Leveraging Volunteerism and Digital Competencies to Overcome Innovation Barriers Among Nascent Entrepreneurs in Indonesia
DOI:
https://doi.org/10.61132/icmeb.v2i2.371Keywords:
Digital Competencies, Innovation Performance, Nascent Entrepreneurs, Service-Dominant Logic, VolunteerismAbstract
This study explores how nascent entrepreneurs in Indonesia can improve their business innovation performance by utilizing volunteerism and digital competencies, particularly in the context of financial and technological limitations. These challenges significantly hinder their capacity for effective innovation, especially in resource-limited settings where access to tools and expertise is often scarce. A quantitative approach was employed, using data from 156 nascent entrepreneurs, which was analyzed through Structural Equation Modeling (SEM). The results indicate that the voluntary exchange of ideas and competences, framed through the Service-Dominant Logic (S-DL) perspective, plays a critical role in overcoming resource constraints and enhancing innovation outcomes. By facilitating collaboration and knowledge-sharing via volunteerism, nascent entrepreneurs can strengthen their digital and managerial capabilities, which are essential for driving innovation. The study highlights the importance of creating ecosystems that support stakeholder-driven volunteer initiatives, which help develop strategic digital competencies among emerging entrepreneurs, thereby fostering greater innovation capacity and ensuring long-term business sustainability.
Downloads
References
Ahmed, U., Shah, S. A., Qureshi, M. A., Shah, M. H., & Khuwaja, F. M. (2018). Nurturing innovation performance through corporate entrepreneurship: The moderation of employee engagement. Studies in Business and Economics, 13(2), 20-30. https://doi.org/10.2478/sbe-2018-0017
Ali, Z., Sun, H., & Ali, M. (2017). The impact of managerial and adaptive capabilities to stimulate organizational innovation in SMEs: A complementary PLS–SEM approach. Sustainability, 9(12), 2157. https://doi.org/10.3390/su9122157
Amarasooriya, D. N. P., Premarathna, S. P., & Rajadurei, S. (2024). An analysis of the obstructive factors that impact the empowerment of women entrepreneurs in Sri Lanka. Kelaniya Journal of Management, 13(1), 41-55. https://doi.org/10.4038/kjm.v13i1.7789
Aqmala, D., Ardyan, E., & Putra, F. I. F. S. (2021). Increasing salesperson performance through relational penetration capability: The implementation of insurance service company distribution. Journal of Distribution Science, 19(5), 35-48. https://doi.org/10.15722/JDS.19.5.202105.35
Becheikh, N., & Bouaddi, M. (2023). Macro barriers to business and innovation in developing economies: Evidence from Egyptian, Moroccan, and Tunisian SMEs. Canadian Journal of Development Studies/Revue canadienne d'études du développement, 44(2), 151-171. https://doi.org/10.1080/02255189.2022.2102464
Beresford, P., & Hirst, C. (2020). How consumers reconcile discordant food retailer brand images. Journal of Marketing Management, 36(11-12), 1104-1124. https://doi.org/10.1080/0267257X.2020.1783347
Biswas, A. (2023). Construing drivers of firm competitiveness: Coalescing pursuit of excellence with entrepreneurial competencies. International Journal of Productivity and Performance Management, 72(7), 2069-2092. https://doi.org/10.1108/IJPPM-08-2021-0447
Brozović, D., D’Auria, A., & Tregua, M. (2020). Value creation and sustainability: Lessons from leading sustainability firms. Sustainability, 12(11), 44-50. https://doi.org/10.3390/su12114450
Chege, S. M., Wang, D., & Suntu, S. L. (2019). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 26(2), 316-345. https://doi.org/10.1080/02681102.2019.1573717
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In Modern methods for business research (pp. 295-336). https://doi.org/10.4324/9781410604385-10
Cho, Y. H., & Lee, J.-H. (2018). Entrepreneurial orientation, entrepreneurial education, and performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2), 124-134. https://doi.org/10.1108/apjie-05-2018-0028
Correll, J., Mellinger, C., McClelland, G. H., & Judd, C. M. (2020). Avoid Cohen’s ‘small’, ‘medium’, and ‘large’ for power analysis. Trends in Cognitive Sciences, 24(3), 200-207. https://doi.org/10.1016/j.tics.2019.12.009
Emami, A., Ashourizadeh, S., & Packard, M. D. (2023). The impact of social network support on opportunity intention among prospective male and female entrepreneurs during the 2019-nCov pandemic. International Journal of Entrepreneurial Behaviour & Research, 29(11), 132-169. https://doi.org/10.1108/ijebr-03-2022-0223
Fadaee, A., & Abd Alzahrh, H. O. (2014). Explaining the relationship between creativity, innovation, and entrepreneurship. International Journal of Economy, Management and Social Sciences, 3(12), 1-4.
