivation in the 21st century in terms of pull and push factors. TEM Journal, 10(1), 334–342. https://doi.org/10.18421/TEM101-42
Gogu, E., Radu, C., Deaconu, A., Frasineanu, C., Triculescu, M., Mişu, S., & Toma, S. (2021). Assessing the impact of clean energy on sustainable economic growth in European Union member states. Economic Computation and Economic Cybernetics Studies and Research, 55(4), 183–197. https://doi.org/10.24818/18423264/55.4.21.12
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management & Data Systems, 117(3), 442–458. https://doi.org/10.1108/IMDS-04-2016-0130
He, H., Bai, Y., & Xiao, X. (2020). How past failure predicts subsequent entrepreneurial intention: A comparative study of Mainland China and Taiwan. Sustainability, 12(6), 1–17. https://doi.org/10.3390/su12062331
Ioannides, D., Gyimóthy, S., & James, L. (2021). From liminal labor to decent work: A human-centered perspective on sustainable tourism employment. Sustainability, 13(2), 1–15. https://doi.org/10.3390/su13020851
Kock, N. (2017). Common method bias: A full collinearity assessment method for PLS-SEM. In H. Latan & R. Noonan (Eds), Partial least squares path modeling: Basic concepts, methodological issues and applications (pp. 245–257). Springer International Publishing. https://doi.org/10.1007/978-3-319-64069-3_11
Kock, N., & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations. Journal of the Association for Information Systems, 13(7), 546–580. https://doi.org/10.17705/1jais.00302
Kreinin, H., & Aigner, E. (2021). From “decent work and economic growth” to “sustainable work and economic degrowth”: A new framework for SDG 8. Empirica, 49, 281–311. https://doi.org/10.1007/s10663-021-09526-5
Lecuna, A., Cohen, B., & Chavez, R. (2017). Characteristics of high-growth entrepreneurs in Latin America. International Entrepreneurship and Management Journal, 13, 141–159. https://doi.org/10.1007/s11365-016-0402-y
Ng, H. S., Kee, D. M. H., & Ramayah, T. (2020). Examining the mediating role of innovativeness in the link between core competencies and SME performance. Journal of Small Business and Enterprise Development, 27(1), 103–129. https://doi.org/10.1108/JSBED-12-2018-0379
Nhemachena, C., & Murimbika, M. (2018). Motivations of sustainable entrepreneurship and their impact of enterprise performance in Gauteng Province, South Africa. Business Strategy & Development, 1(2), 115–127. https://doi.org/10.1002/bsd2.16
Oktora, K., Lolita, S. P., Ismail, V. Y., Novesar, M. R., & Bon, A. T. (2020). E-commerce adoption level in SMEs since pandemic Covid-19 case in Bogor, Indonesia. Proceedings of the International Conference on Industrial Engineering and Operations Management, 59, 1836–1847.
Onoufriou, N. (2020). Learning from sustainability practice: Case examples from Accor, Scandic and Atlantica. Worldwide Hospitality and Tourism Themes, 12(5), 587–596. https://doi.org/10.1108/WHATT-06-2020-0046
Pratama, W. P. (2021). IMF turunkan proyeksi pertumbuhan ekonomi RI, ini perbandingannya dengan Asean. Retrieved from https://ekonomi.bisnis.com/read/20211013/9/1453948/imf-turunkan-proyeksi-pertumbuhan-ekonomi-ri-ini-perbandingannya-dengan-asean
Reza. (2019). UMKM asal Bandung ini memiliki omzet Rp 25 juta per bulan. Retrieved from https://www.liputan6.com/bisnis/read/4010865/umkm-asal-bandung-ini-memiliki-omzet-rp-25-juta-per-bulan
Semuel, H., Siagian, H., & Octavia, S. (2017). The effect of leadership and innovation on differentiation strategy and company performance. Procedia - Social and Behavioral Sciences, 237(February), 1152–1159. https://doi.org/10.1016/j.sbspro.2017.02.171
Shahzad, M., Qu, Y., Zafar, A. U., Rehman, S. U., & Islam, T. (2020). Exploring the influence of knowledge management process on corporate sustainable performance through green innovation. Journal of Knowledge Management, 24(9), 2079–2106. https://doi.org/10.1108/JKM-11-2019-0624
SMESCO. (2022). Indonesia peta sebaran UKM. Retrieved from https://smesco.go.id/ukm/peta-sebaran
Sujit, K. S., & Rajesh, B. K. (2016). Determinants of discretionary investments: Evidence from Indian food industry. SAGE Open, 6(1), 1–16. https://doi.org/10.1177/2158244016636429
Taber, K. S. (2018). The use of Cronbach’s alpha when developing and reporting research instruments in science education. Research in Science Education, 48, 1273–1296. https://doi.org/10.1007/s11165-016-9602-2
The World Bank. (2022). Small and Medium Enterprises (SMEs) finance. Retrieved from https://www.worldbank.org/en/topic/smefinance
United Nations. (2022). SDG indicators. Retrieved from https://unstats.un.org/sdgs/metadata/?Text=&Goal=8&Target=
Wiedmann, T., Lenzen, M., Keyßer, L. T., & Steinberger, J. K. (2020). Scientists’ warning on affluence. Nature Communications, 11, 1–10. https://doi.org/10.1038/s41467-020-16941-y
Zainal, M. (2022). Innovation orientation and performance of Kuwaiti family businesses: Evidence from the initial period of COVID-19 pandemic. Journal of Family Business Management, 12(2), 251–265. https://doi.org/10.1108/JFBM-09-2020-0086
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Anindia Pratiwi Putri, Wawan Dhewanto
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)
