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Optimizing SMEs’ Business Performance Through Human Capital Management
EUROPEAN RESEARCH STUDIES JOURNAL, 2017
Small medium enterprises (SMEs) provide the basic foundation for Indonesian economic and social development. SMEs employ a large number of the human capital and foster entrepreneurial side of individuals. Based on opportunity approach, SMEs can create high level of human capital and entrepreneurial competencies. This study aimed at explained the relationship between human capital and entrepreneurial competencies on the SME business performance. Study was conducted on SME's in Central Java, Indonesia. Based on quantitative approach, this research used survey instrument by delivering questionnaire. The Statistical Package for Social Science (SPSS) was used to analyze the data. The result showed the significant relationship between human capital, entrepreneurial competencies and SMEs performance. This suggests that SME entrepreneurs should give attention to learning activities. This study's findings contribute to SMEs literature and human capital theory.
Entrepreneurial Human Capital as Performance Improvement SMMES in Indonesia
The declining performance of MSMEs during the Covid-19 pandemic has become a concern for all stakeholders because of their considerable contribution and role to the national economy. MSME performance assessment based on human capital is a very interesting thing to research. Business people are less aware that a business entity is a unit that contains knowledge, abilities and skills that can differentiate products produced from competitors. The purpose of this study was to examine the effect of entrepreneurial human capital on the performance of MSMEs. The sample is the owner of MSMEs in the food and beverage manufacturing sector in DKI Jakarta, Indonesia. The independent variable is entrepreneurial human capital which consists of education, training, experience and competence. The dependent variable is the performance of SMEs using the dimensions of productivity performance, business performance, responsiveness, responsibility, and company accountability. The results showed that the training, experience and competence of entrepreneurs are entrepreneurial human capital factors that have an impact on the performance of MSMEs. Investments in various trainings to increase knowledge resources, skills and abilities of entrepreneurs have proven to be able to improve the performance of MSMEs, especially in the food and beverage sector in Indonesia. The more entrepreneurship training that is followed and the experience possessed will increase the competence and ability of MSME actors in running their business so as to improve MSME business performance.
Journal of Economics Business and Accountancy Ventura, 2014
Small and Medium Enterprises (SMEs) can expand employment and provide economic contribution to economic development, and increase public incomes as well as boost economic growth. Thus, they play a role in achieving national economic stability. However, the quality of human resources in SMEs still low, as well as advanced production techniques, low innovation, and lower banking access. This study aimed to analyze the influence of the knowledge, skills, and abilities of entrepreneurship of human resource of SMEs towards the performance of SMEs in South Sulawesi. The population study was all SMEs in South Sulawesi by clustering at four cities: Makassar, Pare-Pare, Takalar, and Bulukumba totaled 680,610 business units with 3,403,150 workers. The purposive sampling and random sampling of 160 respondents was employed and the analysis was by using multiple linear regressions. It shows that knowledge of entrepreneurship has positive but not significant influence towards the performance of SMEs. Entrepreneurial Skills and competence both have positive and significant influence towards the performance of SMEs because they were able to manage the business, although not evenly. Entrepreneurship ability more dominantly affects the performance of SMEs due to the volume of business or sales began to increase, with net profit rising.
2021
The purpose of this study was to describe and analyze the influence of human resources competencies and entrepreneurial characteristics on the performance of the smallmedium-sized food industry with the intervening variable of competitive advantage. This research is verification in nature, basically wants to test the truth of a hypothesis which is carried out through data collection in the field. The unit of analysis in this research is the food SMIs (Small and Medium Industries) actors in Jambi Province. The data were obtained through distributing questionnaires to 378 SMIs food entrepreneurs. The data analysis used was quantitative analysis using Structural Equation Modelling (SEM). The analysis results concluded that the respondents' responses to the variables of human resources competence, entrepreneurial characteristics, competitive advantage, and SMIs performance obtained the average number included in the good scale range. The variables of human resources competency, entr...
