Success Model Partnership Program SME At PT. Perkebunan Nusantara III

Abstract

Small medium enterprises is one of the business units that help the country a lot in reducing the unemployment rate. This sector makes a major contribution in supporting the national economy. Real steps and efforts are needed to support and increase the power of SMEs. The main objective of this study is to determine the direct and indirect effects of HR experience, capital, knowledge, social networks, social media, perceived customer benefits, and perceived competitive value on the performance of SMEs through partnership programs. The approach in this research is causal research (cause and effect). The population in this study is the SME business actor who are fostered at PT. Perkebunan Nusantara III, with total of 243 SME business actors. While the sampling technique used a saturated sample where 243 SMEs were sampled in this study. Data collection techniques used a questionnaire with an ordinal measurement scale. Data analysis used AMOS based Structural Equation Modeling (SEM). The results showed that the direct experience of human resources, capital, social networks, social media, and perceived customer benefits had a significant effect on the partnership program, while knowledge was not significant for the partnership program. The results showed that the direct experience of human resources, capital, social networks, social media, perceived customer benefits, and perceived competitive value had a significant effect on the performance of SMEs, while knowledge was not significant on the performance of SMEs. Indirectly the experience of human resources, capital, knowledge, social networks, social media, perceived customer benefits and perceived competitive value had a significant effect on the performance of SMEs through partnership programs.

The Effect of Social Network on Partnership Programs and MSMEs Performance

“…The network's strength (network) is also critical in micro, small and medium enterprises (MSMEs). The network's closeness can be seen when business actors form cooperative relationships with outside parties in order to sustain the business they are running (Junaidi et al, 2022). A network is a collection of social structures made up of nodes that are linked together by links, also known as edges or ties (Kusasi & MSi, 2019).…”

The Influence of Social Capital on Entrepreneurial Success: A Study of Networks and Relationships in MSMEs

“…Furthermore, the dynamic nature of social networks in the entrepreneurial process necessitates a deeper exploration of how these networks evolve and influence business performance over time (Junaidi et al, 2023;Klaas & Chimucheka, 2023). Entrepreneurs often rely on their personal and professional networks to gather information, secure resources, and gain legitimacy, which are critical factors for business success (ROKHMAN, 2023).…”

Partnership Modelling of Entrepreneurial, Digital and Performance Competencies among Coffee SME’s in Bener Meriah Regency

“…Partnership programs are one of the determinants of SME success [3]. These two programs consist of collaborative and environmental development programs [4]. The first initiative is a cooperative program with small businesses aimed at enhancing their capacity to become self-sufficient and robust through state-owned enterprise income.…”

“…The first initiative is a cooperative program with small businesses aimed at enhancing their capacity to become self-sufficient and robust through state-owned enterprise income. The second program is an environmental development program that utilizes state-owned enterprise income to improve the social situation in the surrounding environment [5]. wo percent of net profits are the maximum allowed profits for financing partnership programs and environmental development initiatives, respectively [6].…”