The Role of the Intermediate Variable with Innovation as a Transfer of Entrepreneurial Competency to the Success of Small and Medium Sized Enterprise Business Operations of the Coffee Production Business, in the Group of Northern Provinces
DOI:
https://doi.org/10.14456/psruhss.2024.60Keywords:
Entrepreneurial competency, Business success, Small and medium enterprises, InnovationAbstract
The objectives of this research 1) To study the competency of entrepreneurs, innovation and success of small and medium sized enterprises in the coffee production business in the northern provinces. 2) To test the consistency of the causal relationship model of entrepreneurial performance with innovation as a means of transferring the competency of entrepreneurs to the success of operating small and medium sized enterprises in the coffee production business in the group of northern provinces. 3) To study the direct and indirect influences on the success of small and medium sized enterprise business operations in the coffee production business in the northern provinces. The data were collected by using a questionnaire distributed to 670 small and medium enterprises in the coffee production business. The data were analyzed by descriptive statistics including percentage, mean and standard deviation to explain the characteristics of the variables. Inferential statistics were used to evaluate the model through SEM structural equation model analysis using AMOS and PROCESS 4.2 programs. The results showed that 1) The direct relationship that affected the success of business operations the most was the strategic competency of the entrepreneurs, with an influence size of 0.581, leadership with an influence size of 0.490 in technology (the influence size was equal to 0.393), and the commitment aspect with the influence size equal to 0.314, with a prediction coefficient equal to 64.20 percent, respectively. 2) Besides, in terms of the index measuring the level of harmony between the structural equation model and the empirical data, 5 out of 9 indicators passed the criteria (with 4 indicators accepted as being consistent), showing that structural equation model testing entrepreneurs' strategic competency, commitment, leadership and technology, with innovation being the conveyor to the success of business operations, was consistent with empirical data. 3) Also, the test of the direct and indirect influences on the success of business operations indicated that the strategic competency of entrepreneurs had the most positive direct and indirect effects on the success of business operations, and leadership, respectively.
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