Open AccessTHE BEHAVIOURAL DIMENSION OF SME’S OWNER ON AFFECTING THE FINANCIAL DECISIONS
Author(s) -
Bayu Sindhu Raharja,
Nia Kurniati Bachtiar,
Muhammad Ridhwan Ab. Aziz
Publication year - 2022
Publication title -
verslas: teorija ir praktika
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.369
H-Index - 17
eISSN - 1822-4202
pISSN - 1648-0627
DOI - 10.3846/btp.2022.13513
Subject(s) - business , dimension (graph theory) , investment (military) , marketing , stakeholder , enforcement , finance , logistic regression , multilevel model , variables , investment decisions , sample (material) , sustainability , economics , behavioral economics , management , chemistry , mathematics , chromatography , machine learning , politics , political science , computer science , pure mathematics , law , ecology , biology , medicine
This research seeks the effect of behavioural and non-behavioural factors of SME’s owners and their business characteristic on the financing decisions. Moreover, this research categorized SMEs owners based on their behavioural aspects on establishing a behavioural mapping in SMEs industry. The sample of this research is the informal SMEs owners in Surakarta, Central Java, Indonesia. In investigating the relationship of the independent variable on financial decision making, this research employed the hierarchical linear multiple regression model (HLMR) and multiple logistic regression (LR). Furthermore, this research employed cluster analysis for building a behavioural mapping in SMEs industry. This study discovered a significant effect of behavioural aspects of SME’s owners on the financing decisions, which is, instead of having significant enforcement on the financing decisions, the non-behavioural aspects were more likely impacted on the SMEs owners’ investment decisions. The finding shows that there are three significant groups of SMEs owners in the Surakarta region. The result of this research gives key insights, mainly to the involved stakeholder to keep the sustainability of the SMEs industry.