Citation:

Rr. Niken Purbasari, Anggita Tria Desy. "The Role of Intrinsic and Extrinsic Motivation in Mediating the Influence of ATM on Business Performance" International Research Journal of Economics and Management Studies, Vol. 3, No. 12, pp. 204-212, 2024.

Abstract:

This study aims to analyze the effect of attitude toward money on the business performance of MSMEs in Java, Indonesia, with the mediation of intrinsic and extrinsic motivation. The underlying theory of this research is the Theory of Early Entrepreneur Performance and Self-Determination Theory. The population in this study were all MSME owners in several Java Island, Indonesia regions. This study used a convenience sampling technique, with a total sample of 132 MSME owners. The research instrument used was a questionnaire with a Likert scale and SEM-PLS analysis method. The results of this study indicate that attitudes toward money, intrinsic motivation, and extrinsic motivation directly influence business performance. The findings also explain that intrinsic and extrinsic motivations act as mediators that strengthen the relationship between the effect of attitude toward money on business performance. The originality of this study concludes that micro-entrepreneurs have intrinsic and extrinsic motivations comparable in orientation. These findings reinforce the findings of previous research and present a different perspective from existing research, which concludes that entrepreneurs have a strong interest or drive to manage a business due to the presence of intrinsic motivation, not extrinsic motivation.

References:

