THE NAHDLIYAH SPIRITUAL VALUE PERSPECTIVE IN ANALYZING THE ROLE OF FINANCIAL PERFORMANCE OF MSME

Bedjo Santoso, Hendar Hendar, Zaenudin Zaenudin, Razali Bin Haron

Abstract


The most researches related to the Nahdlatul Ulama (NU) community business performance is just focus on the role of entrepreneur, ICT, e-commerce, marketing, and other common variables that have ignored the important concept which initiated from the main value of the NU’s movement philosophy. It is therefore, this study aimed to analyses the role of Nahdliyah spiritual value (NSV) to NU’s busines performance. NSV considered as new concept synthesized by combining resource advantage on competition theory (RACT) and social identity theory (SIT) inserted by Nahdliyin value concept.  The object of this research is the NU business community members of the NU Entrepreneurs Association (HPN). This study used a quantitative method with purposive sampling to select 350 MSMEs (UMKM) under HPN in Central Java and tested the regressive relationship of 6 variables with SEM PLS 4.0. The findings show that digital marketing capabilities, ICT, and entrepreneurial spirit are the factors that most support the existence of NSV. Besides that, NSV plays a role in mediating the relationship between these three factors to financial performance in an MSME. This study fulfils the theoretical gaps and produces new perspectives into the spiritual value concept of resource advantage theory on the competition by inserting spiritual values implemented in MSMEs based on spiritual community businesses. This research contributes to the development of a new concept of NSV. The study also covered the research gap related to the relationship between the variables involved.


Keywords


Nahdliyah Spiritual Value; Financial Performance; MSMEs; Business Community

Full Text:

PDF

References


Abrokwah-Larbi, K. and Awuku-Larbi, Y. 2023. The Impact of Artificial Intelligence in Marketing on the Performance of Business Organizations: Evidence from SMEs in an Emerging Economy. Journal of Entrepreneurship in Emerging Economies. DOI: https://doi.org/10.1108/JEEE-07-2022-0207.

Alarcón-del-Amo, M.-C., Rialp-Criado, A., and Rialp-Criado, J. 2018. Examining the Impact of Managerial Involvement with Social Media on Exporting Firm Performance. International Business Review, 27(2), pp. 355–366. DOI: https://doi.org/10.1016/j.ibusrev.2017.09.003.

Bauman, A., McFadden, D. T., and Jablonski, B. B. R. 2018. The Financial Performance Implications of Differential Marketing Strategies: Exploring Farms that Pursue Local Markets as a Core Competitive Advantage. Agricultural and Resource Economics Review, 47(3), pp. 477–504. DOI: https://doi.org/10.1017/age.2017.34.

Cahyono, Y., Purwoko, D., Koho, I. R., Setiani, A., Supendi, Setyoko, P. I., Sosiady, M., and Wijoyo, H. 2023. The Role of Supply Chain Management Practices on Competitive Advantage and Performance of Halal Agroindustry SMEs. Uncertain Supply Chain Management, 11(1), pp. 153–160. DOI: https://doi.org/10.5267/j.uscm.2022.10.012.

Chakraborty, T., Bhandari, H., and Mittal, A. 2022. Examining Teachers' Satisfaction with the New Normal in a Disruptive Online Hospitality, Travel, and Tourism Education System. Global Knowledge, Memory, and Communication. DOI: https://doi.org/10.1108/GKMC-04-2022-0095.

De Pater, C., Verschuuren, B., Elands, B., van Hal, I., and Turnhout, E. 2023. Spiritual Values in Forest Management Plans in British Columbia and the Netherlands. Forest Policy and Economics, 151(April), pp. 102955. DOI: https://doi.org/10.1016/j.forpol.2023.102955.

Dela Cruz, N. A., Villanueva, A. C. B., Tolin, L. A., Disse, S., Lensink, R., and White, H. 2023. PROTOCOL: Effects of Interventions to Improve Access to Financial Services for Micro‐, Small‐ and Medium‐Sized Enterprises in Low‐ and Middle‐Income Countries: An Evidence and Gap Map. Campbell Systematic Reviews, 19(3). DOI: https://doi.org/10.1002/cl2.1341.

