ANALYSIS OF THE IMPACT OF MANAGERIAL ABILITY FACTORS TO DEVELOP MSMES THROUGH ADAPTATION ABILITY IN PANDEMIC TIME

Volume 5, Issue 2, April 2020     |     PP. 21-43      |     PDF (336 K)    |     Pub. Date: December 2, 2020
DOI:    227 Downloads     5494 Views  

Author(s)

Zainal Arifin, Sekolah Tinggi Ilmu Ekonomi Indonesia Banjarmasin
Ibrahim Daud, Sekolah Tinggi Ilmu Ekonomi Indonesia Banjarmasin
Yanuar Bachtiar, Sekolah Tinggi Ilmu Ekonomi Indonesia Banjarmasin
Muhammad Maladi, Sekolah Tinggi Ilmu Ekonomi Indonesia Banjarmasin
Dini Rusqiati, Sekolah Tinggi Ilmu Ekonomi Indonesia Banjarmasin
Lydia Goenadhi, Sekolah Tinggi Ilmu Ekonomi Indonesia Banjarmasin
Rosnalisa Z, Kesehatan Masyarakat and Psikologi, UPN Veteran Jakarta

Abstract
The development of a company depends on the experience and learning of existing managers, because they are holding the capabilities of the organization. Managerial ability depends on more than just cognition; it also requires an understanding of human emotions, and the non-cognitive processes that develop and enable strategic adaptive behavior (adaptive abilities) in volatile environments.This research was conducted on 177 MSMEs in South Kalimantan from various business fields. The results showed that (1) managerial abilities including leadership styles, decision making, human resource development, and planning affect the business development of MSMEs. (2). Managerial abilities include leadership styles, decision making, human resource development, and planning that affect the adaptability of MSMEs (3.) Adaptability includes scanning, change management and resilience affecting MSME business development (4) Managerial abilities affect MSME business development through ability adaptation will be better than the direct effect of managerial ability on business development.The implication of this research requires that MSMEs do not only have managerial abilities but also must be able to adapt to the environment so that their businesses develop

Keywords
Managerial Ability, Adaptation, Business Development

Cite this paper
Zainal Arifin, Ibrahim Daud, Yanuar Bachtiar, Muhammad Maladi, Dini Rusqiati, Lydia Goenadhi, Rosnalisa Z, ANALYSIS OF THE IMPACT OF MANAGERIAL ABILITY FACTORS TO DEVELOP MSMES THROUGH ADAPTATION ABILITY IN PANDEMIC TIME , SCIREA Journal of Economics. Volume 5, Issue 2, April 2020 | PP. 21-43.

