The Model of Firm Performance Improvement through Entrepreneurial Competence

Abstract

Abstract Micro, Small and Medium Enterprises (MSMEs) are flourishing in Indonesia and contributing greatly to Gross Domestic Product of Indonesia. This attracted the attention of many people to examine more about Micro SME and its development. The purpose of this study is to identify the variable forming firm performance with case studies on food MSMEs in Bandung city. This study tried to answer questions about the MSME performance improvement model of Bandung city. The method used is survey by distributing questionnaires to 40 MSMEs in Bandung. Testing of variable in this research by using Partial Least Square (PLS) test. The findings of the study revealed that firm performance model (MSMEs) has a significant influenced by entrepreneurial competency moderated by competitive scope. The managerial implication of this research is expected that the actors of MSMEs can improve their ability on financial knowledge and organize their business in order to grow and become big company in the future which can give contribution of bigger economic development to the country.

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