The Implications of Entrepreneur self-efficacy (ESE) and Social Capital on product innovation capability of SME’s performance in Jatinangor Higher Education Area, West Java, Indonesia
Komarudin (a), Suryana (b)

(a) Management Science Doctoral Program, Post-Graduate School, UPI Bandung West Java, Indonesia

(b) A Professor at Management Science Doctoral Program, Post-Graduate School, UPI Bandung West Java, Indonesia

Abstract

The existence of a reliable SME’s is needed, especially in efforts to absorb labor and its contribution to increasing gross domestic product. Through micro and small businesses that continue to grow will be able to strengthen the countrys economy in an effort to improve peoples welfare. In a fairly dynamic market condition, the sustainability of SME’s must continue to be maintained and enhanced more comprehensively through enhancing competitiveness and business performance. Their business performance is thought to be influenced by product innovation, entrepreneurial self-efficacy (ESE) and social capital. This study aims to determine the effect of entrepreneurial self-efficacy (ESE) and social capital on product innovation and its implications for SME’s performance in the Jatinangor Higher Education Area, West Java. The results of the study stated that entrepreneurial self-efficacy (ESE) and social capital simultaneously had a positive and significant effect on the ability of product innovation, and there were direct and indirect effects of entrepreneurial self-efficacy (ESE) and social capital on the performance of SME’s in Jatinangor Higher Education Area, West Java.

Keywords: Entrepreneur self-efficacy (ESE), Social Capital, SME (Small Medium Enterprise), product innovation

Topic: Strategic Management, and Entrepreneurship