| Issue |
BIO Web Conf.
Volume 225, 2026
International Colloquium on Youth, Environment, and Sustainability – “Earth System Equity: Integrating Social-Economy and Ecological Solutions within Planetary Boundaries” (ICYES 2025)
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|---|---|---|
| Article Number | 07001 | |
| Number of page(s) | 8 | |
| Section | Sustainable Industry, SMEs, Transportation, and Supply Chain | |
| DOI | https://doi.org/10.1051/bioconf/202622507001 | |
| Published online | 06 March 2026 | |
Strategic Financial Capability and Innovation for Sustainable Competitiveness: A Conceptual Framework for Agribusiness SMEs in West Nusa Tenggara, Indonesia
Doctoral Program of Management Science Universitas Terbuka, Indonesia
1 Corresponding This email address is being protected from spambots. You need JavaScript enabled to view it.
Abstract
Agribusiness SMEs in developing regions face persistent challenges related to financial limitations, market volatility, and low managerial capability. Although innovation is essential for competitiveness, it often fails to generate long-term benefits without strong financial support systems. This conceptual paper proposes a framework that positions Strategic Financial Capability (SFC) as a finance-based dynamic capability that converts innovation into Sustainable Competitive Advantage (SCA). The model integrates the Resource-Based View, Dynamic Capabilities Theory, and Strategic Financial Management. A systematic review of recent Scopus- indexed studies (2020–2025) was conducted to synthesize the roles of innovation, Entrepreneurial Orientation (EO), and Digital Transformation Capability (DTC). The findings indicate that SFC enables SMEs to align financial planning, investment, and risk management with innovation needs. EO and DTC further strengthen the innovation–SFC linkage by enhancing opportunity- seeking, digital efficiency, and informed decision-making. The study contributes by introducing SFC as a new theoretical construct and offering implications for SME development and regional policy.
Key words: Strategic Financial Capability / Innovation / Entrepreneurial Orientation / Digital Transformation / Sustainable Competitive Advantage
© The Authors, published by EDP Sciences, 2026
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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