Leaders’s Commitment to Business Sustainability and SMEs’ Performance

Ardika Sulaeman and Susanti Kurniawati
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Ardika Sulaeman: Universitas Wiralodra
Susanti Kurniawati: Universitas Wiralodra

A chapter in Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023), 2024, pp 829-834 from Springer

Abstract: Abstract This research is motivated by the low business performance of soybean processing SMEs in West Java. Soybean processing SMEs are a business that contributes mainly to employment and people’s income. However, SMEs engaged in processing soybeans cause many social and environmental problems that impact long-term business performance. This study analysed the effect of the leadership’s commitment to business sustainability on business performance. This research used a quantitative approach with a survey method of 332 business owners. Data collection was carried out by distributing questionnaires to respondents. Data analysis was carried out descriptively with PLS-SEM. The results of this study state that a Leader’s Commitment to Business sustainability is in the low category, and business performance is in the medium category. The performance of SMEs is mainly indicated by the ownership of resources, especially fixed assets and knowledge that supports business independence. However, access to funding is relatively low, mainly due to SMEs’ lack of legal aspects and readiness to partner. The Leader’s Commitment to Business sustainability is mainly shown by its relatively high level of saving electrical energy and using renewable raw materials. However, commitments that tend to be low are commitments to reduce air and water pollution and the use of clean water. This research reveals that a Leader’s Commitment to business sustainability influences business performance.

Keywords: sustainability; commitment; performance (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-443-3_110

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DOI: 10.2991/978-94-6463-443-3_110

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