Proceedings of the 3rd Annual International Conference on Public and Business Administration (AICoBPA 2020), 2021
This study aims to examine the relationship between entrepreneurial competence and business performance in SMEs, which contributes to SMEs' development by strengthening entrepreneurial competencies. This research object is the owner of Batik SMEs in Bayat Klaten, Central Java, Indonesia. This study uses a quantitative approach to investigate whether entrepreneurial competence has a significant effect on business performance by involving 138 owners of Batik SMEs as respondents. The sampling technique used proportional random sampling and the hypothesis were tested using structural equation modelling of least squares, adopting the SmartPLS software. The results showed that Entrepreneurial Competencies have a positive and significant effect on Business Performance. It means that the higher the Entrepreneurial Competencies, the more potential it will increase business performance. Leadership Competency and Innovation Competency have the largest contribution in forming Entrepreneurial Competencies for SMEs in enhancing their business performance. Furthermore, Risk-Taking Competency has the lowest contribution in establishing Entrepreneurial Competencies. Indeed, it makes a challenge for SMEs in an uncertainty business era.
Entrepreneurial Characteristics and Competency as Determinants of Business Performance in SMEs
The purpose of this research is to empirically test the influence of entrepreneurial characteristics and competencies on business performance in small and medium enterprises (SMEs). This study was conducted with 147 SMEs owner in Malang regency East Java Indonesia using survey instrument. Data analysis using the Structural Equation Modelling. The results of this study indicate that the entrepreneurial characteristics have a significant influence on business performance. Entrepreneurial competencies as mediating in the relationship between entrepreneurial characteristics and business performance. It means the more powerful entrepreneurial characteristics will lead to an increase in the competence of the SMEs owner, which will ultimately have an effect on business performance.
Entrepreneur Competence Measures of Small and Medium Enterprises (MSEs) in Indonesia
Jurnal Manajemen Bisnis (JMB)
The focus of this research was to examine at the magnitude of entrepreneur competence in small and mediumsized businesses (SMEs). The Exploratory Factor Analysis and confirmatory factor Analysis are used in the measurement, which is done with SPSS 26 and SEM AMOS 23 software. Commitment Competence (CMC), Strategic Competence (STC), Organizing Competence (ORC), Opportunities Competence (OPC), and Conceptual Competence (CNC) are the entrepreneur Competence measures examined in this study. The model was tested using confirmatory factor analysis on a sample of 380 SMEs entrepreneurs in Pekanbaru City, Riau Province, Indonesia. According to the findings of the confirmatory factor analysis, the five components for the measure of Entrepreneur. The confirmatory factor analysis results suggest that the five components used to assess Entrepreneur Competence in Indonesia are valid and reliable. This study gives basic understanding and direction for future studies as well as practitioners to continually enhance the performance of small and medium-sized enterprises (SMEs) through the development of Competence.
The Effectiveness of SMEs: Exploratory Study of SME Owners Competency in Indonesia
Journal of international business research, 2019
This study investigated the competencies of business owners that distinguish the effectiveness of SMEs in Indonesia. We conducted in depth interviews with 10 successful SME owners and 10 static SME owners in Surabaya, the second-largest city in Indonesia. We obtained data of SME owners from The Department of Cooperatives and SME in Surabaya and used structured interviews that include questions about the ability of the business owners in their role as leaders and managers. This study found that there are 48 competency items of successful SME owners. Out of these 48 items, there are 27 items of competency associated with successful SME owners, but not the owners of static SMEs.
Impact of Human Resources' Knowledge and Skills on SMEs' in Medan City, Indonesia
The purpose of this research article was to explore the influence of knowledge and skills of human resource on the performance of culinary Small and Medium Enterprises (SMEs) in Medan City, Indonesia. Using quantitative research design, data were collected from 120 culinary SMEs located in Medan City. Multiple regression, t-test anf f-ratio were used to estimate the significant effect of human knowledge and skills partially or not, whereas F test was applied to test whether the effect will be simultaneous. Results showed that knowledge and skills of human resources have significant and simultaneous effect on the performance of SMEs. It was also found that the knowledge and skills of human resources have a partial significant influence on the performance of SMEs. Human Resource skills factor has greater impact on the performance of SMEs as compared to human resource knowledge factor.
Scale Development Of Entrepreneurial Competency Of Sme Owner In Indonesia
Academy of Entrepreneurship Journal, 2019
This study aims at developing the scale of entrepreneurial competence of SME owners in Indonesia. In this study, competency indicators are made from three stages of development, namely exploratory competency items, expert judgment, and scale validation. The result of the study shows that 5 competency dimensions are covering 26 indicators. The dimensions of entrepreneurial competence are managerial (9 indicators), strategic (4 indicators), service quality (6 indicators), development (4 indicators), and performance competencies (3 indicators).