MODEL DEVELOPMENT OF AFFECTING FACTORS ON BUSINESS SURVIVAL FOR MSME FASHION PASAR BARU BANDUNG IN THE COVID-19 PANDEMIC PERIOD

• Main Author: Anmila Syamsir, Fido
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72121
• Institution: Institut Teknologi Bandung

The coronavirus disease (Covid-19) pandemic has given some phenomena for MSMEs in the Indonesian and global economies, such as decreasing income, changing in consumption patterns, and decreasing in people's purchasing power. This situation encourages traders to respond by understanding the factors that influence business survival in times of crisis, such as the Covid-19 pandemic. The debate over factors influencing business survival continues to grow every day, so a model is needed that can describe actual and factual conditions, especially after the Covid-19 pandemic occurred. In addition, the models in previous research related to business survival still have not explained relationships for MSMEs in the fashion sector. Thus, these are of particular interest for this research to develop models of MSMEs in the fashion sector during the Covid-19 pandemic. Pasar Baru Bandung traders are MSME actors in the city of Bandung who market various products, both wholesale and retail. Currently, Pasar Baru Bandung traders are trying to get out of the crisis conditions experienced due to the impact of Covid-19. This is also triggered because knowledge in understanding the factors of business survival during a pandemic is inadequate. Therefore, this study will examine these factors, such as digitalization, product innovation, marketing innovation, managing employee’s satisfaction, customer demand, entrepreneurial self-efficacy, working capital management, government support, and business survival. There are 40 indicators used to test 9 latent constructs. Total of 97 data are collected. The data is processed using the PLS-SEM method with SmartPLS software. The research contribution lies in testing the factors obtained from the elaboration results of previous research models with the views of traders in Pasar Baru Bandung. The results of the study show that customer demand, working capital management, and government support have a positive correlation with business survival. On the other hand, marketing innovation has a negative correlation to business survival. Meanwhile, digitalization, product innovation, managing employee’s satisfaction, and entrepreneurial self-efficacy do not have any correlation with business survival. Last, government support does not have a role as moderator of the relationship between product innovation on business survival, marketing innovation on business survival, and working capital management on business survival.