JRSSEM 2022, Vol. 02, No. 2, 149 – 158
E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494
DOI : 10.36418/jrssem.v2i2.250 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
THE EFFECT OF LEADERSHIP TOWARDS THE
PERFORMANCE OF MSME EMPLOYEES IN CIREBON
REGENCY
Wenty Febrianti
1*
Budiman Abdulah
2
1,2
STIE Muhammadiyah Jakarta, Indonesia
*Correspondence: went[email protected]gmail.com
Submitted: 25 August 2022, Revised: 03 September 2022, Accepted: 23 September 2022
Abstract. In Indonesia, MSMEs play an important role in increasing employment, contributing to
Gross Domestic Product (GDP) and providing a safety net, especially for those suffering from
economic and financial crises. The Indonesian government has realized the importance of the
presence of MSMEs in Indonesia, including through the establishment of a special platform under
the Ministry of Cooperatives and Small and Medium Enterprises. This research aims to determine
and analyze the influence of leadership on the performance of MSME employees in Cirebon
Regency. The method used in this research is regression analysis with path diagrams, by testing
the outer model and the inner model using SmartPls. The sampling technique in this study uses
the Slovin formula so that the number of samples in this research is 280 employees who work in
the MSME sector in Cirebon Regency. The results of the study indicate that leadership has an
influence on the performance of MSME employees in Cirebon Regency. so that the managerial
implications that must be carried out by leaders in terms of improving employee performance are
increasing the role of leaders in terms of innovation, and motivating employees and paying
attention to the welfare of their employees.
Keywords: leadership; employee performance; MSME.
Wenty Febrianti, Budiman Abdulah
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DOI : 10.36418/jrssem.v2i2.250 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
INTRODUCTION
In Indonesia, MSMEs have a significant
role in increasing employment, the
formation of gross domestic product
(GDP), and providing a safety net, especially
for people affected by the financial and
economic crisis. The Indonesian
government considers the importance of
the existence of MSMEs in Indonesia, one
of which is by establishing a special forum
under the Ministry of Cooperatives and
SMEs (Munthe, 2022). Human resource
management for MSMEs is an important
skill that must be possessed by MSME
actors, indeed in general, MSME businesses
prioritize marketing and financial activities
because these two activities are
determinants of business growth, but if
examined further the role of HR
management is also important in the world
of MSMEs because human resources are
the main key.
Productivity and performance have a
relationship with human resources. Human
resources are very important in an
organization or company, because they are
the ones who will work together and
mobilize their resources to achieve
organizational goals. Therefore, it is
necessary to have quality human resources.
The factors that can be used to improve
performance include leadership (Pratama,
2022). (Hanifah et al., 2014) says that
leadership is a behavioral norm used by a
person when that person tries to influence
the behavior of others. Leaders are
important for all types of organizations and
have different roles in performing functions
within the organization, the goal of each
organization is to survive and maintain its
entity by improving performance (Arslan &
Staub, 2013). In the midst of the current
COVID-19 pandemic, the leader's role in
improving employee performance is very
necessary, because the impact caused by
this pandemic requires every sector of life
to carry out activities online, so that new
habits are implemented in the era of the
COVID-19 pandemic.
Table 1. Factors Causing Decrease in Employee Performance During the COVID-19 Pandemic
No.
Explanation
1.
2.
3.
4.
Employees feel uncomfortable and unsafe to work because the health
protocol regulations recommended by the Government during the
pandemic are not properly controlled, so that concerns arise for employees
that can interfere with performance.
Employees must adapt and start learning new habits