The Role of Perceived Organizational Support, Corporate Social Responsibility and Work Ethics on Smes Performance

Abstract

Objective: The aim of this research is to analyze the relationship between perceived organizational support on performance, corporate social responsibility on performance and work ethics on SMEs performance. This research highlights the importance of perceived organizational support, corporate social responsibility and work ethics in improving SMEs performance   Method: This research uses a quantitative approach with a survey method by distributing questionnaires. The respondents of this research are 490 SMEs owners in Indonesia. The selection of respondents for this research will use convenience sampling. The instrument will be measured using a Likert scale with an interval of 1 to 5. Data analysis is carried out using the Partial Least Square (PLS) method using SmartPLS version 3 software. PLS is one of the partial least square Structural Equation Modeling (SEM) completion methods which in this case is more compared to other SEM techniques.   Results: The results of the analysis show the p value < 0.50 and T value > 1.96 so that hypothesis 1 is accepted, namely perceived organizational support has a positive and significant relationship with performance, the p value < 0.50 and T value > 1.96 so that hypothesis 2 is accepted, namely corporate social responsibility has positive and significant relationship to performance and p value < 0.50 and T value > 1.96 so that hypothesis 3 is accepted, namely work ethics has a positive and significant relationship to performance.   Conclusion: The results of the analysis show that perceived organizational support has a positive and significant relationship to performance, corporate social responsibility has a positive and significant relationship to performance and work ethics has a positive and significant relationship to performance. Companies can increase perceived organizational support, CSR and work ethics by improving environmental, social and economic performance, which can ultimately improve company performance. CSR is aimed at stakeholders, must be able to meet the expectations and needs of stakeholders. CSR activities can improve the company's image, because external stakeholders provide a good assessment of the company, as a result more consumers will buy the company's products or services so that the company's financial performance will increase.