Estensoro, M., Larrea, M., Müller, J. M., and Sisti, E. 2022. A Resource-Based View on SMEs Regarding the Transition to More Sophisticated Stages of Industry 4.0. European Management Journal, 40(5), pp. 778–792. DOI: https://doi.org/10.1016/j.emj.2021.10.001.

Fahmi, A. N. 2020. Wapres RI Hadiri Harlah Himpunan Pengusaha Nahdliyin, Ini Pesannya. Timesindonesia.Co.Id. https://timesindonesia.co.id/peristiwa-nasional/302020/wapres-ri-hadiri-harlah-himpunan-pengusaha-nahdliyin-ini-pesannya.

Fauzi, M. U. 2019. Implementasi Konsep “Mabadi Khaira Ummah Nahdlatul Ulama” sebagai Bentuk Moderasi Islam di Kabupaten Nganjuk. Tafhim Al-’Ilmi, 11(1), pp. 119–147. DOI: https://doi.org/10.37459/tafhim.v11i1.3558.

Fesharaki, F. 2019. Entrepreneurial Passion, Self-efficacy, and Spiritual Intelligence among Iranian SME Owner–Managers. Psychological Studies, 64(4), pp.429–435. DOI: https://doi.org/10.1007/s12646-019-00507-0.

Frindte, Wolfgang. 2021. Social Identity and Intergroup Relations. (March 2016). DOI: 10.1007/978-3-658-13213-2.

Fujita, M., Harrigan, P., and Soutar, G. N. 2018. Capturing and Co-Creating Student Experience in Social Media: A Social Identity Theory Perspective. Journal of Marketing Theory and Practice, 26(1–2), pp. 55–71. DOI: https://doi.org/10.1080/10696679.2017.1389245.

Gregory, G. D., Ngo, L. V., and Karavdic, M. 2019. Developing E-Commerce Marketing Capabilities and Efficiencies for Enhanced Performance in Business-to-Business Export Ventures. Industrial Marketing Management, 78, pp. 146–157. DOI: https://doi.org/10.1016/j.indmarman.2017.03.002.

Gyamera, E., Abayaawien Atuilik, W., Eklemet, I., Henry Matey, A., Tetteh, L. A., and Kwasi Apreku-Djan, P. 2023. An Analysis of the Effects of Management Accounting Services on the Financial Performance of SME: The Moderating Role of Information Technology. Cogent Business and Management, pp. 10(1). DOI: https://doi.org/10.1080/23311975.2023.2183559.

Hai, N. M., Minh-Tu, L., and Dung, N. D. 2023. Survival of SMEs: Business Environment, Financial Performance, Bank Credit, and Accounting Errors. Macroeconomics and Finance in Emerging Market Economies. DOI: https://doi.org/10.1080/17520843.2023.2238993.

Hair, J. F., Tomas, M. H., Ringle, C., and Sarstedte, M. 2017. A Primer on Partial Least Squares Structural Equation Modeling (PLSM-SEM).

Harwood, J. 2020. Social Identity Theory. In The International Encyclopedia of Media Psychology, (pp. 1–7). Wiley. DOI: https://doi.org/10.1002/9781119011071.iemp0153.

Hasan, Amiruddin. 2021. An Overview of E-Commerce Adoption in Indonesian SMEs. DOI: 10.1088/1742-6596/1811/1/012104.

Hendar, Ferdinand, A. T., and Nurhayati, T. 2017a. Introducing the Religio-Centric Positional Advantage to Indonesian Small Businesses. Management and Marketing, 12(1), pp. 78–102. DOI: https://doi.org/10.1515/mmcks-2017-0006.

Hendar, H., Ferdinand, A. T., and Nurhayati, T. 2017b. Introducing the Religio-Centric Positional Advantage to Indonesian Small Businesses. Management and Marketing, 12(1), pp. 78–102. DOI: https://doi.org/10.1515/mmcks-2017-0006.

