Main Article Content
Abstract
This study aims to examine the effect of Organizational Culture, Entrepreneurship Orientation, Total Quality Management, and Social Capital on Business Performance. The population in this study was Micro, Small, and Medium Enterprises (MSMEs) engaged in processing industry in sub-district of Tampan Pekanbaru city. This study uses census method in sampling with owner of Micro, Small, and Medium Enterprises (MSMEs) in sub-district of Tampan Pekanbaru city as the respondent amount 122 unit enterprises. The data used in this study are primary data with questionnaires as an instrument. The data analysis method used is Structural Equation Model-Partial Last Square (SEM-PLS) by using WarpPLS 6.0 software. The results of this study showed that Organizational Culture, Entrepreneurship Orientation, Total Quality Management, and Social Capital have an effect on Business performance. The results indicate the important role Organizational Culture, Entrepreneurship Orientation, Total Quality Management, and Social Capital in improving the performance of MSMEs.
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References
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- Akintimehin, O. O., Eniola, A. A., Alabi, O. J., Eluyela, D. F., Okere, W., & Ozordi, E. (2019). Social Capital and its Effect on Business Performance in the Nigeria Informal Sector. Heliyon, 5, 1–13. https://doi.org/10.1016/j.heliyon.2019.e02024
- Al-Dhaafri, H. S., Al-Swidi, A. K., & Yussoff, R. Z. Bin. (2016). The Mediating Role of TQM and Organizational Excellence, and The Moderating Effect of Entrepreneurial Organizational Culture on The Relationship between ERP and Organizational Performance. The TQM Journal, 28(6), 991–1011.
- Al-shdaifat, E. A. (2015). Implementation of Total Quality Management in hospitals. Journal of Taibah University Medical Sciences, 1–6. https://doi.org/10.1016/j.jtumed.2015.05.004
- Asad, M., Chethiyar, S. D. M., & Ali, A. (2020). Total Quality Management, Entrepreneurial Orientation, and Market Orientation: Moderating Effect of Environment on Performance of SMEs. Paradigms, 14(1), 102–108. https://doi.org/10.24312/193014016
- Ayuningtyas, A. A., Miyasto, & Sugiarto, P. (2018). Analysis of Entrepreneurship Orientation, Adaptability of Business Environment, and Internal Resources company on Competitive Advantages to Improve Company Performance. Jurnal Sains Pemasaran Indonesia, XVII(2), 119–139.
- BAPPENAS. (2014). Laporan Analisis Daya Saing UMKM di Indoneisa.
- Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
- Djodjobo, C. V., & Tawas, H. N. (2014). Pengaruh Orientasi Kewirausahaan, Inovasi Produk dan Keunggulan Bersaing terhadap Kinerja Pemasaran Usaha Nasi Kuning di Kota Manado. Jurnal EMB, 2(3), 1214–1224.
- Effendi, S. H., Solimun, D., & Noermijati. (2013). The Effect of Entrepreneurship Orientation on Small Business Performance with Government Role as the Moderator Variable and Managerial Competence as the mediating Variable on the Small Business of Apparel Industry in Cipulir market, sounth Jakarta. Journal of Business and Management, 8(1), 49–55.
- Eniola, A. A., Olorunleke, G. K., Akintimehin, O. O., Ojeka, J. D., & Oyetunji, B. (2019). The Impact of Organizational Culture on Total Quality Management in SMEs in Nigeria. Heliyon, 5, 1–10. https://doi.org/10.1016/j.heliyon.2019.e02293
- Felicio, J. A., Couto, E., & Caiado, C. (2016). Human Capital, Social Capital, and Organizational Performance. Journal of Management Decision, 46, 374–384.
- García-bernal, J., & Ramírez-alesón, M. (2015). Why and How TQM Leads to Performance Improvements. Quality Management Journal, 22(3), 23–37. https://doi.org/10.1080/10686967.2015.11918439
- Gorondutse, A. H., & Hilman, H. (2018). Does Organizational Culture Matter in the Relationship between Trust and SMEs Performance? Journal of Management Decision, 57(7), 1638–1658. https://doi.org/10.1108/MD-05-2018-0557
- Hartomo, G. (2019). UMKM sumbang Rp8.400 Triliun ke Perekonomian Nasional Pada 2018. Oke Finance.
