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http://dx.doi.org/10.13106/jafeb.2022.vol9.no3.0245

The Role of Local Government in Improving Resilience and Performance of Small and Medium-Sized Enterprises in Indonesia  

TANEO, Stefanus Yufra M. (Innovation Management Department, Faculty of Business and Economics, Universitas Ma Chung)
NOYA, Sunday (Department of Industrial Engineering, Faculty of Science and Technology, Universitas Ma Chung)
MELANY, Melany (Department of English Letters, Faculty of Language and Art, Universitas Ma Chung)
SETIYATI, Etsa Astridya (Entrepreneurship Department, BINUS Business School, BINUS University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.3, 2022 , pp. 245-256 More about this Journal
Abstract
During the COVID-19 pandemic, several studies focused on financial programs and SMEs' performance, but research on the relationship between non-financial programs, resilience, and SMEs' performance is still sparse. This study fills the gap by analyzing the role of local government in increasing SME resilience and performance by purchasing products (through civil servants) from SMEs and by facilitating online training to SMEs. This study also investigates the role of the local government in strengthening the relationship between resilience and SME performance. Data was collected using an online questionnaire distributed to SMEs in Malang Regency. As many as 410 questionnaires were received and eligible for statistical analysis using WarpPLS. The results show that resilience is positively and significantly related to the performance of SMEs. The local government programs have been proven to improve SME performance directly and indirectly through resilience. Local government programs are not proven to strengthen the relationship between resilience and the performance of SMEs, indicating that the role of government in developing countries such as Indonesia is more appropriate to be "rowing rather than steering" not "steering rather than rowing".
Keywords
Resilience; SME; Local Government; COVID-19; State Civil Servant; Performance;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
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