IJEBMR
ISSN: 2456-7760

Title:
IMPROVING FINANCIAL PERFORMANCE THROUGH EMPLOYEE PRODUCTIVITY IN SMALL AND MEDIUM ENTERPRISES

Authors:
Hadi Ismanto, Indonesia

Abstract:
SME owners are expected to continue to improve the company's performance to sustain the survival of its business. SMEs only focus on short-term income, regardless of the profit or loss they earn. This condition is certainly a contradiction for the businessmen, because every craftsman wants maximum profit and the maximum financial performance. SMEs do not have good financial reports, so there is not much research on SME finance. This study aims to verify the influence of organizational culture, motivation, and product quality on employee productivity and employee productivity affecting the financial performance of SMEs. The population in this study were as many as SME owners in Central Java Province, Indonesia, and the number of samples used was 150 samples. The results showed that organizational culture, motivation, and product quality had a positive effect on employee productivity, and productivity of employees was positively influencing the financial performance of SMEs in Central Java Province, Indonesia.

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