Micro, Small And Medium Enterprises Sector Research Articles

The impact of sustainable entrepreneurship education and self-efficacy on students' entrepreneurial mindset and attitude

This study aims to foster a shift in students' entrepreneurial mindset through sustainable entrepreneurship education. This initiative is expected to contribute to the recovery of the MSME (Micro, Small, and Medium Enterprises) sector while enhancing the quality of education by expanding the content of entrepreneurship courses, inviting experts to share their experiences, organizing events to promote student products, and facilitating internships in the entrepreneurial industry. Data were collected through questionnaires, with responses measured using a Likert scale. A literature review was also conducted to support the research. The population of this study consists of students from universities in West Jakarta, with a sample of 153 respondents. The data were analyzed using a structural equation modeling approach based on components or variances. The results of hypothesis testing reveal that: (1) Entrepreneurship education has a positive and significant effect on the entrepreneurial mindset; (2) Self-efficacy has a positive and significant effect on the entrepreneurial mindset; (3) Entrepreneurship education has a positive and significant effect on entrepreneurial attitude; (4) Self-efficacy has a positive and significant effect on entrepreneurial attitude; (5) Entrepreneurial attitude has a positive and significant effect on the entrepreneurial mindset; (6) Entrepreneurial attitude does not mediate the relationship between entrepreneurship education and entrepreneurial mindset; and (7) Entrepreneurial attitude does not mediate the relationship between self-efficacy and entrepreneurial mindset.

Access to finance and its impact on operational efficiency of MSMEs: mediating role of entrepreneurial personality and self-efficacy

PurposeThe present study aims to investigate the factors of loan access that affect entrepreneurial self-efficacy (ESE) and operating efficiency of Indian Micro, Small and Medium Enterprises (MSMEs). Furthermore, the study intended to investigate the influence of ESE on the operating efficiency of Indian MSMEs and its mediating role.Design/methodology/approachIn this study, exploratory research design is used. The study heavily relies on the primary data which has been collected by using the survey research method from a cross-section of 617 women-owned MSMEs, located in urban, rural, suburban and exurban areas of Haryana, Uttarakhand, Himachal Pradesh and NCR-Delhi. The partial least square structural equation modeling method version 3.3.3 has been used to evaluate.FindingsIn terms of the selected factors affecting access to finance, it has been established that the Loan Formalities, Banking Process, Loan Process, Staff Responsiveness and Incentive Scheme have a positive and significant influence in enhancing accessibility to finance and improving the self-efficacy and operating performance of firms. The findings also show that ESE mediates the relationship between various factors of loan access and the operating efficiency of MSMEs.Research limitations/implicationsThe study’s findings show that entrepreneurial capacity is significantly and favorably impacted by attitudes toward entrepreneurship, ESE, perceived access to findings and business operations. It has also been demonstrated that entrepreneurial intentions are strongly and favorably influenced by entrepreneurial ability to access commercial bank financing for small businesses and the impact of the same on the women-owned MSMEs in India. It also revealed unfavorable loan terms, limited collateral, fear of repaying of loan and intricate loan application were among the many reasons for loan denial.Originality/valueThe study offers a comprehensive approach that simultaneously considers financial accessibility and ESE. This all-encompassing method offers a thorough grasp of the variables affecting MSMEs' operational efficiency (OE). In contrast to earlier research that might have concentrated only on direct relationships, this study explores the mediating mechanisms involved. This study examines how ESE modulates the influence of financing availability on OE, providing a comprehensive understanding of the underlying mechanisms. By taking into account particular MSME sector characteristics like size, industry or regional variations, the study may provide a unique contextual lens. Understanding how these contextual factors interact with entrepreneurial attributes and access to finance adds depth to the analysis.

A Trend Analysis of Growth and Development of Micro, Small and Medium Enterprises (MSMEs) in India

The Micro, Small and Medium Enterprises (MSMEs) review the policies and programmes and make suitable recommendations regarding the promotion and development of products and services to meet the demands of the domestic as well as global marketing. The ministry of MSMEs sector organizes and implements various schemes focusing on financial assistance, technological assistance as well as upgradation, infrastructure development, skill development and training, enhancing market assistance of MSMEs. An overview of the MSMEs Sector, the organizational structure of the Ministry of MSMEs., role of the office of Development commissioner, setting up of National Board for MSMEs as well as recent developments in MSMEs – are depicted in this article.

