The effect of business strategy, innovation, organizational culture on the performance of micro small medium enterprises (MSMES) moderated by financial literature
DOI:
https://doi.org/10.32670/fairvalue.v4i10.1685Keywords:
Business strategy; Innovation; Organizational culture; Financial literacy; MSME performanceAbstract
This research purpose is to empirically analyze the effect of business strategy, innovation,
organizational culture, on the performance of MSMEs moderated by financial literacy in
Banten Province. This study uses a sample of Small and Medium-scale SMEs in Banten Province. The data used is primary data. The data in the study were obtained from the results
of questionnaires distributed to 100 MSME entrepreneurs in Banten Province both directly and online through the google form. Structural Equation Modeling is used as an analysis with the help of Smart SPSS software version 25. The results of this study indicates that Business Strategy, Innovation, and Organizational Culture have a positive effect on the performance of MSMEs in Banten Province, and Finacial Literacy able to moderated Business Strategy, Innovation, and Organizational Culture on performance of MSMEs in Banten Province.
References
Agbejule, A. (2011). Organizational culture and performance: the role of management accounting
system. Journal of Applied Accounting Research.
Al-Ansari, Y., Pervan, S., & Xu, J. (2013). Innovation and business performance of SMEs: the case of
Dubai. Education, Business and Society: Contemporary Middle Eastern Issues.
Anggraeni, B. D. (2016). Pengaruh tingkat literasi keuangan pemilik usaha terhadap pengelolaan
keuangan. Studi kasus: UMKM Depok. Jurnal Vokasi Indonesia, 3(1).
Aribawa, D. (2016). Pengaruh literasi keuangan terhadap kinerja dan keberlangsungan UMKM di Jawa
Tengah. Jurnal Siasat Bisnis, 20(1), 1–13.
Canales, R., & Nanda, R. (2012). A darker side to decentralized banks: Market power and credit
rationing in SME lending. Journal of Financial Economics, 105(2), 353–366.
Chepngetich, P. (2016). Effect of financial literacy and performance SMEs. Evidence from Kenya.
Evidence from Kenya.
Dang, W., Xu, L., Yin, Y., Chen, S., Wang, W., Hakim, M. S., Chang, K.-O., Peppelenbosch, M. P., &
Pan, Q. (2018). IRF-1, RIG-I and MDA5 display potent antiviral activities against norovirus
coordinately induced by different types of interferons. Antiviral Research, 155, 48–59.
Darroch, J. (2005). Knowledge management, innovation and firm performance. Journal of Knowledge
Management.
Davis, R. P., Pearce, J. D., Craven, T. E., Moore, P. S., Edwards, M. S., Godshall, C. J., & Hansen, K.
J. (2009). Atherosclerotic renovascular disease among hypertensive adults. Journal of Vascular
Surgery, 50(3), 564–571.
Eniola, A. A., & Entebang, H. (2016). Financial literacy and SME firm performance. International
Journal of Research Studies in Management, 5(1), 31–43.
Eresia-Eke, C. E., & Raath, C. (2013). SMME owners’ financial literacy and business growth.
Mediterranean Journal of Social Sciences, 4(13), 397.
Fatoki, O. (2014). The causes of the failure of new small and medium enterprises in South Africa.
Mediterranean Journal of Social Sciences, 5(20), 922.
Ferreira, E. V. M., Ota-Arakaki, J. S., Ramos, R. P., Barbosa, P. B., Almeida, M., Treptow, E. C.,
Valois, F. M., Nery, L. E., & Neder, J. A. (2014). Optimizing the evaluation of excess exercise
ventilation for prognosis assessment in pulmonary arterial hypertension. European Journal of
Preventive Cardiology, 21(11), 1409–1419.
Gorondutse, A. H., & Hilman, H. (2018). Does organizational culture matter in the relationship between
trust and SMEs performance. Management Decision.
Hartnell, C. A., Kinicki, A. J., Lambert, L. S., Fugate, M., & Doyle Corner, P. (2016). Do similarities
or differences between CEO leadership and organizational culture have a more positive effect on
firm performance? A test of competing predictions. Journal of Applied Psychology, 101(6), 846.
Jati, H. (2017). Pengetahuan manajemen bisnis, literasi keuangan dan kinerja UMK ekonomi kreatif di
Kabupaten Flores Timur. Seminar Nasional Riset Inovatif, 536–544.
