INFLUENCE OF ENTREPRENEURIAL PASSION, GOVERNMENT SUPPORT, AND LEARNING CAPABILITY ON THE PERFORMANCE OF CREATIVE SMEs IN JEMBER DISTRICT

Lilik Farida; Ariwan  Joko Nusbantoro; Chairul  Saleh; Ketut  Indraningrat; Elok  Sri Utami; Nadia Azalia

doi:10.24252/assets.v13i1.35629

Lilik Farida University of Jember
(ID)
Ariwan Joko Nusbantoro University of Jember
(ID)
Chairul Saleh University of Jember
(ID)
Ketut Indraningrat University of Jember
(ID)
Elok Sri Utami University of Jember
(ID)
Nadia Azalia Kiai Haji Achmad Siddiq State Islamic University Jember
(ID)

DOI: https://doi.org/10.24252/assets.v13i1.35629

Keywords: entrepreneurial passion government support, learning capability, SME performance, creative industry

Abstract

: This study examines the influence of three dimensions of entrepreneurial passion, namely a passion for inventing, passion for developing, and passion for founding, on the performance of creative industry-based MSMEs in Jember, Indonesia, after the Covid-19 pandemic with government support and learning capability as a moderating variable. Using a purposive sampling technique, as many as 280 creative MSMEs in Jember were involved in this study. Based on the results of the SEM-PLS analysis, passion for inventing and passion for developing have a significant positive effect on MSME performance. Learning capability can strengthen the influence of passion for inventing and passion for developing MSME performance. This study did not find a significant effect of passion for founding on MSME performance, and government support could not strengthen the influence of passion for inventing, developing, and founding on MSME performance. In addition, this study found that learning capability cannot strengthen the influence of passion for founding on MSME performance. The findings of this study offer theoretical and practical implications regarding how important the entrepreneurial spirit is in improving MSME performance after the Covid-19 pandemic by increasing learning capability in the creative industry-based MSME sector.

References

Adomako, S., & Ahsan, M. (2022). Entrepreneurial passion and SMEs’ performance: Moderating effects of financial resource availability and resource flexibility. Journal of Business Research, 144(January), 122–135. https://doi.org/10.1016/j.jbusres.2022.02.002

Adomako, S., Mole, K. F., Murnieks, C., & Franklin, R. (2019). Analyzing the Entrepreneurial Passion-Performance Relationship. Academy of Management Proceedings. https://doi.org/10.5465/ambpp.2019.12874abstract

Arshad, M. Z., Ahmad, M. J., Ali, M., Khan, W. A., & Arshad, M. H. (2020). The role of government business support services and absorptive capacity on SMEs performance. International Journal of Advanced Science and Technology.

Cardon, M. S., Gregoire, D. A., Stevens, C. E., & Patel, P. C. (2013). Measuring entrepreneurial passion: Conceptual foundations and scale validation. Journal of Business Venturing. https://doi.org/10.1016/j.jbusvent.2012.03.003

Cardon, M. S., Wincent, J., Singh, J., & Drnovsek, M. (2009). The nature and experience of entrepreneurial passion. In Academy of Management Review. https://doi.org/10.5465/AMR.2009.40633190

Chittoor, R., Aulakh, P. S., & Ray, S. (2019). Microfoundations of firm internationalization: The owner CEO effect. Global Strategy Journal. https://doi.org/10.1002/gsj.1193

de Mol, E., Cardon, M. S., de Jong, B., Khapova, S. N., & Elfring, T. (2020). Entrepreneurial passion diversity in new venture teams: An empirical examination of short- and long-term performance implications. Journal of Business Venturing. https://doi.org/10.1016/j.jbusvent.2019.105965

Fang, C., Chang, S., & Chen, G. (2011). Organizational learning capability and organizational innovation: The moderating role of knowledge inertia. African Journal of Business Management.

Fauchart, E., & Gruber, M. (2011). Darwinians, communitarians, and missionaries: The role of founder identity in entrepreneurship. Academy of Management Journal. https://doi.org/10.5465/amj.2009.0211

Fernandes, N. (2020). Economic Effects of Coronavirus Outbreak (COVID-19) on the World Economy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3557504

Frese, M., Van Gelderen, M., & Ombach, M. (2000). How to plan as a small scale business owner: Psychological process characteristics of action strategies and success. Journal of Small Business Management.

