SMEs are in the midst of a digital economy driven by the rapid growth of technologies, pushing them to change or be excluded from the system. Compounded by the COVID-19 outbreak, SMEs are required to catch up with the transition quickly. Governments and policymakers have previously conceived numerous policies to support SMEs' digital transformation in most countries. Nevertheless, in Indonesia, these efforts are dominated by digital literacy development programs while paying little attention to the holistic entrepreneurial capacity. Whereas only as a part of a comprehensive approach digital literacy can be developed. As SMEs are part of a system, the holistic entrepreneurial capacity should encompass internal and external capacity, from SMEs' capacity as an entity, the availability of enabling environment, and the synergy. This research attempted to solve the research question: "How to raise the SMEs' capacity in Indonesia to perform digital transformation?". The proposition was studied by carrying a multiple embedded case study of Indonesian SMEs to determine the existing capacity, barriers and ultimately answer the research question. The case study includes 18 SMEs with different business scales assorted into three categories according to the entrepreneurial capacity and digital literacy level. Data collection in this case study combined semi-structured interviews and observations. Additionally, three inclusive case descriptions are presented to illustrate the profile of targeted companies in the Government's digital transformation agenda. Furthermore, cases were cross-analyzed to reveal their capacities based on the value and institutional context of each company, and also the relation to its digital transformation phase. Meanwhile, data about the current landscape and the interaction with SMEs are collected from a literature review and interviews with four experts from Kemenkop, Bank Indonesia, and eCommerce. The empirical results reveal that Indonesia's current landscape is shifting within traditional and more modern practices. Numerous policies, regulations, development programs, and financial supports exist to boost SMEs' digital transformation. However, there are manifold barriers at this level. There is a solid patrimonial system and bureaucracy in a decentralized Government system, compounded by a sectoral ego that creates disintegration and hampers coordination. In addition, the lack of arrangement and regulations enforcement due to the Government's limited capacity generates suboptimal outputs. Next, lack of capacity is the central barrier to digital transformation at the SME level. However, the empirical evidence showed that this issue is beyond the lack of knowledge and skills in technology utilization. Hence, capacity building should not only concentrate on improving digital literacy but also the overall SMEs’ capacity. Another noteworthy finding is that some SMEs with high capacity prefer to stay out of the systems and refuse to take digital transformation due to weak regulations enforcement from authorities and lack of incentives. On the other hand, SMEs utilizing digital technology both in transition business model and digital business model obtain several benefits from their participation. First, they enjoy the broader market and network up to national also international markets. Such a network will also lead to cost savings and access to funding. Next, they can have better engagement with customers that contribute to their innovation capacity. Then, combining the broader market, network, and customer interaction enables SMEs to create demand-based innovation, leading to the better product value. Participating in the digital platform and the motivation for business escalation also affect the SMEs' compliance level. As they try to develop the business and increase the product value, they will register their business and strive to obtain relevant certifications. Ultimately, with intensive assistance and consecutive improvements, the company's overall performance would be enhanced, and in turn, this will promote business sustainability. This study confirms that SMEs' digital transformation requires comprehensive knowledge and skills, a supporting mindset, and enabling environment. Therefore, we propose a comprehensive SMEs development program for the Indonesian Government, namely SCALE-UP: SMEs Capacity Development and Upgrading Program. This program is a top-down approach for the Government and relevant authorities that focus on providing appropriate capacity building for SMEs according to their needs reflected on capacity assessment output. So, the capacity development between SMEs might vary. The traditional enterprises with a lack of capacity in most aspects will get different development plans than the SMEs with higher entrepreneurial capacity but lack digital literacy, as they need a more entrepreneurial mindset and attitude. This capacity development should be followed by intensive assistance and collaboration with civil society. Eventually, regular evaluation and more vigorous enforcement are essential to monitor progress and anticipate obstacles. Nevertheless, this development program requires more transparency, cooperation, and compliance within Government institutions. To deal with the sectoral ego, a dedicated working group for SMEs development consisting of the Government and relevant authorities is required. In addition, the Ministry of SMEs and Cooperative, as the SMEs authority, can build a showcase of progressive SMEs that is accessible for investors, financial institutions, NGOs, and relevant stakeholders. This showcase can be an incentive to encourage SMEs to take digital transformation and participate in the formal economy voluntarily.