Challenges, Requirements and Strategies in Digital Business for MSMEs: A Systematic Literature Review

The current digital age is ushering in significant changes in how Micro, Small and Medium Enterprises (MSMEs) operate, particularly in competition and collaboration. This systematic literature review aims to examine the significance of Digital Business Entrepreneurs (DBEs) as drivers of collaborative value networks within Micro, Small and Medium Enterprises (MSMEs). This paper synthesizes a comprehensive understanding of the challenges, requirements, and strategies associated with DBEs in the context of MSMEs by analyzing 150 research journal articles. The research demonstrates that DBEs have emerged as a subject of considerable academic interest, eliciting various viewpoints regarding their consequences on MSMEs. The investigation encompasses various settings within MSMEs, introducing prospects and obstacles resulting from the incorporation of digital business entrepreneurs. The paper makes a valuable contribution to the literature by addressing this research gap regarding the transformative capacity of DBEs in the MSMEs sector. The literature review identifies eight strategies, nine challenges, and eight requirements for digital business entrepreneurs. These findings provide entrepreneurs and managers with actionable insights as they navigate the digital landscape. Furthermore, delineating five prospective research trends provides scholars with a strategic guide, ensuring sustained relevance in this ever-evolving domain. Practical challenges faced by administrators of MSMEs involved in digital business entrepreneurship are also emphasized, offering practical advice for making sound decisions. This extensive evaluation functions as a valuable asset for individuals involved in digital business entrepreneurship, scholars, and practitioners in the field. It promotes a nuanced understanding of digital business entrepreneurs' obstacles and prospects when operating within micro, small, and medium enterprises.

The Impact of E-Commerce Platform Adoption Among MSME: A Literature Review

The spread of the COVID-19 pandemic has changed daily life greatly. As a result of the restrictions implemented during the spread of COVID-19, most transactions were undertaken online. All economic sectors, including the Micro, Small, and Medium Enterprises (MSME) sector, were affected by the new norms. At the beginning of the COVID-19 outbreak, online transactions were challenging to implement. Nevertheless, they are becoming easier and help entrepreneurs maintain consistent operations until the economic situation becomes stable. The MSME sector is crucial in comparison with other primary sectors in the acquisition of national income. This review article discusses the impact of the adoption of e-commerce platforms among MSME entrepreneurs based on three aspects of technology, organisation, and environment in a recovering economy after the spread of the COVID-19 pandemic. The three primary aspects of the technology, organisation, and environment (TOE) model are widely adopted in the study of e-commerce platform adoption. In the future, this study will continue with the methodology, findings, and discussion sections.

The effect of Islamic financial literacy on business performance with emphasis on the role of Islamic financial inclusion: case study in Indonesia

Purpose Recently, financial inclusion promoters have observed that financial literacy is a vital tool for financial inclusion growth, especially among the poor who are considered financially illiterate. The purpose of this paper is to look at the role of Islamic financial literacy (IFL) and inclusion in improving the performance of micro, small and medium enterprises (MSMEs) in Indonesia. Design/methodology/approach This study uses questionnaire data collected as many as 197 MSMEs. This study was analyzed using structural equation modeling approach to test the hypothesis. Findings The results show that IFL is an important variable to increase Islamic financial inclusion. The results also show that both have a significant influence in developing the MSME sector business. Research limitations/implications This research is not without limitations. This study only adopted a sample in one Province in Indonesia with focus on creative economy sector and some others sectors located in the province of Riau, therefore ignoring suburban and urban areas in Indonesia. Therefore, future studies using a cross-sectional research design are feasible. In addition, this study only uses quantitative data, so that qualitative research with key informant interviews can be considered for further research. Practical implications The findings of this study enlighten policymakers, managers of financial institutions and advocates of financial literacy and inclusion about the importance of improving the performance of MSMEs. As a policy recommendation, this study suggests that Islamic policy makers and financial institutions should play a proactive role in increasing service outreach and providing the regulatory environment needed for MSMEs given the important role MSMEs play in the Indonesian economy. Originality/value This study combines functional components (behaviors and attitudes) and nonfunctional measures (knowledge and skills) of financial literacy and financial inclusion in explaining the performance of MSMEs. Thus, this research is an initial effort to explain financial literacy and inclusion on the performance of MSMEs.

