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Research Article Open access CC BY 4.0

Strategies to Increase the Competitiveness of Micro, Small and Medium Enterprises (MSMEs): A Narrative Literature Review

Ramon Hurdawaty, Martinus Tukiran

South Asian Journal of Social Studies and Economics · pp. 112–125 · Published 15 Jan 2024

10.9734/sajsse/2024/v21i1768

Abstract

Micro, small, and medium enterprises (MSMEs) are one of the important pillars of the country's economy. MSMEs have an important role in creating jobs, increasing economic growth, and improving community welfare. The competitiveness of MSMEs is vital for their success and for driving economic growth. To increase the competitiveness of MSMEs, the right strategy is needed. This strategy must be adapted to the characteristics of MSMEs, such as the business sector, target market, and competitive conditions. These research questions are: 1) What are the strategies for increasing the competitiveness of MSMEs?, and 2) What supporting factors can increase the competitiveness of MSMEs? The research method used is a narrative literature review of five references taken from the ScienceDirect database from 2020 to 2023 that discuss strategies for increasing the competitiveness of MSMEs. These five papers have a strong connection because they all discuss the relationship between innovation and the performance of micro, small, and medium enterprises (MSMEs). The results of the narrative literature review show that thera are several strategies can be used to increase the competitiveness of MSMEs namely digitalization, product and service innovation, business process innovation, and marketing and sales innovation. Beyond these strategies, the studies emphasize the importance of several supporting factors, such as government support, access to financial resources, networking, and collaboration opportunities. The implication of this research is to contribute ideas to the government and owners of MSMEs in the form of a model increasing the competitiveness of MSMEs in the global market.

Strategy competitiveness micro small and medium enterprises innovation digital technology

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