How Small Medium Enterprises Become Sustainable in the Global Business? (Stakeholder Approach to Business Responsibility of Indonesian SME's Practices)

Ginting, Ginta and Nasoha, Mohamad (2015) How Small Medium Enterprises Become Sustainable in the Global Business? (Stakeholder Approach to Business Responsibility of Indonesian SME's Practices). In: The 1st Asia Pasific Conference on Advance Research, 23-24 Juli 2015, University of Adeliade, Australia.

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Abstract

Business responsible practice for SMEs cannot be applied optimally regarding with usefulness and most of them only have a small scope. SMEs operation tend to encourage development of ethical and social rather than economic consideration. This situation cause SMEs cannot play powerful role in the level of across border nation on global scale. This study employs stakeholder theory in understanding the importance of managing good relationship which is useful in establishing network capital for SMEs in practicing business responsibility that emphasizes on calculative, economic, rational and professional principles. This study aim to analysis the fact in real life by using a model of business responsibility practice. The finding of this study shows that the practice of business responsibility has been applied by SMEs because there is a demand from important stakeholders like buyers, suppliers, customers, community and employees. This demand cannot be separated from demand environmental friendly business in the international market. The result of this study emphasize the strategic and legitimacy aspects are important in maintaining sustainability of business in international/global markets.

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