STRUCTURE CONDUCT PERFORMANCE MODELING FOR MSMe SUSTAINABILITY IN BEKASI REGION INDONESIA

Abstract

This research tackles the critical issue surrounding the sustainable development challenges in various Bekasi regions Indonesian, focusing on how the provincial differences in structural composition, organizational behavior, and performance evaluation systems are relevant to innovation and sustainability capabilities. The study seeks to analyze the correlations among organizational structure and conduct, performance outcomes, innovations, and sustainability within the geographic boundaries of Indonesian provinces. Using panel data for 34 provinces from 2018 to 2022, this research analyzed the data using SmartPLS to test 10 hypotheses on direct and indirect relationships between the variables. The results showed that organizational structure has the most substantial direct effect on innovation and sustainability. Innovation is also a significant intervening variable, especially in the structure's sustainability relationship. While both conduct and performance positively affect innovation and sustainability, the total effect is lower, and the relative effects through innovation are minor, although at a statistically significant level. This strategy will likely simplify economic growth in the remaining provinces, thus increasing the internal economic balance. In other words, it will standardize the variations of development through uniform sustainability initiatives, which will, in turn, help enhance harmony among the regions while encouraging growth in areas that need it.