JURNAL ECONOMIA
Vol 19, No 1 (2023)

Financial Availability on Performance of MSMEs: Mediation of Entrepreneurial Orientation and Business Actor’s Rationality

Syti sarah maesaroh (Faculty of Economics and Business Education, Universitas Pendidikan Indonesia)
Agus Rahayu (Faculty of Economics and Business Education, Universitas Pendidikan Indonesia)
Lili Adi Wibowo (Faculty of Economics and Business Education, Universitas Pendidikan Indonesia)
Eeng Ahman (Faculty of Economics and Business Education, Universitas Pendidikan Indonesia)



Article Info

Publish Date
30 Apr 2023

Abstract

This study investigates how business actors' entrepreneurial orientation and rationality affect MSMEs' performance, as well as how the availability of financing affects that performance. Using a random sampling technique, we surveyed 195 MSMEs from various business fields. The data were analyzed using structural equation modeling and AMOS and SPSS software. We discovered that the mediation of entrepreneurial orientation and decision-making rationality significantly impacted the relationship between financial availability and performance. Adequate funding encourages an entrepreneurial mindset and the development of innovations that improve overall performance. The study suggests that business actors improve their capabilities, including managerial skills, practices, and procedures in the financial sector. When adequate funds are available, they could be used to improve performance. The study adds to the dynamic capability theory by demonstrating that MSMEs must be able to integrate, construct, and reconfigure their financial resources in the face of rapid environmental changes.

Copyrights © 2023






Journal Info

Abbrev

economia

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Economia (JECO) is published by Faculty of Economics, Yogyakarta State University. It publishes theoretical or research manuscripts related to 1. Economics 2. Accounting 3. Management 4. Business 5. Entrepreneurship, and 6. ...