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THE ROLE OF REGIOCENTRIC SMALL MEDIUM BUSINESS ADVANTAGE IN INCREASING REGIONAL REVENUE OF BREBES REGENCY

Abstract

This study examines regiocentric small and medium-sized enterprises (SMEs) and the impact of their products on regional revenue in Brebes Regency. Data were analyzed using Structural Equation Modeling (SEM) with the assistance of AMOS version 22. The findings indicate that product configuration capabilities, entrepreneurial orientation, and market orientation have a significant influence on the performance of regiocentric SMEs. Furthermore, regional revenue is significantly affected by the performance of regiocentric SMEs, product configuration capabilities, entrepreneurial orientation, and market orientation. Hypothesis testing results show that all proposed hypotheses are supported, as indicated by critical ratio (CR) values exceeding 1.96 and probability values below 0.05, confirming the significant relationships among the studied variables.