Fait, M., Cillo, V., Papa, A., Meissner, D., & Scorrano, P. (2023). The roots of “volunteer” employees’ engagement: The silent role of intellectual capital in knowledge-sharing intentions. Journal of Intellectual Capital, 24(2), 399-429. https://doi.org/10.1108/JIC-04-2020-0133
Fernandes, T., & de Matos, M. A. (2023). Towards a better understanding of volunteer engagement: Self-determined motivations, self-expression needs, and co-creation outcomes. Journal of Service Theory and Practice, 33(7), 1-27. https://doi.org/10.1108/JSTP-09-2022-0215
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
Glińska-Neweś, A., & Górka, J. (2020). Capabilities of corporate volunteering in strengthening social capital. Sustainability, 12(18), 74-82. https://doi.org/10.3390/su12187482
Goyal, A., & Mishra, U. S. (2023a). Impact of entrepreneurial orientation on MSME performance: Mediating role of entrepreneurial competency. Entrepreneurship Research Journal, 14(4), 1583-1609. https://doi.org/10.1515/erj-2022-0315
Goyal, A., & Mishra, U. S. (2023b). Impact of entrepreneurial orientation on MSME performance: Mediating role of entrepreneurial competency. Entrepreneurship Research Journal. https://doi.org/10.1515/erj-2022-0315
Hair Jr, J. F., Babin, B. J., & Krey, N. (2017). Covariance-based structural equation modeling. Journal of Advertising, 46(1), 163-177. https://doi.org/10.1080/00913367.2017.1281777
Hair, E., et al. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hwang, W.-S., Choi, H., & Shin, J. (2020). A mediating role of innovation capability between entrepreneurial competencies and competitive advantage. Technology Analysis & Strategic Management, 32(1), 1-14. https://doi.org/10.1080/09537325.2019.1632430
Kaciak, E., Koladkiewicz, I., Thongpapanl, N., & Wojtyra, M. (2021). The role of social networks in shaping entrepreneurial exit strategies. International Entrepreneurship and Management Journal, 17, 1619-1655. https://doi.org/10.1007/s11365-020-00668-9
Kehbila, A. G. (2021). The entrepreneur’s go-to-market innovation strategy: Towards a decision-analytic framework and a road mapping process to create radically successful businesses driving spectacular growth and profitability. Journal of Small Business & Entrepreneurship, 33(6), 689-716. https://doi.org/10.1080/08276331.2020.1786646
Kim, B., Kim, E., Kim, Y., & Cho, J. Y. (2018). Where to find innovative ideas: Interdependence-building mechanisms and boundary-spanning exploration. Knowledge Management Research & Practice, 16(3), 376-387. https://doi.org/10.1080/14778238.2018.1493367
Koliby, I. S. M. A., Abdullah, H. H., & Suki, N. M. (2022). Linking entrepreneurial competencies, innovation, and sustainable performance of manufacturing SMEs. Asia-Pacific Journal of Business Administration, 16(1), 21-40. https://doi.org/10.1108/apjba-09-2021-0480
Liu, Y., & Xu, H. (2022). Strategic corporate social responsibility with spillover effect in innovation. Nankai Business Review International, 13(2), 318-339. https://doi.org/10.1108/NBRI-04-2021-0025
Lu, L., Hau, L. N., Ngo, L. V., Northey, G., Duong, T. T.-T., & Gregory, G. (2024). Managing innovation from an S-D logic perspective. Australasian Marketing Journal (AMJ). https://doi.org/10.1177/14413582241246790
Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451. https://doi.org/10.1016/S0883-9026(00)00048-3
Lusch, R. F., & Vargo, S. L. (2014). Service-dominant logic: Premises, perspectives, possibilities. Cambridge University Press.