A Study on Micro, Small and Medium Enterprises (MSMEs) in India - Opportunities and Challenges

In our country, the MSME plays a major role in the economy and social development of the country. Currently, the MSME sector contributes more strength to the development of our nation. India provides various opportunities for the entrepreneur. The MSME concentrates on skill development and creates awareness among entrepreneurs. MSMEs provide various opportunities for entrepreneurs. The banking sector offers loans and training for people in need. The labour-concentrated sector helps reduce imbalances in the region. The MSME plays a major role in all types of the sector like khadi & village industries, coir industries, etc.. The entrepreneur as well as employees gain more knowledge through the MSMEs sector.. This paper is an attempt to study the opportunities and challenges faced by micro, small, and medium enterprises in the country.

SOCIOPRENEUR IN DIGITAL MARKETING: EMPOWERING THE MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) IN BOJONGPICUNG VILLAGES

The Indonesian economy is largely derived from Micro, Small and Medium Enterprises (MSMEs). The MSME sector has a strategic role in the Indonesian economy because it is significant in contributing to the formation of Gross Domestic Product (GDP). However, Small and Medium Enterprises (SMEs) tend to not keep up with the development of digital technology, mainly due to a lack of knowledge about digital marketing. Therefore, the Postgraduate Muslim Student Association (HIMMPAS) of Universitas Pendidikan Indonesia conducted training through social entrepreneurship activity in Bojongpicung Village and Jati Village, Cianjur Regency, West Java. This training aimed to provide insight to MSME practitioners by optimizing the potential of MSMEs through digital marketing to improve the economy of the local community in Bojongpicung Village and Jati Village, Bojongpicung District, Cianjur Regency, West Java. The MSME participants involved in this training totaled 11 people from various industries. This program applied direct training and mentoring methods. The discussion in this article aimed to identify constraints or problems experienced by the MSMEs and evaluate the participants' level of satisfaction with the implementation of the training activities. The results showed that MSME participants have constraints in product marketing, funding, and traditional production equipment. After being trained, MSME participants found several relevant solutions for the development of their MSME businesses through digital marketing. In addition, the material provided was in accordance with the needs of MSME participants. MSME participants also realized that they still need more similar training in the future.

Pengaruh Entrepreneurial Mindset dan Entrepreneurial Competence dalam Keberhasilan Usaha Kuliner Bakso Salatiga

The Covid-19 pandemic phenomenon has affected the world economy, especially the economic conditions in Indonesia. This pandemic has caused an increase in unemployment rates due to mass layoffs in order to reduce employee costs by companies during the pandemic. The micro, small and medium enterprise (MSME) sector is one of the responsibilities that society plays in economic growth. An important factor in Indonesia's economic expansion is the MSME sector. Ideas, opportunities, and business people or entrepreneurs are key components of the success of MSMEs or companies. This research aims to identify the relationship between entrepreneurial competence and business success, as well as the impact of entrepreneurial mentality. The research results found that simultaneously and partially the entrepreneurial mindset and entrepreneurial competence variables had a positive effect on the success of profits in the Salatiga Meatball Culinary business.

The Role of Sharia Micro Financing in the Development of Micro Small and Medium Enterprises in Telanaipura District

Micro, Small and Medium Enterprises (MSMEs) are an important part of the economy of a country or region, including Indonesia. The development of the MSME sector provides its own meaning in efforts to increase economic growth and in efforts to reduce the poverty rate in a country. The role of sharia microfinance plays an important role in business development for MSMEs. The aim is to find out whether MSME actors have run their businesses using sharia microfinancing and what role sharia microfinance plays in business development for these MSME actors. This research is field research using qualitative methods. Data collection techniques using observation, interviews and documentation. The interview this time consisted of several MSME actors in the Telanaipura District, Jambi City. The results of this research are MSME actors in Telanaipura District who have run their businesses by carrying out sharia micro financing and the important role of sharia micro financing in business development for these MSME actors.

KUALITAS SDM DAN LITERASI KEUANGAN PADA UMKM DI ERA DIGITALISASI: SYSTEMATIC LITERATURE REVIEW

This research aims to examine the quality of human resources (HR) and the level of financial literacy in micro, small and medium enterprises (MSMEs) in the era of digitalization through a systematic literature review. The method used is a systematic review of scientific literature published in the last five years. In the era of digitalization, increasing financial literacy is crucial for the sustainability of MSMEs, especially in terms of digital financial management and the use of financial technology. This research also identifies several challenges and opportunities in efforts to improve the quality of human resources and financial literacy of MSMEs in the digital era. These findings provide important implications for policy makers and practitioners in designing effective HR capacity and financial literacy development programs for the MSME sector in the era of digitalization. This literature study shows that the quality of human resources, MSME players are required to be creative and innovative, easily adapt to new technology, have digital skills in various work sectors, and have a high entrepreneurial spirit, as well as being able to deal with automation and artificial intelligence. Meanwhile, financial literacy also has an important role in encouraging the digitalization of MSMEs. MSME players are required to have financial knowledge related to money management, financial knowledge to assess performance periodically, financial behavior in budgeting, and attitudes towards future plans, and financial behavior regarding monthly spending budgets.

