Improving MSME perfomance through competences and entrepreneurial characteristics
Abstract:
Purpose: This study aims to analyze the influence of human resource competence, management competence, and entrepreneurial competence on the performance of Micro, Small and Medium Enterprises (MSMEs), moderated by entrepreneurial characteristics.
Methodology: The research was conducted on 95 MSME actors from the "Cethik Geni" group in Semarang. Data were collected through questionnaires and analyzed using Partial Least Squares (PLS).
Results: This study examines the influence of human resource, management, and entrepreneurial competencies on MSME performance, as well as the moderating role of entrepreneurial characteristics, within the Gerai Kopini (Cethik Geni) MSME Group in Semarang City. The findings indicate that all three competencies positively and significantly enhance MSME performance. Entrepreneurial characteristics strengthen the effect of management competency on performance but do not moderate the influence of human resource and entrepreneurial competencies.
Conclusions: This study concludes that strengthening human resource, management, and entrepreneurial competencies is essential for improving MSME performance. Entrepreneurial characteristics play a supportive role by enhancing the effectiveness of management competency, although they do not function as a moderating factor for all competency performance relationships.
Limitations: This study is limited to the Cethik Geni MSME Group in Semarang, restricting generalizability. The moderating role of entrepreneurial characteristics was inconsistent, and unexamined contextual and qualitative factors such as leadership, motivation, and teamwork may affect the results.
Contribution: Future research is recommended to expand the scope of respondents to various MSME sectors and regions to increase the generalizability of the findings. Furthermore, the research model must include contextual variables such as organizational culture, business environment, and leadership style as moderators or mediators.
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Agussalim, Motherland, E. G., & Yanti, N. (2023). The Effect of Competency Human Resources, Work Motivation, and Work Spirit on Employees Performance at the Service Cooperative & Msmes West Sumatra. Dinasti International Journal of Digital Business Management, 4(5), 1009-1017. doi:https://doi.org/10.31933/dijdbm.v4i5.2026
Akbar, R. S., Abdurahman, A., Nursanto, G. A., & Hartati, B. (2025). Digitalization, Organizational Change, and Human Resource Management at the Immigration Polytechnic. Annals of Human Resource Management Research, 5(3), 1-12. doi:https://doi.org/10.35912/ahrmr.v5i3.2838
Alarape, A. A. (2007). Entrepreneurship Programs, Operational Efficiency and Growth of Small Businesses. Journal of enterprising communities: People and Places in the global economy, 1(3), 222-239. doi:https://doi.org/10.1108/17506200710779530
Albalushi, K. I., & Naqshbandi, M. M. (2022). Factors Affecting Success and Survival of Small and Medium Enterprises in the Middle East. Knowledge, 2(3), 525-538. doi:https://doi.org/10.3390/knowledge2030031
Chusumastuti, D., Zulfikri, A., & Rukmana, A. Y. (2023). Pengaruh Digital Marketing dan Kompetensi Wirausaha Terhadap Kinerja Pemasaran (Studi pada UMKM di Jawa Barat). Jurnal Bisnis Dan Manajemen West Science, 2(2), 22-32. doi:https://doi.org/10.58812/jbmws.v2i02.334
Devi, N. P. C., Dahmiri, & Ihsan, M. (2025). Pengaruh Kompetensi Kewirausahaan dan Orientasi Kewirausahaan Terhadap Kinerja Usaha di Mediasi Keunggulan Bersaing pada Usaha Milenial Kopi Keliling di Kota Jambi. Jurnal Ilmiah Global Education, 6(2), 744-760. doi:https://doi.org/10.55681/jige.v6i2.3740
Dhamayantie, E., & Fauzan, R. (2017). Penguatan Karakteristik dan Kompetensi Kewirausahaan untuk Meningkatkan Kinerja UMKM. Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan, 11(1), 80-91. doi:https://doi.org/10.24843/matrik:jmbk.2017.v11.i01.p07
Diana, Hakim, L., & Fahmi, M. (2022). Analisis Faktor yang Mempengaruhi Kinerja UMKM di Tangerang Selatan. Jurnal Muhammadiyah Manajemen Bisnis, 3(2), 67-74. doi:https://doi.org/10.24853/jmmb.3.2.67-74
Djoundourian, S., & Shahin, W. (2022). Academia–Business Cooperation: A Strategic Plan for an Innovative Executive Education Program. Industry and Higher Education, 36(6), 835-845. doi:https://doi.org/10.1177/09504222221083852
Edward, Ihsan, M., & Siregar, A. P. (2022). Entrepreneurship Competence in Improving Creative Industry Performance Through Financial Literacy Levels for Micro, Small and Medium Enterprises (MSMEs) International Journal Of Scientific & Technology Research, 11(1), 82-86.
