THE EFFECT OF PERFORMANCE ON CAPITAL INVESTMENT DECISIONS (Case Study on Micro, Small and Medium Enterprises Assisted by the West Java Chamber of Commerce and Industry in Bandung)
Keywords:
performance, capital investment decisions, companyAbstract
This study aims to determine the effect of performance on capital investment decisions, in Micro, Small and Medium Enterprises (MSMEs) assisted by the West Java Chamber of Commerce and Industry (Kadin Jabar) in Bandung. The research method applied is in the form of a descriptive analytical survey method, while the sample used is 32 MSME respondents. The variables studied from each respondent are performance and capital investment decisions. The type of data collected is primary data. The results of the study identify that performance does not have a significant effect on capital investment decisions. The object of this research is the sample of respondents used which is still limited to SMEs assisted by the West Java Chamber of Commerce in Bandung, therefore it is necessary to do further research based on more varied sampling with a longer duration, so that generalizable results are obtained.
Downloads
References
Tobin, J., Money and economic growth. Econometrica: Journal of the Econometric Society, 1965: p. 671-684.DOI: https://doi.org/10.2307/1910352.
Cooremans, C., Investment in energy efficiency: do the characteristics of investments matter?Energy Efficiency, 2012. 5(4): p. 497-518.DOI: https://doi.org/10.1007/s12053-012-9154-x.
Staw, B.M., P.I. McKechnie, and S.M. Puffer, The justification of organizational performance.Administrative science quarterly, 1983: p. 582-600.DOI: https://doi.org/10.2307/2393010.
Leonidou, L.C., et al., Internal drivers and performance consequences of small firm green business strategy: The moderating role of external forces. Journal of business ethics, 2017. 140(3): p. 585-606.DOI: https://doi.org/10.1007/s10551-015-2670-9.
Kotler, P., W. Gregor, and W. Rodgers, The marketing audit comes of age. Sloan Management Review, 1977. 18(2): p. 25-43.
Sauaia, A.C.A. and F.H.F. Castro. Is Tobin's Q a Good Indicator of a Company's Performance?
Taouab, O. and Z. Issor, Firm performance: Definition and measurement models. European Scientific Journal, 2019. 15(1): p. 93-106.DOI: https://doi.org/10.19044/esj.2019.v15n1p93.
Deberdieva, E.M., Key performance indicators as an instrument of achieving strategic indicators of oil and gas producers. Mediterranean Journal of Social Sciences, 2015. 6(3 S3): p. 19-19.DOI: https://doi.org/10.5901/mjss.2015.v6n3s3p19.
Njoroge, C.W. and J.M. Gathungu, The effect of entrepreneurial education and training on development of small and medium size enterprises in Githunguri District-Kenya. International Journal of Education and research, 2013. 1(8): p. 1-22.
Samli, A.C., J.P. Kelly, and H.K. Hunt, Improving the retail performance by contrasting management-and customer-perceived store images: A diagnostic tool for corrective action. Journal of Business Research, 1998. 43(1): p. 27-38.DOI: https://doi.org/10.1016/S0148- 2963(98)00008-3.
Wezel, A., et al., Agroecology as a science, a movement and a practice. A review. Agronomy for sustainable development, 2009. 29(4): p. 503-515.DOI: https://doi.org/10.1051/agro/2009004.
Indris, S. and I. Primiana, Internal and external environment analysis on the performance of small and medium industries SMEs in Indonesia. International journal of scientific & technology research, 2015. 4(4): p. 188-196.
Covin, J.G. and D.P. Slevin, A conceptual model of entrepreneurship as firm behavior. Entrepreneurship theory and practice, 1991. 16(1): p. 7-26.DOI: https://doi.org/10.1177/104225879101600102.
Ma, J. and Y. Yan, Design and evaluation of electrostatic sensors for the measurement of velocity of pneumatically conveyed solids. Flow Measurement and Instrumentation, 2000. 11(3): p. 195- 204.DOI: https://doi.org/10.1016/S0955-5986(00)00019-4.
Chenhall, R.H. and K. Langfield-Smith, Multiple perspectives of performance measures. European management journal, 2007. 25(4): p. 266-282.DOI: https://doi.org/10.1016/S1048-9843(99)00043- 0.
Connelly, M.S., et al., Exploring the relationship of leadership skills and knowledge to leader performance. The Leadership Quarterly, 2000. 11(1): p. 65-86.DOI: https://doi.org/10.1016/j.emj.2007.06.001.
Weill, P. and S. Aral, Generating premium returns on your IT investments. MIT Sloan Management Review, 2006. 47(2): p. 39.
Rau, L.F. Extracting company names from text. IEEE Computer Society.
Kitzing, L., et al., A real options approach to analyse wind energy investments under different support schemes. Applied Energy, 2017. 188: p. 83-96.DOI: https://doi.org/10.1016/j.apenergy.2016.11.104.
Naik, N.Y., T. Ramadorai, and M. Stromqvist, Capacity constraints and hedge fund strategy returns. European Financial Management, 2007. 13(2): p. 239-256.DOI: https://doi.org/10.1111/j.1468-036X.2006.00353.x.
Majd, S. and R.S. Pindyck, Time to build, option value, and investment decisions. Journal of financial Economics, 1987. 18(1): p. 7-27.DOI: https://doi.org/10.1016/0304-405X(87)90059-6.
Iwayan, J. and P.I.B. Anom, The effect of financial performance on stock return at manufacturing company of Indonesia stock exchange. Russian Journal of Agricultural and Socio-Economic Sciences, 2020. 97(1).DOI: https://doi.org/10.18551/rjoas.2020-01.02.
Bodnaruk, A. and A. Simonov, Do financial experts make better investment decisions? Journal of financial Intermediation, 2015. 24(4): p. 514-536.DOI: https://doi.org/10.1016/j.jfi.2014.09.001.
Karnawiredja, R.A.M., L. Hidayat, and M. Effendy, Effect of Financial Performance on Fixed Asset Investment. Jurnal Ilmiah Manajemen Kesatuan, 2013. 1(3): p. 263-272.DOI: https://doi.org/10.37641/jimkes.v1i3.275.
Nora, A., L.C. Attinasi Jr, and A. Matonak, Testing qualitative indicators of precollege factors in Tinto's attrition model: A community college student population. The Review of Higher Education, 1990. 13(3): p. 337-355.DOI: https://doi.org/10.1353/rhe.1990.0021.
Leek, J.T. and J.D. Storey, Capturing heterogeneity in gene expression studies by surrogate variable analysis. PLoS genetics, 2007. 3(9): p. e161.DOI: https://doi.org/10.1371/journal.pgen.0030161.
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.