SMEs as a Driver of Integrative Dynamic Capabilities towards the Three Pillars of Sustainability Performance
Abstract
This study aimed to explore the relationship between dynamic capabilities (internal and external integration) and sustainability performance on three pillars: environmental, social, and economic aspects of a newly established community named the "Urip Joyo" village of tempeh community, Pekalongan City, Indonesia. During the analysis, sample collection was done from the beginning to the end of the study. A random sampling technique was used in collecting the sample. This method was used to randomly select SMEs willing to be the respondents to provide information for this research. The researchers used SPSS (Statistical Package for Social Science) for Windows, using multiple linear regression analysis. The results showed that, together, the internal and external integrative dynamic abilities of SMEs had a significant effect on the three pillars of sustainability. Both abilities positively affected social, environmental, and economic performance. The results also confirmed the theory of dynamic abilities and environmental sustainability, which were the primary motivation of SME performance, considering this matter was still in pros and cons today. The study was conducted on SMEs, which became the members of a homogeneous community recently established for reviving the village of tempeh's golden age, which had gone into the past by focusing on the survival mechanism of SMEs in the middle of the economic crisis during the COVID-19 pandemic.
Keywords: integrative dynamic capabilities, sustainability performance, small and medium enterprises.
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