Efforts to enhance SMEs' motivation and performance through environmental uncertainty in Aceh Province

Abstract

This research focuses on the impact of environmental uncertainty on small and medium enterprises (SMEs) in Indonesia, particularly in Aceh Province. These businesses are vital for sustaining the country's economy. The study investigates how SMEs in this region can expand internationally despite facing environmental uncertainties. It emphasizes the importance of motivation in helping these enterprises overcome challenges and uncertainties, such as the COVID-19 pandemic and global conflicts like the Russia-Ukraine war. The study employed a survey method, gathering primary data through questionnaires distributed to a target population of SMEs in Aceh Province, involving 1,245 businesses. A purposive random sampling technique was used to select 275 respondents. These respondents were chosen because their businesses have shown growth and resilience amidst various uncertainties. The findings reveal that both environmental uncertainty and motivation significantly influence the performance of SMEs in Aceh Province. Moreover, motivation plays a crucial role in mediating the effects of environmental uncertainty on SME performance. This suggests that in the face of uncertainties in the business environment, strong motivation drives SMEs to innovate and sustain their operations.