Analysing The Operational Relationship to Business Performance in Small and Medium Enterprises

This study aims to determine how SMEs perceive operation and performance. This research method uses a quantitative approach with descriptive and verification analyses. The data used in this study is primary data obtained through the distribution of questionnaires. The verification analysis used in this study is multiple linear regression analysis with the SPSS 23 application. The research findings show that five independent variables simultaneously influence performance. Based on the t-test, four independent variables influence performance, namely equipment and technology (X1), supply chain (X3), standard operating procedures (X4), and enterprise data management systems (X5), while quality (X2) does not affect performance. The theoretical implications obtained in this study are related to business operational views and business performance. In theory, the relationship should be positive. Studies are related to business operational views and business performance. In theory, the relationship should be positive. The policy that can be taken in this study is to obtain high performance; it is hoped that business operational treatment cannot be equated with large and complex companies. The resulting framework is unique; however, SMEs provide perceptions of their operations and business performance. A business with a smaller size will undoubtedly produce a simpler and more reasonable overview of indicators compared to a larger company.