Barriers to technology innovation among nascent entrepreneurs in deprived areas
-
Received June 28, 2023;Accepted August 11, 2023;Published September 15, 2023
-
Author(s)Link to ORCID Index: https://orcid.org/0000-0002-4316-0501Link to ORCID Index: https://orcid.org/0000-0002-8272-6918Link to ORCID Index: https://orcid.org/0000-0002-0773-9954Link to ORCID Index: https://orcid.org/0000-0002-8912-2252
-
DOIhttp://dx.doi.org/10.21511/ppm.21(3).2023.48
-
Article InfoVolume 21 2023, Issue #3, pp. 614-628
- TO CITE АНОТАЦІЯ
-
Cited by1 articlesJournal title:Article title:DOI:Volume: / Issue: / First page: / Year:Contributors:
-
Funding dataFunder name: Minister of Education and Science titled “Regional Initiative of Excellence”Funder identifier: 018/RID/2018/19Award numbers: —
- 452 Views
-
86 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Entrepreneurs in economically challenged areas frequently rely on financial and technical incentives and aid from public and local governments to embrace and apply new technology. This study aims to investigate the challenges to technology innovation that these businesses face. Based on a survey of 422 nascent entrepreneurs in Banjarmasin, Indonesia, an empirical model of the determinants influencing the adoption of technology innovation is developed. The current study used factor analysis as a methodological tool to identify the critical impediments to technology innovation. The study’s findings highlighted five major barriers. More financial resources are needed: as nascent entrepreneurs in these locations frequently need help to get the necessary funds to support their creative endeavors. There is a need for more skilled individuals: new businesses need help to locate and keep employees with the appropriate technological skills. Unfavorable economic conditions exacerbate the problem by making it difficult for new entrepreneurs to access markets and resources that could support their innovative efforts. Furthermore, there needs to be more collaborative efforts, with nascent entrepreneurs in these places frequently needing more collaboration and networking possibilities, expanding their potential to develop. Finally, the study identifies insufficient government support as a barrier to assisting entrepreneurs in adopting novel technologies. These hurdles can be efficiently overcome by government assistance, private-sector investment, and collaborative efforts among nascent entrepreneurs.
- Keywords
-
JEL Classification (Paper profile tab)L26, J24, O32
-
References71
-
Tables5
-
Figures0
-
- Table 1. Technology innovation implemented
- Table 2. Nascent entrepreneurs’ business
- Table 3. Descriptive statistics and constructs reliability
- Table 4. Loading factors and variance explained
- Table 5. Path relationship among variables
-
- Adam, N. A., & Alarifi, G. (2021). Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: The role of external support. Journal of Innovation and Entrepreneurship, 10(1), 15.
- Akpan, I. J., Udoh, E. A. P., & Adebisi, B. (2022). Small business awareness and adoption of state-of-the-art technologies in emerging and developing markets, and lessons from the COVID-19 pandemic. Journal of Small Business & Entrepreneurship, 34(2), 123-140.
- Alrawad, M., Lutfi, A., Almaiah, M. A., Alsyouf, A., Al-Khasawneh, A. L., Arafa, H. M., Ahmed, A. N., AboAlkhair, A. M., & Tork, M. (2023). Managers’ perception and attitude toward financial risks associated with SMEs: Analytic hierarchy process approach. Journal of Risk and Financial Management, 16(2), 86.
- Apa, R., De Marchi, V., Grandinetti, R., & Sedita, S. R. (2021). University-SME collaboration and innovation performance: The role of informal relationships and absorptive capacity. The Journal of Technology Transfer, 46(4), 961-988.
- Arabeche, Z., Soudani, A., Brahmi, M., Aldieri, L., Vinci, C. P., & Abdelli, M. E. A. (2022). Entrepreneurial orientation, organisational culture and business performance in SMEs: Evidence from emerging economy. Sustainability, 14(9), 5160.
- Basuki, Widyanti, R., & Rajiani, I. (2021). Nascent entrepreneurs of millennial generations in the emerging market of Indonesia. Entrepreneurial Business and Economics Review, 9(2), 151-165.
- Battisti, S., Agarwal, N., & Brem, A. (2022). Creating new tech entrepreneurs with digital platforms: Meta-organizations for shared value in data-driven retail ecosystems. Technological Forecasting and Social Change, 175, 121392.
- Bonett, D. G., & Wright, T. A. (2015). Cronbach’s alpha reliability: Interval estimation, hypothesis testing, and sample size planning. Journal of Organizational Behavior, 36(1), 3-15.