Hendar, H., Nurhayati, T., and Sugiyarti, G. 2018a. Religio-Centric Fashion Advantage on Marketing Performance: The Role of Innovativeness and Customer Responsiveness. Contaduria y Administracion, 63(4), pp. 1–20. DOI: https://doi.org/10.22201/fca.24488410e.2018.1378.

Hendar, H., Nurhayati, T., and Sugiyarti, G. 2018b. Religio-Centric Fashion Advantage on Marketing Performance: The Role of Innovativeness and Customer Responsiveness. Contaduría y Administración, 63(4), pp. 60. DOI: https://doi.org/10.22201/fca.24488410e.2018.1378.

Hendar, H., Zulfa, M., Ratnawati, A., and Mulyana, M. 2020. Religio-Centric Product Strategy on Marketing Performance. Journal of Research in Marketing and Entrepreneurship, 22(2), pp. 181–203. DOI: https://doi.org/10.1108/JRME-02-2019-0014.

Hilkenmeier, F., Bohndick, C., Bohndick, T., and Hilkenmeier, J. 2020. Assessing Distinctiveness in Multidimensional Instruments Without Access to Raw Data – A Manifest Fornell-Larcker Criterion. Frontiers in Psychology, pp. 11. DOI: https://doi.org/10.3389/fpsyg.2020.00223.

Howard, M., Böhm, S., and Eatherley, D. 2022. Systems Resilience and SME Multilevel Challenges: A Place-Based Conceptualization of the Circular Economy. Journal of Business Research, 145, pp. 757–768. DOI: https://doi.org/https://doi.org/10.1016/j.jbusres.2022.03.014.

Huda, Samsul. 2021. Nu Online. Accessed August 02, 2023. https://jateng.nu.or.id/nasional/wapres-muskernas-hpn-harus-jadi-momentum-kebangkitan-kedua-nu-di-sektor-ekonomi-i6OHt.

Isichei, E. E., Emmanuel Agbaeze, K., and Odiba, M. O. 2020. Entrepreneurial Orientation and Performance in SMEs. International Journal of Emerging Markets, 15(6), pp. 1219–1241.DOI: https://doi.org/10.1108/IJOEM-08-2019-0671.

Ives, C. D. and Kidwell, J. 2019. Religion and Social Values for Sustainability. Sustainability Science, 14(5), pp. 1355–1362. DOI: https://doi.org/10.1007/s11625-019-00657-0.

Jahanbakhsh-Javid, N. and Amini, M. 2023. Evaluating the Effect of Supply Chain Management Practice on Implementation of Halal Agroindustry and Competitive Advantage for Small and Medium Enterprises. International Journal of Computer Science and Information Technology, 15(2023), pp. 8997–9008.

Jie Feng, Z. W. 2018. A Nonlinearized Multivariate Dominant Factor–Based Partial Least Squares (PLS) Model for Coal Analysis Using Laser-Induced Breakdown Spectroscopy. Applied Spectroscopy, 67(3). DOI: https://doi.org/https://doi.org/10.1366/11-06.

Jones, T. M., Harrison, J. S., and Felps, W. 2018. How Applying Instrumental Stakeholder Theory Can Provide Sustainable Competitive Advantage. Academy of Management Review, 43(3), pp. 371–391. DOI: https://doi.org/10.5465/amr.2016.011.

Kiyabo, K. and Isaga, N. 2020. Entrepreneurial Orientation, Competitive Advantage, and SMEs' Performance: Application of Firm Growth and Personal Wealth Measures. Journal of Innovation and Entrepreneurship, 9(1), pp. 12. DOI: https://doi.org/10.1186/s13731-020-00123-7.

Kulathunga, K. M. M. C. B., Ye, J., Sharma, S., and Weerathunga, P. R. 2020. How Does Technological and Financial Literacy Influence SME Performance: Mediating Role of ERM Practices. MDPI.

Kurt, Y., Sinkovics, N., Sinkovics, R. R., and Yamin, M. 2020. The Role of Spirituality in Islamic Business Networks: The Case of Internationalizing Turkish SMEs. Journal of World Business, 55(1), pp. 101034. DOI: https://doi.org/10.1016/j.jwb.2019.101034.

