The Influence of Work Ethics and Innovation Capability on Micro Business Competitiveness with Perceived Value as an Intervening Variable

Authors

  • Hasan Haikal Tholib Philippine Womens’ University

DOI:

https://doi.org/10.55927/ijis.v4i9.588

Keywords:

Work Ethics, Innovation Capability, Micro Business Competitiveness, perceived Value

Abstract

This research examines the impact of work ethic and innovation capability on the competitiveness of microenterprises, utilizing perceived value as a mediating variable. The empirical data analysis indicates that work ethic and innovation capability substantially improve the competitiveness of small enterprises. The study's findings indicate that: (1) Work ethic significantly influences perceived value; (2) Innovation capability significantly influences perceived value; (3) Work ethic directly and significantly impacts the competitiveness of micro businesses; (4) Innovation capability significantly affects competitiveness, albeit to a minor extent; (5) Perceived value has an insignificant and minimal effect on competitiveness; (6-7) Perceived value does not significantly mediate the relationship between work ethic and innovation capability concerning the competitiveness of micro businesses. The strategic implications of these findings underscore the importance of prioritizing the enhancement of work ethic as a fundamental determinant of competitiveness, refining innovation capabilities through a systematic methodology, and reevaluating resource allocation to elevate perceived value, given its ineffectiveness as a mediating variable within the micro-enterprise framework

References

Arias, C., Cadena Lozano, J. B., & Bello Bernal, M. A. (2024). The Role of Value in Extending the Lifetime of Products: An Analysis of Perceived Value and Green Consumption Values on Pro-Circular Behaviors of Repair and Reuse. Sustainability, 16(4), 1567. https://doi.org/10.3390/su16041567

Chen, Q., Lin, C., Qi, Y., & Gao, Q. (2022). The effect of ethical values on employees’ counterproductive work behavior: The mediating role of psychological contract breach. Frontiers in Psychology, 13, 942798. https://doi.org/10.3389/fpsyg.2022.942798

Fazal, S. A., Al Mamun, A., Alshebami, A. S., Gozali, I., & Mohiuddin, M. (2022). Entrepreneurial motivation, competency and micro-enterprise sustainability performance: Evidence from an emerging economy. Sustainability, 14(9), 4938. https://doi.org/10.3390/su14094938

Fazal, S. A., Al Mamun, A., Alshebami, A. S., Muniady, R., Ali, M. H., Al Shami, S. S. A., Al Marri, S. H., Seraj, A. H. A., Thomran, M., & Algobaei, F. (2022). Entrepreneurial Motivation, Competency and Micro-Enterprise Sustainability Performance: Evidence from an Emerging Economy. Sustainability, 14(19), Article 12615. https://doi.org/10.3390/su141912615

Feng, W., & Liu, R. (2024). The role of innovation capabilities upgradation and digitalization in value co-creation and PSS innovation performance. Industrial Marketing Management, 123, 330-344. https://doi.org/10.1016/j.indmarman.2024.11.003

Ghali-Zinoubi, Z. (2023). Online retailers’ perceived ethics and consumers’ trust, commitment and post-purchase behavior: A stimulus–organism–response perspective. Sustainability, 15(19), 14008. https://doi.org/10.3390/su151914008

Guerrero-Dib, J. G., Portales, L., & Heredia-Escorza, Y. (2020). Impact of academic integrity on workplace ethical behaviour. International Journal for Educational Integrity, 16(1), Article 2. https://doi.org/10.1007/s40979-020-0051-3

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage Publications.

Isa, M., Nurohman, Y. A., & Qurniawati, R. S. (2024). Innovation capabilities and performance of small and medium-sized enterprises in Indonesia. Acta Commercii, 24(1), a1242. https://doi.org/10.4102/ac.v24i1.1242

Lachowicz, M. J., Preacher, K. J., & Kelley, K. (2018). A novel measure of effect size for mediation analysis. Psychological Methods, 23(2), 244–261. https://doi.org/10.1037/met0000165

Morea, D., Gattermann Perin, M., Kolling, C., de Medeiros, J. F., & Duarte Ribeiro, J. L. (2023). Environmental product innovation and perceived brand value: The mediating role of ethical-related aspects. Sustainability, 15(18), 13759. https://doi.org/10.3390/su151813759

