Artificial intelligence as an enabler of platform-based financial ecosystems: Evidence from commercial and Islamic banks listed on the Amman Stock Exchange

In the current era, the challenges faced by SMEs in Indonesia are becoming increasingly complex. Previously, the primary challenge for SMEs has been to enhance performance. However, with the emergence of information technology, SMEs are now required to compete fiercely. SMEs in Indonesia are still in the process of digital transformation to improve their business strategies, thus limiting research focused on digital transformation in SMEs. Research also considers market complexity and digital strategy as crucial factors for SMEs. The aim of this study is to analyze the role of digital transformation in influencing SME performance. The research approach is quantitative, involving 171 SMEs owners as respondents. The instrument utilized is a Likert scale questionnaire, focusing on the majority of SMEs in Indonesia, particularly those in Java, the most populous island and business center of the country. This includes SMEs operating within various sectors, such as culinary, fashion, retail, and creative industries. The results indicate that digital strategy and market complexity influence digital transformation and SMEs performance. The research findings suggest that digital transformation mediates the influence of digital strategy and market complexity on SME performance. The novelty of this study lies in its focus on the current SMEs digitalization strategy area. This study indicates that digital transformation is an essential aspect affecting current SME performance. The results suggest that SMEs require focused strategies to strengthen resources and gain competitive advantage in complex markets.

The purpose of the paper is to select the right market proxy for calculating the expected return, since critically evaluating proxies or selecting the correct proxy market portfolio is essential for portfolio management because the change in the market portfolio proxy affects returns. In this study, monthly data of equity indices are evaluated to find out the better market proxy. The indices taken are BSE 30 (Sensex), Nifty 50, BSE 100, BSE 200, and BSE 500. The macroeconomic variables used in the study are industrial production index (IIP), consumer price index (CPI), money supply (M1), and exchange rate in India. To avoid the influence of COVID-19, the research period was from January 2013 to December 2019 to critically evaluate these proxies in order to find the most appropriate market proxy. This paper reveals a noteworthy relationship between stock market returns and macroeconomic factors, while suggesting that the BSE 500 is a better choice for all equity indices, as the index also shows a significant relationship with all macroeconomic variables. BSE500 is a composite index comprising all sectors with low, mid and large cap securities, therefore it reflects the impact of macroeconomic factors most efficiently, taking it as a market proxy. This study was carried out in the context of India and can be replicated for other countries.

From a global perspective, the business environment has become highly dynamic, unpredictable, and competitive due to external forces – mostly technology – that generate change. The aim of this study is to investigate the influence of digital technologies on South African business sectors. The sample includes small and medium enterprises (SMEs) in the KwaZulu-Natal province. Being qualitative by design, the study used semi-structured interviews for data collection, with eight interviews in the Durban area. SME managers were purposefully selected as participants based on their management positions in the business/company and that they oversee the business operation and understand the influence of digital transformation in the business. The interviews were then transcribed after data collection to determine any recurring themes. In the effectiveness of digital transformation, the study identified themes such as “gaining exposure” and “gaining effective sales figures” as a result of implementing digital transformation, which was indicated by six of eight participants. The findings showed that digital transformation significantly affects building customer relationships and ensuring easy accessibility of the business. The results further indicate online selling and digital marketing as the leading digital platforms successfully implemented by most South African SMEs. Lastly, the study revealed digital maintenance and rapid changes in technology as challenging factors. Moreover, the study recommends that South African SMEs implement more available digital technologies to gain additional exposure.