Towards the Sustainability of Food MSMEs through Strengthened Collaboration and Competitiveness

Sandi Setiadi; Alhidayatullah Alhidayatullah; Rizky Maulana

doi:10.47353/ijema.v3i4.341

Authors

Sandi Setiadi Universitas Linggabuana PGRI Sukabumi, Indonesia
Alhidayatullah Universitas Muhammadiyah Sukabumi, Indonesia
Rizky Maulana Universitas Linggabuana PGRI Sukabumi, Indonesia

DOI:

https://doi.org/10.47353/ijema.v3i4.341

Keywords:

Collaboration, Competitiveness, MSME Sustainability

Abstract

The sustainability of Micro, Small, and Medium Enterprises (MSMEs) is the most pressing issue in economic, social, and environmental development in the modern era, where the focus of business has shifted from mere financial growth to social responsibility and resource sustainability. MSMEs, especially in the food sector in Sukabumi Regency, play a crucial role, although many still face challenges in terms of using modern technology and building extensive networks. This study aims to fill the gap by explicitly exploring the relationship between collaboration and competitiveness on the sustainability of MSMEs in the food sector, particularly in Sukabumi Regency, by considering these two variables in parallel.This study uses a descriptive quantitative method, taking a sample of 200 business actors from the total population of the food industry in Sukabumi Regency (3,501) through non-probability purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results showed that the proposed model had very strong predictive power, as evidenced by an R-Square value of 0.963 and a Q² value of 0.632, confirming its high predictive relevance. Specifically, MSME collaboration was found to have a positive and significant effect on business sustainability (Original Sample 0.466). Collaboration enables business actors to share resources, information, and networks, which strengthens their capacity for adaptation and innovation. In addition, MSME competitiveness also has a positive and significant effect on business sustainability (Original Sample 0.519), which is achieved through operational efficiency and product differentiation. The synergy between collaboration and competitiveness is crucial to realizing resilient and competitive food MSMEs in Sukabumi.

Downloads

Download data is not yet available.

References

Abid, N., Ceci, F., Aftab, J., & Dowling, M. (2023). Does resource bricolage foster SMEs’ competitive advantage and financial performance? A resource‐based perspective. Business Strategy and the Environment, 32 (8), 5833–5853. https://doi.org/10.1002/bse.3451

Armada, S., Rozi, C., Hadityo, C. H., Direja, D. S., & Mayangjati, I. (2024). Empowering MSMEs with a Focus on the Role of Women: Marketing Digitalization Innovation in Kebon Pedas District, Sukabumi. Blantika Multidisciplinary Journal, 2 (3), 311–316. https://doi.org/10.57096/blantika.v2i3.108

Artin, P. (2022). Critical sustainability factors of regional SMEs; A case study of regional Australia. Current Research in Environmental Sustainability, 4

Ayu, N. C. P. E., & Dewi, G. A. K. R. S. (2022). The influence of financial literacy, use of accounting information, and business capital on the sustainability of MSMEs in the Buleleng Vokasi Jurnal Riset Akuntansi, 10 (02), 160–169. https://doi.org/10.23887/vjra.v10i02.51302

Candra, S., Wiratama, I. N. A. D., Rahmadi, M. A., & Cahyadi, V. (2021). Innovation process of micro, small and medium enterprises (MSMEs) in greater Jakarta area (perspective from foodpreneurs). Journal of Science and Technology Policy Management, 13

Del Giudice, M., Carayannis, E., Caputo, F., Khan, Z., De Silva, M., & Scuotto, V. (2017). The microlevel actions undertaken by owner-managers in improving the sustainability practices of cultural and creative small and medium enterprises: A United Kingdom–Italy comparison. Journal of Organizational Behavior, 38 (9

Egere, O. M., Maas, G., & Jones, P. (2022). A critical analysis of the Nigerian entrepreneurial ecosystem on transformational entrepreneurship. Journal of Small Business Management, 62 (3), 1187–1218. https://doi.org/10.1080/00472778.2022.2123109

