Fashion Business Performance In Surabaya

Tri Siwi Agustina,Alvita Komala Dewi

doi:10.21070/jbmp.v7i1.1282

Tri Siwi Agustina, Alvita Komala Dewi

Open Access

https://doi.org/10.21070/jbmp.v7i1.1282

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Abstract

The COVID-19 pandemic, which resulted in social and physical restrictions, has consequences for the sustainability of the fashion business. This industry is included in the top 5 priority scales for MSME development in Surabaya. Therefore, the existence of the fashion industry is very important for the economy of Surabaya. Related to this, fashion business owners in Surabaya are required to be able to maintain their business through work innovation. This study aims to analyze the direct or indirect influences of competence, the use of information technology, and self-efficacy on business performance through work innovation as a mediating variable for fashion entrepreneurs in Surabaya. This research is a quantitative involving 69 fashion entrepreneurs who are supported by the Surabaya Trade Office. Data distribution was carried out using online questionnaires from November to December 2020. Hypothesis testing was carried out by the path analysis. The results of this study include: competence and self-efficacy are proven to have a positive influence on business performance; the use of information technology is proven to not influence business performance; work innovation cannot mediate the influence of competence on business performance; work innovation is proven to fully mediate the influence of the information technology usage on business performance; work innovation is proven to mediate some of the self-efficacy influence on business performance.

Highlights

In mid-March 2020, the Corona Virus Disease or the COVID -19 pandemic emerged and caused an impact on the economy in Indonesia
This study aims to examine the influence of entrepreneurial competence, the use of information technology, and selfefficacy on the performance of fashion entrepreneurs in Surabaya with work innovation during the COVID-19 pandemic
Based on the results and discussion about competence, the use of information technology, self-efficacy, work innovation, and business performance of fashion MSME owners in Surabaya during the COVID-19 pandemic, the following conclusions are drawn: Competence and self-efficacy were proven to influence business performance whilst work innovation was not proven to mediate the influence of competence on fashion business performance in Surabaya during the COVID-19 pandemic

Summary

Introduction

In mid-March 2020, the Corona Virus Disease or the COVID -19 pandemic emerged and caused an impact on the economy in Indonesia. The Rapid Assessment Survey of the Impact of the COVID-19 Pandemic on the Performance of Indonesian MSMEs was conducted online by LIPI on 1 - 20 May 2020. The survey involved 679 respondents with the main livelihood as business person. It showed that during the pandemic, almost 100% of businesses experienced a decline in sales. Based on the sales method, the dominant offline / physical sales business experienced a decline in sales, compared to the online sales and mixed sales businesses (both offline and online sales methods). Production costs that are fixed or even soaring but not followed by high sales were suspected to be the result of the COVID-19 pandemic

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