The Influence of Organizational Climate and Market Orientation on Business Performance with Financial Literacy and Csr as Mediation in MSMES in Malang City

Abstract

Purpose: This study aims to describe the effect of organizational climate and market orientation on the performance of MSME businesses.
 
 Theoretical framework: In addition to financial literacy and corporate social responsibility (CSR) activities provided by the company seen as a mediating variable that has a significant effect on the previous relationship.
 
 Design/methodology/approach: This study uses a quantitative approach and to business people in the souvenir center in the Greater Malang area as many as 102 samples. Path data analysis is used with the help of Smart PLS.
 
 Findings: The results of research on organizational climate and market orientation are important drivers in improving MSME business performance. Furthermore, mediation through financial literacy and corporate CSR supports a significant relationship between organizational climate and market orientation towards improving their business performance.
 
 Research, Practical & Social implications: Organizational climate and market orientation are good variables and are a driving force for improving the performance of MSME businesses.
 
 Originality/value: This research is original. Carried out in Indonesia for MSMEs that are developing their business with a more modern pattern to achieve maximum performance through an organizational climate and market orientation supported by good financial literacy.