- Ina, H. (2016). Quality Orientation in Middle Management Development and Validation of Situational Judgement Test. Apprimus Wissenschaftverlag, Aachen.
- Kumparan. (2019). Menkop: UMKM kita belum Berjaya di Kampung Sendiri. Kumparan Bisnis.
- Miller, D., & Shamsie, J. (1996). The Resource Based View of the Firm in Two Environments: The Hollywood Film Studio From 1936 to 1965. Academy of Management Journal, 39(3), 519–543.
- Pambreni, Y., Khatibi, A., Azam, S. M. F., & Tham, J. (2019). The Influence of Total Quality Management toward Organization Performance. Management Science Letters, 9, 1397–1406. https://doi.org/10.5267/j.msl.2019.5.011
- Ranto, D. W. P. (2016). Pengaruh Orientasi Kewirausahaan terhadap Kinerja UMKM bidang kuliner Yogyakarta. JBMA, 3(2).
- Rapih, S., Martono, T., & Riyanto, G. (2015). Analisis Pengaruh Kompetensi Sumber Daya Manusia, Modal Sosial, dan Modal Finansial terhadap Kinerja UMKM Bidang Garmen Di Kabupaten Klaten. Jurnal Akuntansi Dan Pendidikan, 4(2), 1–20.
- Reswanda. (2012). Pengaruh Orientasi Kewirausahaan terhadap Pembelajaran Organisasi, Keunggulan Bersaing Berkelanjutan dan Kinerja Usaha pada UMKM Kerajinan Kulit Berorientasi Ekspor di Sidoarjo. Jurnal Disertasi Unair.
- Robbins, S. P., & A. Judge, T. (2013). Organizational Behavior (5th ed.). Pearson Education, Inc.
- Sahoo, S., & Yadav, S. (2017). Entrepreneurial Orientation of SMEs, Total Quality Management and Firm Performance. Journal of Manufacturing Technology Management.
- Sahoo, S., & Yadav, S. (2018). Total Quality Management in Indian Manufacturing SMEs. Procedia Manufacturing, 21, 541–548. https://doi.org/10.1016/j.promfg.2018.02.155
- Santoso, E. B., Fiernaningsih, N., & Murtiyanto, R. K. (2018). Pengaruh Budaya Organisasi terhadap Kinerja Organisasi. Jurnal Administrasi Dan Bisnis, 12(1), 40–45.
- Savitri, E., Abdullah, N. H. N., Said, J., Syahza, A., & Musfialdy. (2020). How Supply Chain Moderates the Relationship of Entrepreneurial Orientation , Adaptability Strategy and Government Interference with Performance ? International Journal Supply Chain Management, 9(4), 355–362.
- Schein, E. H. (2004). Organizational Culture and Leadership (3rd ed.). The Jossey-Bass.
- Schlepphorts, et al. (2020). International Assignment of Employees and Entrepreneurial Intentions: The Mediating Role of Human Capital, Social Capital, and Career Prospects. Journal of Entrepreneurial Behavior and Research, 26(6), 1259–1279.
- Sedyastuti, K. (2018). Analisis Pemberdayaan UMKM dan Peningkatan Daya Saing dalam Kancah Pasar Global. Jurnal Inovasi Bisnis Dan Manajemen Indonesia, 2(1), 117–127.
- Setiawan, H. (2013). Pengaruh Orientasi Pasar, Budaya Organisasi, dan Orientasi Kewirausahaan terhadap Kinerja Usaha (Studi pada usaha kecil pengolahan di kota Bandung). Jurnal Manajemen Dan Bisnis, 11(3), 181–194.
- Sinha, N., & Dhall, N. (2018). Mediating Effect of TQM on Relationship between Organizational Culture and Performance Evidence from Indian SMEs. Total Quality Management and Business Excellence.
- Sulhaini, Rusdan, Dayani, R., & Ismiwati, B. (2018). Pengaruh Berantai Budaya Organisasi dan Human Resource Practices Terhadap Kreatifitas dan Kinerja Usaha UMKM. Jurnal Magister Manajemen Unram, 7(3), 61–77.
