MSME Performance and Internal Capabilities: Managerial, Entrepreneurial, and Sustainability Perspectives

Abstract

Research aims:

This study examines the effects of gender, managerial skills, entrepreneurial behavior, and corporate sustainability on MSME performance in a post-pandemic urban context.

Design/Methodology/Approach:
A quantitative approach was applied using survey data from 336 MSME owners in Pekanbaru, Indonesia. The data were analyzed using Partial Least Squares–Structural Equation Modeling to test the proposed relationships.

Research findings:

Managerial skills, entrepreneurial behavior, and corporate sustainability positively and significantly affect MSME performance. Gender shows no significant effect, indicating that performance is driven more by internal capabilities than demographic characteristics.

Theoretical contribution/Originality:

This study extends the Resource-Based View by distinguishing strategic capabilities from contextual attributes and integrating multiple internal factors into a unified model. It also clarifies inconsistent findings in prior research within a post-pandemic setting.

Practitioner/Policy implication:

The findings highlight the importance of strengthening managerial competencies, encouraging entrepreneurial behavior, and integrating sustainability practices. MSME policies should focus on capability development rather than demographic factors.

Research limitation/Implication:

The study is limited to a single urban area and excludes external variables. Future research should include broader contexts and additional factors to improve generalizability