The Moderating Role of Financial Accessibility in Relationship between Resource Competence, Entrepreneurial Leadership, Good Governance and Performance of Micro Small Medium Enterprises in Batam, Indonesia

Abstract

The purpose of this study is to determine the relationship of resource competence, entrepreneurial leadership and good governance towards business performance and examine the moderating role of financial accessibility to the business performance of Micro Small Medium Enterprises (MSMEs). This quantitative research involved 155 professional business women community (MSMEs), Batam, Riau, Indonesia. The data collected through a survey questionnaire with a non-probability sampling technique. The data analysed by using the structural equation modelling – partial least square (SEM-PLS). This study showed that resource competence, entrepreneurial leadership, and good governance have a significant positive relationship with Micro Small Medium Enterprises (MSMEs). Also, financial accessibility moderates the relationship between entrepreneurial leadership and performance. In conclusion, this study has successfully identified the determinant factors that affect the business performance and moderating role of financial accessibility on business performance for Micro Small Medium Enterprises (MSMEs).