Gebremichael , H. S. , Hou , R. , & Sun , Q. (2016).Adopting Open Innovation Strategy to Empower SMEs in Developing Countries. https://doi.org/10.2991/iceti-16.2016.16

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariat Data Analysis: Exploratory Data Analysis in Business and Economics. In New International Edition.

Hooi, L. W. (2020). SME performance: does organizational learning capability really matter? International Journal of Organizational Analysis. https://doi.org/10.1108/IJOA-12-2019-1962

Iyortsuun, A. S., Nmadu, M. T., Dakung, R., & Gajere, M. C. (2019). Entrepreneurial passion and venture performance: a proposed framework. Management Research Review. https://doi.org/10.1108/MRR-10-2018-0382

Le, H. B. H., Nguyen, T. L., Ngo, C. T., Pham, T. B. T., & Le, T. B. (2020). Policy related factors affecting the survival and development of SMEs in the context of Covid 19 pandemic. Management Science Letters. https://doi.org/10.5267/j.msl.2020.6.025

Lee, Y., Mueller, B., & Herrmann, P. (2021). Entrepreneurial passion and organizational innovation. Academy of Management Proceedings. https://doi.org/10.5465/ambpp.2021.14346abstract

Lusimbo, E. N., & Muturi, W. (2016). Financial Literacy and the Growth of Small Enterprises in Kenya: a Case of Kakamega Central Sub-County, Kenya. International Journal of Economics, Commerce and Management, 4(6), 828–845.

MacKenzie, A. (1995). Review…: Making Vocational Choices: A Theory of Vocational Personalities and Work Environments. Australian Journal of Career Development. https://doi.org/10.1177/103841629500400310

Mbali, P. M., Ngibe, M., & Celani, J. N. (2019). Factors influencing the adoption of management accounting practices (Maps) by manufacturing small and medium enterprises (smes) in durban, Kwazulu-Natal. International Journal of Entrepreneurship.

Megracia, S. (2021). Characteristics and Motivation of Entrepreneurs on Business Performance (Case Study of Fashion Online Shops in the City of Bandung).Journal Management, 20(1), 2655–8262. https://faisalbasri01.files.wordpress.com/

Nguyen, H. T. T., Van, H. V., Bartolacci, F., & Tran, T. Q. (2018). The impact of government support on firm performance in Vietnam: New evidence from a dynamic approach. Asian Academy of Management Journal. https://doi.org/10.21315/aamj2018.23.2.5

Nugroho, H. (2019). The Impact Of Government Support on The Performance Of Indonesia’s State-Owned Enterprises. In ADBI Working Paper Series.

Nurunnabi, M. (2020). Recovery planning and resilience of SMEs during the COVID-19: experience from Saudi Arabia. Journal of Accounting and Organizational Change. https://doi.org/10.1108/JAOC-07-2020-0095

Oluwatosin, O. I., & Adegbuyi, O. (2021). ENTREPRENEURIAL PASSION AND SUSTAINABLE PERFORMANCE IN SELECTED RESTATURANT BUSINESSES IN LAGOS STATE. Academy of Entrepreneurship Journal.

Pham, T. S. H., Monkhouse, L. Le, & Barnes, B. R. (2017). The influence of relational capability and marketing capabilities on the export performance of emerging market firms. International Marketing Review. https://doi.org/10.1108/IMR-07-2014-0235

Powell, E. E., & Baker, T. (2017). In the beginning: Identity processes and organizing in multi-founder nascent ventures. Academy of Management Journal. https://doi.org/10.5465/amj.2015.0175

Pramaishella, N. A., Cahyono, D., & Syahfrudin, A. (2018). The Effect of Government Support Capital and Human Resource Competency on the Performance of Micro, Small and Medium Enterprises in Kencong District, Jember Regency.Proceedings of the 4th National Seminar and Call for Papers of the Faculty of Economics, Muhammadiyah University of Jember Hal, 401–410.

