The Effect of KUR and BLT Programs on MSME Performance with Differentiation Strategy as A Mediation Variable

Kardi Kardi; Marice Br Hutahuruk; Leonardus Teguh Handoyo

doi:10.61230/interconnection.v2i1.89

Authors

Kardi Kardi Institut Teknologi dan Bisnis Master, Indonesia
Marice Br Hutahuruk Institut Teknologi dan Bisnis Master, Indonesia
Leonardus Teguh Handoyo Institut Teknologi dan Bisnis Master, Indonesia

DOI:

https://doi.org/10.61230/interconnection.v2i1.89

Keywords:

KUR, BLT, MSME Performance, Differentiation Strategy

Abstract

This study aims to examine the impact of the People's Business Credit (KUR) and Direct Cash Assistance (BLT) programs on MSME performance through differentiation strategy mediation. This study involved MSME actors in Salatiga City using a purposive sampling method to determine the sample. Data were processed using Partial Least Square- Structural Equation Modeling (PLS-SEM). The reported findings are that the KUR and BLT programs have a significant positive effect on differentiation strategies and also on MSME performance. It is also proven that differentiation strategies mediate the effect of KUR and BLT programs on MSME performance. This can be a reference for MSME actors to increase their business capital by using the KUR and/or BLT programs wisely to support the implementation of differentiation strategies to improve their business performance.

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