The Effect of Individuals Characteristics, Organizations Characteristics, Contextual and Business Strategy on Performance of Micro and Small Business of Export Potential Processing Sector in East Java

Sabihaini, Sabihaini and Sunardi, Sunardi and Setiawan, Margono and Troena, Eka Afnan and Sudiro, Achmad (2013) The Effect of Individuals Characteristics, Organizations Characteristics, Contextual and Business Strategy on Performance of Micro and Small Business of Export Potential Processing Sector in East Java. International Journal of Business and Management Tomorrow, 3 (1). pp. 1-10. ISSN 2249-9962

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Abstract

In East Java, the facts show that performance of micro and small related to export potentials have been declining or stagnant. However, some small and micro businesses have managed and developed. What factors that affect the performance of the micro and small business? This study aims to answer these key questions. Based on a survey of 102 micro and small businesses, the results of this study revealed that: (1) Micro and Small Business in East Java mainly adopt focus strategy, the more focus the strategy pursued, the better performance of micro and small business. (2) The individual characteristic has a direct and significant impact on performance, while organizational characteristic and contextual have no direct and significant effect on performance. These findings suggest that to improve performance, micro and small business should pay more attention to strategy choice to be executed, and maintaining family support, improving the ability to manage business risk and information access. Other parties concerned with the development of micro and small business, such as government agencies, should facilitate the licensing and technical assistance. Licensing has a negative impact on the performance of micro and small business. Speculative explanation is the complexity of bureaucratic and legal aspects are implemented by the government make the negative impact. To support the performance of micro and small business, bureaucracy and regulation should be simplified.

Item Type: Article
Uncontrolled Keywords: Small and Micro Business, Business Strategy, Performance, East Java
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Dr. SE.MSi SABIHAINI SABIHAINI
Date Deposited: 18 Sep 2020 05:08
Last Modified: 18 Sep 2020 05:11
URI: http://eprints.upnyk.ac.id/id/eprint/23695

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