- Bradley, S. W., Kim, P. H., Klein, P. G., McMullen, J. S., & Wennberg, K. (2021). Policy for innovative entrepreneurship: Institutions, interventions, and societal challenges. Strategic Entrepreneurship Journal, 15(2), 167-184.
- Bravo, R., Gonzalez Segura, M., Temowo, O., & Samaddar, S. (2022). How does a pandemic disrupt the benefits of ecommerce? A case study of small and medium enterprises in the US. Journal of Theoretical and Applied Electronic Commerce Research, 17(2), 522-557.
- Cavich, J., & Chinta, R. (2022). Nascent entrepreneurs, entrepreneurial self-efficacy, and the moderators of race, gender, and government support. Entrepreneurship Research Journal, 12(3), 363-389.
- Chaudhary, S., Kaur, P., Talwar, S., Islam, N., & Dhir, A. (2022). Way off the mark? Open innovation failures: Decoding what really matters to chart the future course of action. Journal of Business Research, 142, 1010-1025.
- de Moraes Silva, D. R., Vonortas, N. S., & Furtado, A. T. (2022). Innovation barriers, indicators and policies: Coevolving concepts in the history of innovation studies. Annals of Science and Technology Policy, 6(2), 100-227.
- Epede, M. B., & Wang, D. (2022). Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries. International Business Review, 31(5), 101993.
- Etemad, H. (2020). Managing uncertain consequences of a global crisis: SMEs encountering adversities, losses, and new opportunities. Journal of International Entrepreneurship, 18(2), 125-144.
- Fritsch, M., Pylak, K., & Wyrwich, M. (2022). Historical roots of entrepreneurship in different regional contexts – The case of Poland. Small Business Economics, 59(1), 397-412.
- Gaies, B., Najar, D., Maalaoui, A., Kraus, S., & El Tarabishy, A. (2021). Does financial development really spur nascent entrepreneurship in Europe? – A panel data analysis. Journal of Small Business Management.
- Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101-110.
- Hajighasemi, A., Oghazi, P., Aliyari, S., & Pashkevich, N. (2022). The impact of welfare state systems on innovation performance and competitiveness: European country clusters. Journal of Innovation & Knowledge, 7(4), 100236.
- Hameed, W. U., Nisar, Q. A., & Wu, H. C. (2021). Relationships between external knowledge, internal innovation, firms’ open innovation performance, service innovation and business performance in the Pakistani hotel industry. International Journal of Hospitality Management, 92, 102745.
- He, F., Ma, Y., & Zhang, X. (2020). How does economic policy uncertainty affect corporate innovation? – Evidence from China-listed companies. International Review of Economics & Finance, 67, 225-239.
- Hervás-Oliver, J. L., Parrilli, M. D., Rodríguez-Pose, A., & Sempere-Ripoll, F. (2021). The drivers of SME innovation in the regions of the EU. Research Policy, 50(9), 104316.
- Holzmann, P., Breitenecker, R. J., Schwarz, E. J., & Gregori, P. (2020). Business model design for novel technologies in nascent industries: An investigation of 3D printing service providers. Technological Forecasting and Social Change, 159, 120193.
- Indrawati, H., Caska, & Suarman. (2020). Barriers to technological innovations of SMEs: How to solve them? International Journal of Innovation Science, 12(5), 545-564.
- Jahangir, A., Usman, M., Murshed, M., Mahmood, H., & Balsalobre-Lorente, D. (2022). The linkages between natural resources, human capital, globalization, economic growth, financial development, and ecological footprint: The moderating role of technological innovations. Resources Policy, 76, 102569.
- Jalil, M. F., Ali, A., & Kamarulzaman, R. (2022). Does innovation capability improve SME performance in Malaysia? The mediating effect of technology adoption. The International Journal of Entrepreneurship and Innovation, 23(4), 253-267.
- Jalo, H., Pirkkalainen, H., Torro, O., Pessot, E., Zangiacomi, A., & Tepljakov, A. (2022). Extended reality technologies in small and medium-sized European industrial companies: Level of awareness, diffusion and enablers of adoption. Virtual Reality, 26(4), 1745-1761.
- Jurek, P., Olech, M., & Brycz, H. (2021). Perceived technostress while learning a new mobile technology: Do individual differences and the way technology is presented matter? Human Technology, 17(3), 197-212.
- Kaplinsky, R., & Kraemer-Mbula, E. (2022). Innovation and uneven development: The challenge for low- and middle-income economies. Research Policy, 51(2), 104394.
- Katila, R., Piezunka, H., Reineke, P., & Eisenhardt, K. M. (2022). Big fish versus big pond? Entrepreneurs, established firms, and antecedents of tie formation. Academy of Management Journal, 65(2), 427-452.
