THE EFFECT OF
PSYCHOLOGICAL CAPITAL ON ENTREPRENEURIAL PERFORMANCE IN MSME ON JATINANGOR
DISTRICT
Zefanya
Ezranta1, Anissa Lestari
Kadiyono2, Yus Nugraha3
Universitas Padjadjaran, Jawa Barat, Indonesia
[email protected] 1, [email protected]2,
[email protected]3
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ABSTRACT
MSMEs or Small, Micro and Medium Units
are businesses owned by individuals that have an important role both on a
national and international scale. This research aims to find out whether there
is an influence from Psychological Capital on Entrepreneurial Performance among
MSMEs in Jatinangor District. This study examines MSME actors in terms of their
psychological capacity, namely Psychological Capital and the performance of
MSME actors. The research design carried out is descriptive research
with a quantitative non-experimental approach. This study used convenience
sampling and was conducted on 145 MSME actors in Jatinangor sub-district using
a questionnaire. The measuring instruments used were the Psychological Capital
Questionnaire (PCQ-24) and the Entrepreneurial Performance Questionnaire (EPQ).
The data analysis method used is the simple linear regression measurement
method. Based on the results of the study, Psychological Capital has a positive
influence on Entrepreneurial Performance with a value of 53.2% to measure the
contribution of the influence of Psychological Capital on Entrepreneurial
Performance where this can also indicate that the higher the Psychological
Capital of MSME entrepreneurs in Jatinangor sub-district, the higher the
performance of the MSME folder.
Keywords: Entrepreneurial Performance,
Psychological Capital, MSME, Jatinangor Sub-district, COVID-19.
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Corresponding Author: Zefanya Ezranta
Email: [email protected]
INTRODUCTION
MSMEs or Micro, Small and Medium
Units have the definition of businesses that have operations and finances
provided by individuals. Then, MSMEs can contribute on a national and
international scale. On a national scale, there are 2 contributions made by
MSMEs on a national scale, namely:
a.
Contribution
in overcoming unemployment
With MSMEs experiencing rapid growth, MSMEs can open up many job
opportunities that are needed by society. According to (Jayani, 2021), MSMEs absorb 96.92% of the Indonesian workforce. The following
is a table of the contribution of MSMEs to labor absorption.

Figure 1.
Contribution of MSMEs to Indonesian Employment
When compared with other types of business, MSMEs have the largest
absorption of labor, especially in Indonesia. The following is a graph quoted
in (Jayani, 2021) on the comparison of labor absorption between large businesses
and MSMEs.

Figure 2. Graph of Labor Absorption by Business (In Millions)
If
reviewed based on the graph above, it is known that Micro Enterprises have a
large enough absorption for the Indonesian workforce of 109.8 million. Then,
5.9 million workers are absorbed by medium-sized businesses and 3.8 million are
absorbed by Small Business and Large businesses. It can be concluded that MSMEs
have a large role in the workforce compared to large businesses due to the
large number of MSMEs.
b.
Contribution
in increasing Gross Domestic Product
MSMEs have a role in increasing GDP where according to the
Ministry of Communication and Information (2022) MSMEs contributed 61.97% in
the 2021 quarter. Then there is data on the contribution of MSMEs to
Indonesia's GDP in 2015-2019 as follows:
Table 1.
Increase in Indonesian Gross Domestic Product based on MSMEs
|
Year |
GDP
(Billion) |
|
2015 |
6,228,285 |
|
2016 |
7,009,283 |
|
2017 |
7,704,636 |
|
2018 |
8,573,895 |
|
2019 |
9,580,762 |
However, there is a problem that
is hampering the MSME sector, namely the COVID-19 pandemic which started in the
city of Wuhan, China at the end of 2019 and spread globally (Yang et al., 2020). According to (Karyono & Wicaksana, 2020), WHO announced the news of the pandemic on March 11 2020 due to
the rapid spread of COVID-19, including in Indonesia.
COVID-19 is
something that cannot be predicted by all countries in the world and has
resulted in quite massive transformation. As a preventive measure against the
increasing spread, the government implemented a stay at home regulation and all
activities transitioned to online activities.