Handayani, M., Darma, G. S., & Martini, I. A. O. (2025). Exploring Co-Creation in Small Medium Enterprises (SMes): Strategy, Implementation and Challenges. Jurnal Riset Bisnis dan Manajemen, 18(1), 1-14. doi:https://doi.org/10.23969/jrbm.v18i1.18828
Holisoh, S., & Putra, R. R. (2022). Faktor-Faktor Penentu Kinerja UMKM di Kelurahan Lagoa: Ketidakpastian Lingkungan Sebagai Variabel Moderating. Jurnal Akuntansi Bisnis, 20(1), 105-123. doi:https://doi.org/10.24167/jab.v20i1.4398
Ibidunni, A. S., Atolagbe, T., Obi, J., Olokundun, M., Oke, O., Amaihian, A., . . . Obaoye, D. (2018). Moderating Effect of Entrepreneurial Orientation on Entrepreneurial Competencies and Performance of Agro-Based SMEs. International Journal of Entrepreneurship, 22(1), 1-9.
Kraus, S., Rigtering, J. C., Hughes, M., & Hosman, V. (2012). Entrepreneurial Orientation and the Business Performance of SMEs: A Quantitative Study from the Netherlands. Review of Managerial Science, 6(2), 161-182. doi:https://doi.org/10.1007/s11846-011-0062-9
Lubis, A. L., Rais, S., Rini, R. O. P., & Friadi, J. (2025). The Effect of Entrepreneurship Education on Career Readiness as A Job Creator with Self-efficacy as a Mediating Variable. Annals of Human Resource Management Research, 5(3), 51-67. doi:https://doi.org/10.35912/ahrmr.v5i3.2895
Ludiya, E. (2020). Pengaruh Kompetensi Kewirausahaan dan Orientasi Kewirausahaan Terhadap Kinerja Usaha pada UMKM Bidang Fashion di Kota Cimahi. Jurnal Ilmu Manajemen dan Bisnis, 11(2), 141-154. doi:https://doi.org/10.17509/jimb.v11i2.28507
Mamun, A. A., & Fazal, S. A. (2018). Effect of Entrepreneurial Orientation on Competency and Micro-Enterprise Performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(3), 379-398. doi:https://doi.org/10.1108/APJIE-05-2018-0033
Mardikaningsih, R., Azizah, E. I., Putri, N. N., Alfan, M. N., & Rudiansyah, M. M. D. H. (2022). Business Survival: Competence of Micro, Small and Medium Enterprises. Journal of Social Science Studies (JOS3), 2(1), 1-4. doi:https://doi.org/10.56348/jos3.v2i1.21
Mawardi, A. A. K., Farida, L., Nusbantoro, A. J., Utami, E. S., Endhiarto, T., & Apriliana, T. (2024). Strengthening the Performance of Micro, Small, and Medium Enterprises (MSMEs) Through Social Media Adoption with Human Resource Competency as Moderation and Implementation of the Penta Helix Model in Facing New Normal Challenges in Jember Regency. e-Journal Ekonomi Bisnis dan Akuntansi, 11(1), 15-23. doi:https://doi.org/10.19184/ejeba.v11i1.44396
Ndungu, S., Wanjau, K., Gichira, R., & Mwangi, W. (2017). Moderating Role of Entrepreneurial Orientation on the Relationship Between Information Technology Competence and Firm Performance in Kenya. International Journal of Professional Business Review, 2(2), 1-22. doi:https://doi.org/10.26668/businessreview/2017.v2i2.59
Novialumi, A., & Winata, S. D. (2025). The Impact of Compensation on Job Satisfaction: Work Experience and Education Relationship. Annals of Human Resource Management Research, 5(3), 69-81. doi:https://doi.org/10.35912/ahrmr.v5i3.2888