Background, issues, and main research questions: Circularity (circular economy) is being developed in many countries around the world where it has been set as a development goal (Schröder et al, 2019). However, the progress in implementing circularity varies from country to country. Most of the countries that are leading in circularity are European countries (Construcia, 2020). The Global South is less advanced than the former, but the development of circularity is necessary and urgent for the Global South. For example, in Indonesia, where lagging industrial development and high levels of waste generation are currently causing problems such as industrial depression, environmental pollution and threats to human health, the implementation of circularity can help sustain and promote industrial development and address the problems caused by growing waste (Preston & Lehne, 2017). At the same time, in the face of the current global problem of increasing resource consumption, the implementation of circularity has been identified as an important goal not only for regional development, but also as a common priority for global development (Circular Economy Action Plan, 2020). In this context, this study therefore aims to investigate how to accelerate the implementation of circularity in the Global South and European countries. Specifically, the study decided to conduct a comparative case study between several European countries and Indonesia. Furthermore, innovation related to circularity is included in the theme of this study. The main research questions are therefore how circularity/innovation has been or is being implemented in European countries and Indonesia, what are the distinctive characteristics behind the implementation, and what recommendations can be made for the development of circularity/innovation in Indonesia and European countries.

Methodology: It is a literature-based study. A multidimensional perspective, entailing the levels of the state, civil society and individual enterprises, is the main research approach of this study. Furthermore, the functioning and rules of Systems I and II (Kroesen et al, 2020) provide theoretical and conceptual support for the entire study. Three cases (biogas technology, circularity of plastics, and innovations in the pulp and paper industry) were selected for this study, corresponding to three selected European countries (Finland, Germany, and Sweden) compared to Indonesia. Three main steps were established to conduct this study. Firstly under each case, the selected European countries and Indonesia were subjected to their respective case descriptions and analyses. A comparative analysis and discussion of the selected European countries and Indonesia was then carried out under each case. Finally, corresponding conclusions and recommendations were drawn for the implementation of circularity/innovation in Indonesia and the selected European countries.

Results, conclusions and recommendations: Towards circularity/innovation, a transition is taking place between System I and System II, with both the European countries and Indonesia in this study navigating through it. This study shows that the European countries' distinctive characteristics in terms of circularity/innovation are close to those of System II, independent of those of System I, while a large number of Indonesia's distinctive characteristics in terms of circularity/innovation lack to some extent those of System II, and in addition, some of Indonesia's distinctive characteristics are close to those of System I. The distinctive characteristics of System II are of key importance for the implementation of circularity/innovation, as progress in implementing circularity/innovation is positively correlated with the extent to which countries make the transition to System II.The efficiency and effectiveness of the state, civil society and individual enterprises in implementing circularity/innovation has been positively demonstrated in the European countries studied. There is a beneficial interaction between state policies with a high level of scientific and technological research and civil society and individual enterprises with a high level of initiative and planning, thus facilitating the implementation of circularity/innovation. However, in Indonesia, although the state, civil society and individual enterprises were all involved in the implementation of circularity/innovation, the interaction between them was less efficient and effective than the former, as unclear vision-setting and over-intervention by the government, poor citizen behaviour and a lack of local initiatives and planning may have hindered the interaction between the various levels when it comes to circularity/innovation, as was observed to some extent.The following are three particular examples of conclusions and recommendations. In the European countries studied and in Indonesia, open cooperation and complementary relationships between multiple stakeholders in the product supply chain, as well as the openness of customers to accept circular innovative products, are reflected in a more effective implementation of circularity (1). Based on the experience of the European countries studied, the state leaves the space for initiation and implementation to civil society and individual enterprises, while policy development is strictly focused on R&D, which could serve as a reference for more effective implementation of circularity/innovation in Indonesia (2). Indonesia, which is to a large extent close to System I, is at risk of excessive state intervention and over-dependence of stakeholders on relationships, while for the European countries studied, which are close to System II, there may be a risk of too much corporate individualism and liberal behaviour at the expense of the role of the state. Thus, the role of Systems I and II in the implementation of circularity/innovation is not black and white, but more or less so (3).

