Research Article
The Impact of Innovation Process on Financial Performance in Micro, Small, and Medium Enterprises Case Study of Medan City MSMEs Production Sector
@INPROCEEDINGS{10.4108/eai.31-8-2021.2313764, author={Muhammad Andi Abdillah Triono and Henry Iskandar and Armin Rahmansyah Nasution and Sienny Sienny}, title={The Impact of Innovation Process on Financial Performance in Micro, Small, and Medium Enterprises Case Study of Medan City MSMEs Production Sector}, proceedings={Proceedings of the 3rd International Conference on Innovation in Education, Science and Culture, ICIESC 2021, 31 August 2021, Medan, North Sumatera Province, Indonesia}, publisher={EAI}, proceedings_a={ICIESC}, year={2021}, month={11}, keywords={innovation process financial performance micro small and medium enterprises production sector}, doi={10.4108/eai.31-8-2021.2313764} }- Muhammad Andi Abdillah Triono
Henry Iskandar
Armin Rahmansyah Nasution
Sienny Sienny
Year: 2021
The Impact of Innovation Process on Financial Performance in Micro, Small, and Medium Enterprises Case Study of Medan City MSMEs Production Sector
ICIESC
EAI
DOI: 10.4108/eai.31-8-2021.2313764
Abstract
In the current era of uncertainty, especially during the COVID-19 pandemic, there is pressure for business actors to innovate so that business processes can survive. This research sheds light on how the characteristics of micro, small, and medium enterprises can carry out the innovation process to affect the company’s financial performance to survive. This study is a case study and exploratory on micro, small, and medium enterprises in 21 districts in Medan City. The target population of this study is 466 micro, small, and medium enterprise actors who are part of the production sector in Medan City and confirmed to be active and operate in 2020, which is identified by the Cooperative and Small Medium Office Medan City. The sampling method is by using a stratified random sampling method. A questionnaire instrument was used to obtain the primary data, and the secondary data was obtained from the cooperative and small-medium office databases. The validity and reliability testing of research instruments are on 49 micro, small, and medium enterprises of Deli Serdang Regency MSMEs production sector. One hundred sixty-nine respondents returned the questionnaire with complete fields. SEM-PLS carries out data processing, and the model fit test is tested through the SRMR calculation, which confirms that the model is in the goodness of fit.
