BUSINESS PERFORMANCE OF SNACK FOOD MSMEs ACTORS BASED ON MOTIVATION, ABILITY, AND ORGANIZATIONAL COMMITMENT

Abstract

Background: Micro, Small, and Medium Enterprises (MSMEs) are a crucial business sector in both
developed and developing countries. In developing countries, MSMEs are a key pillar of the national
economy. Furthermore, their presence in Indonesia holds significant potential for achieving the
Sustainable Development Goals (SDGs). However, several challenges remain in strategies to improve
the performance of MSMEs, particularly in the snack food sector, including failure to achieve sales
revenue targets and low motivation, capabilities and organizational commitment among business
actors.
Purpose: The objectives of this study are 1) to describe motivation, ability, organizational commitment
and business performance; 2) to analyze the influence of motivation, ability, and organizational
commitment on business performance simultaneously; 3) to analyze the influence of motivation, ability,
and organizational commitment on business performance partially.
Methodology: The sample in this study used a purposive sampling technique, totaling 108 snack food
MSMEs in Central Bogor Dsitrict. Data testing included validity, reliability, normality, multicollinearity,
heteroscedasticity, regression coefficients, coefficients of determination, F-tests, and t-tests. The
research method used descriptive and verification methods, as well as multiple linear regression.
Results: The results of this study indicate that 1) business performance, motivation, ability, and
organizational commitment are in the sufficient category; 2) motivation, ability, and organizational
commitment simultaneously have a significant positive effect on business performance; 3) motivation,
ability, and organizational commitment partially have a significant positive effect on business
performance. The results of the coefficient of determination indicate that simultaneously, business
performance is influenced by motivation and ability by 59.1%. Conversely, 48.1% is influenced by other
variables not studied, such as: work environment, entrepreneurial orientation, banking support, skills,
quality of encouragement, guidance, manager support, quality of co-worker support, work systems,
and facilities provided by the organization.
Keywords: Business performance, Motivation, Ability, Organizational Commitment, Snack Food
MSMEs.