TY - JOUR AU - Nurul Hermina, AU - Taufan Muhamad Syahvianto, AU - Budi Yansa, PY - 2020/12/12 Y2 - 2024/03/29 TI - SECOND ORDER MODEL STRUCTURAL EQUATION MODELING FOR ANALYZING EXTERNAL ENVIRONMENTAL AND CAPABILITY ON COMPANY PERFORMANCE OF SMALL AND MEDIUM ENTERPRISE (SME) IN INDONESIA JF - PalArch's Journal of Archaeology of Egypt / Egyptology JA - J Arch.Egyptol VL - 17 IS - 5 SE - DO - UR - https://archives.palarch.nl/index.php/jae/article/view/2855 SP - 562-580 AB - <p>This study aims to explain the influence of the external environment on capability and their<br>impact on the performance of small and medium enterprise (SME). The research method used<br>is descriptive verification with a survey approach. Through online survey, 52 SMEs obtained<br>data with their observation unit being the owner of the enterprise or their supervisor. The<br>second order structural equation modeling model is used to prove the research hypothesis that<br>there is an influence from the external environment on capability and the impact on the<br>performance of SMEs. The second order approach is able to provide information on the level<br>of importance of each dimension not only research indicators. The results of the analysis<br>found that there is an influence of the external environment variable on capability but did not<br>have a direct effect on the performance of SME businesses. Capability variable gives a<br>significant influence on the performance of SME enterprise, so that the external environment<br>variable gives an indirect effect on the performance of SME.</p> ER -