Fares, N., Lloret, J., Kumar, V., Frederico, G. F., Kumar, A., & Garza-Reyes, J. A. (2022). Enablers of post-COVID-19 customer demand resilience: evidence for fast-fashion MSMEs. Benchmarking: An International Journal, 30 (6), 2012–2039. https://doi.org/10.1108/bij-11-2021-0693

Ferine, K. F., Zaki, A., Cahyaningrum, A. O., Papilaya, F., & Fkun, E. (2023). Improving the Competitiveness of MSMEs Through Social Capital. West Science Multidisciplinary Journal, 2 (02), 135–149. https://doi.org/10.58812/jmws.v2i02.230

Fi’alauddin, M. S. (2024). The Contribution of Rice (Oryza Sativa L) Commodities to the Gross Regional Domestic Product (GRDP) of Sukabumi Regency. J. Agribussines. Social. Economic., 4 (1

Fitriyah, I. R., Hariadi, S., Wibowo, J. M., & Setyaningrum, I. (2024). Analysis of Profiles, Constraints, and Development Strategies for MSMEs: A Case Study of MSMEs in Sampang Regency, Madura. Journal of Economic Business and Accounting (Costing), 7 (2), 2920–2930. https://doi.org/10.31539/costing.v7i2.8313

Handayani, W., Ekantiana, E., Sari, P. S., Hapsari, G., & Narni, N. (2024). “Optimizing Family Welfare Through MSME Empowerment: Implementation of Health Management Governance in Kebon Pedas District, Sukabumi.” Blantika Multidisciplinary Journal, 2 (3

Hannah, E., Scott, J., & Wilkinson, R. (2018). The <scp>WTO</scp> in Buenos Aires: The outcome and its significance for the future of the multilateral trading system. The World Economy, 41 (10), 2578–2598. https://doi.org/10.1111/twec.12657

Huda, A. N. N., & Setyowardhani, H. (2023). Analysis of the Relationship Between Eco SERVQUAL and Customer Satisfaction with the Moderating Role of Gender, as well as Revisit Intention at Green Hotels in Indonesia. Journal of Accounting and Management, 20 (1

Jayanti, E., & Karnowati, N. B. (2023). Digitalization of MSMEs and Financial Literacy for the Sustainability of MSMEs in Cilacap Regency. Business Review, 31 (1

Jiménez, E., Boronat-Navarro, M., & De La Cuesta-González, M. (2021). How Small and Medium-Sized Enterprises Can Uptake the Sustainable Development Goals through a Cluster Management Organization: A Case Study. Sustainability, 13 (11), 5939. https://doi.org/10.3390/su13115939

Kilay, A. L., Simamora, B. H., & Putra, D. P. (2022). The Influence of E-Payment and E-Journal of Open Innovation: Technology, Market, and Complexity, 8 (3

Kumar, K. (2021). Partial Least Square (PLS) Analysis. Resonance, 26 (3), 429–442. https://doi.org/10.1007/s12045-021-1140-1

Kurniasari, P. D., Rachmansyah, Y., & Sutanto, H. (2023). The Influence of Demographic Factors and Financial Planning on Financial Management Behavior With Financial Self-Efficacy as an Intervening Variable in the Covid-19 Pandemic. 435–453. https://doi.org/10.2991/978-94-6463-154-8_38

Latifah, L., Rahmawati, R., Setiawan, D., & Aryani, Y. A. (2020). Business strategy – MSMEs’ performance relationship: innovation and accounting information system as mediators. Journal of Small Business and Enterprise Development, 28 (1), 1–21. https://doi.org/10.1108/jsbed-04-2019-0116

Lee, Y., Lim, W., & Eng, H. S. (2023). A systematic review of UTAUT2 constructs’ analysis among MSMEs in non-OECD countries. Journal of Science and Technology Policy Management, 15 (4), 765–793. https://doi.org/10.1108/jstpm-08-2022-0140

Li, X., Du, J., & Long, H. (2020). Mechanism for Green Development Behavior and Performance of Industrial Enterprises (GDBP-IE) Using Partial Least Squares Structural Equation Modeling (PLS-SEM). International Journal of Environmental Research and Public Health, 17 (22), 8450. https://doi.org/10.3390/ijerph17228450

