The Mediating Effect of Operational Performance on the Relationship of Entrepreneurship Toward Financial Performance. A case of Hand Drawn Batik Industry in East Java, Indonesia

DOI

10.2991/icoi-17.2017.14How to use a DOI?

Keywords

Entrepreneurship, operational performance, financial performanc, hand drawn, batik industry.

Abstract

Indonesia has been well known for it's beautiful batik. In fact UNESCO has been awarded batik Indonesia as a masterpiece of oral and intangible heritage of humanity. UNESCO insisted that Indonesia must preserve its heritage. Batik has been part of creative economy in Indonesia. Jawa Timur province had many batik industrial center spreaded in several city, such as Madura, Sidoarjo, Tuban, Tulungagung, etc. Batik, especially hand drawn batik company in Indonesia usually run by entrepreneur of small company. The success of financial performance in hand drawn batik industry was supposedly the result of entrepreneurship of batik company owner / manager, and good operational performance in their internal business process. This study focused on the mediating effect of operational performance on the relationship of entrepreneurship toward financial performance in batik hand drawn industry in East Java Province in Indonesia. This study used quantitative approach. The sample of this study was 111 small business batik company, and analyzed using Warp PLS. Result of the study showed that operational performance mediated the relatioship between entrepreneurship and financial performance. The result of this study contributed input to the policy maker in East Java Province government abot developing sustainable and successful batik industry to boost creative economic activity in East Java Province. This study also gave a contribution in management accounting area especialy about factor that giving impact to financial performance in batik industry.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Noorlailie Soewarno
AU  - Bambang Tjahjadi
PY  - 2017/07
DA  - 2017/07
TI  - The Mediating Effect of Operational Performance on the Relationship of Entrepreneurship Toward Financial Performance. A case of Hand Drawn Batik Industry in East Java, Indonesia
BT  - Proceedings of the 2017 International Conference on Organizational Innovation (ICOI 2017)
PB  - Atlantis Press
SP  - 85
EP  - 88
SN  - 1951-6851
UR  - https://doi.org/10.2991/icoi-17.2017.14
DO  - 10.2991/icoi-17.2017.14
ID  - Soewarno2017/07
ER  -