How to Improve the Performance of Micro, Small, and Medium Enterprises?

Objective - The COVID-19 pandemic has worsened economic conditions and jeopardized the performance of many micro, small and medium enterprises (MSMEs) in Indonesia. So the question arises of how to improve its performance so that MSMEs can maintain their survival in conditions like this. This study aims to answer these problems, namely to analyze the influence of management characteristics on MSME business performance with innovation as a mediator. The population in this study is MSMEs from various types of businesses in Indonesia. Methodology/Technique - A total of 123 samples were selected by stratified judgment sampling. Data were collected through self-administered questionnaires. Finding - Data analysis using structural equation model (SEM) partial least squares (PLS) program. Novelty - Based on the analysis conducted, it can be concluded that to improve the performance of MSMEs, management characteristics need to be strengthened by efforts to create innovation, because without strengthening innovation, only having adequate management characteristics will not increase MSME performance. Type of Paper - Empirical Keywords: Characteristics; Innovation; Micro small and medium enterprises (MSMEs); Performance JEL Classification: M19

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Investigation of the Factors Influencing SME Failure as a Function of Its Prevention and Fast Recovery after Failure

Entrepreneurship Research Journal ◽

10.1515/erj-2017-0030 ◽

2018 ◽

Vol 9 (3) ◽

Cited By ~ 7

Author(s):

Nenad Nikolić ◽

Ivan Jovanović ◽

Đorđe Nikolić ◽

Ivan Mihajlović ◽

Peter Schulte

Keyword(s):

Structural Equation Model ◽

Structural Equation ◽

Small And Medium Enterprises ◽

Life Cycle Stage ◽

Equation Model ◽

Individual Characteristics ◽

Factors Influencing ◽

Clear Vision ◽

Medium Enterprises ◽

The Impact

Abstract This paper presents a conceptual framework for investigation of the factors influencing the failure of small and medium enterprises (SMEs) as well as the level of their recovery. Based on the review of literature, all the factors are classified either as individual characteristics of entrepreneurs or non-individual characteristics, that is, characteristics related to SMEs. Having in mind various factors identified by different researchers in their studies, the authors of this paper formed a basic hypothetical framework as well as a qualitative framework for evaluation of the most significant factors influencing SME failure and recovery. Accordingly, a preliminary questionnaire was designed in order to collect the attitudes of entrepreneurs regarding the impact of particular factors. The results of the survey were used for further quantitative analysis and as a base for the formation of a structural equation model for testing the proposed hypotheses. Using the structural equation model to derive results, the authors have found that all the analysed factors except the factors related to private time activities of entrepreneurs/owners of SMEs have a statistically significant influence on SME success, with external non-individual factors having the greatest influence. Furthermore, the results indicate that the level of recovery, business life cycle stage and the sector of a failed SME impact on the ranking of the factors leading to SME failure. The study points to the necessity of improving the conditions under which SMEs operate, primarily by removing the obstacles that hinder growth and development of SMEs as well as by developing the appropriate system of support for entrepreneurs. In addition, having a clear vision of the factors of failure can help SMEs to become more resistant to the adverse effects of these factors and deal with them more effectively.

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The Quality of Small and Medium Enterprises Performance Using the Structural Equation Model-Part Least Square (SEM-PLS)

Journal of Physics Conference Series ◽

10.1088/1742-6596/1477/5/052052 ◽

2020 ◽

Vol 1477 ◽

pp. 052052

Author(s):

Muhammad Irfan Nasution ◽

Muhammad Fahmi ◽

Jufrizen ◽

Muslih ◽

Muhammad Andi Prayogi

Keyword(s):

Structural Equation Model ◽

Structural Equation ◽

Small And Medium Enterprises ◽

Equation Model ◽

Least Square ◽

Medium Enterprises

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An investigation of agile manufacturing enablers in Indian automotive SMEs using structural equation model

