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A Growth Strategy Perspective: An Empirical Study on MSMEs in Salatiga During the COVID-19 Pandemic

In: Innovation in ASEAN

Author

Listed:
  • Maria Rio Rita

    (Universitas Kristen Satya Wacana)

  • Yeterina Widi Nugrahanti

    (Universitas Kristen Satya Wacana)

  • Ari Budi Kristanto

    (Universitas Kristen Satya Wacana)

  • Petrus Usmanij

    (La Trobe University)

  • Vanessa Ratten

    (La Trobe University)

Abstract

A company’s goal in addition to achieving predetermined performance targets is also to maintain its existence. The sustainability of a business is related to its long-term performance, including for MSMEs. The purpose of this study is to analyze the determinants of MSME growth in a business growth strategy theoretical perspective. The total number of respondents was 112 MSME entrepreneurs from various sectors in the city of Salatiga, Central Java. The primary data collected was then analyzed using PLS-SEM, both for direct and indirect effects. The study, which was conducted during the COVID-19 pandemic, demonstrated that business networks did not have a positive effect on business growth, but business networks proved to have a positive effect on innovation. Innovation has a direct effect on business growth. Furthermore, gender moderation does not play a role in the influence of business networks towards innovation. Innovation is recognized to fully mediate the influence of business networks on business growth. The findings of this study contribute theoretically through testing the business growth strategy theory at the MSME level. The managerial implications are for MSME actors to take advantage of business relationships and proactively innovate to increase business growth, especially in times of a crisis or abnormal condition.

Suggested Citation

  • Maria Rio Rita & Yeterina Widi Nugrahanti & Ari Budi Kristanto & Petrus Usmanij & Vanessa Ratten, 2022. "A Growth Strategy Perspective: An Empirical Study on MSMEs in Salatiga During the COVID-19 Pandemic," Springer Books, in: Vanessa Ratten (ed.), Innovation in ASEAN, pages 85-106, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-0644-2_6
    DOI: 10.1007/978-981-19-0644-2_6
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