Lusch, R. F., Vargo, S. L., & O'Brien, M. (2007). Competing through service: Insights from service-dominant logic. Journal of Retailing, 83(1). https://doi.org/10.1016/j.jretai.2006.10.002
Mamun, A. A., & Fazal, S. A. (2018). Effect of entrepreneurial orientation on competency and micro-enterprise performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(3), 379-398. https://doi.org/10.1108/apjie-05-2018-0033
McBey, K., Karakowsky, L., & Ng, P. (2017). Can I make a difference here? The impact of perceived organizational support on volunteer commitment. Journal of Management Development, 36(8), 991-1007. https://doi.org/10.1108/JMD-05-2015-0078
Mili, S. A., & Hashim, F. (2020). Voluntary human capital disclosure and firm value relationship in the listed companies of Bangladesh: A conceptual overview. Journal of International Business Economics and Entrepreneurship. https://doi.org/10.24191/jibe.v5i2.14234
Mondal, S., Singh, S., & Gupta, H. (2024). Exploring the impact of green entrepreneurial orientation on sustainable performance: Insights from CSR, policy, and innovation. Management Decision, 62(12), 3946-3977. https://doi.org/10.1108/MD-10-2023-1816
Moonti, A., Panjaitan, R., Adam, E., & Roslan, A. H. (2023). Linkages nascent entrepreneurship and knowledge quality resonance: Explore voluntary co-creation from service-dominant logic. Business: Theory and Practice, 24(1), 1-12. https://doi.org/10.3846/btp.2023.14912
Mozumdar, L., Materia, V. C., Hagelaar, G., Islam, M. A., Velde, G. v. d., & Omta, S. W. F. (2022). Contextuality of entrepreneurial orientation and business performance: The case of women entrepreneurs in Bangladesh. Journal of Entrepreneurship and Innovation in Emerging Economies, 8(1), 94-120. https://doi.org/10.1177/23939575211062433
Nathan, M., & Rosso, A. (2022). Innovative events: Product launches, innovation, and firm performance. Research Policy, 51(1), 104373. https://doi.org/10.1016/j.respol.2021.104373
Ndururi, J., & Mukulu, E. (2015). Role of entrepreneurial mindset in success of enterprises operated by entrepreneurship university graduates in Kenya. Strategic Journal of Business & Change Management, 2, 376-399. https://doi.org/10.61426/sjbcm.v2i1.91
Ng, H. S., Kee, D. M. H., & Ramayah, T. (2020). Examining the mediating role of innovativeness in the link between core competencies and SME performance. Journal of Small Business and Enterprise Development, 27(1), 103-129. https://doi.org/10.1108/JSBED-12-2018-0379
Nguyen, C. T. P., Nguyen, D. T., & Nguyen, H. T. (2021a). Personality traits and firm innovation performance: The mediation effect of entrepreneurial innovativeness. Journal of Entrepreneurship in Emerging Economies, 15(1), 113-132. https://doi.org/10.1108/JEEE-04-2021-0170
Nguyen, M. H. T., Carr, S. C., Hodgetts, D., & Fauchart, E. (2021b). Why do some social enterprises flourish in Vietnam? A comparison of human and ecosystem partnerships. Sustainability Accounting, Management and Policy Journal, 12(6), 1312-1347. https://doi.org/10.1108/SAMPJ-04-2020-0137
Osuagwu, L. (2022). Entrepreneurial marketing: Conceptualizations, dimensional peculiarities, and research instrumentation. Journal of Business & Economics, 10(2), 122. https://doi.org/10.46273/jobe.v10i2.310
Petrylaite, E. (2020). Entrepreneurial marketing learning styles used by entrepreneurial teams. Journal of Research in Marketing and Entrepreneurship. https://doi.org/10.1108/JRME-12-2019-0099
Purchase, S., & Volery, T. (2020). Marketing innovation: A systematic review. Journal of Marketing Management, 36(9-10), 763-793. https://doi.org/10.1080/0267257X.2020.1774631
Rajiani, I., Kot, S., Michałek, J., & Gede Riana, I. (2023). Barriers to technology innovation among nascent entrepreneurs in deprived areas. Problems and Perspectives in Management, 21(3), 614-628. https://doi.org/10.21511/ppm.21(3).2023.48
Roberts, J., & Armitage, J. (2015). Luxury and creativity: Exploration, exploitation, or preservation? Technology Innovation Management Review, 5(7), 41-49.
Saengsupavanich, C., Gallardo, W. G., Sajor, E., & Murray, W. W. (2012). Constraints influencing stakeholder participation in collective environmental management. Environmental Earth Sciences, 66, 1817-1829. https://doi.org/10.1007/s12665-011-1407-z
Samara, G., & Terzian, J. (2021). Challenges and opportunities for digital entrepreneurship in developing countries. Digital Entrepreneurship, 283, 283-302. https://doi.org/10.1007/978-3-030-53914-6_14
Sanaji, S. (2023). The role of performance to continue the business for nascent entrepreneurs: The effect of entrepreneurial self-efficacy. Journal of Business Management Review, 4(1), 064-077. https://doi.org/10.47153/jbmr41.6012023
Sathana, V., Velnampy, T., & Rajumesh, S. (2021). Role of innovative marketing strategy for success of micro, small, and medium enterprises (MSMEs). In New horizons in management, leadership, and sustainability: Innovative case studies and solutions for emerging economies (pp. 57-79). Springer. https://doi.org/10.1007/978-3-030-62171-1_4
Shulga, L. V., & Busser, J. A. (2020). Customer self-determination in value co-creation. Journal of Service Theory and Practice, 31(1), 83-111. https://doi.org/10.1108/jstp-05-2020-0093
Straka, D. A. (2017). Collaboration in multi-stakeholder, multi-cultural organizational environments. Issues in Informing Science and Information Technology, 14, 163-175.
