The Mediating Role of SMEs' Performance in the Relationship between Entrepreneur Competence and Satisfaction

Dedi Iskamto, Asyraf Aftanorhan, Puspa liza Ghazali

Abstract


This study aims to examine the mediating role of SME performance in the relationship between entrepreneur competence (EC) and satisfaction (ES) in Indonesia. Data were analyzed using Structural Equation Modeling (SEM), AMOS 24. A total of 380 employers in Pekanbaru City, Riau Province, were selected as the participants. The results showed that SME performance partially mediates the relationship between entrepreneur competence and satisfaction. This is because the direct effect between SMEs' performance and ES is still significant. The implication of this study implies that there is a need to improve the SMEs' performance to increase their competence and create satisfaction for employers. Moreover, entrepreneurs who are satisfied with their businesses always wish to stay longer and do not give up on it.  


Keywords


Entrepreneur; Performance; Competence; Satisfaction; Well-being

Full Text:

PDF

References


Abdullahi, M. S., Abubakar, A., Aliyu, R. L., & Umar, M. B. (2015). Empirical Review on The Determinants Influencing Firm Performance in Developing Countries. 5(6), 10.

Andersson, P. (2008). Happiness and health: Well-being among the self-employed. The Journal of Socio-Economics, 37(1), 213–236. https://doi.org/10.1016/j.socec.2007.03.003

Awang, Z. (2015). SEM made simple: A gentle approach to learning structural equation modeling. MPWS Publisher.

Belasen, A. R., & Hafer, R. W. (2012). Well-being and economic freedom: Evidence from the States. Intelligence, 40(3), 306–316. https://doi.org/10.1016/j.intell.2012.03.002

Bianchi, M. (2012). Financial Development, Entrepreneurship, and Job Satisfaction. Review of Economics and Statistics, 94(1), 273–286. https://doi.org/10.1162/REST_a_00156

Binder, M., & Coad, A. (2016). How Satisfied are the Self-Employed? A Life Domain View. Journal of Happiness Studies, 17(4), 1409–1433.

Bird, B. (1995). Towards a theory of entrepreneurial competency. Advances in Entrepreneurship, Firm Emergence and Growth, 2, 51–72.

Bradley, D. E., & Roberts, J. A. (2004). Self-Employment and Job Satisfaction: Investigating the Role of Self-Efficacy, Depression, and Seniority. Journal of Small Business Management, 42(1), 37–58. https://doi.org/10.1111/j.1540-627X.2004.00096.x

Brown, T. A. (2015). Confirmatory Factor Analysis for Applied Research, Second Edition | Timothy A. Brown PsyD | download (2nd ed.). The Guilford Press.

Byrne, B. M. (2016). Structural equation modeling with AMOS: Basic concepts, applications, and programming (3nd Edition). Routledge Taylor & Francis Group.

Carree, M. A., & Verheul, I. (2012). What Makes Entrepreneurs Happy? Determinants of Satisfaction Among Founders. Journal of Happiness Studies, 13(2), 371–387. https://doi.org/10.1007/s10902-011-9269-3

Carree, M. A., & Verheul, I. (2012). What Makes Entrepreneurs Happy? Determinants of Satisfaction Among Founders. Journal of Happiness Studies, 13(2), 371–387. https://doi.org/10.1007/s10902-011-9269-3

Cho, Y. H., & Lee, J.-H. (2018). Entrepreneurial orientation, entrepreneurial education and performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2),

Clark, A., Frijters, P., & Shields, M. (2006). Income and happiness: Evidence, explanations and economic implications [Working Paper]. HAL. https://econpapers.repec.org/paper/halwpaper/halshs-00590436.htm

Cooper, A. C., & Artz, K. W. (1995). Determinants of satisfaction for entrepreneurs. Journal of Business Venturing, 10(6), 439–457.

Dijkhuizen, J., Gorgievski, M., van Veldhoven, M., & Schalk, R. (2018). Well-Being, Personal Success and Business Performance Among Entrepreneurs: A Two-Wave Study. Journal of Happiness Studies, 19(8), 2187–2204.

Easterlin, R. A., & Sawangfa, O. (2007). Happiness and Domain Satisfaction: Theory and Evidence.

Fang, X., & An, L. (2017). A STUDY OF Effects Of Entrepreneurial Passion And Risk Appetite On Entrepreneurial Performance. Revista de Cercetare [i Interven]Ie Social, 56, 102–113.

Frinces, Z. H. (2012). Pentingnya Profesi Wirausaha di Indonesia. Jurnal Ekonomi dan Pendidikan, 7(1). https://doi.org/10.21831/jep.v7i1.576

Ghazali, P., Mohd, I., Ahmad, W. muhamad amir, & Mamat, M. (2012). Implementation of integration model for all. Journal of Applied Sciences Research, 8(3), 1802–1812.

Ghozali, I. (2017). Model Persamaan Structural Konsep Aplikasi Dengan Program AMOS 24 (7th ed.). Badan Penerbit Universitas Diponegoro.

