• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.863-871
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• 2021

This study aims to document empirically the mediating role of corporate social responsibility (CSR) on the influence of competitive pressure toward business performance on the batik industry in Central Java, Indonesia. This study also examined the effect of competitive pressure and CSR on business performance of small- and medium-sized enterprises (SMEs) in the batik industry in Central Java. This study used an explanatory quantitative approach. Samples of 254 MSEs in the batik industry have been successfully collected. Hypothesis testing uses SEM-PLS. The results of this study indicate that competitive pressure has a positive and significant effect on the batik MSEs business performance in Central Java. Competitive pressure also has positive direct effect on corporate social responsibility, and CSR has a significant and positive direct effect on business performance. The results of this study have successfully documented empirically that CSR has a mediating role on the relationship of competitive pressure toward business performance in the batik MSEs in Central Java, Indonesia. This study provides a comprehensive understanding of the owners of the batik MSMEs in coping with competitive pressure by using CSR as a strategy to create uniqueness that is difficult to imitate and can create an organizational reputation that eventually can increase business performance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.327-338
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• 2020

This study wants to test the nexus among resource orientation, market orientation, social network, and knowledge sharing toward organizational innovation, and the nexus between organizational innovation and MSMEs performance. Questionnaires and interviews are conducted with some MSMEs actors in Central Java Province, Indonesia, in Klaten Regency and Pekalongan City. These two areas have creative MSMEs, especially Batik MSMEs that have been very large and known worldwide. The sampling technique is done purposively with certain criteria for the respondents. The data analysis technique is done using Partial Least Square. This study provides recommendations about strategic practice and policy (resource and market), social network, and knowledge sharing in increasing organizational innovation, and the impact of organizational innovation toward MSMEs performance. It also offers a comprehensive model of the determinant factor of organizational innovation by considering the aspect of strategic orientation, social network, and knowledge sharing. Other unique aspects that are also important to consider are social network and the importance of knowledge sharing in improving MSMEs Performance. The respondents are still limited in two areas, namely, Pekalongan and Klaten, so it still cannot represent the whole population. These areas also have different orientation of production process approach, namely, synthetic and natural dyes.