Did Rural Micro-Entrepreneurs Do Make A Higher Gain? A Preliminary Study on The Potential of Supply Chain Digitalization Using PLS-SEM Approach

Muhammad Syahrul Deen Ahmad Rosli, M. M. Mat Rani, Mohd Amzari Tumiran, Mohd Izzat Amsyar Mohd Arif
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Abstract

Studies on digitalization disruption and its impact on business are gaining global attention, especially among small and medium entrepreneurs (SMEs). It is theoretically expected to be a business value add element in terms of capability and competitiveness in the supply chain ecosystem, which is fundamental in business success. But digitalization also has its own risks and challenges including expertise, capital, cooperation, incentives, and support from other economic units, such as other merchants and customer preferences. Failure in digitization can lead to mistrust and negative perceptions that may lead to effects the SME growth. Among the biggest digitalization challenges are for the rural micro-entrepreneurs (RME) who live in areas that lack digital support facilities and technological capabilities, such as a weak internet connection and native customer's desire to buy using online shopping platforms. This study will analyze the competitive level of RME businesses from a supply chain perspective. To analyze the impact of supply chain digitization (DSC), a mediator effect will be used. DSC will be applied in mediator effect to entrepreneurial supply chain towards the level of RME’s business competitiveness. The hypothesis of this study is DSC practice has a role on the growth of RME business competitiveness. Using the Partial Lease Square-Structural Equation Modeling (PLS-SEM) method, this study found that RMC’s efforts on business digitization do not have a significant impact on the development of business competitiveness. The hypothesis of this study was confirmed by the rate of P-value. While DSC mediator effect through variance accounted for (VAF) calculation found that there is low partial mediation (23%).  This paper proposes a further study on the elements of competitiveness and the desire for digitalization of RMC to be investigated, while the current need for a comprehensive DSC model of RMC particularly, in line with rural economic development issues in Malaysia.
农村微型企业家是否获得了更高的收益?利用PLS-SEM方法对供应链数字化潜力的初步研究
关于数字化颠覆及其对商业影响的研究正受到全球,尤其是中小企业家的关注。从理论上讲,它有望成为供应链生态系统中能力和竞争力的商业增值要素,这是商业成功的基础。但数字化也有其自身的风险和挑战,包括专业知识、资金、合作、激励以及其他经济单位(如其他商家和客户偏好)的支持。数字化的失败会导致不信任和负面看法,从而影响中小企业的成长。最大的数字化挑战之一是农村微型企业家(RME),他们生活在缺乏数字支持设施和技术能力的地区,例如互联网连接薄弱,本地客户希望使用在线购物平台进行购买。本研究将从供应链的角度分析RME企业的竞争水平。为了分析供应链数字化(DSC)的影响,将使用中介效应。DSC将在创业供应链中对RME企业竞争力水平产生中介效应。本研究的假设是DSC实践对RME企业竞争力的增长有作用。运用部分租赁方-结构方程建模(PLS-SEM)方法,本研究发现RMC在业务数字化方面的努力对业务竞争力的发展没有显著影响。p值率证实了本研究的假设。而DSC中介效应通过方差占比(VAF)计算发现存在较低的部分中介作用(23%)。本文提出了对RMC的竞争力要素和数字化愿望的进一步研究,而目前需要RMC的全面DSC模型,特别是符合马来西亚农村经济发展问题。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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