Mental Accounting Practice, Growth Mindset and Micro Business Performance: An Empirical Investigation of SMEs in Indonesia during the COVID-19 pandemic

Abstract

Mental accounting has a lot of perspective to observe, but rarely observed in psychology method. This paper aim is to observed mental accounting in psychology method with the relation of personality characteristics (the big five personality) with growth mindset as an intervening variable. The present paper reports a study applying a Likert-type scale to assess the extent individuals engage in mental accounting practices, in this case is owners of micro business in Indonesia specifically in Jakarta. This study observe 252 of SMEs regards the influence of mental accounting to micro business performance with growth mindset as an intervening variable and using Smart-PLS 3.0 to see the effect from each hypothesis. The result of this study found that having a good mental accounting is not enough to increasing micro business performance directly. And mental accounting has a significant effect to growth mindset. From this case, owners of micro business performance have to respond with the real action which is growth mindset to increase their performance as an intervening variable.

Keywords: Mental Accounting Practice, Growth Mindset, Micro Business Performance.

DOI: 10.7176/RJFA/13-10-07

Publication date:May 31^st 2022