The Role of Manager Behavior in Explaining The Financial Planning And Financial Innovation of Small and Medium Enterprises

Abstract

The major weakness of SMEs is in financial management and marketing. These problems obstruct their growth and ability to plan and innovate their business. This study examines the influence of personality, financial culture, and competence on SMEs' innovation and financial planning. The sample was determined by proportional random sampling repose industry type, and 285 complete data were analyzed. Data were collected through a structured offline questionnaire. A quantitative analysis approach was followed using a structural equation model. The results show that financial planning is an effective mediator of personality, financial culture, and competencies toward financial innovation. Personality and financial culture do not directly affect financial innovation but indirectly affect financial planning. However, competence directly affects financial innovation and indirectly passes through financial planning. This paper argues that SMEs have the potential to overcome economic crises by focusing on how they manage finance innovation and considering determining factors of financial planning and innovation. Finally, this study contributes to the literature on SME financial behavior and factors such as personality, financial culture, and competencies that leads to the recommendation of SME owners/managers to innovate in accessing finance.

Stable habits and psychological attitudes in the behavior of people seeking financial well-being and pro-environmental behaviour

“…However, it was also revealed that most of these people retained the habit of saving resources in everyday life [44]. The habit of controlling cash flows both in private life and in business management correlates well with the habit of controlling the consumption of resources such as water, electricity, and heat consumption [45]. One of the reasons why habits are fundamentally difficult to "undo" is that they are controlled by other neural networks compared to intent-based behavior.…”

Pengaruh Harga Minyak Dunia, Kestabilan Politik Dan Suku Bunga Terhadap Nilai Tukar Di Indonesia

“…Secara sederhana, pengambilan keputusan untuk melihat tingkat normalitas residual atau data caranya adalah dengan melihat hasil dari nilai probablitity dan dibandingkan dengan tingkat alpha sebesar 0,05. Jika nilai probability lebih besar dari 0,05 maka dapat diputuskan bahwa data terdistribusi normal (Ismanto & Pebruary, 2021). Jika dilihat pada data Tabel 7 di atas, dapat diinterpretasikan bahwa terdapat pengaruh signifikan yang negatif antara harga minyak dunia pada nilai tukar.…”

“…Uji koefisien determinasi diterapkan untuk mengetahui tingkat besaran proporsi dari variabel dependen yang dapat dijelaskan oleh variabel independennya dalam suatu model regresi. Semakin tinggi nilai dari koefisien determinasi (nilai R-Squared) dalam suatu model regresi atau mendekati angka 1 maka semakin baik variabel independen dalam menjelaskan variabel dependennya begitu juga sebaliknya (Ismanto & Pebruary, 2021).…”