Nugroho, S. H., Said, M., & Said, L. R. (2025). The Effect of Work Environment, Compensation, Career Development, Leadership, and Workload on Job Satisfaction with Work Motivation as an Intervening Variable. Annals of Human Resource Management Research, 5(3), 13-35. doi:https://doi.org/10.35912/ahrmr.v5i3.2826
Octavia, A., Zulfanetti, Z., & Erida, E. (2017). Meningkatkan Daya Saing Daerah Melalui Peningkatan Kinerja Bisnis Usaha Mikro, Kecil dan Menengah di Provinsi Jambi. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 4(3), 155-166. doi:https://doi.org/10.22437/ppd.v4i3.3638
Oduro, S., & Mensah-Williams, E. (2023). Marketing Capabilities and Competitive Performance in the SMEs Context: A Bi-Theoretical Perspective. Journal of Small Business Strategy, 33(2), 17-35. doi:https://doi.org/10.53703/001c.77458
Purnamasari, S., & Wijaya, A. (2020). Pengaruh Orientasi Pasar, Orientasi Kewirausahaan dan Kemampuan Pemasaran, Terhadap Kinerja Bisnis UMKM Clothing Line. Business Management Journal, 16(1), 53-64. doi:http://dx.doi.org/10.30813/bmj.v16i1.2052
Rahayu, A. D., Lestari, H., & Rostyaningsih, D. (2021). Efektivitas Sistem Informasi di Desa Purwogondo, Kecamatan Boja, Kabupaten Kendal. Journal Of Public Policy And Management Review, 10(4), 1-17. doi:https://doi.org/10.14710/jppmr.v10i4.32123
Runtuk, J. K., Ng, P. K., Ooi, S. Y., Purwanto, R., Nur Chairat, A. S., & Ng, Y. J. (2023). Sustainable Growth for Small and Medium-Sized Enterprises: Interpretive Structural Modeling Approach. Sustainability, 15(5), 1-12. doi:https://doi.org/10.3390/su15054555
Sakib, M. N., Rabbani, M. R., Hawaldar, I. T., Jabber, M. A., Hossain, J., & Sahabuddin, M. (2022). Entrepreneurial Competencies and SMEs’ Performance in a Developing Economy. Sustainability, 14(20), 1-18. doi:https://doi.org/10.3390/su142013643
Santosa, S. R. (2025). Analisis Pengaruh Training, Sop, Decision Making, Communication, dan Delegation of Authority terhadap Employee Performance pada Hotel XYZ di Surabaya. Journal of Management and Bussines (JOMB), 7(2), 98-106. doi:https://doi.org/10.31539/jomb.v7i2.14694
Sarpong, D. A.-A., Aniah, E., Amankwah, N. Y., & Asare, I. (2025). Nexus between Despotic Leadership Style and Employee’s Well-Being: A Case of a Telecommunication Company in Ghana. Annals of Human Resource Management Research (AHRMR), 5(3), 135-152. doi:https://doi.org/10.35912/ahrmr.v5i3.2733
Sumakul, H. W., Susilawaty, A., & Habibi. (2020). Efektivitas Penurunan Kadar Besi (Fe) dan Kekeruhan pada Air Tanah dengan Penambahan Media Kulit Ubi Kayu (Manihot esculenta crantz). HIGIENE: Jurnal Kesehatan Lingkungan, 6(1), 8-14. doi:https://doi.org/10.24252/higiene.v6i1.14087
Taipale-Erävala, K., Henttonen, K., & Lampela, H. (2019). Entrepreneurial Competencies in Successfully Innovative SMEs. International Journal of Entrepreneurship and Small Business, 38(3), 251-276. doi:https://doi.org/10.1504/IJESB.2019.103428