In the last decade many development projects focused on agricultural development, wherein smallholder farmers are challenged to change their traditional practices and make use of new technologies and techniques. However, it is seen that smallholder farmers are not able or willing to apply learned practices or increase production. One reason for this is that interventions focus on capacity building in a way that they include training in knowledge and skills, but they do not take into account the values, attitudes and beliefs of farmers and their surroundings. Therefore, this research answers the following research question: Can capacity building be included in agricultural projects focused on smallholder farmers in developing countries, and if so, how? A case study about women smallholder farmers in Kerala, India, is conducted. Findings show that not only the knowledge and skills are hindering a woman smallholder farmer’s capacity to grow, but also her internal motivation, level of empowerment, ability to take risks, the perception towards farming and informal institutions are important for her capacity. Hence, this study proposes a framework with components to consider when developing a strategy for capacity building of women smallholder farmers. This study provides a better understanding of the importance of certain components for capacity building and can help project initiators when they are to include capacity building in agricultural development projects to develop sustainable projects.

Biogas is a sustainable and circular technology with a large potential to positively impact developing nations such as Ethiopia. However, international endeavors that initiate or install such technologies in developing nations often fade over time or even fail. This thesis evaluates what the common barriers and drivers of entrepreneurs of such edeavors are. In addition, various sustainable and circular business model frameworks and business model frameworks specific to developing nations are assessed based on their advantages and disadvantages. The results of these two research topics are translated into a list of criteria for a business model framework that addresses the barriers that are commonly faced by entrepreneurs of such endeavors and allows integrating goals of sustainability and circularity. Based on these criteria, a new business model framework is developed: the Modular Business Model Framework (MBMF) based on the Business Model Canvas by A. Osterwalder and Y.Pigneur with modules frugality, sustainability, circularity and socio-cultural aspects. The MBMF has six steps that help guide the entrepreneur through the process of setting up a business. Each module represents a larger target or goal that the entrepreneur wishes to achieve and the order in which they are applied represents their priority. The applicability and user-friendliness of the MBMF is tested by completing the case study: introducing biogas at the Nicolas Robinson School in Mek'ele, Ethiopia. Due to the civil war in Ethiopia, this case study is not implemented in the field; however, it allows to determine points of improvement for the MBMF. In addition, a review panel of experts is asked to give an indication on the tool's potential and user-friendliness. The review panel sees the MBMF as a well-argued tool with a broader potential than presented in the thesis due to the exchangeability of the modules. Several main points of improvement include limiting the amount of steps to three and adding emphasis on business resilience. The framework is also quite time consuming, but the entrepreneur is in control of the level of detail that is applied and the time spent on the framework is constructive towards setting up a new business. Future research should improve the framework based on the determined points of improvement. In addition, the tool should be tested in several real-life business endeavors and any feedback should be taken into consideration to improve the tool. Finally, the option to establish a 'library' of modules should be explored to make the MBMF applicable to almost any business.

Almost 25 million people in Indonesia are still living in poverty. Most of these people are living in a rural area. Energy provision is considered as one of the first steps towards poverty alleviation. However, there are many challenges faced by the Indonesian government in providing electricity to the rural area, because most of the non-electrified villages are difficult to access by off-grid connection. Hence, renewable energy technology is widely considered as the most viable option for rural electrification that could stimulate economic growth without harming the environment. As technology provider agents, social entrepreneurs and NGOs have an essential role in technology development and knowledge transfer to people in a rural area. This highlights the importance of social entrepreneurship in supporting rural development and electrification. However, the implementation of rural renewable energy has high dependencies on charitable funding and grants. This addresses the most critical challenge for social enterprises and NGOs, that is to become financially and socially sustainable, especially after the launch of the innovation. Thus, identification and analysis of critical success factors for the commercialization phase of social innovation are needed. This study aims to identify and analyze the critical success factors influencing social innovation and entrepreneurship, particularly in the rural renewable energy field. Then, possible recommendations can be proposed to overcome the barriers. A combination of research methodologies is used in this study, combining both primary and secondary data through literature review, interview, and case study with cross-case analysis. The case study will be conducted by analyzing three social entrepreneurs focusing on rural renewable energy in Indonesia, such as Lentera Bumi Nusantara (LBN) for the wind turbine, Renewable Energy Service Company (RESCO) Sumba for solar PV, and Institut Bisnis dan Ekonomi Kerakyatan (IBEKA) for micro-hydro. The main deliverables from this study are the framework of influencing factors for social innovation in the commercialization phase and recommendations to overcome the barriers. The proposed framework and suggestions can be used as a basis for future research in other cases of social innovation, not only limited to rural development and renewable energy field. The study provides a final framework of 20 factors, which is based on these three levels: individual organization, civil society, and state. For the “individual organization” level, the factors are long-term goals and commitment, planning and targets, credibility and capability of the company, organizational culture and environment, qualified personnel, benefits for personnel, the role of company leaders, products and services, cost recovery model, natural resources, and standard procedures and practices. For the “civil society” level, the factors are target market readiness, benefits for users or community, community involvement and participation, network and partnership, financial support, and competition. For the “state” dimension, the factors are regulations and policies, administrative and bureaucratic procedures, and infrastructure.