Global Entrepreneurship Monitor. (2013). Global Entrepreneurship Monitor Repport.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th Edition)

Hessels, J., Arampatzi, E., van der Zwan, P., & Burger, M. (2017). Life satisfaction and self-employment in different types of occupations. Applied Economics Letters, 25(11), 734–740. https://doi.org/10.1080/13504851.2017.1361003

Iskamto, D., Ghazali, P. L., & Aftanorhan, A. (2019). Effect Contextual Factor Toward Entrepreneurial Intention Among Young Educated. International Conference on Industrial Engineering and Operations Management Riyadh, 7.

Iskamto, D., Ghazali, P. L., & Aftanorhan, A. (2020). Exploratory Factor Analysis (EFA) To Measure Entrepreneur Satisfaction. The International Conference on Industrial Engineering and Operations Management, 9.

Iskamto, D., Ghazali, P. L., & Afthanorhan, A. (2021). Entrepreneur Competence Measures of Small and Medium Enterprises (MSEs) in Indonesia. Jurnal Manajemen Bisnis (JMB), 34(1), 220–228.

Kautonen, T., & Palmroos, J. (2010). The impact of a necessity-based start-up on subsequent entrepreneurial satisfaction. International Entrepreneurship and Management Journal, 6(3), 285–300. https://doi.org/10.1007/s11365-008-0104-1

Klein, R. B. (2015). Principles and Practice of Structural Equation Modeling. (Fourth). Guilford Publications.

Laguna, M., Wiechetek, M., & Talik, W. (2012). Competencies of Managers and Their Business Success. Central European Business Review, 1(3), 7–13.

Lee, L., Wong, P. K., Foo, M. D., & Leung, A. (2011). Entrepreneurial intentions: The influence of organizational and individual factors. Journal of Business Venturing, 26(1), 124–136.

Loehlin, J. C., & Beaujean, A. A. (2017). Latent Variable Models: An Introduction to Factor, Path, and Structural Equation Analysis (1st ed.). Routledge.

Man, T. W. Y., Lau, T., & Snape, E. (2008). Entrepreneurial Competencies and the Performance of Small and Medium Enterprises: An Investigation through a Framework of Competitiveness. Journal of Small Business & Entrepreneurship, 21(3), 257–276.

Mappigau, P. & Hastan. (2012). Core Competence And Sustainable Competitive Adventage Of Small Silk Weaving Industries (SIs) In Wajo District, South Sulawesi. Procedia Economics and Finance, 4, 160–167.

Michalos, A. C. (2014). Encyclopedia of Quality of Life and Well-Being Research. Springer Science+Business Media Dordrecht.

Mitchelmore, S., & Rowley, J. (2013). Entrepreneurial competencies of women entrepreneurs pursuing business growth. Journal of Small Business and Enterprise Development, 20(1), 125–142.

Pollack, J. M., Coy, A. E., Green, J. D., & Davis, J. L. (2015). Satisfaction, Investment, and Alternatives Predict Entrepreneurs’ Networking Group Commitment and Subsequent Revenue Generation. Entrepreneurship Theory and Practice, 39(4), 817–837.

Roche, K. (2014). Job satisfaction and the educated entrepreneur. Journal of Small Business & Entrepreneurship, 27(4), 353–368. https://doi.org/10.1080/08276331.2015.1086069

Sanchez, J. (2012). The influence of entrepreneurial competencies on small firm performance. Revista Latinoamericana de Psicología, 44(2), 165–177.

Santarelli, E., & Tran, H. T. (2013). The Interplay of Human and Social Capital in Shaping Entrepreneurial Performance: The Case of Vietnam. Quaderni DSE Working Paper No. 803.

shane, S. (2003). A General Theory of Entrepreneurship. The Individual Opportunity Nexus. (Chaltenham). Edward Elgar.

Talib, O. (2013). Asas Penulisan Tesis Penyelidikan & Statistik (3rd ed., Vol. 1). Universiti Putra Malaysia.

Vu, H. M., & Nwachukwu, C. (2021). Influence of entrepreneur competencies on profitability and employee satisfaction. International Journal of Management and Enterprise Development, 20(1), 1. https://doi.org/10.1504/IJMED.2021.113635

Watson, W., Stewart, W. H., & BarNir, A. (2003). The effects of human capital, organizational demography, and interpersonal processes on venture partner perceptions of firm profit and growth. Journal of Business Venturing, 18(2), 145–164.

We, L. (2017). Towards Creating an Entrepreneur Competencies Model. Journal of Entrepreneurship & Organization Management, 6(2), 6.

Wickramaratne, A., Kiminami, A., & Yagi, H. (2014). Entrepreneurial Competencies and Entrepreneurial Orientation of Tea Manufacturing Firms in Sri Lanka. Asian Social Science, 10(18).




DOI: http://dx.doi.org/10.21043/iqtishadia.v15i1.14298

Copyright (c) 2022 IQTISHADIA

Iqtishadia Journal Indexed by :

http://journal.stainkudus.ac.id/indexing/crossref.jpghttp://journal.stainkudus.ac.id/indexing/moraref.jpghttp://journal.stainkudus.ac.id/indexing/ipi.jpghttp://journal.stainkudus.ac.id/indexing/academiaedu.jpghttp://journal.stainkudus.ac.id/indexing/googlescholar.jpghttp://journal.stainkudus.ac.id/indexing/sinta.jpghttp://journal.stainkudus.ac.id/indexing/isjd.jpg 

Creative Commons License
Iqtishadia : Jurnal Kajian Ekonomi dan Bisnis Islam is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

View My Stats