Modeling the Relationship between Management Practices and Economic Resilience in East Java's SMEs

Abstract

This study aims to analyze the relationship between management practices and economic resilience among Micro, Small, and Medium Enterprises (MSMEs) in East Java. Utilizing a quantitative approach, a survey was administered to 150 MSME owners to gather data regarding their implemented management practices and corresponding economic resilience indicators. The empirical findings indicate that sound management practices—specifically planning, organizing, and controlling—exert a significant positive influence on the economic resilience of MSMEs. Furthermore, well-planned and structured management practices contribute substantially to enhancing the competitiveness and long-term economic sustainability of MSMEs in East Java. The study also reveals that MSMEs adopting technology and managerial innovations exhibit greater capacity to withstand economic shocks. These findings offer critical insights for formulating MSME empowerment policies and optimizing management practices, thereby fostering broader regional economic resilience. Ultimately, this study is expected to serve as a valuable reference for researchers and policymakers dedicated to driving the growth of the MSME sector in Indonesia.