- Sulistyo, H., & Ayuni, S. (2020). Competitive Advantages of SMEs: The Roles of Innovation Capability, Entrepreneurial Orientation, and Social Capital. Journal of Accounting and Management, 65(1), 1–18.
- Suryani, N. K., & John, E. H. J. (2018). Kinerja Organisasi. Deepublish Publisher.
- Sutrisno, E. (2018). Budaya Organisasi (1st ed.). Prenadamedia Group.
- Talebi, K., Farsi, J. Y., & Miriasl, H. (2017). Identifying the Impact of Strategic Alliances on the Performance of SMEs (Case Study: The Industry of Automotive Parts Manufacturers in Iran). International Business Research, 10(6), 227–235. https://doi.org/10.5539/ibr.v10n6p227
- Tika, M. P. (2014). Budaya Organisasi dan Peningkatan Kinerja Perusahaan. Bumi Aksara.
- Valmohammadi, C., & Roshanzamir, S. (2015). The Guidelines of Improvement: Relations among Orgnizational Culture TQM and Performance. Intern. Journal of Production Economics, 167–178. https://doi.org/10.1016/j.ijpe.2014.12.028
- Vipriyanti, N. U. (2007). Studi Sosial Ekonomi tentang Keterkaitan antara Modal Sosial dan Pembangunan Ekonomi Wilayah. Disertasi, Institute Pertanian Bogor.
- Wardi, Y., & Susanto, P. (2015). Analisis Orientasi Kewirausahaan pada Kinerja Perusahaan: Studi Empiris pada Usaha Kecil dan Menengah (UKM) di Sumatera Barat. Seminar Nasional Ekonomi Manajemen Dan Akuntansi (SNEMA), Fakultas Ekonomi Universitas Negeri Padang, 143–151.
- Wardoyo P., Rusdianti, E., & Purwantini, S. (2015). Pengaruh Orientasi Kewirausahaan terhadap Strategi Usaha dan Kinerja Bisnis UMKM di Desa Ujung-ujung, Kec. Pabelan, Kab. Semarang. 1–19.
- Yani, A., Eliyana, A., Hamidah, Sudiarditha, I. K. R., & Buchdadi, A. D. (2020). The Impact of Social Capital , Entrepreneurial Competence on Business Performance: An Empirical Study of SMEs. Systematic Review in Pharmacy, 11(9), 779–787.
References
Agyapong, F. O., Agyapong, A., & Poku, K. (2017). Nexus between Social Capital and Performance of Micro and Small Firms in an Emerging Economy : The Mediating Role of Innovation. Cogent Business & Management, 4, 1–20. https://doi.org/10.1080/23311975.2017.1309784
Akintimehin, O. O., Eniola, A. A., Alabi, O. J., Eluyela, D. F., Okere, W., & Ozordi, E. (2019). Social Capital and its Effect on Business Performance in the Nigeria Informal Sector. Heliyon, 5, 1–13. https://doi.org/10.1016/j.heliyon.2019.e02024
Al-Dhaafri, H. S., Al-Swidi, A. K., & Yussoff, R. Z. Bin. (2016). The Mediating Role of TQM and Organizational Excellence, and The Moderating Effect of Entrepreneurial Organizational Culture on The Relationship between ERP and Organizational Performance. The TQM Journal, 28(6), 991–1011.
Al-shdaifat, E. A. (2015). Implementation of Total Quality Management in hospitals. Journal of Taibah University Medical Sciences, 1–6. https://doi.org/10.1016/j.jtumed.2015.05.004
Asad, M., Chethiyar, S. D. M., & Ali, A. (2020). Total Quality Management, Entrepreneurial Orientation, and Market Orientation: Moderating Effect of Environment on Performance of SMEs. Paradigms, 14(1), 102–108. https://doi.org/10.24312/193014016
Ayuningtyas, A. A., Miyasto, & Sugiarto, P. (2018). Analysis of Entrepreneurship Orientation, Adaptability of Business Environment, and Internal Resources company on Competitive Advantages to Improve Company Performance. Jurnal Sains Pemasaran Indonesia, XVII(2), 119–139.
