Proceedings of the 4th International Conference on Innovation in Education, Science and Culture, ICIESC 2022, 11 October 2022, Medan, Indonesia

Research Article

Financial Performance of Small and Medium Enterprises from The Perspective of Organizational Capability, Learning Organization, and Business Ages

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  • @INPROCEEDINGS{10.4108/eai.11-10-2022.2325462,
        author={Muhammad Andi Abdillah  Triono and Selamat Triono  Ahmad and Henry  Iskandar and Armin Rahmansyah  Nasution and Sienny  Sienny and Humisar  Sihombing},
        title={Financial Performance of Small and Medium Enterprises from The Perspective of Organizational Capability, Learning Organization, and Business Ages},
        proceedings={Proceedings of the 4th International Conference on Innovation in Education, Science and Culture, ICIESC 2022, 11 October 2022, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={ICIESC},
        year={2022},
        month={12},
        keywords={innovation process financial performance msmes production sector},
        doi={10.4108/eai.11-10-2022.2325462}
    }
    
  • Muhammad Andi Abdillah Triono
    Selamat Triono Ahmad
    Henry Iskandar
    Armin Rahmansyah Nasution
    Sienny Sienny
    Humisar Sihombing
    Year: 2022
    Financial Performance of Small and Medium Enterprises from The Perspective of Organizational Capability, Learning Organization, and Business Ages
    ICIESC
    EAI
    DOI: 10.4108/eai.11-10-2022.2325462
Muhammad Andi Abdillah Triono1,*, Selamat Triono Ahmad2, Henry Iskandar2, Armin Rahmansyah Nasution1, Sienny Sienny1, Humisar Sihombing1
  • 1: Faculty of Economy, Universitas Negeri Medan, Indonesia
  • 2: Faculty of Technical Engineering, Universitas Negeri Medan, Indonesia
*Contact email: andiabdillah@unimed.ac.id

Abstract

In the situation of uncertainty, especially during the COVID-19 pandemic, there is high tension for business actors to innovate so that business processes can hold out. Micro, small, and medium enterprises (MSMEs) are empirically known to survive in various economic waves. This paper sheds light on how the characteristics of MSMEs can perform the organizational and learning capability to affect the company's financial performance to survival. Moreover, this study is an exploratory case study on MSMEs in 21 districts in the city of Medan with a research period from December 3, 2021, to September 15, 2022. The targeting population of this study is 259.812 MSMEs actors who are actively operating and has been identified and fostered by the Cooperative and Small Medium Office of Medan City. A stratified random sampling method is used. The primary data is obtained through a questionnaire, in which 575 respondents returned the questionnaire with complete fields. Furthermore, the secondary information is achieved from the Cooperative and Small-medium City of Medan Office. The validity and reliability testing of research instruments are on 43 MSMEs in the production sector in Deli Serdang Regency, which operates its business in Medan. Data processing is carried out by testing the outer and inner models with the help of SmartPLS 3.0. Then, the model fit test will be seen from the Standardized Root Mean Square Residual (SRMR) calculation results. Thus, this research empirically proves..