IIJSE
Vol 8 No 1 (2025): Sharia Economics

Analysis of Business Exit Decision in Small and Medium Entreprises (SMEs)

Novita Ratna Satiti (Unknown)



Article Info

Publish Date
03 Dec 2024

Abstract

This study aims to examine the influence of exit intention, firm performance, and motivation on business exit decisions in SMEs in the non-agricultural sector in Malang City. In addition, this study also evaluates the role of exit intention moderation on the relationship between company performance and motivation and business exit decisions. The population in this study is non-agricultural sector SMEs in Malang City which totals 37,715 SMEs based on data from the East Java Province Cooperatives and MSMEs Office in 2019. The results show that the intention to exit and the company's performance have a significant positive influence on the decision to leave the business, while motivation has a significant negative influence on the decision to leave the business. Further, exit intent does not significantly moderate the relationship between company performance and business exit decisions, but significantly moderates the relationship between business exit motivation and the decision to leave the business with negative influences. These findings provide important insights for SME management in managing the factors that affect business exit decisions so that they can take strategic steps to reduce the possibility of unwanted exits.

Copyrights © 2025






Journal Info

Abbrev

iijse

Publisher

Subject

Economics, Econometrics & Finance

Description

The Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) is Sharia Economics Journal published by Sharia Economics Department Institut Pesantren KH. Abdul Chalim, Mojokerto. The Journal focuses on the issues of Sharia Economics, the History of Islamic Economic Thought, Islamic Law, Local ...