The Influence of Spirituality on Business Performance is Mediated by Loan Repayment Commitments and Moderated by MSE Business Innovation
Phd Student of the Universitas Negeri Malang (UM), Fakultas Ekonomi dan Bisnis, Pendidikan Doktor Ilmu Manajemen, Jl. Semarang 5 Malang 65145, Indonesia and lecturer Institut Agama Islam Al Khairat Pamekasan Jawa Timur, Jl. Raya Palengaan No.2, Bunut, Plakpak, Kec. Pegantenan, Kabupaten Pamekasan, Jawa Timur 69361, Indonesia
Heri Pratikto
Professor of Universitas Negeri Malang (UM), Fakultas Ekonomi dan Bisnis, Jl. Semarang 5 Malang 65145, Indonesia
F. Danardana Murwani
Professor of Universitas Negeri Malang (UM), Fakultas Ekonomi dan Bisnis, Jl. Semarang 5 Malang 65145, Indonesia
Puji Handayati
Professor of Universitas Negeri Malang (UM), Fakultas Ekonomi dan Bisnis, Jl. Semarang 5 Malang 65145, Indonesia
Abstract
This research aims to analyze and evaluate how company performance in micro and small enterprises (MSEs) in the food and beverage industry is influenced by spirituality. This research used a sample of 12,452 MSEs using quantitative techniques with hierarchical regression analysis. The five-scale model adopted and updated by previous researchers serves as an instrument with Structural Equation Modeling (SEM), which is used to analyze the data. The findings show that MSE business performance is not directly influenced by spirituality. On the other hand, spirituality significantly increases loan repayment commitment. MSE business performance is not affected by loan repayment obligations. Through loan repayment commitments, business innovation mediates and strengthens the impact of spirituality on MSE business performance. The research concludes that the influence of spirituality on the success of MSE companies is mediated by dedication to loan repayment. The results show that two important factors that influence MSE business performance are spirituality and business innovation.