Arif Rahman Hakim

The current business performance of micro, small, and medium enterprises (MSMEs) must be able to innovate in business strategies in a competitive era. MSMEs are at the forefront of contributing to Indonesia’s Gross Domestic Product (GDP) and have a considerable role in the Indonesian economy. The study aimed to assess factors contributing to the business performance of MSMEs in Sidoarjo Regency, Indonesia. The total population was 277 MSME owners; using the purposive sampling technique with the Slovin formula, 144 respondents were obtained with an error rate of 5%. Data analysis used SEM-PLS with SmartPLS-3 software. The findings show that entrepreneurial leadership directly affects business performance and innovative work behavior, and innovative work behavior affects business performance. Then, entrepreneurial leadership influences business performance through innovative work behavior. Interestingly, there is no moderating effect of self-efficacy on the effect of entrepreneurial leadership on business performance. MSMEs need to have innovative work behavior to improve their business performance by applying entrepreneurial leadership to increase innovation in business strategies to compete and survive in a competitive era.

Job satisfaction is essential for improving company’s performance because the more satisfied employees are, the higher their work performance. The intention to leave has recently become a hot topic related to employees’ desire to leave the company. Such intentions can undoubtedly harm the company. This study aims to analyze the effect of demographic variables on employee job satisfaction and intention to leave. The sample includes 427 female employees in manufacturing companies in Indonesia. SEM-PLS with Smart-PLS software was used as the analysis method. Research findings show that demographic factors affect the intention to leave and job satisfaction. It was also found that demographic factors affect intention to leave, mediated by job satisfaction. Job satisfaction is essential in the relationship between demographic factors and employee intention to leave. This finding adds to existing insight that different demographic factors can affect employee turnover rates, such as high income, which can reduce employee intention to leave the company. Employee job satisfaction is subject to the influence of demographic factors, including age, with older employees generally expressing higher levels of job satisfaction.