Leong, L.-Y., Hew, J.-J., Lee, V.-H., Tan, G. W.-H., Ooi, K.-B., and Rana, N. P. 2023. An SEM-ANN Analysis of the Impacts of Blockchain on Competitive Advantage. Industrial Management and Data Systems, 123(3), pp. 967–1004. DOI: https://doi.org/10.1108/IMDS-11-2021-0671.

Lestari, D., Zainurossalamia, S. Z. A., Maria, S., Wardhani, W., and Yudaruddin, R. 2021. The Impact of the COVID-19 Pandemic on the Performance of Small Enterprises That Are E-Commerce Adopters and Non-Adopters. 19(3), pp. 467–77. DOI: 10.21511/ppm.19(3).2021.38.

Liu, H. and Yang, H. 2019. Managing Network Resource and Organizational Capabilities to Create Competitive Advantage for SMEs in a Volatile Environment. Journal of Small Business Management, 57(sup2), pp. 155–171. DOI: https://doi.org/10.1111/jsbm.12449.

Malangen, A. 2022. Information and Communications Technology (ICT) Competency and Capability of Sauyo High School Teachers: A Basis for ICT Development Plan. SSRN Electronic Journal. DOI: https://doi.org/10.2139/ssrn.4183485.

Malhotra, N. K. 2021. REVIEW of Marketing Research. In Revista de Llengua i Dret, Issue 75. M.E.Sharpe, Inc. DOI: https://doi.org/10.2436/rld.i75.2021.3656.

Maulida, Y. and Santoso, B. 2022. IT for E-Commerce, Financial Literacy, Financial Inclusion, and SMEs Performance: Mediating Role of Spiritual Value. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 5(3), pp. 27186–27196.

Nayak, B., Bhattacharyya, S. S., and Krishnamoorthy, B. 2023. Integrating the Dialectic Perspectives of Resource-Based View and Industrial Organization Theory for Competitive Advantage – A Review and Research Agenda. Journal of Business and Industrial Marketing, 38(3), pp. 656–679. DOI: https://doi.org/10.1108/JBIM-06-2021-0306.

Nazaina, N., Raza, H., and Nur Faliza, N. F. 2023. Pelatihan Pengolahan Data menggunakan SEM PLS bagi Mahasiswa S1 Akuntansi FEB Universitas Malikussaleh. Jurnal Malikussaleh Mengabdi, 2(1), pp. 161. DOI: https://doi.org/10.29103/jmm.v2i1.9430.

Paruzel, A., Danel, M., and Maier, G. W. 2020. Scrutinizing Social Identity Theory in Corporate Social Responsibility: An Experimental Investigation. Frontiers in Psychology, 11. DOI: https://doi.org/10.3389/fpsyg.2020.580620.

Patel, P. C., Pearce, J. A., and Guedes, M. J. 2019. The Survival Benefits of Service Intensity for New Manufacturing Ventures: A Resource-Advantage Theory Perspective. Journal of Service Research, 22(4), pp. 352–370. DOI: https://doi.org/10.1177/1094670519838616.

Prakoso, A., Triyuwono, I., Purwanti, L., and Roekhudin, R. 2023. How Should Intellectual Capital Development? An Islamic Religious Perspective. International Journal of Professional Business Review, 8(5), e01819. DOI: https://doi.org/10.26668/businessreview/2023.v8i5.1819.

Prayitno, G., Hayat, A., Efendi, A., Auliah, A., and Dinanti, D. 2022. Structural Model of Community Social Capital for Enhancing Rural Communities Adaptation against the COVID-19 Pandemic: Empirical Evidence from Pujon Kidul Tourism Village, Malang Regency, Indonesia. Sustainability (Switzerland), 14(19). DOI: https://doi.org/10.3390/su141912949.

Quaye, D. and Mensah, I. 2019. Marketing Innovation and Sustainable Competitive Advantage of Manufacturing SMEs in Ghana. Management Decision, 57(7), pp. 1535–1553. DOI: https://doi.org/10.1108/MD-08-2017-0784.