Biogas production issues are generally connected with poor maintenance of the plant, characterised by the unavailability of a daily and regular feeding activity, inadequate cleaning and stirring system, and inefficient use of biogas. In addition, the overlooking of socio-cultural values can contribute to the expansion of performance issues since it affects directly the work approach and behaviour of biogas owners. In a technical point of view, gas leakage is the most common issue occurred, and the plant design is a crucial aspect that influences the future performance of the biogas system. The main operational issues that negatively affect the biogas performance are the blockage of the inlet pipes, insufficient feeding activity, and the corrosion of biogas appliances. The amount of feedstock and water added in the plant is the most important information that necessitates a daily control but also other important parameters such as temperature, gas production, pH value, and agitation system. In terms of socio-cultural factors, it was possible to notice a common hierarchical attitude towards their workers among the biogas owners interviewed. This aspect was supported by a lack of communication between workers and owners hindering the interest of the first to share opinions and to take initiatives. The general context is characterised by the presence of vertical networks where limited cooperation among members of different groups dominates. As a result, the lack of technical support after the installation of the system from the biogas providers to biogas users hinder adequate maintenance. since the owners usually don't have sufficient technical knowledge to evaluate any problems.

Entrepreneurship is often seen as one of the main measures to combat poverty in SSA. Yet, efforts still have not led to sustainable economic development. Scholars are arguing that new policies should be developed that build forth on existing values and institutions, instead of working against it. For this reason, this research is developed a qualitative research project that investigates the behaviours and strategies exercised by local entrepreneurs in Tanzania in light of the socio-cultural and economic context. It will therefore answer the research question:

How are SMEs operating in the technology industries dealing with the socio-cultural and economic demands originating from the Tanzanian business environment?

Tanzania is transforming from a traditional system that includes traditional socio-cultural and economic values and institutions, towards a modern system including more modern values and institutions. A clear distinction between the two systems has thus been proposed, where practices that are value- and institutional laden are identified and classified over these systems and the levels of the company, the civil society and the state. A total of 16 cases were developed of SMEs operating in the tech-industries by interviewing managing directors and senior managers, as well as making observations, which were consequently cross-analysed. This led to the development of a model that contain the values and institutions across the aforementioned levels and systems.
The main findings include that Tanzanian businesses tend to be hierarchical, are socio-culturally connected to informal ties including reciprocities, have a fatalistic attitude to production controls and rules, and have a synchronic time management. Supply chains are compartmentalised with little cooperation, coordination, information sharing and suggestions for innovations. In addition, due to the prevailing copying behaviour of many entrepreneurs, markets are characterised as either being very competitive with little to no product differentiation, or as being severely underdeveloped. The institutional environment remains unfavourable, where regulatory compliance is often time-consuming and expensive due to the bureaucratic systems. In addition, a combination of bureaucracy, weak law enforcement and a lack of transparency generates an unequal playing field, with unfair competition, privileges and corruption. Entrepreneurs often face a dilemma, where not participating in these practices leads to losing business opportunities. Nonetheless, the ICT sector seems to struggles less with these issues and the companies tend to be more successful.
The amount of the developments happening in Tanzania are tremendous and four of these stood out from the rest. These include a shift towards egalitarian management, a reduction of the social ties, a decrease in corruption and strong market developments. Drivers for these changes include improvements in the institutional surrounding, urbanisation, developments in infrastructure and technologies, and education.
Companies will benefit from implementing teamwork and remuneration policies, balancing social ties, rotate employees over station, implement basic SCM principles, occasionally pay allowance fees, apply to support organisations and have an open debate on more controversial practices.

