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MSMEBusiness capabilities Muhammad feriady
To Survive in the Business environment, SME Should be have Capability to change the business
Point and purpose of Subject after Student learn about this material, student are able to: • Understanding SMEs Capability and how to develop the business: • Dynamic Capabilities, • Absorptive capabilities, • Adaptive Capabilities, • innovative/transformative capabilities • Technology Capabilities • Managerial Capabilities • Describe a resource as a competitive advantage over competition
Principles of Resource Base View (RBV) on small and micro business development The RBV approach can be interpreted as a strategy developed by MSMEs by combining all the resources owned by the company with various compositions and appropriate strategies. Ramlet (2005), RBV a collection of interrelated resources Dollinger (1995), resources capable of giving rise to excellence (Trade Secret, managerial, technology, etc.)
SME Capabilities Capability The ability of business actors to manage their resources for profit Capability The ability of the organization to manage it’s resources in achieving its goals by integrating resource use within the organization Capability Type: • Dynamic Capabilities, • Technology Capability, • Managerial Capabilities,
Dynamic Capabilities Organizational capabilities include flexibility, adaptability and adaptation to a changing business environment
Dynamic capability element • Absorptive Capabilies • Adaptive Capabilities • Innovative Capabilities
Technology Capabilities In business, there is a business hierarchy in relation to the use of technology to innovate (Arnold and Thuriaux, 1997): Black box Small and micro businesses that are very limited in innovation Gray Box small and micro businesses that are able to innovate but are limited in applications White Box Small and micro businesses capable of improving technology Unboxed small and micro businesses that are able to develop new technologies themselves and always innovate
Managerial Capabilities Managerial capability is the ability of an organization to implement management systems in organizations with high efficiency (Winstein and Azoulay, 1999). Some of the managerial abilities include: • Strategic planning skills • Quality control • Personnel and technical capabilities • Decision making ability • System development that is enforced by standard
Resources as a competitive advantage in the business development process The capabilities of the organization are used to manage the organization's resources. The resources are: • Technology • Internet / cyberspace • Social Capital • Science