The Role of Technological Innovation and Social Capital in Maintaining Businesses Sustainability of SMEs

Abstract

Nowadays, the challenges faced by SMEs (Micro, Small, and Medium Enterprises) in the era of globalization are increasingly complex and competitive. A deep understanding of innovation and technology is needed, which is one of the important factors in building a strategy that can create competitive advantage and sustainability of SMEs. In addition, good strategic leadership and management are also needed that provide clear guidance on how SMEs can manage social capital in accordance with local wisdom so that it can continue to be accepted and in accordance with the nation's culture. To analyze this, this paper uses a systematic review method that examines 20 literatures on the role of innovation and technology in the business world. The results of the analysis show that innovation and technology also have an important role in helping SMEs maintain business sustainability in this era of globalization. Therefore, strategic leadership and management are needed along with social capital adaptation to support the implementation of innovation and technology in SMEs, especially in utilizing opportunities and facing challenges caused by free trade or globalization.