Rasoolimanesh, S. M. 2022. Discriminant Validity Assessment in PLS-SEM: A Comprehensive Composite-Based Approach. Data Analysis Perspectives Journal, 3(2), pp. 1–8.

Rua, O., França, A., and Fernández Ortiz, R. 2018. Key Drivers of SMEs Export Performance: The Mediating Effect of Competitive Advantage. Journal of Knowledge Management, 22(2), pp. 257–279. DOI: https://doi.org/10.1108/JKM-07-2017-0267.

Sanistasya, P.A., Rahardjo, K., and Iqbal, M. 2019. Pengaruh Literasi Keuangan dan Inklusi Keuangan terhadap Kinerja Usaha Kecil di Kalimantan Timur. 14, pp. 48–59.

Santoso, B., Widodo, W., Akbar, M. T., Ahmad, K., and Setianto, R. H. 2022. The Determinant of Sukuk Rating: Agency Theory and Asymmetry Theory Perspectives. Risks, 10(8). DOI: https://doi.org/10.3390/risks10080150.

Sathana, V., Velnampy, T., and Rajumesh, S. 2021. Role of Innovative Marketing Strategy for Success of Micro, Small, and Medium Enterprises (MSMEs). In New Horizons in Management, Leadership and Sustainability, pp. 57–79. DOI: https://doi.org/10.1007/978-3-030-62171-1_4.

Scheepers, D. and Ellemers, N. 2016. Social Identity Theory. In Social Psychology in Action: Evidence-Based Interventions from Theory to Practice, Vol. 6, Issue August. https://dspace.library.uu.nl/bitstream/handle/1874/387902/Scheepers_Ellemers_2019b.pdf?sequen.

Seering, J., Ng, F., Yao, Z., and Kaufman, G. 2018. Applications of Social Identity Theory to Research and Design in Social Computing. Proceedings of the ACM on Human-Computer Interaction, 2(CSCW). DOI: https://doi.org/10.1145/3274771.

Situmorang, T. P. and Indriani, F. 2023. Market-Based Innovation Capability: A Perspective of Resource Advantage Theory of Competition. In Proceedings of the 3rd Annual Management, Business and Economics Conference (AMBEC 2021), Vol. 2, pp. 191–203. Atlantis Press International BV. DOI: https://doi.org/10.2991/978-94-6463-026-8_22.

Sudarti, K. and Fachrunnisa, O. 2023. Religious Value Co-Creation: Measurement Scale and Validation. In Journal of Islamic Marketing. Emerald Publishing. DOI: https://doi.org/10.1108/JIMA-08-2022-0223.

Sukaatmadja, I. P. G., Yasa, N. N. K., Rahyuda, H., Setini, M., and Dharmanegara, I. B. A. 2021. Competitive Advantage to Enhance Internationalization and Marketing Performance Woodcraft Industry: A Perspective of Resource-Based View Theory. Journal of Project Management, 6, pp. 45–56. DOI: https://doi.org/10.5267/j.jpm.2020.9.002.

Sulistya. 2022. Omzet UMKM Jateng Tembus Rp 68,3 Triliun. Beritajateng. https://jatengaja.com/read/omzet-umkm-jateng-tembus-rp-68-3-triliun.

Susanto, B. 2021. Akumulasi Utang UMKM di Jateng Capai Rp 608 Miliar Lebih, Ini Saran Pengamat Ekonomi UNNES. Tribunjateng.Com. https://jateng.tribunnews.com/2021/12/16/akumulasi-utang-umkm-di-jateng-capai-rp-608-miliar-lebih-ini-saran-pengamat-ekonomi-unnes?page=all.

Tehseen, S., Ramayah, T., and Sajilan, S. 2017. Testing and Controlling for Common Method Variance: A Review of Available Methods. Journal of Management Sciences, 4(2), pp. 142–168. DOI: https://doi.org/10.20547/jms.2014.1704202.

Topaloglu, O., McDonald, R. E., and Hunt, S. D. 2018. The Theoretical Foundations of Nonprofit Competition: A Resource-Advantage Theory Approach. Journal of Nonprofit and Public Sector Marketing, 30(3), pp. 229–250. DOI: https://doi.org/10.1080/10495142.2018.1452818.

