Effects of Capital Management on Business Performance of Small And Medium Enterprises In Restaurant Sectors
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 3
Abstract
This study aims at examining and analyzing the direct and indirect effects of the sources and capital use on the business scale and business performance. The design of this study was survey method in which data collection was a cross-section through a questionnaire. The samples of this study were determined using simple random sampling in which the number of the samples was 150 owners or managers of SMEs Restaurant. The data were analyzed using Structural Equation Modeling (SEM) in the hypothesis testing with support Analysis Moment of Structure (AMOS) Ver.20. The results of this research provide evidence that the source of capital has a negative and significant impact on the business scale. The use of capital has a positive and significant effect on the business scale. The use of capital has a negative and significant effect on business performance. In addition, the business scale has a negative and insignificant effect on business performance. Besides that, it is found that the source of capital has a positive and insignificant impact on business performance through business scale. Meanwhile, the use of capital has an adverse and insignificant effect on business performance through business scale. The practical implications of this study provide evidence that increased knowledge and understanding of the owner or manager in improving business performance can be performed directly without the support of business scale. The limitation of this study is in sample sizes which are only using restaurant owners or managers of SMEs in Makassar so that it limits the generalizability of research findings. The originality of this study provides the basis for the development configuration modeling using multivariate analysis and conceptual models that prove the influence of capital resources and capital to increase business performance by incorporating business scale as mediator variables.
Authors and Affiliations
Seriwin Malaeny, Salamun Pasda, St. Haerani
Keywords
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- EP ID EP409890
- DOI 10.9790/487X-2003017683.
- Views 45
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