Priestnall , SL , Okumbe , N , Orengo , L , Okoth , R , Gupta , S , Gupta , NN , Gupta , NN , Hidrobo , M , Kumar , N , Palermo , T , Peterman , A ., Roy , S. , Konig , M. F. , Powell , M. , Staedtke , V. , Bai , R. Y. , Thomas , D. L. , Fischer , N. , Huq , S. , ... Chatterjee , R. (2020). WhenFocusing on Subjective Feelings of Health in the Elderly at Home Covariance structure analysis for health-related indicesTitle. Endocrine, 9(May), 6. https://www.slideshare.net/maryamkazemi3/stability-of-colloids%0Ahttps://barnard.edu/sites/default/files/inline/student_user_guide_for_spss.pdf%0Ahttp://www.ibm.com/support%0Ahttp://www.spss.com/sites/dm-book/legacy/ProgDataMgmt_SPSS17.pdf%0Ahttps://www.n

Rini, K. P., & Iramani, I. (2021). Financial Literacy, Entrepreneurs Motivation, and Industrial Environment to Increase of SMEs Performance with a Competitive Strategy as Mediator: Theoritical Review. IPTEK Journal of Proceedings Series, 0(1), 239. https://doi.org/10.12962/j23546026.y2020i1.8644

Runyan, R. C. (2006). Small business in the face of crisis: Identifying barriers to recovery from a natural disaster. Journal of Contingencies and Crisis Management. https://doi.org/10.1111/j.1468-5973.2006.00477.x

Santos-Vijande, L., Sanzo-Pérez, M. J., Trespalacios Gutiérrez, J. A., & García Rodríguez, N. (2012). Marketing Capabilities Development in Small and Medium Enterprises: Implications for Performance.Journal of CENTRUM Cathedra: The Business and Economics Research Journal. https://doi.org/10.7835/jcc-berj-2012-0065

Set, K. (2017). The awareness and use on government assistance programs among tourism entrepreneurs in Malaysia. International Journal of ADVANCED AND APPLIED SCIENCES. https://doi.org/10.21833/ijaas.2017.012.039

Smallbone, D., & Welter, F. (2001). The Role of Government in SME Development in Transition Economies. International Small Business Journal. https://doi.org/10.1177/0266242601194004

Sok, P., O’Cass, A., & Sok, K. M. (2013). Achieving superior SME performance: Overarching role of marketing, innovation, and learning capabilities. Australasian Marketing Journal. https://doi.org/10.1016/j.ausmj.2013.04.001

Stenholm, P., & Renko, M. (2016). Passionate bricoleurs and new venture survival. Journal of Business Venturing. https://doi.org/10.1016/j.jbusvent.2016.05.004

Strese, S., Keller, M., Flatten, T. C., & Brettel, M. (2018). CEOs’ Passion for Inventing and Radical Innovations in SMEs: The Moderating Effect of Shared Vision. Journal of Small Business Management. https://doi.org/10.1111/jsbm.12264

Sukoco, B. M., Hardi, H., & Qomariyah, A. (2018). Social capital, relational learning, and performance of suppliers. Asia Pacific Journal of Marketing and Logistics. https://doi.org/10.1108/APJML-02-2017-0022

Wang, Y., Lo, H.-P., Zhang, Q., & Xue, Y. (2006). How technological capability influences business performance: An integrated framework based on the contingency approach. Journal of Technology Management in China.

Wong, C. M., & Tetrick, L. E. (2017). Job crafting: Older workers’ mechanism for maintaining person-job fit. Frontiers in Psychology. https://doi.org/10.3389/fpsyg.2017.01548

Yufra TANEO, S. M., Noya, S., Melany, M., & Astridya SETIYATI, E. (2022). The Role of Local Government in Improving Resilience and Performance of Small and Medium-Sized Enterprises in Indonesia*. Etsa Astridya SETIYATI / Journal of Asian Finance, 9(3), 245–0256. https://doi.org/10.13106/jafeb.2022.vol9.no3.0245

Zhao, S., Zhou, Y., Guan, H., & Xu, W. (2021). Entrepreneurial Passion Psychology- Based Influencing Factors of New Venture Performance. Frontiers in Psychology. https://doi.org/10.3389/fpsyg.2021.696963.