- Khan, S. A. R., Ponce, P., Yu, Z., & Ponce, K. (2022). Investigating economic growth and natural resource dependence: An asymmetric approach in developed and developing economies. Resources Policy, 77, 102672.
- Kiani, A., Yang, D., Ghani, U., & Hughes, M. (2022). Entrepreneurial passion and technological innovation: The mediating effect of entrepreneurial orientation. Technology Analysis & Strategic Management, 34(10), 1139-1152.
- Klein, L. L., Júnior, N. B., & Faccin, K. (2022). Innovation in networks of companies with different governance structures. International Journal of Business Excellence, 27(1), 125-146.
- Klein, V. B., & Todesco, J. L. (2021). COVID-19 crisis and SMEs responses: The role of digital transformation. Knowledge and Process Management, 28(2), 117-133.
- Kurmanov, N., Aliev, U., & Suleimenova, S. (2019). Analysis of the efficiency of innovation management in the countries of the Eurasian Economic Union. Polish Journal of Management Studies, 19(1), 204-214.
- Kutieshat, R., & Farmanesh, P. (2022). The impact of new human resource management practices on innovation performance during the COVID-19 crisis: A new perception on enhancing the educational sector. Sustainability, 14(5), 2872.
- Liu, Y., Dilanchiev, A., Xu, K., & Hajiyeva, A. M. (2022). Financing SMEs and business development as new post Covid-19 economic recovery determinants. Economic Analysis and Policy, 76, 554-567.
- Lorenzo, D., Núñez-Cacho, P., Akhter, N., & Chirico, F. (2022). Why are some family firms not innovative?: Innovation barriers and path dependence in family firms. Scandinavian Journal of Management, 38(1), 101182.
- Loureiro, S. M. C., Romero, J., & Bilro, R. G. (2020). Stakeholder engagement in co-creation processes for innovation: A systematic literature review and case study. Journal of Business Research, 119, 388-409.
- Marchiori, D. M., Rodrigues, R. G., Popadiuk, S., & Mainardes, E. W. (2022). The relationship between human capital, information technology capability, innovativeness and organizational performance: An integrated approach. Technological Forecasting and Social Change, 177, 121526.
- Martínez-Cháfer, L., Molina-Morales, F. X., & Roig-Tierno, N. (2023). Explaining technological innovation of the clustered firms: Internal and relational factors. Journal of Small Business Management, 61(4), 1929-1960.
- Meekaewkunchorn, N., Szczepańska-Woszczyna, K., Muangmee, C., Kassakorn, N., & Khalid, B. (2021). Entrepreneurial orientation and SME performance: The mediating role of learning orientation. Economics & Sociology, 14(2), 294-312.
- Mohamad, A., Mohd Rizal, A., Kamarudin, S., & Sahimi, M. (2022). Exploring the co-creation of small and medium enterprises and service providers enabled by digital interactive platforms for internationalization: A case study in Malaysia. Sustainability, 14(23), 16119.
- Molina-García, A., Diéguez-Soto, J., Galache-Laza, M. T., & Campos-Valenzuela, M. (2023). Financial literacy in SMEs: A bibliometric analysis and a systematic literature review of an emerging research field. Review of Managerial Science, 17(3), 787-826.
- Mushtaq, R., Gull, A. A., & Usman, M. (2022). ICT adoption, innovation, and SMEs’ access to finance. Telecommunications Policy, 46(3), 102275.
- Mustafa, M., & Treanor, L. (2022). Gender and entrepreneurship in the new era: New perspectives on the role of gender and entrepreneurial activity. Entrepreneurship Research Journal, 12(3), 213-226.
- Nasiri, M., Saunila, M., Rantala, T., & Ukko, J. (2022). Sustainable innovation among small businesses: The role of digital orientation, the external environment, and company characteristics. Sustainable Development, 30(4), 703-712.
- Nawawi, M. N., Samsudin, H., Saputra, J., Szczepańska-Woszczyna, K., & Kot, S. (2022). The effect of formal and informal regulations on industrial effluents and firm compliance behavior in Malaysia. Production Engineering Archives, 28(2), 193-200.
- Odilovich, O. A., & Nuraliyevich, J. B. (2021). Investing in corporate social responsibility, banking disclosure and finance in Uzbekistan. The American Journal of Management and Economics Innovations, 3(05), 86-94.
- Rajiani, I., & Ismail, N. (2019). Management innovation in balancing technology innovation to harness universities performance in the era of community 4.0. Polish Journal of Management Studies, 19(1), 309-321.