López-López, V., Iglesias-Antelo, S., & Fernández, E. (2020). Is Sustainable Performance Explained by Firm Effect in Small Business? Sustainability, 12 (23), 10028. https://doi.org/10.3390/su122310028

Maydeu‐Olivares, A., Ximénez, C., & Revuelta, J. (2024). Percentage of Variance Accounted for in Structural Equation Models: The Rediscovery of the Goodness of Fit Index. Psychological Methods. https://doi.org/10.1037/met0000680

Mendes, A. C. S., Ferreira, F. A. F., Kannan, D., Ferreira, N. C. M. Q., & Correia, R. J. C. (2022). A BWM approach to determinants of sustainable entrepreneurship in small and medium-sized enterprises. Journal of Cleaner Production, 371

Mokhtar, S. F., Sapiri, H., & Md Yusof, Z. (2023). Confidence Intervals by Bootstrapping Approach: A Significance Review. Malaysian Journal of Fundamental and Applied Sciences, 19 (1

Najib, M., Fahma, F., Prasetya, P., Suhartanto, D., Simanjuntak, M., Abror, A., Abdul Rahman, A. A., & Rachmawati, R. (2021). Leaders’ Support of Sustainable Innovation and Business Sustainability in Developing Countries: Evidence from Small and Medium Food Processing Enterprises. Sustainability, 13

Nawi, N. C., Daud, R. R. R., Nasir, N. A. M., & Al Mamun, A. (2020). Strategic Orientations and Absorptive Capacity on Economic and Environmental Sustainability: A Study among the Batik Small and Medium Enterprises in Malaysia. Sustainability, 12 (21), 8957. https://doi.org/10.3390/su12218957

Nurhasanah, I. A., Brilliant, M., Reni, K., & Mulyanto, A. (2022). Analysis of B2C (Business to Consumer) E-Business Design Efforts in the Digitalization of MSME Development (Case Study: Pesawaran Regency, Indonesia). National Journal of Informatics Education (Janapati), 11 (3

Olaleye, B. R., Khumalo, N., Ayeni, A. A. W., Lekunze, J. N., & Sekhampu, T. J. (2024). Leveraging Innovation Capability and Organizational Resilience for Business Sustainability Among Small and Medium Enterprises: A PLS-SEM Approach. Sustainability, 16 (21), 9201. https://doi.org/10.3390/su16219201

Pap, J., Torok, B., Illessy, M., Mako, C., Mosavi, A., Dedaj, Z., & Ardabili, S. (2022). Correlation Analysis of Factors Affecting Firm Performance and Employees Wellbeing: Application of Advanced Machine Learning Analysis. Algorithms, 15 (9

Prameswari, K., & Oetarjo, M. (2024). The Influence of Food Quality, Brand Image, and Price on Customer Satisfaction with Surabaya Steamed Layer Cake (A Study of Surabaya Steamed Layer Cake Consumers in Sedati District, Sidoarjo Regency). Innovative Technologica Methodical Research Journal, 1 (4

Prokofieva, M., Zarate, D., Parker, A., Palikara, O., & Stavropoulos, V. (2023). Exploratory structural equation modeling: a streamlined step-by-step approach using the R Project software. BMC Psychiatry, 23 (1

Rahayu, R. E. G., & Fauzi, A. (2020). Designing a Geographic Information System for Agricultural Products in Garut Regency. Jurnal Algoritma, 17 (2), 515–524. https://doi.org/10.33364/algoritma/v.17-2.515

Rosita, R. (2020). The Impact of the COVID-19 Pandemic on MSMEs in Indonesia. Lentera Bisnis Journal, 9 (2), 109. https://doi.org/10.34127/jrlab.v9i2.380

Sahoo, P. S. B. B., & Thakur, V. (2022). Enhancing the performance of Indian micro, small and medium enterprises by implementing supply chain finance: challenges emerging from COVID-19 pandemic. Benchmarking: An International Journal, 30 (6), 2110–2138. https://doi.org/10.1108/bij-11-2021-0668