Then, there
is a negative impact on MSMEs globally. One global example is MSMEs in Pakistan
where according to (Shafi et al., 2020), the negative impact of COVID-19 on MSMEs in Pakistan is the
emergence of financial problems for every MSME player, disruption to the supply
chain in a business, a decrease in sales which also has an impact on income for
MSME players in Pakistan.
Then,
examples of problems experienced by MSMEs in Indonesia in the results of
research by (Saturwa et al., 2021), where MSMEs, especially in the
Pekalongan area, experience problems with money circulation. This is an
extension of the lack of income due to the lack of sales and purchases by the
public, making it difficult to circulate money to handle all operational costs.
In conclusion, the problems in the Pekalongan area are almost the same for
MSMEs in Pakistan.
Then, this
can be supported by the initial data that has been taken in this research from
10 MSME entrepreneurs in the Jatinangor area, Jatinangor MSME outlets, and the
Jatinangor cooperative & MSME service using the interview method. The
results showed that 6 MSME entrepreneurs said that there was a decrease in
purchases from the public, 3 MSME actors said that production was hampered by
increasing prices of raw materials, and 1 MSME actor said that the process of
delivering goods was hampered due to lack of transportation. Then, based on
interviews at MSME outlets and the cooperative & MSME department, it was
found that MSME actors in the Jatinangor area were experiencing financial
difficulties, resulting in hampered production processes and a lack of public
purchases due to government restrictions. That, some of these things have
caused their businesses to decline or even close their businesses, but there
are also those who have survived and even developed to this day despite facing
similar problems.
Then, if
you look at the area of Jatinangor sub-district, according to Ginanjar (2021),
there are 5 problems, namely 41.27% of MSMEs in Jatinangor sub-district
experienced a decline in sales, 22.22% of MSMEs in Jatinangor sub-district
experienced difficulties in obtaining raw materials, 14.29% of MSMEs in
Jatinangor sub-district experienced difficulties In terms of capital, 9.52% of
MSMEs in Jatinangor District experienced obstacles in producing goods, and
12.7% of MSMEs in Jatinangor District experienced obstacles in distributing
goods.
This can
have an impact on individual psychological conditions and entrepreneurial
performance which can indirectly affect business performance which has a high
probability of going bankrupt. However, with Psychological Capital , an
entrepreneur can improve the business situation he is experiencing, where an
entrepreneur can get back up even though he has been knocked down by a pandemic
condition and can be optimistic again in preparing a plan or something so that
the business can return to its original state or improve the business
experience.
Then, in
measuring business performance it can be divided into 2 aspects, namely:
financial aspects and non-financial aspects (Jamil
& Ahmad, 2020). Elements
of financial performance can be seen through profit, sales and cash flow .
Meanwhile, non-financial elements can be seen through employee conditions,
valued customers, and product development which will be formed into
Entrepreneurial Performance where this will become a competitive strategy where
companies with higher competitive advantages will have better performance and
vice versa (Kimatu & Bichanga, 2014).
Then, each
aspect of business performance will be measured with the Psychological Capital
variable. According to (Luthans et al., 2006), Psychological Capital is a psychological condition of positive
development in an individual who has confidence in himself in making choices
and making decisions about the effort required to complete a task or challenge,
is optimistic about himself to future success, having seriousness in achieving
the target you want to achieve and having the ability to direct yourself back
to the goal, and having resilience and patience when problems are hitting the
individual so that they can get up again to achieve the goal. Then, there are 4
constructs or dimensions that make up the concept of Psychological Capital,
namely, Hope, Self-Efficacy, Resilience, and Optimism.
Thus, this
research aims to examine further the influence of Psychological Capital on
Entrepreneurial Performance among MSMEs in Jatinangor. Moreover, this research
can be utilized for MSME actors to develop mindset that can improve or restore
their businesses after the impact of COVID-19.
