IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v11y2022i5p126-137.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/1898/1333
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v11i5.1898
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v11i5.1898?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandridis, G. & Antypas, N. & Travlos, N., 2017. "Value creation from M&As: New evidence," Journal of Corporate Finance, Elsevier, vol. 45(C), pages 632-650.
    2. Marianne, Roedl, 2013. "Role of regulation in micro finance: application of the Micro Savings Requirement Scheme in informal sectors," MPRA Paper 51623, University Library of Munich, Germany.
    3. King, Timothy & Srivastav, Abhishek & Williams, Jonathan, 2016. "What's in an education? Implications of CEO education for bank performance," Journal of Corporate Finance, Elsevier, vol. 37(C), pages 287-308.
    4. Saito, Jun, 2016. "Boards of directors and bank performance in United Arab Emirates," IDE Discussion Papers 583, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Weifeng Xu & Qingsong Ruan & Chang Liu, 2019. "Can the Famous University Experience of Top Managers Improve Corporate Performance? Evidence from China," Sustainability, MDPI, vol. 11(24), pages 1-20, December.
    6. Lawrence Mbuvi & Gregory Namusonge & Wycliffe Arani, 2016. "Factors Affecting Automation of Inventory Management in Micro, Small and Medium Enterprises: A Case Study of Kitui County," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(1), pages 15-27, January.
    7. Nadejda SERDIUC & Hanen KHEMAKHEM, 2015. "The Impact of SOX Adoption on the Compensation of Non-US Companies’ Boards: The Case of Canadian Companies," Expert Journal of Business and Management, Sprint Investify, vol. 3(2), pages 182-188.
    8. Yuga Raju Gunda & Suprakash Gupta & Lalit Kumar Singh, 2023. "Assessing human performance and human reliability: a review," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(3), pages 817-828, June.
    9. Tsafack, Georges & Guo, Lin, 2021. "Foreign shareholding, corporate governance and firm performance: Evidence from Chinese companies," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    10. Qian, Meifen & Sun, Ping-Wen & Yu, Bin, 2018. "Top managerial power and stock price efficiency: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 47(C), pages 20-38.
    11. Guo, Lin & Platikanov, Stefan, 2019. "Institutional ownership and corporate governance of public companies in China," Pacific-Basin Finance Journal, Elsevier, vol. 57(C).
    12. Sugato Chakravarty & Chiraphol N. Chiyachantana & Christine Jiang, 2011. "THE CHOICE OF TRADING VENUE AND RELATIVE PRICE IMPACT OF INSTITUTIONAL TRADING: ADRs VERSUS THE UNDERLYING SECURITIES IN THEIR LOCAL MARKETS," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 34(4), pages 537-567, December.
    13. Xiaolei Zou & Xiaoxi Chen & Fengling Chen & Chuxin Luo & Hongyan Liu, 2020. "The Influence of Negative Workplace Gossip on Knowledge Sharing: Insight from the Cognitive Dissonance Perspective," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    14. Pandey, Jatin & Gupta, Manish & Behl, Abhishek & Pereira, Vijay & Budhwar, Pawan & Varma, Arup & Hassan, Yusuf & Kukreja, Priyam, 2021. "Technology-enabled knowledge management for community healthcare workers: The effects of knowledge sharing and knowledge hiding," Journal of Business Research, Elsevier, vol. 135(C), pages 787-799.
    15. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.
    16. Antoinette Schoar & Ebonya L. Washington, 2011. "Are the Seeds of Bad Governance Sown in Good Times?," NBER Working Papers 17061, National Bureau of Economic Research, Inc.
    17. Aitzaz Ahsan Alias Sarang & Nicolas Aubert & Xavier Hollandts, 2024. "Board gender diversity and the cost of equity: What difference does gender quota legislation make?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2193-2213, April.
    18. Jol Stoffers & Beatrice van der Heijden & Ilse Schrijver, 2019. "Towards a Sustainable Model of Innovative Work Behaviors’ Enhancement: The Mediating Role of Employability," Sustainability, MDPI, vol. 12(1), pages 1-25, December.
    19. Shilong Wei & Muhammad Safdar Sial & Ubaldo Comite & Phung Anh Thu & Daniel Badulescu & József Popp, 2021. "An Examination to Explain the Mechanism of Employees’ Environment-Specific Behavior through CSR and Work Engagement from the Perspective of Stewardship Theory," IJERPH, MDPI, vol. 18(17), pages 1-20, September.
    20. repec:eme:arjpps:arj-09-2017-0149 is not listed on IDEAS
    21. Al-Faryan, Mamdouh Abdulaziz Saleh, 2017. "The relationship between corporate governance mechanisms and the performance of Saudi listed firms," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(2-2), pages 338-349.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:11:y:2022:i:5:p:126-137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.