Business Performance and the Development of Business Unit Structure: A Study on Sasirangan Fabric Craftsmen in South Kalimantan

Abstract

This study aims to examine reciprocal effects between business performance and the development of business unit structure. The correlation between business performance and the development of business unit structure for the craftsmen of sasirangan fabric is a new study that is interesting to research in relation to employment and regional economic growth. There have not been any studies examining reciprocal effects between business performance and the development of business unit structure on the sector of Small and Medium Enterprises (SMEs). This study was conducted in Banjarmasin, Indonesia. The type of research is quantitative. The sample was determined by using census. The respondents of this study were the craftsmen of sasirangan fabrics. The data were collected from 139 craftsmen filling out the questionnaires. Data analysis technique used reciprocal equation model assisted by AMOS program to test the three research hypotheses. The results of this research show that sasirangan fabric craftsmen focus more on productivity and thus become ineffective in using business development opportunities. On the other hand, it is found that sasirangan fabric craftsmen who focus more on the utilization of market opportunities can have a positive impact on their productivity improvement.

Keywords: Business performance, development of business unit structure, Indonesia