Measuring Business Excellence ◽

10.1108/mbe-10-2017-0068 ◽

2018 ◽

Vol 22 (3) ◽

pp. 276-291 ◽

Cited By ~ 4

Author(s):

Mohit Goswami ◽

Gopal Kumar

Keyword(s):

Structural Equation Model ◽

Structural Equation ◽

Small And Medium Enterprises ◽

Agile Manufacturing ◽

Equation Model ◽

Manufacturing Strategy ◽

Content Type ◽

Manufacturing Management ◽

Workforce Agility ◽

Medium Enterprises

Purpose This paper aims to analyze the agile manufacturing practices in small and medium enterprises (SMEs) within the auto-ancillary sector spread across eastern India. Using statistical method, a number of crucial insights have been captured and discussed in detail. Design/methodology/approach A structural equation model (SEM) encapsulating pertinent agile manufacturing attributes and enablers as the focal construct is conceptualized and validated in this research. The SEM model is evolved in a manner that agile attributes and agile enablers are modeled as latent dependent and manifest variable, respectively. Findings A number of key hypothesis entailing interactions of key agility enablers, i.e. manufacturing responsiveness agility, manufacturing strategy agility, workforce agility, technology agility, manufacturing management agility, etc. are conceptualized and validated. Originality/value The authors specifically focus on evolving agile manufacturing framework (characterized by agility enablers and attributes) that lies at the intersection of SMEs, automotive sector and an emerging economy.

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Peningkatan Kinerja Pemasaran UMKM Melalui Dimensi Kewirausahaan di Kabupaten Kerinci

J-MAS (Jurnal Manajemen dan Sains) ◽

10.33087/jmas.v5i2.177 ◽

2020 ◽

Vol 5 (2) ◽

pp. 172

Author(s):

Edia Satria ◽

Ida Yusnita ◽

Ayu Esteka Sari

Keyword(s):

Economic Growth ◽

Human Capital ◽

Structural Equation Model ◽

Structural Equation ◽

Small And Medium Enterprises ◽

Market Performance ◽

Equation Model ◽

Testing Technique ◽

Economic Problems ◽

Medium Enterprises

Entrepreneurship is believed to be a tool to encourage economic growth to solve other economic problems, such as unemployment, poverty and social inequality. Micro, Small and Medium Enterprises is a business that plays an important role in the national economy. The success of the marketing of Micro, Small and Medium Enterprises is influenced by the dimension of entrepreneurship. The dimensions of entrepreneurship used in this study are economic entrepreneurship, resource-based entrepreneurship and human capital entrepreneurship. Respondents in this study were actors of Micro, Small and Medium Enterprises (MSMEs) in Gunung Raya Subdistrict, Kerinci Regency as many 100 respondents. The Model Testing Technique in this study used the Structural Equation Model (SEM) using AMOS. The results showed that the Entrepreneurship Dimension had a positive and significant effect on the Market Performance of MSMEs. The magnitude of the influence of entrepreneurship Dimension on Market Performance of MSMEs is 0.231 or 23.1%, so it is necessary to support entrepreneurship Dimension to increase the Market Performance of MSMEs.

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Effects of CEO's Entrepreneurship in Small and Medium Enterprises and Goal Orientation of Employees on Collective Efficacy: Approaching Structural Equation Model

The Journal of the Korea Contents Association ◽

10.5392/jkca.2012.12.10.439 ◽

2012 ◽

Vol 12 (10) ◽

pp. 439-452

Author(s):

Sung-Doo Kang ◽

Young-Soon Kang

Keyword(s):

Goal Orientation ◽

Collective Efficacy ◽

Structural Equation Model ◽

Structural Equation ◽

Small And Medium Enterprises ◽

Equation Model ◽

Medium Enterprises

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The Mediating Role of Strategy Flexibility at the Effects of Entrepreneurial Orientation and Market Orientation on Business Performance Small Medium Enterprise Craft Sector in Indonesia