Healthcare services in the developing countries are suffering from lack of equipment, expertise and infrastructure. Sexual reproductive health is one of these health areas in which the public health sector is not meeting the growing demand and it is defined as unmet need for family planning. To address this need, international agencies have been operating in the developing world with the aim of making sexual reproductive health services accessible to everyone while assuring good quality. Health franchising is a healthcare service delivery model that is operated by international NGOs and private sector in these regions. As a type of social franchising, health franchising uses commercial franchising mechanisms in order to generate social welfare. The business model of health franchising is based on creating a network of franchisees, utilizing the existing private clinics while providing them with subsidized commodities, training, monitoring, promotion of the network and incentives. In return, the franchisees are promising to stay loyal to the franchisor’s standards and periodically report their performance. Although health-franchising programs have been active and constantly expanding their operations, there are limited studies on the business model and its cost effectiveness. This study aims to explore health franchising, the business model, performance and cost effectiveness in comparison to other healthcare service delivery models in the developing world. For this purpose, a cost effectiveness analysis is conducted on the operations of a health franchising program to calculate the input/output ratio in terms of cost per health impact generated. The value adding mechanisms and impact of health franchising are further discussed through interviews. Findings are interpreted into a set of practical recommendations and an experiment blueprint for a standardized evaluation of health franchising programs. Findings from the case of PSI Myanmar suggest that the cost effectiveness ratio of health franchising is within the limits of similar health service delivery models in the developing world. Apart from its cost-effectiveness, there are other factors such as quality, perception of comfort from the patients and the robust supply chain that make this business model successful in the context it operates.

Ghana as a developing country has some challenges for the future. These challenges include an energy crisis, a high dependence on firewood and high levels of poverty. Biogas technology has the potential to make a contribution in solving these challenges, but is not yet widely implemented in Ghana. For this reason, the aim of this thesis was to find ways to increase the use of biogas technology in Ghana. To do this, a business model for community based biogas enterprises was created which was based on Ghanaian cultural values and by that included the most appropriate complexity and scale of biogas technology. To arrive at a representation of Ghanaian culture, a field study was done in which thirteen SMEs were visited. Data were collected by in-depth interviews and participatory observation. For the cultural analysis, a model was made based on cultural dimensions by Hofstede and Trompenaars. The model consisted of six dimensions which were given a score between one to five. Based on these scores, the degree in which a civil society and innovative entrepreneurship are present in Ghana were determined. A multi criteria analysis was done to find the most appropriate form of biogas technology in a Ghanaian business setting. The feedstock availability of an average Ghanaian community was assessed to find the most feasible alternative and determine the size of the digester. Various value propositions were compared on their economic viability by calculating their NPV, IRR and DPB. The major findings of this research were that the garage-type digester was the most appropriate digester design, fed with only crop residues available from the community. For an average community size of 491 people, a digester size of 67 m3 would be needed. The best value proposition was concluded to be collecting all the available crop residues from within the community with a cargo tricycle, digesting the crop residues in a garage-type digester, using the produced biogas to generate electricity, selling it to the grid, and drying the digestate and selling it as organic fertilizer. The cultural analysis and discussion showed that additional training for the workforce would be required in cooperation, dialogue, proper work ethic, due planning and precision in labor.

India is a country constantly grappling with problems of impeded rural development. Energy, in particular sustainable energy can be seen as key to attain the Sustainable Development Goals set out by the U.N. Integration of rural sectors can be seen as a methodology to broaden the potential achievement of the targetted Sustainable Development Goals. This thesis report aims at providing multi-purpose systems as a result of energy focused integration of sectors for augmenting rural development in India. The main research question of the thesis was ’Having recognized the importance of systems thinking, how can energy focussed Integration of Sectors provide directions to overcome the problem of impeded rural development in India?’. Top-Down knowledge gaps are prevalent in India for such integrative techniques, thus requiring attention to primarily to make integration of sectors a reality in India, thus the thesis has a core around marking out potential barriers which could be faced by such sector integrated techniques to break into the Indian market and policy while discussing the obstacles to implementation of such solutions. Furthermore another important aspect of the thesis lays out some plausible solutions to these barriers and obstacles.