METHOD
The research design adopted in
this research is quantitative and non-experimental research. Moreover, the type
of study that will be conducted on this research is correlational study where
this research will search the correlation between one variable with another
variable (Christensen et al., 2011). This research will investigate the correlation between
Psychological Capital variable and Entrepreneurial Performance variable.
This research population is
entrepreneurs in Jatinangor Sub-district that has been categorized into MSME
categorization from Indonesia�s Government Regulation of number 7 on 2021 based
from the assests of business that the entrepreneurs have. Moreover, there is a case
on this research where the sample was unknown due to the data maintenance that
have been conducted by the local government due to some information either that
has been missing or false information with the MSME personnel information.
Hence, this research adopted Roscoe argument on (Sugiyono, 2010) where the fit sample size for a research is 30 � 500 respondents.
Therefore, this research decided to have 145 respondents. Furthermore, this
research adopted convenience sampling as the data gathering technique to
collect data. Convenience sampling itself is beneficial to research due to the
flexibility and the low-cost that offered from this technique (Scheaffer et al., 2011).
This research is conducted with
visiting nearby MSME place around Jatinangor and with printed informed consent
& printed Psychological Capital and Entrepreneurial Performance instrument,
researcher gather some verbal agreement to participate on this research then
the printed informed consent and measurement instrument will be shared to the
MSME�s entrepreneur. After the MSME�s entrepreneur finish both of the shared
print, researcher will buy one of the products from the business as the reward.
The analysis that has been
conducted on this research is descriptive analysis. The reability that has been
used on this research is aligned with Guilford scale (1956). On table 2 are the
criteria of Guilford scale:
Table
2.
Guilford Scale Criteria
|
Scale |
Description |
|
0.80 - 1.00 |
Very High Reliability |
|
0.60 - 0.80 |
High Reliability |
|
0.40 - 0.60 |
Medium Reliability |
|
0.20 - 0.40 |
Low Reliability |
a.
Psychological Capital Measurement
The measuring instrument in this
research is a measuring instrument adapted and modified from the Psychological
Capital Questionnaire (PCQ-24) published by (Luthans
et al., 2006) and the Entrepreneur Psychological
Capital Questionnaire from (Gao et
al., 2020). PCQ-24 has 24 items which are used to
measure individual Psychological Capital in facing difficult challenges or
carrying out tasks in academic, business and organizational settings.
However, with the PCQ-24, many
researchers use this questionnaire in business and organizational settings. (Luthans
et al., 2006) divided PCQ items into 4 dimensions
which are often referred to as HERO or Hope, Self-Efficacy, Resilience, and Optimism.
Then, in Entrepreneur Psychological Capital, many studies use this measuring
tool in the business sphere and it is often used to measure the psychological
capital of an entrepreneur. In the Entrepreneur Psychological Capital measuring
tool, it is divided into 4 variables, namely Toughness, Hope, Self-Efficacy,
& Optimism.
Then, this research will adapt the
Psychological Capital Questionnaire -24 (PCQ-24) questionnaire which has been
translated into Indonesian and modified by researcher Dr. Anissa Lestari
Kadiyono, M. Psi, Psychologist with colleague Hanny Hafiar in 2016 in their
research (Kadiyono
& Hafiar, 2016).
b.
Entrepreneurial Performance Measurement
Measuring
tools used to measure Entrepreneurial Performance is a measuring tool that was
adapted and modified from several previous studies regarding Entrepreneurial Performance,
namely: the Entrepreneurial Performance Questionnaire on the Non-Financial
Performance aspect in (Kimatu
& Bichanga, 2014), then the Entrepreneurial Performance
Questionnaire on the Financial Performance aspect by (Mashenene
& Majenga, 2014).
This
measuring tool is divided into 2 main dimensions, namely Financial Performance
and Non-Financial Performance. With each dimension having its own indicators as
follows:
1) Financial Performance dimension has 3
indicators, namely: Profit, Sales, & Cash Flow
2) Non-Financial Performance dimension has
4 indicators, namely: Employee Condition, Valued Customer, and Product
Development.