- Rajiani, I., Prayitno, H. J., Kot, S., Ismail, N., & Iswarani, W. P. (2023). Developing local education content supplementary textbook innovation by referencing to women in floating market. Indonesian Journal on Learning and Advanced Education (IJOLAE), 5(2), 136-150.
- Ramaditya, M., Maarif, M. S., Affandi, J., & Sukmawati, A. (2022). Reinventing talent management: How to maximize performance in higher education. Frontiers in Education, 7.
- Ratten, V. (2020). Coronavirus (covid-19) and entrepreneurship: Changing life and work landscape. Journal of Small Business & Entrepreneurship, 32(5), 503-516.
- Satispi, E., Rajiani, I., Murod, M., & Andriansyah, A. (2023). Human resources information system (HRIS) to enhance civil servants’ innovation outcomes: Compulsory or complimentary? Administrative Sciences, 13(2), 32.
- Setini, M., Yasa, N. N. K., Gede Supartha, I. W., Ketut Giantari, I. G. A., & Rajiani, I. (2020). The passway of women entrepreneurship: Starting from social capital with open innovation, through to knowledge sharing and innovative performance. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), 25.
- Shrestha, N. (2021). Factor analysis as a tool for survey analysis. American Journal of Applied Mathematics and Statistics, 9(1), 4-11.
- Skare, M., de las Mercedes de Obesso, M., & Ribeiro-Navarrete, S. (2023). Digital transformation and European small and medium enterprises (SMEs): A comparative study using digital economy and society index data. International Journal of Information Management, 68, 102594.
- Smallbone, D., Saridakis, G., & Abubakar, Y. A. (2022). Internationalisation as a stimulus for SME innovation in developing economies: Comparing SMEs in factor-driven and efficiency-driven economies. Journal of Business Research, 144, 1305-1319.
- Szczepańska-Woszczyna, K., & Gatnar, S. (2022). Key competences of research and development project managers in high technology sector. Forum Scientiae Oeconomia, 10(3), 107-130.
- Teirlinck, P. (2022). Enhancing R&D employment slack during environmental turbulence: Triggers and firm performance consequences for R&D-active SMEs. Technovation, 118, 102622.
- Thukral, E. (2021). COVID-19: Small and medium enterprises challenges and responses with creativity, innovation, and entrepreneurship. Strategic Change, 30(2), 153-158.
- Torres de Oliveira, R., Gentile-Lüdecke, S., & Figueira, S. (2022). Barriers to innovation and innovation performance: The mediating role of external knowledge search in emerging economies. Small Business Economics, 58(4), 1953-1974.
- Toxopeus, H., Achterberg, E., & Polzin, F. (2021). How can firms access bank finance for circular business model innovation? Business Strategy and the Environment, 30(6), 2773-2795.
- Trinugroho, I., Pamungkas, P., Wiwoho, J., Damayanti, S. M., & Pramono, T. (2022). Adoption of digital technologies for micro and small business in Indonesia. Finance Research Letters, 45, 102156.
- Vahdat, S. (2022). The role of IT-based technologies on the management of human resources in the COVID-19 era. Kybernetes, 51(6), 2065-2088.
- Vivona, R., Demircioglu, M. A., & Audretsch, D. B. (2023). The costs of collaborative innovation. The Journal of Technology Transfer, 48(3), 873-899.
- Vu, N. H., & Nguyen, N. M. (2022). Development of small and medium-sized enterprises through information technology adoption persistence in Vietnam. Information Technology for Development, 28(3), 585-616.
- Widyanti, R. (2020). The effect of individual characteristics of the millennial generation on entrepreneurship behaviors: Empirical evidence on SMEs. In R. Hurriyati, B. Tjahjono, A. G. Abdullah, Sulastri, & Lisnawati (Eds.), Advances in Business, Management and Entrepreneurship (pp. 621-624). London: CRC Press.
- Wirdiyanti, R., Yusgiantoro, I., Sugiarto, A., Harjanti, A. D., Mambea, I. Y., Soekarno, S., & Damayanti, S. M. (2022). How does e-commerce adoption impact micro, small, and medium enterprises’ performance and financial inclusion? Evidence from Indonesia. Electronic Commerce Research.
- Zhang, C., Khan, I., Dagar, V., Saeed, A., & Zafar, M. W. (2022). Environmental impact of information and communication technology: Unveiling the role of education in developing countries. Technological Forecasting and Social Change, 178, 121570.
- Zhu, M., & Tao, Y. (2022). Economic policy uncertainty, entrepreneurial risk appetite, and corporation innovation in innovative cities – Empirical evidence from the Shenzhen Special Economic Zone. Management Decision.