Widjadja, Y. R., Alamsyah, D. P., Rohaeni, H., & Sukanjie, B. (2018). Peranan Kompetensi SDM UMKM dalam Meningkatkan Kinerja UMKM Desa Cilayung Kecamatan Jatinangor, Sumedang. Jurnal Abdimas BSI: Jurnal Pengabdian Kepada Masyarakat, 1(3). doi:https://doi.org/10.31294/jabdimas.v1i3.4012
Willian, R., Hasbullah, H., Widiastuti, F., & Dahmiri, D. (2021). The Influence of Human Resource Competency and Entrepreneurial Characteristics on the Performance of Small and Medium Industries. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 9(2), 153-160. doi:https://doi.org/10.22437/ppd.v9i2.10603
- Agussalim, Motherland, E. G., & Yanti, N. (2023). The Effect of Competency Human Resources, Work Motivation, and Work Spirit on Employees Performance at the Service Cooperative & Msmes West Sumatra. Dinasti International Journal of Digital Business Management, 4(5), 1009-1017. doi:https://doi.org/10.31933/dijdbm.v4i5.2026
- Akbar, R. S., Abdurahman, A., Nursanto, G. A., & Hartati, B. (2025). Digitalization, Organizational Change, and Human Resource Management at the Immigration Polytechnic. Annals of Human Resource Management Research, 5(3), 1-12. doi:https://doi.org/10.35912/ahrmr.v5i3.2838
- Alarape, A. A. (2007). Entrepreneurship Programs, Operational Efficiency and Growth of Small Businesses. Journal of enterprising communities: People and Places in the global economy, 1(3), 222-239. doi:https://doi.org/10.1108/17506200710779530
- Albalushi, K. I., & Naqshbandi, M. M. (2022). Factors Affecting Success and Survival of Small and Medium Enterprises in the Middle East. Knowledge, 2(3), 525-538. doi:https://doi.org/10.3390/knowledge2030031
- Chusumastuti, D., Zulfikri, A., & Rukmana, A. Y. (2023). Pengaruh Digital Marketing dan Kompetensi Wirausaha Terhadap Kinerja Pemasaran (Studi pada UMKM di Jawa Barat). Jurnal Bisnis Dan Manajemen West Science, 2(2), 22-32. doi:https://doi.org/10.58812/jbmws.v2i02.334
- Devi, N. P. C., Dahmiri, & Ihsan, M. (2025). Pengaruh Kompetensi Kewirausahaan dan Orientasi Kewirausahaan Terhadap Kinerja Usaha di Mediasi Keunggulan Bersaing pada Usaha Milenial Kopi Keliling di Kota Jambi. Jurnal Ilmiah Global Education, 6(2), 744-760. doi:https://doi.org/10.55681/jige.v6i2.3740
- Dhamayantie, E., & Fauzan, R. (2017). Penguatan Karakteristik dan Kompetensi Kewirausahaan untuk Meningkatkan Kinerja UMKM. Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan, 11(1), 80-91. doi:https://doi.org/10.24843/matrik:jmbk.2017.v11.i01.p07
- Diana, Hakim, L., & Fahmi, M. (2022). Analisis Faktor yang Mempengaruhi Kinerja UMKM di Tangerang Selatan. Jurnal Muhammadiyah Manajemen Bisnis, 3(2), 67-74. doi:https://doi.org/10.24853/jmmb.3.2.67-74
- Djoundourian, S., & Shahin, W. (2022). Academia–Business Cooperation: A Strategic Plan for an Innovative Executive Education Program. Industry and Higher Education, 36(6), 835-845. doi:https://doi.org/10.1177/09504222221083852
- Edward, Ihsan, M., & Siregar, A. P. (2022). Entrepreneurship Competence in Improving Creative Industry Performance Through Financial Literacy Levels for Micro, Small and Medium Enterprises (MSMEs) International Journal Of Scientific & Technology Research, 11(1), 82-86.
