Article Sidebar

Submitted
July 20, 2022
Accepted
December 19, 2022
Published
December 19, 2022
Download
Full text PDF
Statistic
Read Counter : 523 Download : 870

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – This study aimed to determine the extent to which the model of Hikmah Knowledge Capture Insolvency can be used as a solution in increasing knowledge and understanding good business financial management as a form of financial accountability in realizing better financial performance in addition to fill research gaps from previous research results.


Design/Methodology/Approach – Respondents of this study were ATBM Weaving SMEs in Central Java. Researchers took three regencies as research objects, namely Jepara Regency, Pemalang Regency and Klaten Regency. A total of 110 respondents were selected by purposive sampling technique. The data was analyzed by using the Structural Equation Modeling (SEM) analysis technique with the application of Analysis Moment of Structural (AMOS.24).


Finding – The results of the study explained that the dimensions of entrepreneurial orientation in this research variable included innovativeness, risk taking and proactivity. These variables supported the realization of financial responsibility and financial performance through understanding the conditions of liquidity difficulties (Hikmah Knowledge Capture Insolvency).


Research Limitation/Implication – The measurement of Hikmah Knowledge Capture Insolvency in business financial management is only limited to SMEs weaving specifically ATBM.


Practical Implication – The realization of financial responsibility in entrepreneurship orientation through the Hikmah Knowledge Capture Insolvency.


Originality/Value – Using the basis of Capital Structure Theory, Knowledge Management through the concept of the Integrated Knowledge Management Cycle, and the values of Hikmah, the framework of this study is directed to address the influence between entrepreneurial orientation to financial performance through realization of Hikmah Knowledge Capture Insolvency and financial responsibility.

Keywords

Entrepreneurial orientation, innovativeness, risk taking, proactivity, hikmah knowledge capture insolvency, financial responsibility, financial performance