Then,
this research translated the measurement tool from the Entrepreneurial
Performance Questionnaire into Indonesian. After carrying out the translation,
the measuring instrument is submitted to expert review with the aim of
obtaining good validity. The validity used is using content validity which is
handed over to someone who is an expert in a field and assesses the items that
are created, translated or modified.
RESULTS AND
DISCUSSION
Hypothesis
Test Results
Hypothesis testing carried out in
this research was to test whether there was an influence of Psychological
Capital with Entrepreneurial Performance which was analyzed using a linear
regression analysis test based on the test criteria used as follows:
H0 : There is no influence of
Psychological Capital on Entrepreneurial Performance among MSMEs in Jatinangor
District.
H1 : There is an influence of
Psychological Capital on Entrepreneurial Performance among MSMEs in Jatinangor
District.
Table 3. Results of the Psychological Capital
Regression Test on
Entrepreneurial Performance among MSMEs in
Jatinangor District
|
|
B |
Sig. |
R Square |
|
Psychological
Capital |
,616 |
,000 |
,532 |
Based on
table 3, the significance value is 0.000 (p<0.05), so it can be concluded
that the Psychological Capital variable influence on the Entrepreneurial
Performance variable. Then, the coefficient of determination (R Square) has a
value of 0.532, meaning that the influence is 53.2%. In addition, the
Psychological Capital regression coefficient amounting to 0.616 where for every
1% addition to the Psychological Capital value, the Entrepreneurial Performance
value is obtained of 0.616.
Based on this value, it can be seen that
the regression coefficient is positive, so it can be interpreted as the
influence of Psychological Capital and Entrepreneurial Performance has a
positive direction. Then, if you look deeper, the higher the Psychological
Capital felt by MSME players in Jatinangor, the higher the level of
Entrepreneurial Performance.
Table 4. Psychological Capital Regression
Test Result on
Entrepreneurship Performance of MSME actors in Jatinangor
Districts
|
|
B |
Sig. |
R Square |
|
Psychological
Capital - Financial Performance |
,222 |
,000 |
,537 |
|
Psychological
Capital � Non-Financial Performance |
,393 |
,000 |
,460 |
Based on table 4, it is shown that
the Psychological Capital variable has an effect on the financial performance
dimension with a significance value of 0.000 (p<0.05). Meanwhile, the
non-financial performance dimension was found to be related to the
Psychological Capital variable with a significance value of 0.000 (p<0.05). Then, in the financial performance
dimension, the coefficient of determination ( R Square ) of 0.537 means that
the influence is 53.7%. Apart from that, in the non-financial performance
dimension, the coefficient of determination (R Square) of 0.460 means that the
influence is 46%. Then, both variables have positive regression coefficients,
so it can be said that the influence of the Psychological Capital variable on
both dimensions, namely financial performance and non-financial performance, is
positive. This means the higher the level of
Psychological Capital respondents, the higher the financial performance and
non-financial performance.
Results
of different tests for Psychological Capital and Entrepreneurial Performance
based on demographics
A
different test was carried out to determine significant differences between the
Psychological Capital variables and Entrepreneurial Performance based on
respondent data. Different test on the Psychological Capital variable and
Entrepreneurial Performance for demographic data on age, education, length of
business and turnover using the One-Way ANOVA test. Then for gender demographic
data using the Independent Sample T-Test.
