Title: Improving the business performance of women's micro and small enterprises: evidence from Indonesia

Authors: Ida Puspitowati; Carunia Mulya Firdausy; Sarwo Edy Handoyo; Medelina K. Hendytio

Addresses: Faculty of Economics and Business, Universitas Tarumanagara, Jl. S. Parman No. 1, Jakarta, 11480, Indonesia ' Research Centre for Industrial Economics, Services, and Trade, National Research Agency, Jakarta, 10270, Indonesia; Faculty of Economics and Business, Universitas Tarumanagara, Jl. S. Parman No. 1, Jakarta, 11480, Indonesia ' Faculty of Economics and Business, Universitas Tarumanagara, Jl. S. Parman No. 1, Jakarta, 11480, Indonesia ' Centre for Strategic and International Studies (CSIS), Jl. Tanah Abang III/27 Jakarta Pusat, Jakarta, 10160, Indonesia

Abstract: This study aims to investigate the determining factors to improve women's micro small enterprises (MSEs) business performance in Indonesia. An explanatory sequential design from mixed research methods was applied to analyse the quantitative data of questionnaires and qualitative data from field observation and focus group discussion to help explain or contextualise the quantitative findings. By applying partial least squares-structural equation modelling (PLS-SEM), we found that only access to finance, social networks, and product innovation have direct and significant effects on the business performance of women's MSEs. Furthermore, family support and the adoption of digitalisation have direct effects on product innovation. These two variables also indirectly affected women's MSEs business performance if mediated by product innovation. This study relied on the model constructed and was based on a cross-sectional design where all variables were subjective self-report variables obtained from a single source. Thus, caveats apply.

Keywords: business performance; family support; access to finance; digital adoption; product innovation; women's MSEs; Indonesia.

DOI: 10.1504/IJGSB.2025.151848

International Journal of Globalisation and Small Business, 2025 Vol.15 No.3, pp.327 - 360

Received: 19 Aug 2024
Accepted: 11 Apr 2025
Published online: 23 Feb 2026 *

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