The Influence of Community Empowerment, Organizational Commitment, and Organization Learning on Performance of MSMEs South Minahasa Regency-Indonesia

Abstract

The aims of this research are to analyze the influence of (1) Community Empowerment on the performance of MSMEs (2) Learning organization on the performance of MSMEs (3) Community Empowerment on Organizational Commitment (4) Learning Organization on Commitment. This research used Quantitative method by involving 354 samples comprising the owners (for variable of the performance of MSMEs) and employees (for variable of learning organization, community empowerment and organizational commitment). This research was conducted at MSMEs in 17 districts of South Minahasa Regency. Data analysis technique used is SEM (structural equation modeling) and the CFA test (Confirmatory Analysis factor). Models were tested by comparing the model alignment criteria.The results of the research show that four variables are directly significant or proven to be influential. Those variables are: (1) Community Empowerment to the performance of MSMEs (2) Learning Organization directly influences the performance of MSMEs (3) Community Empowerment directly influences Organizational Commitment (4) Learning Organization to Organizational Commitment. Exogenous variables (learning organization, community empowerment) are proved to have an impact on the performance of MSMEs. The findings in this study lead to the need for the development of economic education curriculum such as training, as well as mentoring process, as an effort to improve human resources.

Keywords: Community Empowerment, Organizational Commitment, Learning Organization, Performance of MSMEs

DOI: 10.7176/EJBM/11-18-05

Publication date:June 30^th 2019