References

[ 1 ] Ali, M.; Park, K. The mediating role of an innovative culture in the relationship between absorptive capacity and technical and non-technical innovation. J. Bus. Res. 2016, 69, 1669–1675.
[ 2 ] Ali Zulfiqar 1,* ID , un Hongyi S1 and Ali Murad, The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach, Sustainability 2017, 9, 2157; doi:10.3390/su9122157 www.mdpi.com/journal/sustainability
[ 3 ] Ali, M.; Seny Kan, K.A.; Sarstedt, M. Direct and configurational paths of absorptive capacity and organizational innovation to successful organizational performance. J. Bus. Res. 2016, 69, 5317–5323.
[ 4 ] Bhamra, R.; Dani, S.; Burnard, K. Resilience: The concept, a literature review and future directions. Int. J. Prod. Res. 2011, 49, 5375–5393
[ 5 ] Bititci, U.S.; Ackermann, F.; Ates, A.; Davies, J.D.; Gibb, S.; MacBryde, J.; Mackay, D.; Maguire, C.; van der Meer, R.; Shafti, F. Managerial processes: An operations management perspective towards dynamic capabilities. Prod. Plan. Control 2011, 22, 157–173.
[ 6 ] Boonpattarakan, A. Model of thai small and medium sized enterprises’ organizational capabilities: Review and verification. J. Manag. Res. 2012, 4, 15–42.
[ 7 ] Breznik, L.; Hisrich, R.D. Dynamic capabilities vs. Innovation capability: Are they related? J. Small Bus. Enterp. Dev. 2014, 21, 368–384.
[ 8 ] Bullinger, H.-J.; Bannert, M.; Brunswicker, S. Managing Innovation Capability in SMEs. Available online: http://www.techmonitor.net/tm/images/9/9f/07may_jun_sf1.pdf (accessed on 6 November 2017).
[ 9 ] Burnard, K.; Bhamra, R. Organisational resilience: Development of a conceptual framework for organisational responses. Int. J. Prod. Res. 2011, 49, 5581–5599.
[ 10 ] Colbert, B.A. The complex resource-based view: Implications for theory and practice in strategic human resource management. Acad. Manag. Rev. 2004, 29, 341–358.
[ 11 ] Day, G.S. The capabilities of market-driven organizations. J. Mark. 1994, 58, 37–52. [CrossRef] 12. Barney, J. Firm resources and sustained competitive advantage. J. Manag. 1991, 17, 99–120.
[ 12 ] M Maulana Didik Trio, 2018, Perkembangan UMKM Banjarmasin Dinilai Relatif Stabil, https://banjarmasin.tribunnews.com/2018/12/19/perkembangan-umkm-banjarmasin-dinilai-relatif-stabil.
[ 13 ] Eshima,Y.;Anderson,B.S.Firmgrowth,adaptivecapability,andentrepreneurialorientation.Strateg. Manag. J. 2017,38,770–779
[ 14 ] Giniuniene, J.; Jurksiene, L. Dynamic capabilities, innovation and organizational learning: Interrelations and impact on firm performance. Procedia Soc. Behav. Sci. 2015, 213, 985–991.
[ 15 ] Golla, E.; Johnson, R. The relationship between transformational and transactional leadership styles and innovation commitment and output at commercial software companies. Bus. Rev. Camb. 2013, 21, 337–343.
[ 16 ] Grimaldi, M.; Quinto, I.; Rippa, P. Enabling open innovation in small and medium enterprises: A dynamic capabilities approach. Knowl. Process Manag. 2013, 20, 199–210.
[ 17 ] Mulyono Sugeng, Kresnaini Enlik, Memetakan Perubahan Organisasi Dalam Desain Learning Organization Pada Usaha Kecil Menengah di Kota Malang, Jurnal Ekonomi Bisnis Volume XVIII No. 1, April 2015 ISSN 1979 – 6471
[ 18 ] Ogarca, R.F. An investigation of decision making styles in SMEs from south-west oltenia region (Romania). Finance 2015, 20, 443–452.
[ 19 ] Gunasekaran, A.; Rai, B.K.; Griffin, M. Resilience and competitiveness of small and medium size enterprises: An empirical research. Int. J. Prod. Res. 2011, 49, 5489–5509.
[ 20 ] Hodgkinson, G.P.; Healey, M.P. Psychological foundations of dynamic capabilities: Reflexion and reflection in strategic management. Strateg. Manag. J. 2011, 32, 1500–1516
[ 21 ] Houterman, Joyce; Blok, Vincent; Omta, Onno (2014). "Venture capital financing of techno-entrepreneurial start-ups: drivers and barriers for investments in research-based spin-offs in the Dutch medical life sciences industry". In Therin, Francois (ed.).
[ 22 ] Inan, G.G.; Bititci, U.S. Understanding organizational capabilities and dynamic capabilities in the context of micro enterprises: A research agenda. Procedia Soc. Behav. Sci. 2015, 210, 310–319.
[ 23 ] Kacem, S.; Harbi, S.E. Leadership, innovation among tunisian ICT SMEs. J. Enterp. Cult. 2014, 22, 283–311.
[ 24 ] Kor, Y.Y.; Mesko, A. Dynamic managerial capabilities: Configuration and orchestration of top executives’ capabilities and the firm’s dominant logic. Strateg. Manag. J. 2013, 34, 233–244.
[ 25 ] Kunc, M.H.; Morecroft, J.D.W. Managerial decision making and firm performance under a resource-based paradigm. Strateg. Manag. J. 2010, 31, 1164–1182.