Saka, K., El Achhab, Y., Ragala, M. E. A., Amarouch, M.-Y., Btissame, Z., El-Hilaly, J., & Tahraoui, A. (2023). Psychometric properties of Clinical Learning Environment Inventory and its association with Moroccan nursing students’ satisfaction: A PLS-SEM approach. Belitung Nursing Journal, 9

Sarfraz, M., Ivascu, L., Artene, A., & Belu, R. (2021). Accentuating the interconnection between business sustainability and organizational performance in the context of the circular economy: The moderating role of organizational competitiveness. Business Strategy and the Environment, 30 (4

Sari, R. K., Alfarizi, M., & Ab Talib, M. S. (2024). Sustainable strategic planning and management influence on sustainable performance: findings from halal culinary MSMEs in Southeast Asia. Journal of Modelling in Management, 19 (6), 2034–2060. https://doi.org/10.1108/jm2-12-2023-0324

Schröder, S., Wiek, A., Farny, S., & Luthardt, P. (2022). Toward holistic corporate sustainability—Developing employees’ action competence for sustainability in small and medium‐sized enterprises through training. Business Strategy and the Environment, 32 (4

Setiadi, S., Maulana, R., & Sukabumi, U. M. (2025). The Role of Collaboration in Overcoming MSME Challenges: Model Analysis to Improve Competitiveness and Sustainability. 7(3), 277–295.

Setiadi, S., Widyastuti, S., Zulkifli, & Darmansyah. (2025). Sustainable nature tourism transformation: The strategic role of green tourism in West Java. Edelweiss Applied Science and Technology, 9 (3), 1544–1569. https://doi.org/10.55214/25768484.v9i3.5599

Shahzad, A., Bin Zakaria, M. S. A., Kotzab, H., Makki, M. A. M., Hussain, A., & Fischer, J. (2023). Adoption of fourth industrial revolution 4.0 among Malaysian small and medium enterprises (SMEs). Humanities and Social Sciences Communications, 10 (1

Shashi, S., Centobelli, P., Cerchione, R., & Shabani, A. (2018). Sustainability orientation, supply chain integration, and SMEs performance: a causal analysis. Benchmarking: An International Journal, 25 (9

Shidiq, H. A., Zakaria, A., & Nasution, H. (2024). Analysis of Sustainability Report Disclosure and Sustainability Performance in Energy, Oil, and Gas Cluster BUMN Companies. 1

Skouloudis, A., Deligiannakis, G., Vouros, P., Leal Filho, W., Nikolaou, I., & Evangelinos, K. (2023). Coping with floods: impacts, preparedness and resilience capacity of Greek micro-, small- and medium-sized enterprises in flood-affected areas. International Journal of Climate Change Strategies and Management, 15 (1

Suchek, N., & Franco, M. (2023). Inter-organizational Cooperation Oriented Towards Sustainability Involving SMEs: a Systematic Literature Review. Journal of the Knowledge Economy, 15 (1), 1952–1972. https://doi.org/10.1007/s13132-023-01196-x

Sulandjari, K., & Suparwata, D. O. (2023). Innovation in Sustainable Agriculture in Sukabumi Regency: From Vertical Farming to Agricultural Bioinformatics Realizing More Sustainable Food Sources. West Science Multidisciplinary Journal, 2 (09), 780–789. https://doi.org/10.58812/jmws.v2i09.667

Sulistyowati, R., Sudarwanto, T., Mahendra, A. M., Rafida, V., Wibowo, L. A., Dirgantari, P. D., Masharyono, M., Sul, R. D. I. Z. F., Yohana, C., Fidhyallah, N. F., & Hidayat, N. (2024). Digital Marketing Training for MSMEs Assisted by the Sidoarjo Regency Cooperative and Micro Business Agency. Karinov Journal, 7

Sutiawan, I., & Mulyaningsih, M. (2020). Analysis of the Implementation of Micro, Small, and Medium Enterprise Development Policies on Business Performance in Achieving Business Sustainability Effectiveness in Garut Regency. Jurnal Publik, 12 (2), 18–26. https://doi.org/10.52434/jp.v12i2.4