Evaluation of the effectiveness of the ‘3-in-1’ financial reporting model in supporting the sustainability of MSMEs

Micro, Small and Medium Enterprises (MSMEs) play a crucial role in the global economy, but often face challenges in compiling and understanding financial statements. This study aims to identify effective financial reporting models for MSMEs in supporting the sustainability of their businesses in Indonesia. This qualitative field research focuses on MSME actors in the handicraft sector, household accessories retail, and laundry services. Through interviews, observations, and analysis of financial statement documents, it was found that the “3-in-1” financial statement model that integrates balance sheet, profit and loss, and cash flow in one worksheet provides significant benefits for MSMEs. This model offers a concise, easy-to-understand, and integrated presentation of financial information, allowing MSME actors to comprehensively understand the financial performance of their business. The results show that after 14 months of implementing the “3-in-1” model, the assets of one of the MSMEs increased by more than 1 billion rupiah. In addition, an informant in the retail sector reported a change from a loss of 16 million Rupiah to a profit of 44 million rupiah after improving the pricing procedure based on the “3-in-1” report. In the laundry service sector, the implementation of the “3-in-1” model allows business owners to pay themselves 50 thousand rupiah every day. This model has proven to be effective in supporting the sustainability of MSMEs by providing easy-to-understand financial reports, saving time and resources, and encouraging business growth. This study contributes to improving MSME financial literacy, better business decision-making, and encouraging innovation in financial reporting for the MSME sector.

Pemanfaatan Media Sosial Bagi Pengembangan Pemasaran UMKM

In the increasingly advanced digital era, social media has become a crucial tool in marketing strategies for Micro, Small, and Medium Enterprises (MSMEs). This article analyzes the use of social media in the marketing development of HNTnugraheniboutique Fashion, an MSME in the fashion industry based in Yogyakarta. The research methods employed include social media content analysis, online surveys targeting consumers, and in-depth interviews with the business owner. The findings reveal that HNTnugraheniboutique Fashion utilizes social media platforms, particularly Instagram and WhatsApp, to enhance visibility, build brand awareness, and boost sales. Despite these efforts, there remains potential to further optimize their social media usage for marketing purposes. Creative and relevant content proves effective in capturing consumer attention and influencing purchasing decisions. In conclusion, this research affirms that social media is an effective tool for MSMEs to develop marketing strategies. However, challenges such as competition and understanding digital consumer behavior underscore the need for further research to identify more specific and effective content strategies tailored for the MSME sector, particularly in Indonesia

PENGELOLAAN SDM UMKM DI ERA DIGITAL PADA PULAU HARAPAN, KEPULAUAN SERIBU

Effective and adaptive management of Human Resources (HR) to the development of digital technology is the key to the success of Micro, Small, and Medium Enterprises (MSMEs) in the modern era. Harapan Island, one of the islands in the Thousand Islands, DKI Jakarta, has great economic potential, especially from the MSME sector. However, limitations in human resource management and the use of digital technology are the main challenges for the growth and sustainability of MSMEs in this region. This community service activity aims to increase the capacity of MSME human resource management on Harapan Island through the application of digital technology. This program includes training and assistance in the use of digital tools for human resource management, the development of basic digital skills for MSME actors, and increasing digital literacy among MSME workers. The methodology used includes workshops, intensive training sessions, and direct mentoring in the field. It is hoped that through this program, MSMEs on Harapan Island can optimize their human resource management, improve operational efficiency, and expand market reach through digital technology. In addition, this program also aims to build awareness and better understanding of the importance of digitalization in business management. Thus, MSMEs on Harapan Island can develop better and contribute more significantly to the local economy and the welfare of the local community.