BAPPENAS. (2014). Laporan Analisis Daya Saing UMKM di Indoneisa.
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Djodjobo, C. V., & Tawas, H. N. (2014). Pengaruh Orientasi Kewirausahaan, Inovasi Produk dan Keunggulan Bersaing terhadap Kinerja Pemasaran Usaha Nasi Kuning di Kota Manado. Jurnal EMB, 2(3), 1214–1224.
Effendi, S. H., Solimun, D., & Noermijati. (2013). The Effect of Entrepreneurship Orientation on Small Business Performance with Government Role as the Moderator Variable and Managerial Competence as the mediating Variable on the Small Business of Apparel Industry in Cipulir market, sounth Jakarta. Journal of Business and Management, 8(1), 49–55.
Eniola, A. A., Olorunleke, G. K., Akintimehin, O. O., Ojeka, J. D., & Oyetunji, B. (2019). The Impact of Organizational Culture on Total Quality Management in SMEs in Nigeria. Heliyon, 5, 1–10. https://doi.org/10.1016/j.heliyon.2019.e02293
Felicio, J. A., Couto, E., & Caiado, C. (2016). Human Capital, Social Capital, and Organizational Performance. Journal of Management Decision, 46, 374–384.
García-bernal, J., & Ramírez-alesón, M. (2015). Why and How TQM Leads to Performance Improvements. Quality Management Journal, 22(3), 23–37. https://doi.org/10.1080/10686967.2015.11918439
Gorondutse, A. H., & Hilman, H. (2018). Does Organizational Culture Matter in the Relationship between Trust and SMEs Performance? Journal of Management Decision, 57(7), 1638–1658. https://doi.org/10.1108/MD-05-2018-0557
Hartomo, G. (2019). UMKM sumbang Rp8.400 Triliun ke Perekonomian Nasional Pada 2018. Oke Finance.
Ina, H. (2016). Quality Orientation in Middle Management Development and Validation of Situational Judgement Test. Apprimus Wissenschaftverlag, Aachen.
Kumparan. (2019). Menkop: UMKM kita belum Berjaya di Kampung Sendiri. Kumparan Bisnis.
Miller, D., & Shamsie, J. (1996). The Resource Based View of the Firm in Two Environments: The Hollywood Film Studio From 1936 to 1965. Academy of Management Journal, 39(3), 519–543.
Pambreni, Y., Khatibi, A., Azam, S. M. F., & Tham, J. (2019). The Influence of Total Quality Management toward Organization Performance. Management Science Letters, 9, 1397–1406. https://doi.org/10.5267/j.msl.2019.5.011
Ranto, D. W. P. (2016). Pengaruh Orientasi Kewirausahaan terhadap Kinerja UMKM bidang kuliner Yogyakarta. JBMA, 3(2).
Rapih, S., Martono, T., & Riyanto, G. (2015). Analisis Pengaruh Kompetensi Sumber Daya Manusia, Modal Sosial, dan Modal Finansial terhadap Kinerja UMKM Bidang Garmen Di Kabupaten Klaten. Jurnal Akuntansi Dan Pendidikan, 4(2), 1–20.
Reswanda. (2012). Pengaruh Orientasi Kewirausahaan terhadap Pembelajaran Organisasi, Keunggulan Bersaing Berkelanjutan dan Kinerja Usaha pada UMKM Kerajinan Kulit Berorientasi Ekspor di Sidoarjo. Jurnal Disertasi Unair.
Robbins, S. P., & A. Judge, T. (2013). Organizational Behavior (5th ed.). Pearson Education, Inc.
Sahoo, S., & Yadav, S. (2017). Entrepreneurial Orientation of SMEs, Total Quality Management and Firm Performance. Journal of Manufacturing Technology Management.
Sahoo, S., & Yadav, S. (2018). Total Quality Management in Indian Manufacturing SMEs. Procedia Manufacturing, 21, 541–548. https://doi.org/10.1016/j.promfg.2018.02.155
Santoso, E. B., Fiernaningsih, N., & Murtiyanto, R. K. (2018). Pengaruh Budaya Organisasi terhadap Kinerja Organisasi. Jurnal Administrasi Dan Bisnis, 12(1), 40–45.
