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A new method to empower organizational readiness for change in Indonesian SMEs

Author

Listed:
  • Airlangga Hartarto

    (Coordinating Ministry for Economic Affairs, Indonesia)

  • Jenri MP Panjaitan

    (Ministry of Industry Republic of Indonesia, Indonesia)

  • Sumiyana Sumiyana

    (Gadjah Mada University, Indonesia)

Abstract

As per newspapers and national news reports, small and medium-sized enterprises (SMEs) in Indonesia, currently 26,574 in number, are spreading widely. The transformation of SMEs to large, mature business entities is slow. This study investigates the sluggish transformation of SMEs in Indonesia and offers new explanations for the sluggishness, focusing on knowledge empowerment instead of financial aspects. A new development model was constructed with an aim to enhance SMEs. This study serves as research with a paradigm of constructivism, prioritizing knowledge empowerment. Executive officers of SMEs should aim for the construction of conceptual knowledge of social networks and social cognition in a sequential-ordered logic to achieve organizational readiness and readiness for change. They, moreover, internalize these concepts to transform SMEs into large, mature business entities with high levels of competitiveness, leadership engagement, dynamic capabilities, and profound sustainabilities.

Suggested Citation

  • Airlangga Hartarto & Jenri MP Panjaitan & Sumiyana Sumiyana, 2020. "A new method to empower organizational readiness for change in Indonesian SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 230-252, December.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:2:p:230-252
    DOI: 10.9770/jesi.2020.8.2(14)
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    networking; social networks; social-cognitive; readiness for change; innovativeness; optimism; commitment; efficacy;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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