Optimizing the Performance Of MSME Actors Through Creativity

Abstract

This study aims to analyze the influence of competence and innovation on the performance of micro-enterprise actors, with creativity as an intervening variable, in Kelambir Lima Kebun Village, Hamparan Perak District, Deli Serdang Regency. The research applies a quantitative approach with a causal associative design. The population consists of 83 active micro, small, and medium enterprise (MSME) actors in the village, all of whom were selected as the sample using a saturated sampling technique, so the entire population was studied. Primary data were collected through a five-point Likert scale questionnaire, while secondary data were obtained from official village documents, reports from the Office of Cooperatives and MSMEs, and relevant literature. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to test both direct and indirect relationships among the variables.

The results show that (1) competence has a positive and significant effect on MSME performance, (2) innovation has a positive and significant effect on performance, (3) competence positively and significantly affects creativity, (4) innovation positively and significantly affects creativity, and (5) creativity positively and significantly affects performance. Moreover, creativity partially mediates the influence of competence and innovation on MSME performance. These findings highlight the importance of enhancing competence and innovation as key factors in improving performance, with creativity serving as an additional driver that strengthens the success of micro-enterprise development.