SME GOVERNANCE AND STAFFS EMPOWERMENT ON SMEs PERFORMANCE IN SEMARANG

Abstract

This study aims to determine the effect of employee empowerment and good corporate
governance to company performance, particularly on small and medium enterprises
(SMEs). SMEs for these long are more important in promoting economic growth, therefore
increasing the performance of SMEs needed to get the most attention in this study.
Study sample was 101 managers or small business owner with a purposive sampling
technique sampling. Data collection method is done by using a questionnaire. Based on
the results of research using moderating regression analysis (RMA), employee
empowerment has a significant effect on the performance of the company. Corporate
governance has a significant effect on the performance of the company. Interaction of
employee empowerment and corporate governance does not affect the performance of the
company, in the sense that corporate governance is not able to moderate the relationship
empowering employees with the company’s performance.
Key Words: Empowerment of employees, Corporate Governance, Performance, SMEs