Article Details

License

Copyright (c) 2023 Anna Widiastuti, Ibnu Khajar, Nunung Ghoniyah

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Widiastuti, A., Khajar, I. ., & Ghoniyah, N. (2022). Hikmah knowledge capture insolvency on MSME responsibility and financial performance. Jurnal Siasat Bisnis, 27(1), 31–48. https://doi.org/10.20885/jsb.vol27.iss1.art3
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abdulrab, M., Alwaheeb, M. A., Al‐Mamary, Y. H., Alshammari, N. G., Balhareth, H., Soltane, H. B., & Saleem, I. (2022). Effect of entrepreneurial orientation and strategic orientations on financial and nonfinancial performance of small and medium enterprises in Saudi Arabia. Journal of Public Affairs, 22(2), e2305.
  2. Ahinful, G. S., Boakye, J. D., & Osei Bempah, N. D. (2021). Determinants of SMEs’ financial performance: evidence from an emerging economy. Journal of Small Business & Entrepreneurship, 1-24.
  3. Aktan, B., & Bulut, C. (2008). Financial performance impacts of corporate entrepreneurship in emerging markets: A case of Turkey. European journal of economics, finance and administrative sciences, 12(8), 1530-2275.
  4. Al Breiki, M., & Nobanee, H. (2019). The role of financial management in promoting sustainable business practices and development. Available at SSRN 3472404.
  5. Alvarez-Torres, F. J., Lopez-Torres, G. C., & Schiuma, G. (2019). Linking entrepreneurial orientation to SMEs’ performance: Implications for entrepreneurship universities. Management Decision, 57(12), 3364-3386.
  6. Anwar, M., & Shah, S. Z. (2021). Entrepreneurial orientation and generic competitive strategies for emerging SMEs: Financial and nonfinancial performance perspective. Journal of Public Affairs, 21(1), e2125.
  7. Al-Dmour, A., Al-Dmour, R., & Rababeh, N. (2020). The impact of knowledge management practice on digital financial innovation: the role of bank managers. VINE Journal of Information and Knowledge Management Systems, 51(3), 492-514.
  8. Asizah, Nur., Harafah. L.O.M., Nurwati., & Baheri. (2016). The Moderating Effects of Entrepreneurial Learning on The Relationship Between entrepreneurship Orientation and Business Performance. The International Journal of Engineering and Science (IJES), 5(11), 08-15.
  9. Aydin, S. a. D. (2018). Knowledge Management, Innovation and Competitive Advantage : Is The Relationship in The Aye of The Beholder. Knowledge Management Research & Practice, 16(3), 402-413.
  10. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
  11. Bellucci, D., Fuochi, G., & Conzo, P. (2020). Childhood exposure to the Second World War and financial risk taking in adult life. Journal of Economic Psychology, 79, 102196.
  12. Breuer, W., Riesener, M., & Salzmann, A. J. (2014). Risk aversion vs. individualism: what drives risk taking in household finance?. The European Journal of Finance, 20(5), 446-462.
  13. Brown, J. S. & Duguid, P. (1991). Organizational Learning and Co mmunities of Practice: Toward a Unified View of Working, Learning, and Innovation. Organization Science, 2(1), 40-57
  14. Bukowitz, W. & Williams, R. (2000). The Knowledge Management Fieldbook. London, Prentice Hall.
  15. Cornett, M. M., McNutt, J. J., & Tehranian, H. (2009). Corporate governance and earnings management at large US bank holding companies. Journal of Corporate finance, 15(4), 412-430.
  16. Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic management journal, 10(1), 75-87.
  17. Covin, J.G & Miller, D. (2014). International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues And Future Research Directions. Entrepreneurship Theory and Practice, 38(1), 11-44.
  18. Cho, Y. H., & Lee, J. H. (2020). A study on the effects of entrepreneurial orientation and learning orientation on financial performance: Focusing on mediating effects of market orientation. Sustainability, 12(11), 4594.
  19. Dalkir, Kimiz (2011). Knowledge Management in Theory and Practice”, 2nd edition, Massachusetts: MIT Press
  20. Dess & Lumpkin. (2005). The Role of Entrepreneurial Orientation in Stimulating Effective Corporate Entreprenership. Academy of Management Executive, 19(1), 147-156
  21. Dirgiatmo, Y., Abdullah, Z., & Ali, R. H. R. M. (2019). The role of entrepreneurial orientation in intervening the relationship between social media usage and performance enhancement of exporter SMEs in Indonesia. International Journal of Trade and Global Markets, 12(2), 97-129.
