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Economics Development Analysis Journal
Article . 2021 . Peer-reviewed
Data sources: Crossref
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Does Neoclassical Theory Exist in SMEs? Evidence from Central Java-Indonesia

Authors: Misbach Fuady; Maria Rio Rita; Sugeng Wahyudi;

Does Neoclassical Theory Exist in SMEs? Evidence from Central Java-Indonesia

Abstract

Financial and non-financial aspects can influence company performance, not excluding small-medium enterprises (SMEs). This research examines the non-financial aspect, since studies in this area are still limited. This research strives to demonstrate the existence of the neoclassical theory in the relationship framework between the business aspect (real sector) and SME performance. This study, which was conducted on batik SMEs in Central Java Province-Indonesia, consisted of 265 samples. The data was obtained from surveys through distributing questionnaires and conducting interviews with batik SME entrepreneurs. The data analysis used a structural equation model (SEM). These study results documented that business prospects have direct and indirect effects on SME performance. The indirect influences are produced through entrepreneurial-oriented financial mediation. This finding reveals that the neoclassical theory will be more effective to improve company performance through entrepreneurial-oriented finance. The importance of the role of this mediating variable is shown from the total effect of the coefficient that is higher than the indirect effect or the direct effect of the coefficient.

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  • citations
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    0
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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