EXPLORING THE INTERPLAY OF ENTREPRENEURS' AWARENESS, PERCEPTION AND INTENTION IN DRIVING DIGITALIZATION FOR MSMES: A FOCUSED INSIGHT INTO SIDBI'S ROLE

Business dynamics have undergone a remarkable transformation in recent years, primarily driven by the digital revolution. Micro, Small, and Medium Enterprises (MSMEs) are recognized as the cornerstone of economic growth and development, and their adaptability to this digital era is paramount.This empirical investigation explores the complex relationship between entrepreneurs' awareness, perceptions, and intentions and their influence on the adoption of digitalization, with a focus on the digital initiatives of the Small Industries Development Bank of India (SIDBI), which aims to transform MSMEs digitally. Various constructs, such as entrepreneurs' awareness, perceptions, and intentions, are used to evaluate digital adoption in small businesses. By examining entrepreneurs' levels of awareness, perceptions, and intentions, we aim to uncover the fundamental factors that shape their strategic choices regarding digital adoption.This study employs structural equation Modeling (SEM) through AMOS and adopts an explanatory survey method. It involved engaging Indian MSMEs with a total of 300 participants. Of these, 220 successfully submitted fully filled-out questionnaires through Google Forms.It is noteworthy that the examination of the research model revealed promising results by meeting the thresholds of CFI, RMSEA, and other similar measures. Findings reveal that entrepreneurs' awareness and intention positively influence digital adoption in MSMEs, whereas entrepreneurs' perception has no significant influence on digital adoption in MSMEs.This study has significant practical implications for policy formulation, entrepreneurial decision-making, collaborative efforts, risk mitigation, and future research directions in the context of digitalization within the MSME sector.

Prospects for institutionalization of crowdfunding: a developing country perspective

PurposeThis study explores the adoption of crowdfunding in Pakistan, focusing on the challenges and opportunities within its unique entrepreneurial ecosystem. The research aims to provide insights into the regulatory mechanisms, stakeholder engagement and institutional factors influencing crowdfunding adoption.Design/methodology/approachSeventeen semi-structured interviews were conducted using a purposive sampling technique. Data was collected from diverse stakeholders involved in the crowdfunding process including investors, entrepreneurs, platform owners and regulators.FindingsThe study identifies various challenges, including regulatory gaps, investor concerns, platform-related issues and systemic challenges such as political instability and weak institutions. These challenges hinder the effective implementation of crowdfunding in Pakistan. Moreover, the study highlights opportunities for financial inclusion, bridging the gap between investors and entrepreneurs, and leveraging Pakistan’s entrepreneurial landscape for crowdfunding growth. While several challenges were common to both developed and developing countries, the study also identified distinct challenges such as digital literacy, reliance on the undocumented economy, insufficient regulatory frameworks and investor mindset specific to developing countries.Research limitations/implicationsSince crowdfunding is an emerging phenomenon in Pakistan, this study had limitations as no official crowdfunding platform other than the Pakistan National Investor Portal had started operations. Therefore, this study involved only those stakeholders who were involved in designing regulatory sandbox suggestions. The sample size could be increased to include stakeholders from other developing countries in the future. This article, however, provides significant strategic guidance for policymakers in developing a framework to improve financial inclusion in development.Practical implicationsThe study provides critical areas of concern for regulatory authorities for developing appropriate legislation to help overcome the challenges to the institutionalization of crowdfunding. This study also encourages stakeholders like investors and entrepreneurs to participate in crowdfunding while looking at the perspective of other parties.Social implicationsThis research highlights the need for the Pakistani society to be well-informed about alternative investment opportunities, like crowdfunding. The micro, small and medium enterprises (MSME) sector, along with the government, can also explore the benefits of crowdfunding to address their lack of access to capital and enable the inclusion of an informal economy to reduce poverty in a developing country.Originality/valueCrowdfunding is a new phenomenon in Pakistan, and the scope of its application in the MSME sector has not been thoroughly investigated. This study reveals how micro and small firms can use crowdfunding to boost their economic operations by overcoming challenges and taking advantage of fintech (financial technology) to achieve financial inclusion, leading to economic sustainability.

Consumer Loyalty and Its Application to MSMEs Sector: Systematic Literature Review

Consumer loyalty is crucial for the survival and sustainability of Micro, Small, and Medium Enterprises (MSMEs). This systematic literature review examines the predictors of customer loyalty, such as service quality, consumer trust, and customer satisfaction. By analyzing previous studies and identifying trends, this review aims to provide recommendations for improving performance through enhanced service quality and more effective marketing strategies, Using 34 articles originating from emerald for analysis. The study emphasizes the importance of developing sustainable and customer-oriented business strategies for MSME stakeholders. While existing research primarily focuses on larger industries, this review suggests applying loyalty-building insights to the MSME sector to drive economic growth. Keywords: Consumer loyalty, Micro, Small, and Medium Enterprises, MSME.

