Entrepreneurial parameters and performance of MSMEs in East Java province of Indonesia

Subagyo, Vikas Kumar and Gesty Ernestivita

International Journal of Business Innovation and Research, 2020, vol. 23, issue 2, 267-282

Abstract: Micro small and medium enterprises contribute enormously to the economy of East Java province of Indonesia. However, their performance always remains a concern and must be improved. A comprehensive literature review has been carried out to identify the most significant entrepreneurial factors, contributing to the performance of the MSMEs as well the factors to measure their performance. Entrepreneurial character, learning, and competency have been identified as the most important entrepreneurial factors, responsible towards the performance of MSMEs; whereas the growth in sales, profit, assets and employment have been identified as measures of performance. Research uses a mix of exploratory, descriptive and causal research design to establish a relationship of contributing factors towards the performance of MSMEs in East Java province of Indonesia. Considering all MSMEs in East Java as population, a sample of 177 MSMEs has been taken using purposive random sampling and response has been collected using a structured questionnaire. Structural equation modelling (SEM) has been carried out to analyse the relationship between the causes and measures of the performance of MSMEs. AMOS 20 programme has been used for data analysis.

Keywords: entrepreneurial characteristics; small and medium enterprises; SMEs; micro; small and medium enterprises; MSMEs; industry performance; structural equation modelling; Indonesia. (search for similar items in EconPapers)
Date: 2020
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