Sun, J., Shi, J., & Zhang, J. (2023). From entrepreneurship education to entrepreneurial intention: Mindset, motivation, and prior exposure. Frontiers in Psychology, 14. https://doi.org/10.3389/fpsyg.2023.954118
Tapaninaho, R., & Heikkinen, A. (2022). Value creation in circular economy business for sustainability: A stakeholder relationship perspective. Business Strategy and the Environment, 31(6), 2728-2740. https://doi.org/10.1002/bse.3002
Toner, J., & Martins, J. T. (2022). Institutional isomorphism in collaborative, cross-cultural, project-based development work: An inquiry into the knowledge sharing behaviour of volunteers. Journal of Knowledge Management, 26(7), 1763-1788. https://doi.org/10.1108/JKM-08-2020-0640
Tunio, M. N., Jariko, M. A., Børsen, T., Shaikh, S., Mushtaque, T., & Brahmi, M. (2021). How entrepreneurship sustains barriers in the entrepreneurial process A lesson from a developing nation. Sustainability, 13(20), 11419. https://doi.org/10.3390/su132011419
Uvarova, I., & Vitola, A. (2019). Innovation challenges and opportunities in European rural SMEs. Public Policy and Administration, 18(1), 152-166. http://dx.doi.org/10.5755/j01.ppaa.18.1.23134
Vargo, S. L., & Lusch, R. F. (2004). Evolving to for logic marketing. The Journal of Marketing, 68(1), 1-17. https://doi.org/10.1300/J047v07n04_02
Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: Continuing the evolution. Journal of the Academy of Marketing Science, 36(1), 1-10. https://doi.org/10.1007/s11747-007-0069-6
Vargo, S. L., & Lusch, R. F. (2008). Why “service”? Journal of the Academy of Marketing Science, 36, 25-38. https://doi.org/10.1007/s11747-007-0068-7
Vargo, S. L., & Lusch, R. F. (2014). Evolving to a new dominant logic for marketing. In The service-dominant logic of marketing (pp. 21-46). Routledge. https://doi.org/10.1509/jmkg.68.1.1.24036
Vliamos, S. J. (2017). Understanding the knowledge–opportunities–entrepreneurship mechanism. In Research Handbook on Entrepreneurial Opportunities (pp. 173-189). Edward Elgar Publishing.
Voinea, C. M., State, V., & Coman, D. M. (2022). Analysis on the impact of business support measures regarding the continuity of economic activity in pandemic context. Valahian Journal of Economic Studies, 13(1), 25-32. https://doi.org/10.2478/vjes-2022-0003
Vu, H. M., & Nwachukwu, C. (2021). Influence of entrepreneur competencies on profitability and employee satisfaction. International Journal of Management and Enterprise Development, 20(1), 1-16. http://dx.doi.org/10.1504/IJMED.2021.10036187
Yang, J., & Yu, M. (2022). The influence of institutional support on the innovation performance of new ventures: The mediating mechanism of entrepreneurial orientation. Sustainability, 14(4), 12-22. https://doi.org/10.3390/su14042212
Yodchai, N., Ly, P. T. M., & Tran, L. T. T. (2021). How the creative mindset affects entrepreneurial success in the tourism sector: The mediating role of innovation capability. International Journal of Contemporary Hospitality Management, 34(1), 279-298. https://doi.org/10.1108/ijchm-06-2021-0695
Yoo, C., Yeon, J., & Lee, S. (2022). Beyond “good company”: The mediating role of innovation in the corporate social responsibility and corporate firm performance relationship. International Journal of Contemporary Hospitality Management, 34(10), 3677-3696. https://doi.org/10.1108/IJCHM-10-2021-1288
Zhou, H., Wang, Q., & Zhao, X. (2020). Corporate social responsibility and innovation: A comparative study. Industrial Management & Data Systems, 120(5), 863-882. https://doi.org/10.1108/IMDS-09-2019-0493
Zhou, R., & Wu, S. (2021). Opportunity finding by nascent entrepreneurs: Accidental or purposeful? Frontiers in Psychology, 11, Article 592994. https://doi.org/10.3389/fpsyg.2020.592994
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Proceeding of the International Conference on Management, Entrepreneurship, and Business

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.



