MSMEs Challenges in Phenomena of Disruption Era

Abstract

Micro, Small and Medium Enterprises (MSMEs) have a very important economic role in many countries, including in Indonesia. Many parties acknowledge that MSMEs has shown its toughness in every crisis. Consumer behavior is very open in VUCA era, along with advances in information technology and communication achieved by modern humans. MSMEs entrepreneurs must change and adapt quickly to such changes. The disruption phenomenon as a change that brings the future into present demand makes MSMEs entrepreneurs must change their mindset and behavior. This can happen through personal character change in focus of control and motivation to drives a high level of learning to increase business performance in global competition. This research aim is to examine the effect of locus of control and motivation on learning and the impact on MSMEs performance. It uses Purposive Sampling, data is done by questionnaire to 100 samples which then processed and analyzed. There are two stages for technical data analysis, i.e. Path Analysis and Regression Moderation Analysis (RMA). The research findings indicate the effect of locus of control and motivation on learning; the effect of locus of control and motivation on business performance; as well as the effect of locus of control and motivation on business performance with learning as moderation. The consumer behavior changesin disruption era demand the changes in personal character of MSMEs entrepreneurs through the focus of control and motivation and relentless learning.

Keywords: disruption, locus of control, motivation, learning, MSMEs performance.