Proceedings of the 1st International Conference on Applied Social Sciences, Business, and Humanity, ICo-ASCNITY, 2 November 2019, Padang, West Sumatra, Indonesia

Research Article

Innovation, Proactive and Business Performance in SMEs

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  • @INPROCEEDINGS{10.4108/eai.1-11-2019.2294020,
        author={Primadona  Primadona},
        title={Innovation, Proactive and Business Performance in SMEs},
        proceedings={Proceedings of the 1st International Conference on Applied Social Sciences, Business, and Humanity, ICo-ASCNITY, 2 November 2019, Padang, West Sumatra, Indonesia},
        publisher={EAI},
        proceedings_a={ICO-ASCNITY},
        year={2020},
        month={4},
        keywords={smes innovation proactive quantitative},
        doi={10.4108/eai.1-11-2019.2294020}
    }
    
  • Primadona Primadona
    Year: 2020
    Innovation, Proactive and Business Performance in SMEs
    ICO-ASCNITY
    EAI
    DOI: 10.4108/eai.1-11-2019.2294020
Primadona Primadona1,*
  • 1: Politeknik Negeri Padang, Kampus Limau Manis, Padang, Sumatera Barat
*Contact email: pdmamarafif@gmail.com

Abstract

This study aims to determine the effect of innovation and proactivity on business performance in embroidery, embroidery and weaving SMEs which are SMEs that are managed from generation to generation in West Sumatra. This research contributes to the business performance of SMEs, which generally stand for more than fifteen years, spread almost in all regions in West Sumatra. Research locations in West Sumatra involving eight regions that have handicraft SMEs. The number of research samples is 200 respondents with SME owner analysis unit. The research methodology is quantitative to find out how much influence the innovation and proactive variables have on business performance. Data analysis using SPSS program using a questionnaire instrument with survey methods. The results of the study revealed that the innovative and practical variables jointly had a significant effect on business performance by 0.436 or 43.6 percent while the rest were influenced by other factors not included in this study. The limitation of this research is that it only includes two factors that influence business performance in SMEs, namely innovation and proactivity, and for further research, it can add other variables such as the ability to cope with risk, business sustainability and competitive competition.