  22. Drucker, Peter F. (1995). Inovasi dan Kewiraswastaan. Terjemahan oleh Rusjdi Naib. Jakarta: Erlangga
  23. Edvinsson, L., & Sullivan. (1996). Developing a Model for Managing Intellectual Capital. European Management Journal, 14(4), 365-64.
  24. Edward-Schachter (2018). The Nature and Variety of Innovation. International Journal of Innovation Studies, 2(2), 65-79.
  25. Fay, D., & Sonnentag, S. (2012). Within-person fluctuations of proactive behavior: How affect and experienced competence regulate work behavior. Human Performance, 25(1), 72-93.
  26. Frank, M. Z., & Goyal, V. K. (2008). Trade-off and pecking order theories of debt. Handbook of empirical corporate finance, 2, 135-202.
  27. Gamayuni, R. R. (2011). Analisis Ketepatan Model Altman sebagai Alat untuk Memprediksi Kebangkrutan (Studi Empiris pada Perusahaan Manufaktur di BEI). Jurnal Akuntansi dan Keuangan, 16(2), 158-176.
  28. García-Valverde, P. M., Ruiz-Ortega, M. J., Parra-Requena, G., & Rodrigo-Alarcón, J. (2014). Orientación Emprendedora y resultado empresarial: implicaciones de los factores relacionales. Cuadernos aragoneses de economía, 24(1-2), 75-96.
  29. Ghozali, Imam. (2018), Aplikasi Analisis Multivariate Dengan Program IBM SPSS 25, UNDIP Semarang
  30. Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California management review, 33(3), 114-135.
  31. Harjito, D. A. (2011). Teori pecking order dan trade-off dalam analisis struktur modal di Bursa Efek Indonesia. Jurnal Siasat Bisnis, 15(2), 187-196.
  32. Hair, J. F., Ortinau, D. J., & Harrison, D. E. (2010). Essentials of marketing research (Vol. 2). New York, NY: McGraw-Hill/Irwin.
  33. Hair, J. F., Gabriel, M., & Patel, V. (2014). AMOS covariance-based structural equation modeling (CB-SEM): Guidelines on its application as a marketing research tool. Brazilian Journal of Marketing, 13(2), 44-55.
  34. Haugen, R. A., & Pappas, J. L. (1971). Equilibrium in the pricing of capital assets, risk-bearing debt instruments, and the question of optimal capital structure. Journal of Financial and Quantitative Analysis, 6(3), 943-953.
  35. Hovakimian, A., Opler, T., & Titman, S. (2001). The debt-equity choice. Journal of Financial and Quantitative analysis, 36(1), 1-24.
  36. Hughes, M., Chang, Y. Y., Hodgkinson, I., Hughes, P., & Chang, C. Y. (2021). The multi-level effects of corporate entrepreneurial orientation on business unit radical innovation and financial performance. Long Range Planning, 54(1), 101989.
  37. Isichei, E.E., Agbaeze,K.E., & Odiba, M.O. (2020). Entrepreneurial Orientation And Performance in SMEs. Internal of Emerging Markets, 15(6), 1219- 1241
  38. Ismanto, H. (2016). Peran Karakteristik Pemilik, Hubungan Dengan Pelanggan, Komitmen Perilaku, dan Orientasi Usaha Terhadap Kinerja Keuangan UKM. Jurnal SIASAT BISNIS, 22(1), 76-91.
  39. Jappelli, G. a. (2005). Awareness and Stock Market Participation. Review of Finance, 9(4), 537-567.
  40. Karacaoğlu, K., Bayrakdaroğlu, A., & San, F. B. (2013). The impact of corporate entrepreneurship on firms’ financial performance: evidence from Istanbul stock exchange firm. Internastional Business Research, 6(1), 163-175.
  41. Kallmuenzer,A., & Peters, M. (2018). Entrepreneurial Behaviour Firms Size And Financial Performance: The Case of Tourism Family Firms. Tourism Recnation Research, 43(1), 2-14.
  42. Kolb, D. A. (2014). Experiential learning: Experience as the source of learning and development. FT press. USA
  43. Kurtulmuş, B. E., & Warner, B. (2015). Entrepreneurial orientation and perceived financial performance. Does environment always moderate EO performance relation. Procedia-Social and Behavioral Sciences, 207, 739-748.
  44. Latifah, L., Setiawan, D., Aryani, Y. A., & Rahmawati, R. (2020). Business strategy–MSMEs' performance relationship: innovation and accounting information system as mediators. Journal of Small Business and Enterprise Development, 28(2), 1-21.
  45. Lin, C. Y., & Kuo, T. H. (2007). The mediate effect of learning and knowledge on organizational performance. Industrial Management & Data Systems, 107(7), 1066-1083.
