Studi Keberlanjutan Industri Kecil dan Menengah Berbasis Kearifan Lokal di Kota Denpasar

Abstrak

Small and Medium Industries are the foundation of the people's economy which plays a role in channeling the creative and innovative spirit into superior products and local wisdom. This research aims to analyze the sustainability study of local wisdom-based SMEs in Denpasar City. This research uses an associative quantitative approach with primary data from 144 respondents. Using the purposive sampling method and the data analysis technique used in this research is SEM Partial Least Square. The research results show that social capital, entrepreneurial orientation and local wisdom have a positive and significant effect on business performance, while the role of government does not have a significant effect on business performance. The role of government, social capital, entrepreneurial orientation, and business performance have a positive and significant effect on the sustainability of SMEs. Local wisdom moderates the influence of social capital on SME business performance. Meanwhile, social capital and entrepreneurial orientation have an indirect effect on sustainability through business performance, while the role of government has no indirect effect on sustainability through SME business performance.