[ 26 ] Laforet, S. Organizational innovation outcomes in SMEs: Effects of age, size, and sector. J.WorldBus. 2013, 48, 490–502.
[ 27 ] Lockett, A.; Wiklund, J.; Davidsson, P.; Girma, S. Organic and acquisitive growth: Re-examining, testing and extending penrose’s growth theory. J. Manag. Stud. 2011, 48, 48–74.
[ 28 ] Media Center Provinsi Kalimantan Selatan, 2019, Riset Pasar Penting Bagi Perkembangan UMKM, http://mc.kalselprov.go.id/2019/07/01/riset-pasar-penting-bagi-perkembangan-umkm/
[ 29 ] Mulder,K.F.Innovationforsustainabledevelopment: Fromenvironmental design to transition management. Sustain. Sci. 2007, 2, 253–263.
[ 30 ] Nada,N.;Ali,Z.IntegratedinteroperabilitycapabilitymodelforadaptiveandsustainableSMEs InEnterprise Interoperability vi: Interoperability for Agility, Resilience and Plasticity of Collaborations; Mertins, K., Bénaben, F., Poler, R., Bourrières, J.-P., Eds.; Springer International Publishing: Cham, Switzerland, 2014; pp. 501–511.
[ 31 ] Nidumolu, R.; Prahalad, C.K.; Rangaswami, M.R. Why sustainability is now the key driver of innovation. Harv. Bus. Rev. 2009, 87, 56–64.
[ 32 ] Helfat, C.E.; Peteraf, M.A. The dynamic resource-based view: Capability lifecycles. Strateg. Manag. J.2003, 24, 997–1010.
[ 33 ] Pal,R.;Torstensson,H.;Mattila,H.Antecedentsoforganizationalresilienceineconomiccrises—Anempirical study of swedish textile and clothing SMEs. Int. J. Prod. Econ. 2014, 147, 410
[ 34 ] Paliokait˙e, A. The relationship between organisational foresight and product innovation in small and médium enterprises. In Proceeding so f the 8th International Ph.D.Schoolon National Systemsof Innovation and Economic Development, Globelics Academy, Rio de Janeiro, Brazil, 20–31 August 2012.
[ 35 ] Paliokait˙e,A.;Pacˇ˙esa,N.Therelationshipbetweenorganisationalforesightandorganisationalambidexterity. Technol. Forecast. Soc. Chang. 2015, 101, 165–181.
[ 36 ] Palomino,M.A.;Bardsley,S.;Bown,K.;DeLurio,J.;Ellwood,P.;Holland-Smith,D.;Huggins,B.;Vincenti,A.; Woodroof, H.; Owen, R. Web-based horizon scanning: Concepts and practice. Foresight J. Futures Stud. Strateg. Think. Policy 2012, 14, 355–373.
[ 37 ] Rahman, M.; Doroodian, M.; Kamarulzaman, Y.; Muhamad, N. Designing and validating a model for measuring sustainability of overall innovation capability of small and medium-sized enterprises. Sustainability 2015, 7, 537.
[ 38 ] Rizal Ontorael *, Suhadak, Mawardi Mukhammad Kholid, Anlysis of Rhe Influence of External and Internal Environmental factor son Small and Mediam Enterprises (SME) of Food and Beverage, RJOAS, 6(66), June 2017 DOI https://doi.org/10.18551/rjoas.2017-06.05 Department of Business Administration, Faculty of Administrative Science,University of Brawijaya, Indonesia
[ 39 ] Sanusi, A. (2016) Metodologi Penelitian Bisnis. Edited by Deddy A Halim. Jakarta: Salemba Empat
[ 40 ] Saunila, M. Innovation capability for sme success: Perspectives of financial and operational performance. J. Adv. Manag. Res. 2014, 11, 163–175.
[ 41 ] Sethibe, T.; Steyn, R. The relationship between leadership styles, innovation and organisational performance: A systematic review. S. Af. J. Econ. Manag. Sci. 2015, 18, 325–337.
[ 42 ] Soojung Oh,Hongsuk Yang &Soo Wook Kim, 2014, Managerial capabilities of information technology and firm performance: role of e-procurement system type, Journal International Journal of Production Research Volume 52, 2014 - Issue 15
[ 43 ] Sternad, D.; Jaeger, S.; Staubmann, C. Dynamic capabilities of resource-poor exporters: A study of SMEs in New Zealand. Small Enterp. Res. 2013, 20, 2–20.
[ 44 ] Tidd, J.; Bessant, J. Managing Innovation: Integrating Technological, Market and Organizational Change, 5th ed.; John Wiley & Sons: Chichester, UK, 2013.
[ 45 ] Vernon Philip E, The Structure of Human Abilities, In the Institute of Education, University of London, 2014
[ 46 ] Wernerfelt, B. A resource-based view of the firm. Strateg. Manag. J. 1984, 5, 171–180. [CrossRef] 38. Amit, R.; Schoemaker, P.J.H. Strategic assets and organizational rent. Strateg. Manag. J. 1993, 14, 33–46.
[ 47 ] Whittaker, D.H.; Fath, B.P.; Fiedler, A. Assembling capabilities for innovation: Evidence from new zealand SMEs. Int. Small Bus. J. 2016, 34, 123–143.
[ 48 ] Wright, P.M.; Dunford, B.B.; Snell, S.A. Human resources and the resource based view of the firm. J. Manag. 2001, 27, 701–721.
[ 49 ] Yu,J.Dimensionsoffirmintegrativecapabilityfromtheperspectiveofsystemsengineering.Syst.Eng.Procedia 2012,4,393–401