Joewono, H. (2012). The 5 arrows of new business creation and entrepreneurship. Jakarta: AIICC.
Khajavi, S. H., Partanen, J., & Holmström, J. (2014). Additive manufacturing in the spare parts supply
chain. Computers in Industry, 65(1), 50–63.
Klapper, L., Lusardi, A., & Panos, G. A. (2013). Financial literacy and its consequences: Evidence from
Russia during the financial crisis. Journal of Banking & Finance, 37(10), 3904–3923.
Kusumadewi, R. N. (2017). Pengaruh locus of control dan financial literacy terhadap kinerja UKM pada
pelaku UKM desa rawa Kecamatan Cingambul Kabupaten Majalengka. Prosiding, 7(1).
Laforet, S. (2016). Effects of organisational culture on organisational innovation performance in family
firms. Journal of Small Business and Enterprise Development.
Larsen, P., & Lewis, A. (2007). How award‐winning SMEs manage the barriers to innovation.
Creativity and Innovation Management, 16(2), 142–151.
Malamud, S., & Zucchi, F. (2019). Liquidity, innovation, and endogenous growth. Journal of Financial
Economics, 132(2), 519–541.
Martínez-Sola, C., García-Teruel, P. J., & Martínez-Solano, P. (2018). Cash holdings in SMEs: speed
of adjustment, growth and financing. Small Business Economics, 51(4), 823–842.
Ningsih, S., & Permatasari, F. F. (2018). Analysis method of altman Z score modifications to predict
financial distress on the company go public sub sector of the automotive and components.
International Journal of Economics, Business and Accounting Research (IJEBAR), 2(03).
Njoroge, C. W., & Gathungu, J. M. (2013). The effect of entrepreneurial education and training on
development of small and medium size enterprises in Githunguri District-Kenya. International
Journal of Education and Research, 1(8), 1–22.
Otieno, S., Martin, L., Nyamao, N. R., Ojera, P., & Odondo, A. J. (2013). Effect of provision of microfinance on the performance of micro-enterprises: A study of youth micro-enterprises under Kenya
Rural Enterprise Program (K-REP), Kisii County, Kenya.
Piao, S., Wang, X., Ciais, P., Zhu, B., Wang, T. A. O., & Liu, J. I. E. (2011). Changes in satellite‐
derived vegetation growth trend in temperate and boreal Eurasia from 1982 to 2006. Global
Change Biology, 17(10), 3228–3239.
Rangkuti, F. (2016). Dissecting business case technique: SWOT analysis. Jakarta: Gramedia Pustaka
Utama.
Rosenbusch, N., Brinckmann, J., & Bausch, A. (2011). Is innovation always beneficial? A metaanalysis of the relationship between innovation and performance in SMEs. Journal of Business
Venturing, 26(4), 441–457.
Sankaran, S., & Bui, T. (2003). Relationship between student characteristics and ethics: Implications
for educators. Journal of Instructional Psychology, 30(3).
Santoso, E. B., Fiernaningsih, N., & Murtiyanto, R. K. (2018). Pengaruh Budaya Organisasi terhadap
Kinerja Organisasi. Adbis: Jurnal Administrasi Dan Bisnis, 12(1), 40–45.
Schuldt, K. S., & Gomes, G. (2020). Influence of organizational culture on the environments of
innovation and organizational performance. Gestão & Produção, 27.
Valmohammadi, C., & Roshanzamir, S. (2015). The guidelines of improvement: Relations among
organizational culture, TQM and performance. International Journal of Production Economics,
, 167–178.
Wu, J., Zhang, C., Xue, T., Freeman, B., & Tenenbaum, J. (2016). Learning a probabilistic latent space
of object shapes via 3d generative-adversarial modeling. Advances in Neural Information
Processing Systems, 29.
Yuliansyah, Y., Rammal, H. G., & Rose, E. (2016). Business strategy and performance in Indonesia’s
service sector. Journal of Asia Business Studies.
Zainuddin, H. D., Indra, P., & Rizal, S. I. (2019). Implementation of transformational leadership of
study program chairperson and its impact on lecturers achievement motivation. 1st International
Conference on Education and Social Science Research (ICESRE 2018), 249–252.
