The Effects of Organizational Culture, Learning Organization, Empowerment, and Organizational Commitment on the Performance of SMEs (A Case Study of SMEs in the Regency of South Minahasa)

Abstract

This study aimed at investigating the effects of (1) organizational culture on organizational commitment, (2) learning organization on organizational commitment, (3) empowerment on organizational commitment, (4) organizational culture on the performance of SMEs, (5) organizational commitment on the performance of SMEs, (6) learning organization on the performance of SMEs, and (7) empowerment on the performance of SMEs. The study employed a quantitative approach. As many as 354 samples of enterprise owners served as the variable of SMEs performance. The employees served as the variable of organizational culture, learning organization, empowerment and organizational commitment on SMEs in 17 districts in the Regency of South Minahasa. Data were then analyzed using SEM (Structural Equation Modelling) and further tested using CFA (Confirmatory factor Analysis). Based on the findings, it was be concluded that there were six significant and direct effects, namely: (1) Organizational Culture had a direct effects on organizational commitment (2) Learning organization had a direct effects on organizational commitment (3) Empowerment had a direct effects on the performance of SMEs (4) Organizational Culture had a direct effects on the performance of SMEs (5) Organizational Commitment had no direct effects on the performance of SMEs (6) Learning organization had a direct effects on the performance of SMEs, and (7) Empowerment had a direct effects on the performance of SMEs