-
-
Conceptualization
Ismi Rajiani, Sebastian Kot, Janusz Michałek, I Gede Riana
-
Data curation
Ismi Rajiani, Janusz Michałek, I Gede Riana
-
Formal Analysis
Ismi Rajiani, Sebastian Kot, I Gede Riana
-
Investigation
Ismi Rajiani, Sebastian Kot, I Gede Riana
-
Methodology
Ismi Rajiani, Janusz Michałek
-
Software
Ismi Rajiani
-
Writing – original draft
Ismi Rajiani
-
Resources
Sebastian Kot, I Gede Riana
-
Validation
Sebastian Kot, Janusz Michałek
-
Project administration
Janusz Michałek, I Gede Riana
-
Writing – review & editing
Janusz Michałek, I Gede Riana
-
Conceptualization
-
Talent management strategies of a public UAE hospital in the Industry 4.0 era: A qualitative analysis
Problems and Perspectives in Management Volume 19, 2021 Issue #2 pp. 14-27 Views: 2048 Downloads: 679 TO CITE АНОТАЦІЯTalents play a critical role in achieving organizational strategic goals and a higher level of performance in the healthcare industry. Therefore, the UAE government, which strives to provide world-class healthcare services, encouraged the adoption of talent management strategies and creation of essential capabilities for talent recruitment, development, and retaining. This study explores the talent management strategies, policies, and practices in multiple departments of a public UAE hospital. Moreover, it investigates required skills, competencies, and programs for those departments in the context of Industry 4.0. The study adopted a case study approach and qualitatively surveyed a purposive sample of 13 departmental managers, section heads, and supervisors who are experienced in employee management. The study found that talent management at the studied hospital is undefined and unclear in terms of strategies, policies, and practices. Furthermore, the study highlighted the need for employee encouragement, motivation, and engagement, as well as confirmed the critical role of management and leadership in facilitating talent management in the hospital. Accordingly, a UAE hospital could benefit from this study to develop its talent management policy and strategies that will guide managers in the Industry 4.0 era.
Acknowledgment
The nursing administration, nursing research committee at Tawam hospital and managers who responded to the study survey are acknowledged for the extension of support for the study. -
Working hours reduction, financial constraints, and employment: evidence from Korean firms
Problems and Perspectives in Management Volume 16, 2018 Issue #4 pp. 75-82 Views: 1845 Downloads: 177 TO CITE АНОТАЦІЯThis study analyzes the effect of reducing working time to a 40-hour week standard on employment, using the data of 1,961 publicly traded firms in Korea. The objective of the study is to empirically estimate the economy-wide effect of this working hours reduction on employment in Korea. This paper also attempts to uncover the effect of financial constraints, defined as the degree of accessibility to finance, on employment stability or sustainability. Some economic theories suggest that financial constraints have mixed or conflicting effects on employment. Building on labor and finance literature such as Garmaise (2007), easing financial constraints helps firms to optimally substitute capital for labor, thereby decreasing employment. Likewise, financially constrained firms are limited by the availability of internal funds, and a decrease in the external financing cost will increase firm-level human resource investment, such as employment. Using a longitudinal data on publicly listed companies in Korea, the author examines variations in the timing of implementing the working hours reduction in terms of establishment size to see if the effect of working hours reduction on employment differs with the degree of financial constraints of firms. This paper finds that the economy-wide effect on employment of work-hours reduction is positive, approximately 3.5% increase in employment. The results, however, show that there is no effect of the working hours reduction on employment in less financially constrained firms or larger corporations, whereas a substantial positive effect on employment is in smaller firms or financially constrained firms, supporting the Garmaise’s prediction.
-
The influence of human resource management practices on employee performance: A case study of Al-Balqa Applied University
Problems and Perspectives in Management Volume 21, 2023 Issue #1 pp. 279-290 Views: 1636 Downloads: 515 TO CITE АНОТАЦІЯHuman resources management (HRM) has become critical in modern empirical studies. This study examines the impact of several critical HRM practices, including workforce planning, recruitment and selection, training and development, compensation, and employee appraisal, on employee performance. The study selected employees of Al-Balqa Applied University in Jordan to conduct a survey totaling 150 respondents. The paper adopted a quantitative research approach to achieve the study objectives using self-administrated questionnaires for data collection. The study used the SPSS software to conduct the primary analyses. The results showed that the university’s application of HRM practices was at a high level, where training and development took first place in priority. However, the study suggested a change in HRM practices in the pursuit of excellence to improve the productivity of employees at the university. Therefore, personnel management should always strives to implement one or another strategy of the university, based on which appropriate human resource management practices are chosen.