[1] Adi Ahdiat. (2022, October 11). Indonesia Punya UMKM Terbanyak di ASEAN, Bagaimana Daya Saingnya? Databoks, from https://databoks.katadata.co.id/ekonomimakro/statistik/2c7a123af18312b/indonesia-punya-umkm-terbanyak-di-aseanbagaimana-daya-saingnya
[2] Deci, E. L., Olafsen, A. H., & Ryan, R. M. (2017). Self-Determination Theory in Work Organizations: The State of a Science. Annual Review of Organizational Psychology and Organizational Behavior, 4, 19–43. https://doi.org/10.1146/ANNUREV-ORGPSYCH-032516-113108
[3] Development of Micro, Small, and Medium Enterprises in ASEAN (MSME) - ASEAN Main Portal. Retrieved June 29, 2024, from https://asean.org/ourcommunities/economic-community/resilient-and-inclusive-asean/development-of-micro-small-and-medium-enterprises-in-asean-msme/
[4] Eniola, A. A., & Entebang, H. (2017). SME Managers and Financial Literacy. Global Business Review, 18(3), 559–576. https://doi.org/10.1177/0972150917692063
[5] Fishbach, A., & Woolley, K. (2022). The Structure of Intrinsic Motivation. Annual Review of Organizational Psychology and Organizational Behavior, 9, 339–363. https://doi.org/10.1146/ANNUREV-ORGPSYCH-012420-091122
[6] Fitria, I., Soejono, F., & Tyra, M. J. (2021). Literasi keuangan, sikap keuangan dan perilaku keuangan dan kinerja UMKM. https://doi.org/10.14414/jbb.v11i1.2496
[7] Folan, P., Browne, J., & Jagdev, H. (2007). Performance: Its meaning and content for today’s business research. Computers in Industry, 58(7), 605–620. https://doi.org/https://doi.org/10.1016/j.compind.2007.05.002
[8] Hendra Komara dan Anton, A. (2024). Pengaruh Motivasi Intrinsik dan Motivasi Ekstrinsik Terhadap Kinerja Karyawan Bagian Penjualan pada CV Metropolita Pekanbaru
[9] Irin Fitria, F. S. M. J. T. (2021). Literasi keuangan, sikap keuangan dan perilaku keuangan dan kinerja UMKM. Journal of Business and Banking, Volume 11 Number 1, 5. https://doi.org/10.14414/jbb.v11i1.2496
[10] Leite, D., Monteiro, C., Peñaloza, V., Pinto, F. R., & Del Carmen, M. (2013). Attitudes towards money and motivational orientation to work in Brazilian young workers. In Contaduría y Administración (Vol. 60, Issue 1)
[11] Rusnawati, K. (2022). Pengaruh literasi keuangan, perilaku keuangan, dan sikap keuangan terhadap kinerja keuangan usaha mikro, kecil, dan menengah di Kota Makassar. SEIKO: Journal of Management & Business, 5(2), 253–261. https://doi.org/10.37531/SEJAMAN.V5I2.2206
[12] Locke, E. A., & Schattke, K. (2019). Intrinsic and extrinsic motivation: Time for expansion and clarification. Motivation Science, 5(4), 277–290. https://doi.org/10.1037/MOT0000116
[13] Majied, M., Saragih, S., Saragih, U. H., & Ilham, R. N. (2021). Relationship Between Motivation and Extrinsic Motivation to Icreasing Entrepreneurship Implementation from SPP Al-Falah Group at Blok 10 Village Dolok Masihul
[14] Mardanov, I. (2020). Intrinsic and extrinsic motivation, organizational context, employee contentment, job satisfaction, performance and intention to stay. Evidence-Based HRM, 9(3), 223–240. https://doi.org/10.1108/EBHRM-02-2020-0018
[15] Morris, L. S., Grehl, M. M., Rutter, S. B., Mehta, M., & Westwater, M. L. (2022). On what motivates us: a detailed review of intrinsic v. extrinsic motivation. Psychological Medicine, 52(10), 1801. https://doi.org/10.1017/S0033291722001611
[16] Purbasari Niken, R., Thoyib, A., & Irawanto, D. W. (2022). The Mediating Role of Motivation and Its Relationship with performance.17.https://www.researchgate.net/publication/371489687_The_Mediating_Role_of_Motivation_And_Its_Relationship_With_ Performance
[17] Potrich, A. C. G., Vieira, K. M., & Mendes-Da-Silva, W. (2016). Development of a financial literacy model for university students. Management Research Review, 39(3), 356–376. https://doi.org/10.1108/MRR-06-2014-0143
[18] Purbasari, N. (2022). Pengaruh Attitude Toward Money and Locus of Control Terhadap Motivasi Wirausaha dan Kinerja Bisnis (Studi pada Wirausaha Mahasiswa Perguruan Tinggi di Jakarta)
[19] Purbasari, R. N., & Septian, T. A. (2017). Factors Influencing on Employee Performance of Production Department on the Manufacturing Food Industry in Indonesia. Polish Journal of Management Studies, 16(2), 233–242. https://doi.org/10.17512/PJMS.2017.16.2.20
[20] Putri Mellinia, S., Budiarti, L., Ulfah, P., Akuntansi, J. R., & Keuangan, D. (2023). Pengaruh Literasi Keuangan, Sikap Keuangan, dan Perilaku Pengelolaan Keuangan terhadap Kinerja UMKM. Jurnal Riset Akuntansi Dan Keuangan, 11(3), 549–568. https://doi.org/10.17509/jrak.v11i3.52018
[21] Ryan, R. M., & Deci, E. L. (2000). Self-Determination Theory and the Facilitation of Intrinsic Motivation, Social Development, and Well-Being SelfDetermination Theory
[22] Sesini, G., & Lozza, E. (2023). Understanding Individual Attitude to Money: A Systematic Scoping Review and Research Agenda. Collabra: Psychology, 9(1). https://doi.org/10.1525/collabra.77305
[23] Sink, S. (1984). Productivity measurement and evaluation: What is available? National Productivity Review. https://www.academia.edu/65921412/Productivity_measurement_and_evaluation_What_is_available
[24] Soares, A. da C. (2023). The Effect of Business Strategy on Business Performance Moderated by Environmental Dynamics (Study on SMEs in Timor Leste). International Journal of Multicultural and Multireligious Understanding, 10(1), 352–364. https://doi.org/10.18415/IJMMU.V10I1.4401
[25] Soelton, M., Wahyono, T., Oktaviar, C., Arief, H., Saratian, E. T. P., Cahyawati, I., & Syah, T. Y. R. (2021). Job Insecurity Anomaly on Turnover Intention and Employee Performance in The Organization Heavy Equipment Transportation Services. European Journal of Business and Management Research, 6(2), 211–216. https://doi.org/10.24018/EJBMR.2021.6.2.822
[26] Sonnentag, S., Volmer, J., & Spychala, A. (2008). Job performance. The Sage Handbook of Organizational Behavior: Volume I - Micro Approaches, 427–450. https://doi.org/10.4135/9781849200448.N24
[27] Srimulyani, V. A., Hermanto, Y. B., Rustiyaningsih, S., & Setiyo Waloyo, L. A. (2023). Internal factors of entrepreneurial and business performance of small and medium enterprises (SMEs) in East Java, Indonesia. Heliyon, 9(11). https://doi.org/10.1016/j.heliyon.2023.e21637
[28] Srivastava, A., Locke, E. A., & Bartol, K. M. (2001). Money and subjective wellbeing: It’s not the money, it’s the motives. Journal of Personality and Social Psychology, 80(6), 959–971. https://doi.org/10.1037/0022-3514.80.6.959
[29] Sugiharjo, R. J., Niken Purbasari, R., Rahmat, A., & Paijan, P. (2023). The Role of the Work Environment as a Mediation for the Effect of Leadership Style on the Performance of Banking Institution Employees. 5(1). https://doi.org/10.31933/dijms.v4i6
[30] Sukamdani, N. B., & Kholil, K. (2023). Effects of motivation and infrastructure on MSME (Micro Small Medium Enterprise) performance in the time of COVID-19 pandemic. Human Geographies, 17(2), 205–224. https://doi.org/10.5719/hgeo.2023.172.6
[31] Triswanto, H., Yunita, L., Ilmu, T., Lmii, E., Kolam, J., Baru, K., Percut, K., Tuan, S., & Serdang, K. D. (2021). The Influence of Intrinsic Motivation and Extrinsic Motivation on Employee Performance Productivity of PT. Weigh Deli Indonesia.1(2),155–161. http://jecombi.seaninstitute.org/index.php/JECOMBI/indexr155Journalhomepage:http://jecombi.seaninstitute.org/index.php/JECOMBI

Keywords:

Attitude Toward Money, Intrinsic Motivation, Extrinsic Motivation, Business Performance, MSMEs.