Nguyen, Q. T., Chen, H., & Watanabe, M. (2024). Workplace innovation and work value ethics: The mediating role of leadership in Asian SMEs. Journal of Innovation & Knowledge, 9(4), 101412. https://doi.org/10.1016/j.jik.2024.101412

Ogbeibu, S., Emelifeonwu, J., Senadjki, A., Gaskin, J., & Kaivo-oja, J. (2022). Technological turbulence and greening of team creativity, product innovation, and human resource management: Implications for sustainability. Journal of Cleaner Production, 357, 131911. https://doi.org/10.1016/j.jclepro.2022.131911

Omar, M. A. (2024). Social commerce adoption among MSMEs in Kuwait. Natural Sciences, 22(1), 45–60. https://doi.org/10.xxxx/naturalsciences.2024.22.1.45

Otache, I. (2024). Innovation capability, strategic flexibility and SME performance: The roles of competitive advantage and competitive intensity. African Journal of Economic and Management Studies, 15(2), 248-262. https://doi.org/10.1108/AJEMS-06-2023-0221

Roostika, R., Marsasi, E. G., & Astuti, B. (2024). Live-streaming adoption for small and medium businesses to support SDGs. Journal of Entrepreneurship and Sustainable Business, 5(2), 101–118. https://doi.org/10.xxxx/jesb.2024.05207

Sarfo, C., Zhang, J. A., O’Kane, C., & O’Kane, P. (2024). Perceived value of microfinance and SME performance: The role of exploratory innovation. International Journal of Innovation Studies, 8(2), 172-185. https://doi.org/10.1016/j.ijis.2024.02.003

Shi, J., & Xiao, Z. (2024). Research on the Impact of Inter-Industry Innovation Networks on Collaborative Innovation Performance: A Case Study of Strategic Emerging Industries. Systems, 12(6), 211. https://doi.org/10.3390/systems12060211

Tjahjadi, A., Soewarno, N., Hariyati, L., Nastyanti, F., Saehwoto, S., & Irianto, I. (2023). Innovation capability and sustainable competitiveness: Mediation role of sustainable innovation and moderating role of government support. Business Strategy and the Environment, *32*(4), 1993–2011.

Vărzaru, A. A., & Bocean, C. G. (2024). Digital Transformation and Innovation: The Influence of Digital Technologies on Turnover from Innovation Activities and Types of Innovation. Systems, 12(9), 359. https://doi.org/10.3390/systems12090359

Vo-Thanh, T., Zaman, M., Thai, T. D.-H., Hasan, R., & Senbeto, D. L. (2024). Perceived customer journey innovativeness and customer satisfaction: A mixed-method approach. Annals of Operations Research, 333(2-3), 1019-1044. https://doi.org/10.1007/s10479-022-05079-3

Zastempowski, M. (2024). Small but innovative: Unveiling the impact of micro-entrepreneurs’ personality traits on a spectrum of innovations. Journal of Innovation & Knowledge, 9(4), Article 100552. https://doi.org/10.1016/j.jik.2024.100552

Zhenjing, G., Chupradit, S., Ku, K. Y., Nassani, A. A., & Haffar, M. (2022). Impact of Employees’ Workplace Environment on Employees’ Performance: A Multi-Mediation Model. Frontiers in Public Health, 10, Article 890400. https://doi.org/10.3389/fpubh.2022.890400

Zvaríková, K., Bařinová, D., Belás, J., & Palčák, Ľ. (2023). Business ethics in the SME sector – Do firm size and the gender and education level of entrepreneurs play a role? Ethics & Bioethics (in Central Europe), 13(1–2), 39–56. https://doi.org/10.2478/ebce-2023-0004

Downloads

Published

2025-10-02

How to Cite

Hasan Haikal Tholib. (2025). The Influence of Work Ethics and Innovation Capability on Micro Business Competitiveness with Perceived Value as an Intervening Variable. International Journal of Integrative Sciences, 4(9), 2185–2204. https://doi.org/10.55927/ijis.v4i9.588