  46. Limakrisna, N., & Mardo, S. A. (2016). Determinan dari nilai pelayanan dan citra institusi sistem nsw di Indonesia. MIX: Jurnal Ilmiah Manajemen, 6(1), 154958.
  47. Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of management Review, 21(1), 135-172.
  48. Lumpkin, G.T. & Dess, G.G. (2001). Linking Two Dimensions of Entrepreneurial Orientation to Firm Performance: The Moderating Role of Environment and Industry Life Cycle. Journal of Business Venturing, 16(5), 429-451.
  49. McElroy, M. (1999). The Knowledge Life Cycle. Presend at The ICM Conference on KM. Miami,FL.
  50. Magaji, M. S., Baba, R., & Entebang, H. (2017). Entrepreneurial orientation and financial performance of Nigerian SMES. Journal of Management and Training for Industries, 4(1), 25-41.
  51. Magnier-Watanabe, R. a. B. (2017). Management Innovation and Firm Performance : The Mediating Effect of Tacid and Explicit Knowledge. Knowledge Management Research & Practice, 15(3), 325-335.
  52. Meyer, M. H., & Zack, M. H. (1996). The design and development of information products. MIT Sloan Management Review, 37(3), 43.
  53. Miller, D. (1983). The Correlates of Entreprenership in Three Types of Firms. Management Sciences, 29(7), 770-791.
  54. Miller, M., & Modigliani, F. (1958). The cost of capital. Corporate Finance and the Theory of Investment. American Economic Review, 48(3), 261-297.
  55. Nanda, E. Q. (2015). Pengaruh Orientasi Kewirausahaan pada Perusahaan Makanan dan Minuman di Surabaya. Agora, 3(1), 706-715.
  56. Nelly, S. (2021). Digitalization as a strategy for the revitalization of micro, small and medium enterprises (MSMEs) during the COVID-19 pandemic. Annals of the Romanian Society for Cell Biology, 25(6), 384-392.
  57. Nelson, R.R. & Winter, S.G. (1982). An Evolutionary Theory of Economic Change. Cambride Mass: Belknap Press of Harvard University Press.
  58. Nonaka, I. & Takeuchi, H. (1995). The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. Oxford University Press, New York.
  59. Oliva, F. L. a. K. (2019). Barries,Practice,Methods and Knowledge ManagementTools in Startups. Journal of Knowledge Management, 23(9), 1838-1856.
  60. Quantananda, E. (2015). Pengaruh Orientasi Kewirausahaan pada Perusahaan Makanan dan Minuman di Surabaya. AGORA, 3(1), 706–715.
  61. QS. Maryam:12, Hikmah means understanding.
  62. QS. Al-An’am:89, Hikmah means knowledge.
  63. QS. An_Nahl:125, Hikmah means fair and wisdom
  64. Rastogi, P. N. (2002). Knowledge Management and Intellectual Capital as a Paradigm of Value Creation. Human Systems Management, 21(4), 229-240
  65. Rubinstein, M.E. (1973) A Mean-Variance Synthesis of Corporate Financial Theory. The Journal of Finance, 167-181
  66. Rusetski, A. (2011). Getting proactive: Cultural and procedural drivers of managerial motivation to act. Journal of Business & Economics Research (JBER), 9(1), 111-120.
  67. Senge, Peter M. (1990). The Fifth Discipline: The Art and Practice of the Learning Organization. USA - New York: Doubleday
  68. Sonnentag, S., & Spychala, A. (2012). Job control and job stressors as predictors of proactive work behavior: Is role breadth self-efficacy the link?. Human Performance, 25(5), 412-431.
  69. Stevenson, H. H., & Jarillo, J. C. (2007). A paradigm of entrepreneurship: Entrepreneurial management. In Entrepreneurship (pp. 155-170). Springer, Berlin, Heidelberg.
  70. Stiglitz, J. E. (1969). A Re-Examination of The Modigliani-Miller Theorem. The American Economic Review, 59(5), 784-793.
  71. Umdiana, N., & Claudia, H. (2020). Analisis Struktur Modal Berdasarkan Trade off Theory. Jurnal Akuntansi: Kajian Ilmiah Akuntansi, 7(1), 52-70.
  72. Wach, K. (2015). Entrepreneurial Orientation and Business Internationalisation Process: The Theoretical Foundations of International Entrepreneurship. Entrepreneurial Business and Economics Review, 3(2), 9-24.
  73. Widodo, (2015). Strategic Knowledge With Strategic Alliance Based to Achieve a Sustainable Advantage. International Journal of Economic Cooperation and Development (JECD). 36(2), 35-62.
  74. Wigg, K. (1993). Knowledge Management Foundation. Arlington, TX:Schema Press.
  75. Wiklund, J. & Shepherd D. (2003). Knowledge-Based Resources, Entrepreneurial Orientation, And The Performance Of Small And Medium Sized Business. Strategic Management Journal. 24(13), 1307-1308.