Diversification Strategy and its Impact on Sustainability: Research on Indonesian SMEs

Dekeng Setyo Budiarto (), Muhammad Agung Prabowo (), Suzilawati Uyob () and Rani Eka Diansari ()

International Journal of Applied Economics, Finance and Accounting, 2022, vol. 13, issue 1, 40-49

Abstract: Sustainable development and its contingency aspects have emerged as a fascinating topic in recent years, particularly for small and medium enterprises (SMEs). Several studies have looked at innovation, technology, and individual contexts, as well as diversification tactics, and found mixed results. Consequently, the purpose of this study is to investigate the impact of SMEs' diversification on their long-term viability. The 180 respondents that took part in the survey were all owners of SMEs from around Yogyakarta Province. The hypothesis was tested using Analysis of Variance (ANOVA), and the results revealed that there were substantial disparities in sustainability among SMEs, depending on their linearity. Furthermore, SMEs that engaged in linear diversification outperformed their non-linear counterparts in terms of profitability. The findings have implications for SME owners who want to ensure their long-term viability by employing the most appropriate approach.

Keywords: Diversification; Linearity; Strategy; Sustainability; SMEs. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://onlineacademicpress.com/index.php/IJAEFA/article/view/612/615 (application/pdf)
https://onlineacademicpress.com/index.php/IJAEFA/article/view/612/651 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oap:ijaefa:v:13:y:2022:i:1:p:40-49:id:612

Access Statistics for this article

More articles in International Journal of Applied Economics, Finance and Accounting from Online Academic Press
Bibliographic data for series maintained by Heather Rothman ().