International Journal of Recent Technology and Engineering - 2 ◽

10.35940/ijrte.b1134.0982s919 ◽

2019 ◽

Vol 8 (2S9) ◽

pp. 634-641

Keyword(s):

Market Orientation ◽

Entrepreneurial Orientation ◽

Structural Equation ◽

Business Performance ◽

Small And Medium Enterprises ◽

Equation Model ◽

Strategic Flexibility ◽

And Performance ◽

Medium Enterprises ◽

Positive Effect

The research intends to test the effects of entrepeneurship orientation and market orientation on business performance with strategic flexibility as mediator. Considering Indonesia has been even today eagerly support entrepreneurial, it intends to explore relationship between the three variables in small and medium enterprises context. The study takes place in Indonesia with 194 sampel. For questionnaire distribution, it makes use of online tool with google form. The unit of analysis is owners, managers or decision-makers at the SMEs. For data analysis, it applies structural equation model with WarpPLS approach. The results demonstrate that entrepreneurial orientation does not significant effect on business performance, but has a positive effect on strategic flexibility. While market orientation has a positive effect on business performance, but it does not have significant effect on strategic flexibility. It means that strategic flexibility mediate relationship between entrepreneurial orientation and performance, while it does not hold true for relationship between market orientation and business performance.

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PENGARUH ABILITY, BENEVOLENCE DAN INTEGRITY TERHADAP TRUST, SERTA IMPLIKASINYA TERHADAP PARTISIPASI PELANGGAN E-COMMERCE: STUDI KASUS PADA PELANGGAN E-COMMERCE DI UBM

Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT ◽

10.36226/jrmb.v2i2.46 ◽

2017 ◽

Vol 2 (2) ◽

pp. 155-168 ◽

Cited By ~ 1

Author(s):

David Wong

Keyword(s):

Data Analysis ◽

Data Collection ◽

Structural Equation Model ◽

Structural Equation ◽

Likert Scale ◽

Equation Model ◽

The Other ◽

Predictor Variables ◽

Analysis Method ◽

Other Hand

This research aims at analyzing (1) the effect of vendor’s ability, benevolence, and integrity variables toward e-commerce customers’ trust in UBM; (2) the effect of vendor’s ability, benevolence, and integrity variables toward the level of e-commerce customers’ participation in Indonesia; and (3) the effect of trust variable toward level of e-commerce customers participation in UBM. This research makes use of UBM e-commerce users as research samples while using Likert scale questionnaire for data collection. Furthermore, the questionnaires are sent to as many as 200 respondents. For data analysis method, Structural Equation Model was used. Out of three predictor variables (ability, benevolence, and integrity), it is only vendor’s integrity that has a positive and significant effect on customers’ trust. On the other hand, it is only vendor’s integrity and customer’s trust that have a positive and significant effect on e-commerce customers’ participation in UBM. Keywords: e-commerce customers’ participation, ability, benevolence, integrity

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ANTESEEDEN DAN KONSEKUENSI DARI SEVERITY OF OTHER CUSTOMER FAILURE

Jurnal Manajemen dan Pemasaran Jasa ◽

10.25105/jmpj.v4i1.487 ◽

2011 ◽

Vol 4 (1) ◽

pp. 73

Author(s):

Nina Budiwati ◽

Asep Hermawan

Keyword(s):

