The role of characteristics and competencies in the business performance of functional beverage SMEs

Articles in Press
Authors
Nuning Setyowati 1
Kusnandar Kusnandar 2
Mohamad Harisudin 2
Erlyna Wida Riptanti 3
Isti Khomah 4
Rara Aulia Qonita 5
1 1) Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia, 2) Center for Study and Assistance for Cooperatives and Small-Medium Enterprises, Institute for Research and Community Service (LPPM), Universitas Sebelas Maret, Indonesia
2 Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret
3 1) Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret2) Center for Study and Assistance for Cooperatives and Small-Medium Enterprises, Institute for Research and Community Service (LPPM), Universitas Sebelas Maret, Indonesia
4 1Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia
5 Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia
Abstract
This study examines the effects of owner characteristics, product competence, and business capital on the business performance of SMEs in the functional beverage sector. It also investigates the mediating role of owner competence in the relationship between owner characteristics and business performance. Employing a quantitative approach, data were collected via a structured questionnaire from 105 functional beverage SMEs in Solo Raya, Indonesia. Structural Equation Modeling with Partial Least Squares was used for analysis. The results indicate that business capital and product competence significantly and positively influence business performance. Owner characteristics do not have a direct effect on business performance but influence it indirectly through full mediation by owner competence. The findings suggest that functional beverage entrepreneurs should enhance their self-competence encompassing knowledge, skills, and business experience, and strengthen business capital to improve performance. Additionally, developing entrepreneurial characteristics is crucial for boosting business outcomes through improved owner competence.

Keywords

Subjects

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Articles in Press, Accepted Manuscript
Available Online from 16 September 2025