Model of Micro Entreprises’ Financial Performance in Developed Village

DOI

10.2991/978-2-38476-172-2_26How to use a DOI?

Keywords

tangible resources; intangible resources; competitive strategy; environmental dynamics; and financial performance of micro enterprises

Abstract

The study aims to determine financial performance of micro enterprises that can be influenced by tangible resources, intangible resources, environmental dynamics, and competitive strategies by using Resource- Based View (RBV) theory. In accordance with this objective, the method of research is explanatory survey, which explains the influence between variables with hypothesis testing. The research population involves entrepreneurs in Sigi District, Donggala District, and Poso District. Data is obtained from the Village Empowerment Agency in each district. Sample of this study consists of 26 micro businesses in 3 districts, in some ‘developed villages’. Data analysis is descriptive and inferential statistic of PLS (Partial Least Square). The results show that there are four significant influences that are tangible resources have significant influence on competitive strategy; intangible resources have significant influence on competitive strategy; tangible resourceshave significant influence on financial performance, and intangible resources have significant influence on financial performance. While the non-significant variables are: environmental dynamics has insignificant influence on competitive strategy; intangible resourceshave insignificant influence on financial performance; and environmental dynamics has insignificant influence on financial performance. Mediation model integrates tangible resources, competitive strategies, and financial performance; and also intangible resources, competitive strategies, and financial performance. R-square value for competitive strategy is 0.78, which means that the influence of tangible resources, intangible resources, and environmental dynamics on competitive strategy is 78% and the remaining 22% is influenced by other variables outside the research model. The R-square value for financial performance is 0.80, which means that the influence of tangible resources, intangible resources, environmental dynamics, and competitive strategy on financial performance is 80% and the remaining 20% is influenced by other variables outside the research model.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Husnah
PY  - 2023
DA  - 2023/12/31
TI  - Model of Micro Entreprises’ Financial Performance in Developed Village
BT  - Proceedings of the 2nd International Interdisciplinary Conference on Environmental Sciences and Sustainable Developments (IICESSD)  2022 Education and Green Economy (IICESSD EGE 2022)
PB  - Atlantis Press
SP  - 166
EP  - 170
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-172-2_26
DO  - 10.2991/978-2-38476-172-2_26
ID  - 2023
ER  -