- Handayani, M., Darma, G. S., & Martini, I. A. O. (2025). Exploring Co-Creation in Small Medium Enterprises (SMes): Strategy, Implementation and Challenges. Jurnal Riset Bisnis dan Manajemen, 18(1), 1-14. doi:https://doi.org/10.23969/jrbm.v18i1.18828
- Holisoh, S., & Putra, R. R. (2022). Faktor-Faktor Penentu Kinerja UMKM di Kelurahan Lagoa: Ketidakpastian Lingkungan Sebagai Variabel Moderating. Jurnal Akuntansi Bisnis, 20(1), 105-123. doi:https://doi.org/10.24167/jab.v20i1.4398
- Ibidunni, A. S., Atolagbe, T., Obi, J., Olokundun, M., Oke, O., Amaihian, A., . . . Obaoye, D. (2018). Moderating Effect of Entrepreneurial Orientation on Entrepreneurial Competencies and Performance of Agro-Based SMEs. International Journal of Entrepreneurship, 22(1), 1-9.
- Kraus, S., Rigtering, J. C., Hughes, M., & Hosman, V. (2012). Entrepreneurial Orientation and the Business Performance of SMEs: A Quantitative Study from the Netherlands. Review of Managerial Science, 6(2), 161-182. doi:https://doi.org/10.1007/s11846-011-0062-9
- Lubis, A. L., Rais, S., Rini, R. O. P., & Friadi, J. (2025). The Effect of Entrepreneurship Education on Career Readiness as A Job Creator with Self-efficacy as a Mediating Variable. Annals of Human Resource Management Research, 5(3), 51-67. doi:https://doi.org/10.35912/ahrmr.v5i3.2895
- Ludiya, E. (2020). Pengaruh Kompetensi Kewirausahaan dan Orientasi Kewirausahaan Terhadap Kinerja Usaha pada UMKM Bidang Fashion di Kota Cimahi. Jurnal Ilmu Manajemen dan Bisnis, 11(2), 141-154. doi:https://doi.org/10.17509/jimb.v11i2.28507
- Mamun, A. A., & Fazal, S. A. (2018). Effect of Entrepreneurial Orientation on Competency and Micro-Enterprise Performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(3), 379-398. doi:https://doi.org/10.1108/APJIE-05-2018-0033
- Mardikaningsih, R., Azizah, E. I., Putri, N. N., Alfan, M. N., & Rudiansyah, M. M. D. H. (2022). Business Survival: Competence of Micro, Small and Medium Enterprises. Journal of Social Science Studies (JOS3), 2(1), 1-4. doi:https://doi.org/10.56348/jos3.v2i1.21
- Mawardi, A. A. K., Farida, L., Nusbantoro, A. J., Utami, E. S., Endhiarto, T., & Apriliana, T. (2024). Strengthening the Performance of Micro, Small, and Medium Enterprises (MSMEs) Through Social Media Adoption with Human Resource Competency as Moderation and Implementation of the Penta Helix Model in Facing New Normal Challenges in Jember Regency. e-Journal Ekonomi Bisnis dan Akuntansi, 11(1), 15-23. doi:https://doi.org/10.19184/ejeba.v11i1.44396
- Ndungu, S., Wanjau, K., Gichira, R., & Mwangi, W. (2017). Moderating Role of Entrepreneurial Orientation on the Relationship Between Information Technology Competence and Firm Performance in Kenya. International Journal of Professional Business Review, 2(2), 1-22. doi:https://doi.org/10.26668/businessreview/2017.v2i2.59
- Novialumi, A., & Winata, S. D. (2025). The Impact of Compensation on Job Satisfaction: Work Experience and Education Relationship. Annals of Human Resource Management Research, 5(3), 69-81. doi:https://doi.org/10.35912/ahrmr.v5i3.2888
- Nugroho, S. H., Said, M., & Said, L. R. (2025). The Effect of Work Environment, Compensation, Career Development, Leadership, and Workload on Job Satisfaction with Work Motivation as an Intervening Variable. Annals of Human Resource Management Research, 5(3), 13-35. doi:https://doi.org/10.35912/ahrmr.v5i3.2826
