Tubagus, Ismail (2018) Leadership Issue and SME Performance during crisis. International Journal of Civil Engineering And Technology, 9 (4). pp. 424-435. ISSN 09766308, 09766316

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Abstract

This study aims to investigate the influence of proactive personality on creativity and cost cutting, the influence of creativity on innovation and investigates the influence of cost cutting and innovation resulted from manager who is proactive on performance at financial crisis time. Respondents in this study are 200 owners and managers of SME in Indonesia. AMOS 21 program used as an aid tool to solve any problems that may emerge in structural equation modelling (SEM). The result from this study states that proactive personality positively influences SME performance in financial crisis time by improving creativity, innovation and cost cutting. Some other results from this study state that proactive personality positively and significantly influences creativity. Creativity itself positively and significantly influences innovation. Proactive personality also positively and significantly influences cost cutting. In addition cost cutting and innovation performed by SME manager will finally improve SME performance. The result from this study is expected to be a reference in management in using its control that will influence the firm’s capability and furthermore it will influence the SME’s performance to maintain its competitive advantage. There is still a vague relationship between proactive personality and creativity, especially at financial crisis time. Less research has focused on examining how proactive personality influences employee creativity. Keywords: proactive personality, creativity, cost cutting, SME.

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