Table 5. Results of Differential Tests for
Psychological Capital
and Entrepreneurial Performance based on Demographic Data
|
Group |
Psychological
Capital |
Entrepreneurial
Performance |
||
|
|
Mean |
P-Value |
Mean |
P-Value |
|
Gender |
|
0.909 |
|
0.77 |
|
Man |
4.53 |
|
4.51 |
|
|
Woman |
4.55 |
|
4.56 |
|
|
Age |
|
0.003 |
|
0,000 |
|
< 20
years |
- |
|
- |
|
|
20-25 years |
4.42 |
|
4.67 |
|
|
25-35 years
old |
4.48 |
|
4.45 |
|
|
35-45 years
old |
4.56 |
|
4.58 |
|
|
45-60 years
old |
4.73 |
|
4.74 |
|
|
>60
years |
4.69 |
|
4.71 |
|
|
Education |
|
0.002 |
|
0.002 |
|
elementary
school |
- |
|
|
|
|
JUNIOR HIGH
SCHOOL |
3.71 |
|
3.78 |
|
|
SENIOR HIGH
SCHOOL |
4.60 |
|
4.44 |
|
|
D1-D4 |
4.50 |
|
4.56 |
|
|
S1 |
4.56 |
|
4.74 |
|
|
Length of
Business |
|
0.009 |
|
0.119 |
|
1-3 years |
4.42 |
|
4.67 |
|
|
3-5 years |
4.42 |
|
4.44 |
|
|
5-10 years |
4.58 |
|
4.56 |
|
|
>10
years |
4.64 |
|
4.74 |
|
|
Turnover |
|
0.433 |
|
0.173 |
|
Micro (0-300 million a year) |
4.56 |
|
4.57 |
|
|
Small (300 million - 2.5 a year) |
4.50 |
|
4.48 |
|
|
Medium (2.5
M - 50 M a year) |
4.54 |
|
4.44 |
|
Table
4 shows the calculation results from the difference test between the two
variables, namely Psychological Capital and Entrepreneurial Performance with
demographic data (Gender, Age, Education, length of business, and Turnover).
The table explains that there are data differences between the Psychological
Capital variables with Age, Education, Length of Business, and Turnover
(p<0.05) but for gender, no differences were found in these variables. Then,
on the Entrepreneurial Performance variable It was found that there were data
differences in age and education ( p<0.05 ). Then, in the demographic data
on gender, length of business and turnover, it was found that there were no
differences in the data (p>0.05).
This research aims to find out
whether there is an influence from Psychological Capital on Entrepreneurial
Performance among MSMEs in Jatinangor District. Based on the results of the
simple regression analysis in this study (Table 3), it can be seen that there
is an influence from the Psychological Capital variable with the
Entrepreneurial Performance variable for MSME actors in Jatinangor District
with the following results: B = 0.616, r 2 = 0.532, p < 0.05.
Then, this research explains the influence of Psychological Capital amounting
to 0.532 or 53.2% to Entrepreneurial Performance.
If we look back at the framework
of thought in this research, it can be seen that this research reviews the
journey of an entrepreneur to achieve success by measuring individual
performance as an entrepreneur, especially entrepreneurs who are still in the
MSME category. Then, in running a business, there are things that can make the
business increase and there are other things that can make the business
decline. In the case of this research it is COVID-19. Reviewing research from (Feinberg et al., 2022) that COVID-19 is not just chaos in health but also chaos in other
sectors and one of them is the economic sector, especially in the MSME sector.
The reason why COVID-19 is a factor in reducing entrepreneurial performance is
a decrease in income due to a decrease in market demands caused by government
policies that require people to carry out activities at home or online (Setyoko & Kurniasih, 2022) .
In this research, researchers
carried out preliminary data which was carried out qualitatively using
interview techniques with MSME actors in Jatinangor District. Then, researchers
interviewed 10 MSME players who have businesses focused on the F&B (Foods
& Beverages) industry. In the section of questions relating to business
performance conditions, the majority of MSME players said that they experienced
a decline in business, both in capital, especially in income and turnover for
business development, increasing prices of raw materials, and difficulties in
promoting their business both offline and online.
This question is in line with the
research explained previously, namely on the decline in income, but there are
new things that have been discovered, namely in terms of raw material prices
and difficulties in promoting the business. Therefore, many studies have
attempted to answer this problem by combining variables that can improve
entrepreneurial performance. One of them is Psychological Capital. According to
(Baluku et al., 2016), the Psychological Capital variable considered an important trait
in an individual, especially in an entrepreneur in leading his business. Not
only that, the Psychological Capital variable can be a cognitive investment for
entrepreneurs with sufficient amounts to achieve their personal targets both
financially and non-financially (Baluku et al., 2018), (Baron et al., 2016); (Malak et al., 2022).
