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An investigation of corporate governance, motivation, innovative behavior, and competitiveness on MSMEs performance: An empirical study in Indonesia

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  • Desmice Desmice

    (Doctoral Program in Economics, Faculty of Economics and Business, Universitas Jambi)

  • Syahmardi Yacob

    (Faculty of Economics and Business, University of Jambi)

  • Tona Auora Lubis

    (Doctoral Program in Economics, Faculty of Economics and Business, Universitas Jambi)

Abstract

The purpose of this study is to obtain a model to improve the performance of MSMEs through the application of competitiveness to enhance their corporate governance, motivation, and innovative behavior. A descriptive verification analysis was applied using 5 main variables which include corporate governance, motivation, innovative behavior, competitiveness, and performance of MSMEs. The population includes 106,038 MSMEs owners or employees in the Riau Islands Province while a total of 398 were selected as the subjects. Data were analyzed using Structural Equation Modeling (SEM) based on the variance which involves the Partial Least Square (PLS) data processing in SmartPLS Ver.3.0 software. The results showed that the level of governance, motivation, innovative behavior, and competitiveness in MSMEs can affect their level of performance. It was also discovered that competitiveness has a mediation role concerning the influence of corporate governance, motivation, and innovative behavior on performance. The novelty of this study is for it to serve as a strategic model to enhance the performance of MSMEs through their competitiveness by improving the corporate governance, motivation, and innovative behavior Key Words:MSMEs Performance, Competitiveness, Motivation, Innovative Behavior, Corporate Governance

Suggested Citation

  • Desmice Desmice & Syahmardi Yacob & Tona Auora Lubis, 2022. "An investigation of corporate governance, motivation, innovative behavior, and competitiveness on MSMEs performance: An empirical study in Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(5), pages 126-137, July.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:5:p:126-137
    DOI: 10.20525/ijrbs.v11i5.1898
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    References listed on IDEAS

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    1. Woocheol Kim & Jiwon Park, 2017. "Examining Structural Relationships between Work Engagement, Organizational Procedural Justice, Knowledge Sharing, and Innovative Work Behavior for Sustainable Organizations," Sustainability, MDPI, vol. 9(2), pages 1-16, February.
    2. Bhagat, Sanjai & Bolton, Brian, 2008. "Corporate governance and firm performance," Journal of Corporate Finance, Elsevier, vol. 14(3), pages 257-273, June.
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