Market-Based Dynamic Capability Model with the Role of Government as Mediator for the Sustainability of SME Enterprises South Meruya, West Jakarta

Authors

  • Sonny Indrajaya Universitas Mercu Buana
  • Tine Yuliantini Universitas Mercu Buana
  • Suprapto Universitas Mercu Buana
  • Nia Kusuma Wardhani Universitas Mercu Buana
  • Winda Widianty Universitas Mercu Buana
  • Sri Hartono Universitas Mercu Buana
  • Zikri Muhammad Universiti Malaysia Terengganu
  • Muhamad Maizar Universitas Mercu Buana

DOI:

https://doi.org/10.32815/jpm.v7i1.2986

Keywords:

Dynamic and Competitive Markets, Market-Based Capabilities Dynamic, Government

Abstract

Purpose: To examine how market-based dynamic capabilities influence SME sustainability in South Meruya, West Jakarta, emphasizing the mediating role of government support.

Method: A conceptual model grounded in Resource-Based and Market-Based View theories was tested using questionnaire data from 25 SMEs, analyzed via Structural Equation Modeling (SEM).

Practical Applications: Findings inform targeted training programs and policy frameworks that strengthen SMEs' adaptive capacity, export orientation, and responsiveness to sustainability demands through enhanced market-based knowledge and resource integration.

Conclusion: Dynamic capabilities are effectively cultivated when SMEs strategically align market-oriented resources, capabilities, and knowledge within volatile, competitive environments, with government support critically mediating these relationships to foster long-term business sustainability.

References

Probohudono, A.N., Suhardjanto, D., Aligarh, F., Chayati, N. and Putra, A.A. (2025). Navigating MSMEs' performance through innovation and digital IT capabilities in business strategy. Social Sciences & Humanities Open, 12, 101810. https://doi.org/ 10.1016/j.ssaho.2025.101810

Melyana R Pugu, Eddy Silamat, & Silvia Ekasari. (2024). VILLAGE EMPOWERMENT THROUGH SOCIALIZATION OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs)": LITERATURE REVIEW. JOURNAL OF COMMUNITY DEDICATION, 4(4), 811–825. https://adisampublisher.org/index.php/pkm/article/view/868

Liu, J., Liu, Y., Ma, Y. and Xie, G. (2024). Promoting SMEs friendly public procurement (SFPP) practice in developing country: The regulation and policy motivator and beyond. The Social Science Journal, 61 (1), 192–211. https://doi.org/10.1080/03623319.2020.1799180

Susantya, S.A., Aswar, K., Sumardjo, M., Panjaitan, I. and Andreas, A. (2022). E-procurement adoption in Indonesian government: A study of TOE model. Innov. Mark, 18 (3), 99–109. https://doi.org/10.21511/im.18(3).2022.09

Harvie, C. (2019). Micro-, small-and medium-sized enterprises (MSMEs): challenges, opportunities and sustainability in East Asia,” Trade logistics in landlocked and resource cursed Asian countries, 155–174. https://doi.org/10.1007/978-981-13-6814-1_7

Tarihoran, A.DB., Hubeis, M., Jahroh, S and Zulbainarni, N. (2023). Market-based dynamic capabilities for MSMEs: Evidence from Indonesia's ornamental fish industry. Journal of Open Innovation: Technology, Market, and Complexity, 9 (3), 100123. https://doi.org/10. 1016/j.joitmc.2023.100123

Ng’ora, S., Mwakalobo, A.B.S., and Lwesya, F. (2022). Managerial Skills for Micro, Small and Medium sized Enterprises (MSMEs). Management Dynamics in the Knowledge Economy, 10 (4), 343-359. https://doi.org/10.2478/mdke-2022-0022

Hadi, C., Ul Mussanadah, A. and Winda Kholifah, D. . (2025). Dynamic Capabilities of SMEs: The Mediating Role of Digital Transformation in Achieving Sustainable Procurement . Accounting and Finance Studies, 5(2), 175–187. https://doi.org/10.47153/afs52.17492025

Boyke Setiawan Soeratin. (2024). Implementation of innovation management strategies for company competitiveness in the e-commerce industry. Jurnal Ekonomi, 13(01), 1048–1056. Retrieved from https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/3559

Forés, B., Alba Puig-Denia , A., Fernández-YáñezCorresponding, J, M. and Boronat-Navarro, M. (2023). Dynamic capabilities and environmental performance: all in the family. Management Decision, 61 (13): 248–271. https://doi.org/10.1108/MD-10-2022-1344

Khouroh, U., Windhyastiti, I., & Ratnaningsih, C. S. (2021). Kapabilitas dinamik dan keunggulan bersaing: Dinamisme lingkungan moderator ataukah driver? Jurnal Samudra Ekonomi dan Bisnis, 12(1), 18-34. doi: 10.33059/jseb.v12i1.2322.

Jun, W., Ali, W., Bhutto, M.Y., Hussain, H. and Khan, N.A., (2021). Examining the determinants of green innovation adoption in SMEs: a PLS-SEM approach. Eur. J. Innov. Manag. 24, 67-87. https://doi.org/10.1108/EJIM-05-2019-0113.

Silalahi, E. and Le, M. (2024). Dukungan Pemerintah sebagai Moderasi Pengaruh Transformasi Bisnis Digital dan Karakter Kewirausahaan terhadap Resiliensi UMKM. Jurnal Manajerial Dan Kewirausahaan 6(3):770-780. https://doi.org/10.24912/jmk.v6i3.31610

Hardyment, R (2024). Measuring Good Business. London: Routledge. https://doi.org/ 10.4324/9781003457732

Downloads

Published

2026-05-26

How to Cite

Indrajaya, S., Yuliantini, T., Suprapto, Wardhani, N. K., Widianty, W., Hartono, S., … Maizar, M. (2026). Market-Based Dynamic Capability Model with the Role of Government as Mediator for the Sustainability of SME Enterprises South Meruya, West Jakarta. Jurnal Pengabdian Masyarakat, 7(1), 297–304. https://doi.org/10.32815/jpm.v7i1.2986

Similar Articles

<< < 2 3 4 5 6 7 8 9 10 11 > >> 

You may also start an advanced similarity search for this article.