Building Business Resilience of Small and Medium Enterprises Through Managerial Skills and Innovation on Second Wave of Covid-19 Pandemic (Study to Batik SMEs in East Java Indonesia)

Abstract

This research is to ascertain the moderating effect of innovation on the relationship between managerial skills and business resilience on small and medium Enterprises (SMEs) in second wave of the pandemic. This research approach is classified as quantitative research, the data is obtained by means of a questionnaire distributed to business operators directly or to the association. The study is descriptive statistics, regression analysis and Sobel test hypothesis. Determination of the sample to be used in this study using judgment sampling and obtained 134 appropriate data. The results of the study prove that innovation is a significant bridge between managerial skills and business resilience. Managerial skills have no significant effect on business resilience but significantly affect innovation. The study have implications for SMEs to innovate and adapt to environmental changes to maintain business continuity. Covid-19 has had an impact on the world's economic downturn in every industry sectors, especially those are in SMEs, and business resilience is a vital point to face the pandemic. The role of managers is much needed by SMEs, the ability of managers to create innovations with new values is expected to create organisational resilience.