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The Role of Regiocentric Small Medium Business Advantage in Increasing Regional Revenue of Brebes Regency

In: Proceedings of the International Conference on Global Innovation and Trends in Economics and Business (ICOBIS 2022)

Author

Listed:
  • Ahmad Hanfan

    (Universitas Pancasakti Tegal)

  • Sari Wiyanti

    (Universitas Pancasakti Tegal)

  • Gunistyo

    (Universitas Pancasakti Tegal)

  • Mahben Jalil

    (Universitas Pancasakti Tegal)

  • Niken Wahyu

    (Universitas Pancasakti Tegal)

  • Arif Zainudin

    (Universitas Pancasakti Tegal)

  • Siti Hartinah

    (Universitas Pancasakti Tegal)

Abstract

This study investigates regiocentric SMEs and the impact of their products on Brebes Regency’s regional revenue. The outcomes of this investigation were evaluated utilizing the AMOS 22 analytic software and Structural Equation Modeling (SEM). The theoretical implication of this study is that product configuration capabilities, entrepreneurial orientation, and market orientation influence regiocentric SME performance. In the meantime, regional revenue is influenced by the benefits of regiocentric small and medium-sized enterprises (SMEs), product configuration capabilities, entrepreneurial orientation, and market orientation. According to the findings of this investigation, hypothesis 1 demonstrates significant results with a value of CR = 2,996 1.96 and a probability of 0.003, meaning that H1 is acceptable. Testing hypothesis 2 shows significant results with a value of CR = 4.093 1.96 with probability = 0.000; the probability of qualifying the test below 0.05 means that H2 of this study is acceptable. If testing hypothesis 3 yields significant results with CR = 2,435.196 and probability = 0.015, then the probability of testing meeting the requirements is less than 0.05, making H3 acceptable. Testing hypothesis 4 yields significant results with a value of CR = 3.707 1.96 and a probability value of 0.000; hence, the test probability is less than 0.05, indicating that H4 is acceptable.

Suggested Citation

  • Ahmad Hanfan & Sari Wiyanti & Gunistyo & Mahben Jalil & Niken Wahyu & Arif Zainudin & Siti Hartinah, 2023. "The Role of Regiocentric Small Medium Business Advantage in Increasing Regional Revenue of Brebes Regency," Advances in Economics, Business and Management Research, in: Sanchita Saha & Dien Noviany Rahmatika & Ying Li & Khin Sandar Kyaw & Dewi Indriasih & Arif Zainudin (ed.), Proceedings of the International Conference on Global Innovation and Trends in Economics and Business (ICOBIS 2022), pages 223-238, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-068-8_19
    DOI: 10.2991/978-94-6463-068-8_19
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