Savitri, E., Abdullah, N. H. N., Said, J., Syahza, A., & Musfialdy. (2020). How Supply Chain Moderates the Relationship of Entrepreneurial Orientation , Adaptability Strategy and Government Interference with Performance ? International Journal Supply Chain Management, 9(4), 355–362.
Schein, E. H. (2004). Organizational Culture and Leadership (3rd ed.). The Jossey-Bass.
Schlepphorts, et al. (2020). International Assignment of Employees and Entrepreneurial Intentions: The Mediating Role of Human Capital, Social Capital, and Career Prospects. Journal of Entrepreneurial Behavior and Research, 26(6), 1259–1279.
Sedyastuti, K. (2018). Analisis Pemberdayaan UMKM dan Peningkatan Daya Saing dalam Kancah Pasar Global. Jurnal Inovasi Bisnis Dan Manajemen Indonesia, 2(1), 117–127.
Setiawan, H. (2013). Pengaruh Orientasi Pasar, Budaya Organisasi, dan Orientasi Kewirausahaan terhadap Kinerja Usaha (Studi pada usaha kecil pengolahan di kota Bandung). Jurnal Manajemen Dan Bisnis, 11(3), 181–194.
Sinha, N., & Dhall, N. (2018). Mediating Effect of TQM on Relationship between Organizational Culture and Performance Evidence from Indian SMEs. Total Quality Management and Business Excellence.
Sulhaini, Rusdan, Dayani, R., & Ismiwati, B. (2018). Pengaruh Berantai Budaya Organisasi dan Human Resource Practices Terhadap Kreatifitas dan Kinerja Usaha UMKM. Jurnal Magister Manajemen Unram, 7(3), 61–77.
Sulistyo, H., & Ayuni, S. (2020). Competitive Advantages of SMEs: The Roles of Innovation Capability, Entrepreneurial Orientation, and Social Capital. Journal of Accounting and Management, 65(1), 1–18.
Suryani, N. K., & John, E. H. J. (2018). Kinerja Organisasi. Deepublish Publisher.
Sutrisno, E. (2018). Budaya Organisasi (1st ed.). Prenadamedia Group.
Talebi, K., Farsi, J. Y., & Miriasl, H. (2017). Identifying the Impact of Strategic Alliances on the Performance of SMEs (Case Study: The Industry of Automotive Parts Manufacturers in Iran). International Business Research, 10(6), 227–235. https://doi.org/10.5539/ibr.v10n6p227
Tika, M. P. (2014). Budaya Organisasi dan Peningkatan Kinerja Perusahaan. Bumi Aksara.
Valmohammadi, C., & Roshanzamir, S. (2015). The Guidelines of Improvement: Relations among Orgnizational Culture TQM and Performance. Intern. Journal of Production Economics, 167–178. https://doi.org/10.1016/j.ijpe.2014.12.028
Vipriyanti, N. U. (2007). Studi Sosial Ekonomi tentang Keterkaitan antara Modal Sosial dan Pembangunan Ekonomi Wilayah. Disertasi, Institute Pertanian Bogor.
Wardi, Y., & Susanto, P. (2015). Analisis Orientasi Kewirausahaan pada Kinerja Perusahaan: Studi Empiris pada Usaha Kecil dan Menengah (UKM) di Sumatera Barat. Seminar Nasional Ekonomi Manajemen Dan Akuntansi (SNEMA), Fakultas Ekonomi Universitas Negeri Padang, 143–151.
Wardoyo P., Rusdianti, E., & Purwantini, S. (2015). Pengaruh Orientasi Kewirausahaan terhadap Strategi Usaha dan Kinerja Bisnis UMKM di Desa Ujung-ujung, Kec. Pabelan, Kab. Semarang. 1–19.
Yani, A., Eliyana, A., Hamidah, Sudiarditha, I. K. R., & Buchdadi, A. D. (2020). The Impact of Social Capital , Entrepreneurial Competence on Business Performance: An Empirical Study of SMEs. Systematic Review in Pharmacy, 11(9), 779–787.