NOMOR INDUK BERUSAHA SEBAGAI LEGALITAS BAGI PELAKU UMKM DESA TAWAR KABUPATEN MOJOKERTO

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in supporting regional economic growth, particularly in the aftermath of the COVID-19 pandemic. One concrete manifestation of governmental assistance is the implementation of Government Regulation Number 24 of 2018, which introduces the Online Single Submission (OSS) platform to streamline the licensing process, specifically in obtaining the Business Identification Number. Through OSS, the licensing procedure becomes more efficient, rapid, and transparent. The adoption of OSS aims not only to provide convenience for business entities but also to bolster investment in the MSME sector. It is recommended to enhance the comprehension of business stakeholders through additional training and awareness initiatives to fortify business legitimacy, foster MSME expansion, and generate positive effects on local economic development. The methods utilized for activity execution encompass lectures, discussions, and practical sessions, targeting micro, small, and medium-sized enterprises situated in Tawar Village, Mojokerto Regency. This endeavor has been effectively carried out, resulting in a notable increase in the successful registration of Business Identification Numbers (NIBs).

Financial accessibility and MSME’s labour productivity: evidence from developing countries

PurposeThis study aims to re-examine the relationship between financial accessibility and performance of micro, small and medium enterprises (MSMEs) in developing countries using a large database.Design/methodology/approachThis study uses cross-sectional firm-level data from the World Bank Enterprises Survey database collected under Wave II from 2006 to 2019. Controlled for firm level and country level factors, OLS and instrumental variable regressions have been used for analysis. Firm performance has been measured in terms of labour productivity.FindingsThe study observes a positive association between access to finance and MSME performance measured in terms of sales and value-added per worker. Along with firm characteristics (like size, age and managerial experience), country’s development level, institutional quality (i.e. corruption and regulations) and economic openness also impact MSMEs’ productivity.Practical implicationsStrengthening the financial system to allow the financial sector to meet the requirements of MSME finance is very important. Better access to external finance will enable MSMEs to invest in upgrading technology and expanding operations, thus improves their labour productivity. As the MSME sector is vulnerable to economic shocks, policies facilitating their access to formal credit during crises could strengthen resilience.Social implicationsCredit constraint to MSMEs is a multi-stakeholder problem. It requires a coordinated approach from MSME owners, financial institutions and policymakers to address it and enhance the credit flow to the MSME sector. Timely research inputs from academia, research institutions and think tanks may help assess MSMEs promotion policies and their revision if needed.Originality/valueTo the best of the authors’ knowledge, this is the first study that examines the effect of access to finance on the labour productivity of MSMEs in developing countries. Given the mixed results in the recent past between access to finance and firm performance, it highlights the critical role of financial accessibility in improving their labour productivity and thus enabling MSMEs to realise their full potential in developing countries.

How can Organizational Support Increase Employee Motivation and Performance? Studies on Employees of MSMEs in Indonesia

Purpose – This study aims to investigate how the supervisor support (SVS) and co-worker support (CWS) affects employees in micro, small and medium enterprises (MSME) in Yogyakarta, Indonesia. Aims(s) – This study tested and strengthened the results of previous research regarding how SVS and CWS increased the motivation and performance of employees in the MSME sector in Yogyakarta, Indonesia. Design/methodology/approach – This study used 426 employees who were collected using a questionnaire. After the questionnaire was declared valid and reliable using the data collected, it was continued with testing the research hypothesis using structural equation modeling (SEM) with a two-step approach. Findings – The results of this study found that employees do need support from supervisors and co-workers, so that all variables in this study are correlated. In addition, employee motivation was directly influenced by emotional CWS, while employee performance was influenced by instrumental CWS. SVS had no direct effect on motivation and performance but encouraged employees to provide support to their co-workers both emotionally and instrumentally. Limitations of the study – The limitations of this research were using cross-section data to test the mediation model and using self-assessment in filling out the questionnaire which caused common method variance. Future research would be better if longitudinal data and other ratings were used to overcome this problem. Practical implications – Supervisor support has an effect for increasing co-worker support. These two forms of support are very necessary in increasing employee motivation and performance. Originality/value – Unlike the results of previous research, this research found that leader support cannot immediately improve employees’ performance. Supervisor support was mediated by other variables, which in this case was co-worker support which can motivate employees to improve their performance.