Tri Cahya, B., Munawwaroh, S., Surepno, S., and Andriyanto, I. 2021. The Spiritual Entrepreneur of The Santri Based on Falsafah Local Wisdom Gusjigang in The City of Kudus. Al Tijarah, 7(1), pp. 26. DOI: https://doi.org/10.21111/tijarah.v7i1.5636.

Triono, A. L. 2022. Inilah Program HPN 2022-2027: Penguatan Organisasi hingga Edukasi Bisnis. Nuonline. https://www.nu.or.id/nasional/inilah-program-hpn-2022-2027-penguatan-organisasi-hingga-edukasi-bisnis-Bc0dH.

Utami, E. S., Aprilia, M. R., and Putra, I. C. A. 2021. Financial Literacy of Micro, Small, and Medium Enterprises of Consumption Sector in Probolinggo City. Jurnal Manajemen Dan Kewirausahaan, 23(1), pp. 10–17. DOI: https://doi.org/10.9744/jmk.23.1.10-17.

Uwah, U. E., Udoayang, J. O., and Uklala, P. A. 2022. Post COVID-19 and the Acceptance of Financial Inclusion as a New Normal in Financial Transactions : Implications for Nigerian Accountants and Other Post COVID-19 and the Acceptance of Financial Inclusion as a New Normal in Financial Transactions : Implica. Athens Journal of Business & Economics, 10(May), pp. 1–21. DOI: 10.30958/ajbe.8-3-1.

Varadarajan, R. 2023. Resource Advantage Theory, Resource Based Theory, and Theory of Multimarket Competition: Does Multimarket Rivalry Restrain Firms from Leveraging Resource Advantages?. Journal of Business Research, 160, pp. 113713. DOI: https://doi.org/10.1016/j.jbusres.2023.113713.

Wang, F. 2020. Digital Marketing Capabilities in International Firms: A Relational Perspective. International Marketing Review, 37(3), pp. 559–577. DOI: https://doi.org/10.1108/IMR-04-2018-0128.

Wewengkang, C. B. P., Mangantar, M., and Wangke, S. J. C. 2021. The Effect of Financial Technology Use and Financial Literacy Towards Financial Inclusion in Manado ( Case Study : FEB Students in Sam Ratulangi University Manado ). Pengaruh Penggunaan Teknologi Keuangan dan Literasi Keuangan Terhadap Inklusi Keuangan. EMBA, 9(2), pp. 599–606.

Wirdiyanti, Rosnita. 2019. The Impact of E-Commerce Adoption on MSMEs Performance and Financial Inclusion (FI) in Indonesia. OJK, December, pp. 1–19.

Wongsansukcharoen, J. and Thaweepaiboonwong, J. 2023. Effect of Innovations in Human Resource Practices, Innovation Capabilities, and Competitive Advantage on Small and Medium Enterprises Performance in Thailand. European Research on Management and Business Economics, 29(1), pp. 100210. DOI: https://doi.org/10.1016/j.iedeen.2022.100210.

Wyllie, T. M. 2021. Qualitative and Quantitative Research Approaches. Unicaf University, January.

Zenniar, S. 2023. People's Business Credit, Capital Management, and Spiritual Value in Improving MSMEs Performance. AL-AMWAL: Jurnal Ekonomi Perbankan Syariah, 15(1), pp. 73–85. DOI: https://doi.org/10.24235/amwal.v.

Zhang, X., Chu, Z., Ren, L., and Xing, J. 2023. Open Innovation and Sustainable Competitive Advantage: The Role of Organizational Learning. Technological Forecasting and Social Change, 186(October 2022), pp. 122114. DOI: https://doi.org/10.1016/j.techfore.2022.122114.

Zhao, Y. and Fan, B. 2018. Exploring Open Government Data Capacity of Government Agency: Based on the Resource-Based Theory. Government Information Quarterly, 35(1), pp. 1–12. DOI: https://doi.org/10.1016/j.giq.2018.01.002.




DOI: http://dx.doi.org/10.21776/ub.jam.2023.021.03.06

Refbacks

  • There are currently no refbacks.