Data Analysis ◽

Customer Satisfaction ◽

Structural Equation Model ◽

Structural Equation ◽

Service Recovery ◽

Equation Model ◽

Unit Of Analysis ◽

Recovery Expectations ◽

Employee Effort ◽

Customer Misbehavior

The background of this research was to conduct a profound study of impact of other-customer failure The purpose of this paper is to investigate how and why other-customer misbehavior has a negative influence on customer satisfaction with the service firm. The objectives of this research was : (a) the effect of controllability to firm responsibility, (b) the effect of stability to firm responsibility, (c) the effect of firm responsibility to customer satisfaction, (d) the effect of firm responsibility to service recovery expectations, (e) the effect of service recovery expectations to customer satisfaction, (f) the effect of severity of other customer failure to service recovery expectations, (g) the effect of severity of other customer failure to customer satisfaction, (h) the effect of perceived employee effort to customer satisfaction. The design of this research applies a survey toward unit of analysis on hotels services by interview the customers for testing hypothesis. Meanwhile the required data consist of seventh variables which are controllability attributions, stability attributions, firm responsibility, service recovery expectation, severity of other customer failure, perceived employee effort and customer satisfaction. The aggregate numbers of hotels guests being respondent of the study are 200. Data analysis used in this research was consists of Structural Equation Model Analysis by AMOS 6 as software. The result of this research conclude that controllability and stability attributions had an effect to firm responsibility, firm responsibility had an effect to service recovery expectations, severity of other customer failure had an effect to service recovery expactations, and perceived employee effort had an effect to customer satisfaction. Meanwhile firm responsibility had an effect to customer satisfaction, service recovery expectations had an effect terhadap customer satisfaction, severity of other customer failure had an effect to customer satisfaction. Keywords: Service recovery expectations, severity of other customer failure, and customer satisfaction

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PENGARUH GAYA KEPEMIMPINAN TERHADAP KOMITMEN ORGANISASI MELALUI ASPEK KEPUASAN KERJA KARYAWAN DAN KEPERCAYAAN PADA SEKTOR PERBANKAN

Jurnal Manajemen dan Pemasaran Jasa ◽

10.25105/jmpj.v8i1.1406 ◽

2015 ◽

Vol 8 (1) ◽

pp. 145

Author(s):

Nina Zahra

Keyword(s):

Job Satisfaction ◽

Data Analysis ◽

Central Asia ◽

Structural Equation Model ◽

Leadership Style ◽

Structural Equation ◽

Equation Model ◽

Organization Commitment ◽

The Impact

This research refers to the previous research which has done by Chiang and Wang (2012) and also completed by Kalber and Cenker (2007). This research is about “the impact of leadership style on organization commitment mediating by job satisfaction and trust on employed at bank sectors”. The background of this research is to know the impact of leadership style on organization commitment. The purpose of this research is to examine the impact of leadership style on organization commitment mediating by job satisfaction and trust. The research is using primary data by spreading questionnaires to 250 employes of banking sectors in DKI Jakarta, such as: Bank Mandiri, Bank Negara Indonesia, Bank Jabar, Bank Bukopin and Bank Central Asia during 2015, however there are 201 questionnaires were returned. The method of data analysis used is Structural Equation Model (SEM). The result of this research concludes that there are positive impacts of leadership style on organization commitment mediating by job satisfaction and trust. Keywords: Leadership Style, Job Satisfaction, Trust, Organization Commitment, Banking Sectors.

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The Effect of Structural Capital on Enterprise (Qualitative and Quantitative) Performance

International Business Research ◽

10.5539/ibr.v9n6p143 ◽

2016 ◽

Vol 9 (6) ◽

pp. 143 ◽

Cited By ~ 1

Author(s):

Osman Yilmaz ◽

Pinar Comez

Keyword(s):

Human Capital ◽

Structural Equation Model ◽

Intellectual Capital ◽

Structural Equation ◽

Business Performance ◽

Equation Model ◽

Qualitative And Quantitative ◽

Structural Capital ◽

Quantitative Performance ◽

Qualitative Performance

Intellectual capital is a new managerial notion that is adaptive to changing environmental conditions and provides advantages in highly competitive marketplace. It is contextualized in the literature with the sub-elements: structural capital, human capital and relation capital. Even though this notion found wide interest in academia, the impacts of its sub-elements on business performance haven’t been studied enough. In this study we aim to fill this gap. For this reason, the relationships between structural capital and qualitative and quantitative performance have been investigated. For analysis we preferred Structural Equation Model (SEM) using Lisrel 8.51. According to the findings, structural capital affects the qualitative performance positively and explains 82% of the change in qualitative performances of companies; while explaining 28 % of the positive change.

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