HASIL PLAGIARISM CHECKER: JURNAL INTERNASIONAL Success factors of SMEs: the case of Indonesia

Small and medium enterprises (SMEs) are a business group which could survive when the economic crisis hit developing countries such as Indonesia. The purpose of the current study is to identify the enabling factors to innovativeness for SMEs in the emerging Indonesia market and to examine the relationship between innovativeness and business growth performance. Drawing upon survey questionnaire data from 300 SMEs (with an acceptable response rate of 97.67%) in the Indonesia market, five research hypotheses are tested using a structural equations modeling technique. The results suggest that: fist, the micro-environmental have a significant influence on firm’s innovativeness and business growth performance, second, firm’s innovativeness have a significant influence on firm’s innovativeness, finally, geographical clusters have a significant influence on firm’s innovativeness and business growth performance. It is believed to be the first empirical research study examining SMEs’ innovativeness and their business growth performance in the emerging Indonesia market