In this research, it is known that
there is a relationship between Psychological Capital on Entrepreneurial
Performance with the contribution of influence from the Psychological Capital
variable amounting to 53.2%. This is quite interesting to review because this
percentage shows that there is quite a large influence from Psychological
Capital on Entrepreneurial Performance . Not only this research, but there is
other research which has a value that is almost close to the contribution value
of this research, namely research from (Kurniadewi, 2016) where the research has the result that Psychological Capital can
contribute 51.3% in improving business performance while 48.7% is influenced by
other variables. Then, there is other research that can support Psychological
Capital can make a big contribution to business performance by using research
from (Nugroho et al., 2013) where the research says that Psychological Capital provides a
contribution of 30.8% in improving business performance while 69.2% is
influenced by other factors. Then, based on existing research, it can be seen
that this research has a contribution from Psychological Capital the biggest
influence on business performance variables or the performance of an
entrepreneur. Also in line with research from (Baluku et al., 2018) where the results of the research say that there is a significant
impact or influence from Psychological Capital on Entrepreneurial Performance.
According to (Baron et al., 2016), people who have Psychological Capital Those who are high can
invest in their own business in a sustainable manner due to high optimism,
entrepreneurs are more likely to take high risks in their business, tolerate
the risks they take, and tend to be more resilient in facing existing
challenges.
In this research there is also
something interesting because it measures the influence of the Psychological
Capital variable towards 2 dimensions of the Entrepreneurial Performance
variable namely Financial Performance and Non-Financial Performance . Then, it
can be seen that there is an influence from Psychological Capital for both
dimensions (Financial Performance and Non-Financial Performance) with a similar
p-value , namely 0.000 with the assumption of p <0.05.
There is similar research to
review the influence of Psychological Capital on Financial Performance , namely
in (Dzomonda, 2022) research, where in this research there is also a positive
relationship between Psychological Capital on the Financial Performance of MSME
players in South Africa. However, no research was found that reviewed the
influence of Psychological Capital with Non-Financial Performance for MSME
players.
CONCLUSION
Based on the results of data
analysis and discussion from 145 respondents, several conclusions can be
obtained: 1) There is a significant influence from the Psychological Capital
variable on the Entrepreneurial Performance variable to MSME actors in Jatinangor
District. This is because MSME players need Psychological Capital which further
encourages entrepreneurial performance. 2) The dimension of Resilience is
greater than the other dimensions in the Psychological Capital variable, so it
can be concluded that MSME actors in Jatinangor District have the ability to
survive when there are problems or situations that can disrupt their business. 3) In
the Entrepreneurial Performance variable, it can be seen that the respondent
has a level of Entrepreneurial Performance high, so it can be concluded that
MSME actors in Jatinangor District have the ability to survive or develop the
businesses they are running. 4) In this study it was found that there were differences in the data
on the two variables regarding demographic data. In the Psychological Capital
variable, it was found that Age, Education, Length of Business, and Turnover
had data differences, but no data differences were found for gender. Then, in
this study significant differences were found in age and education. In the age
data, the higher the age of the MSME actor, the higher the Psychological
Capital variable they have, however, at the age of 60 years, the average
decrease in the Psychological Capital variable. It can be concluded that the
older the MSMEs are, the higher the Psychological Capital variable will be.
This can be explained by research by (kngkanga) that age can make a person
understand their own personality better and better understand the strengths or
weaknesses that an individual has so that this can influence a person's
Psychological Capital . Then, in this research it was also found that education
is also important because an individual's awareness and confidence in their
abilities and knowledge. 5) This research also found that there are differences
in demographic data on the Entrepreneurial Performance variable. Then, in the
Entrepreneurial Performance variable , data differences were found in age and
education. However, in terms of length of business, turnover and gender, no
differences were found in the data. In the age data, it was found that the
older a person is, the Entrepreneurial Performance variable increases. This is
due to the experience and knowledge possessed by individuals both in terms of
interactions carried out when carrying out business so that they can carry out
innovations based on this. Then, the education data can explain that this is
important in increasing the knowledge of an entrepreneur so that it helps an
MSME actor in developing a business strategy and making research based on
things that have been taught in the education they have taken.
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