The Implications of Entrepreneurial Self-Efficacy (ESE) and Social Capital on Product Innovation Capability of SME’s Performance in Jatinangor Higher Education Area, West Java, Indonesia

Abstract

The presence of reliable SMEs (small and medium-sized enterprises) is a great necessity, especially in the ef-fort to absorb labour and its contribution to the growth of the gross domestic product. Through micro and small enterprises (MSME) that continue to develop, the country's economy will be strengthened in an attempt to improve the welfare of people. In a fairly dynamic market situation, the viability of small and medium-sized enterprises (SMEs) must continue to be sustained and improved more comprehensively by enhancing competitiveness and business performance. Product creativity, entrepreneurial self-efficacy (ESE) and social capital are considered to affect the successful market. This research aimed to determine the impact of entrepreneurial self-efficacy (ESE) and social capital on product innovation, and its implications for SME performance in the Jatinangor Higher Education Region, West Java. The results of the research indicated that, entrepreneurial self-efficacy (ESE) and social capital had a positive and significant impact on the capacity of innovation product at the same time, and that there were direct and indirect effects of entrepreneurial self-efficacy (ESE) and social capital on the performance of SMEs in the Jatinangor Higher Education Sector, West Java.