Socio cultural mediation is the link between achievement motivation, risk taking, self-efficacy and employee performance in MSMES

Abstract

Purpose The aim of this study was conducted to determine the direct influence of the variables need for achievement, risk-taking and self-efficacy on performance, mediated by socio-cultural factors. Design/methodology/approach The study involved 60 respondents from various SMEs in West Sumatra. The modelling technique used was partial least squares structural equation modelling. Findings There is also a direct influence of the variables need for achievement, risk-taking and self-efficacy on socio-cultural factors. However, the simultaneous influence mediated by socio-cultural variables shows that there is no influence among the existing latent variables. Research limitations/implications This study has limitations in the relatively small sample size (60 respondents), and the geographical scope is limited to one province, so generalising the results should be done with caution. Practical implications SME entrepreneurs need to strengthen their risk-taking mentality and self-efficacy. Socially, reinforcing socio-cultural factors that support productivity can help create a more resilient business ecosystem in the region. Social implications SME entrepreneurs need to strengthen their risk-taking mentality and self-efficacy. Socially, reinforcing socio-cultural factors that support productivity can help create a more resilient business ecosystem in the region. Originality/value This research adds value by integrating socio-cultural factors as mediating variables in the entrepreneurial behaviour model within the local culture context of West Sumatra.