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Sustainable Growth for Small and Medium-Sized Enterprises: Interpretive Structural Modeling Approach

Author

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  • Johan Krisnanto Runtuk

    (Faculty of Engineering, President University, Jalan Ki Hajar Dewantara, Mekarmukti, Cikarang Utara, Bekasi 17550, Indonesia
    Faculty of Engineering and Technology, Multimedia University, Jalan Ayer Keroh Lama, Bukit Beruang, Melaka 75450, Malaysia)

  • Poh Kiat Ng

    (Faculty of Engineering and Technology, Multimedia University, Jalan Ayer Keroh Lama, Bukit Beruang, Melaka 75450, Malaysia)

  • Shih Yin Ooi

    (Faculty of Information Science and Technology, Multimedia University, Jalan Ayer Keroh Lama, Bukit Beruang, Melaka 75450, Malaysia)

  • Remigius Purwanto

    (Sansico Group, Kawasan Industri Jababeka II, Jln. Jababeka II Blok SS, Cikarang, Bekasi 17530, Indonesia)

  • Arief Suardi Nur Chairat

    (Department of Industrial Engineering, Institut Teknologi PLN, Menara PLN, Jl. Lkr. Luar Barat, RT.1/RW.1, Duri Kosambi, Kecamatan Cengkareng, Kota Jakarta Barat, Daerah Khusus Ibukota Jakarta, Jakarta 11750, Indonesia)

  • Yu Jin Ng

    (Department of Social Science and Humanities, Putrajaya Campus, College of Energy Economics and Social Sciences, Universiti Tenaga Nasional (UNITEN), Jalan IKRAM-UNITEN, Kajang 43000, Malaysia)

Abstract

Small and medium-sized enterprises (SMEs) are constantly under pressure to grow. This pressure forces everyone involved to think about how best to run their business. Although there is much research on SME growth, previous research is fragmented and only addresses internal or external enablers. This study aims to construct an interaction model for all enablers that promote sustainable SME growth. An interpretive structural modeling (ISM) analysis is conducted to formulate an interaction model of enablers for SME growth. The results show that both internal and external enablers are crucial for SME growth. This study shows that the following internal enablers that are interrelated and strongly influence SME growth are MS (managerial skills), EO (entrepreneurial orientation), and OwS (ownership structure). In addition, external enablers such as CIL (customer involvement and location) and GS (government support) also play an important role in improving the performance of other factors for SME growth. In addition, this study also provides a guide for formulating strategies for SME sustainability. Effective policy formulation must be based on a correct understanding of the interdependence between enablers as a unified model of interaction. The interaction between the enablers highlighted and the level of the model would be helpful to all shareholders in finding appropriate strategies for SME growth.

Suggested Citation

  • Johan Krisnanto Runtuk & Poh Kiat Ng & Shih Yin Ooi & Remigius Purwanto & Arief Suardi Nur Chairat & Yu Jin Ng, 2023. "Sustainable Growth for Small and Medium-Sized Enterprises: Interpretive Structural Modeling Approach," Sustainability, MDPI, vol. 15(5), pages 1-12, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4555-:d:1086923
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    References listed on IDEAS

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    2. C.N.R. Wijesundara & Ali Khatibi & S.M. Ferdous Azam & Jacquline Tham, 2024. "Extent of Corporate Sustainability Adoption in the Hospitality Industry: A Case Study of Tourist Hotels in Sri Lanka," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 79-92, September.

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