- Octavia, A., Zulfanetti, Z., & Erida, E. (2017). Meningkatkan Daya Saing Daerah Melalui Peningkatan Kinerja Bisnis Usaha Mikro, Kecil dan Menengah di Provinsi Jambi. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 4(3), 155-166. doi:https://doi.org/10.22437/ppd.v4i3.3638
- Oduro, S., & Mensah-Williams, E. (2023). Marketing Capabilities and Competitive Performance in the SMEs Context: A Bi-Theoretical Perspective. Journal of Small Business Strategy, 33(2), 17-35. doi:https://doi.org/10.53703/001c.77458
- Purnamasari, S., & Wijaya, A. (2020). Pengaruh Orientasi Pasar, Orientasi Kewirausahaan dan Kemampuan Pemasaran, Terhadap Kinerja Bisnis UMKM Clothing Line. Business Management Journal, 16(1), 53-64. doi:http://dx.doi.org/10.30813/bmj.v16i1.2052
- Rahayu, A. D., Lestari, H., & Rostyaningsih, D. (2021). Efektivitas Sistem Informasi di Desa Purwogondo, Kecamatan Boja, Kabupaten Kendal. Journal Of Public Policy And Management Review, 10(4), 1-17. doi:https://doi.org/10.14710/jppmr.v10i4.32123
- Runtuk, J. K., Ng, P. K., Ooi, S. Y., Purwanto, R., Nur Chairat, A. S., & Ng, Y. J. (2023). Sustainable Growth for Small and Medium-Sized Enterprises: Interpretive Structural Modeling Approach. Sustainability, 15(5), 1-12. doi:https://doi.org/10.3390/su15054555
- Sakib, M. N., Rabbani, M. R., Hawaldar, I. T., Jabber, M. A., Hossain, J., & Sahabuddin, M. (2022). Entrepreneurial Competencies and SMEs’ Performance in a Developing Economy. Sustainability, 14(20), 1-18. doi:https://doi.org/10.3390/su142013643
- Santosa, S. R. (2025). Analisis Pengaruh Training, Sop, Decision Making, Communication, dan Delegation of Authority terhadap Employee Performance pada Hotel XYZ di Surabaya. Journal of Management and Bussines (JOMB), 7(2), 98-106. doi:https://doi.org/10.31539/jomb.v7i2.14694
- Sarpong, D. A.-A., Aniah, E., Amankwah, N. Y., & Asare, I. (2025). Nexus between Despotic Leadership Style and Employee’s Well-Being: A Case of a Telecommunication Company in Ghana. Annals of Human Resource Management Research (AHRMR), 5(3), 135-152. doi:https://doi.org/10.35912/ahrmr.v5i3.2733
- Sumakul, H. W., Susilawaty, A., & Habibi. (2020). Efektivitas Penurunan Kadar Besi (Fe) dan Kekeruhan pada Air Tanah dengan Penambahan Media Kulit Ubi Kayu (Manihot esculenta crantz). HIGIENE: Jurnal Kesehatan Lingkungan, 6(1), 8-14. doi:https://doi.org/10.24252/higiene.v6i1.14087
- Taipale-Erävala, K., Henttonen, K., & Lampela, H. (2019). Entrepreneurial Competencies in Successfully Innovative SMEs. International Journal of Entrepreneurship and Small Business, 38(3), 251-276. doi:https://doi.org/10.1504/IJESB.2019.103428
- Widjadja, Y. R., Alamsyah, D. P., Rohaeni, H., & Sukanjie, B. (2018). Peranan Kompetensi SDM UMKM dalam Meningkatkan Kinerja UMKM Desa Cilayung Kecamatan Jatinangor, Sumedang. Jurnal Abdimas BSI: Jurnal Pengabdian Kepada Masyarakat, 1(3). doi:https://doi.org/10.31294/jabdimas.v1i3.4012
- Willian, R., Hasbullah, H., Widiastuti, F., & Dahmiri, D. (2021). The Influence of Human Resource Competency and Entrepreneurial Characteristics on the Performance of Small and Medium Industries. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 9(2), 153-160. doi:https://doi.org/10.22437/ppd.v9i2.10603