Eduvest - Journal of Universal Studies
Vol. 5 No. 5 (2025): Eduvest - Journal of Universal Studies

The Risks of A Poor Performance Management System Against Start-Up Companies in Indonesia

Febrina, Helen (Unknown)
Tewu, Denny (Unknown)



Article Info

Publish Date
20 May 2025

Abstract

This research aims to evaluate the effect of poor performance management on the failure of start-up companies in Indonesia. Start-ups are businesses engaged in developing new technology-based products or services. HR performance management is an important factor in maintaining the survival of start-ups. However, poor performance management can lead to various risks and impact start-up failure. This research uses a risk analysis method with a matrix to identify the risks and impacts of poor performance management on start-up failure. This study involved several respondents from start-up companies (51.7%), conventional private (27.6%), contractors (12.1%), and other workforce (8.6%) in Indonesia. Data was collected through questionnaires and literature, and analyzed using regression analysis. The results showed that poor performance management significantly impacts start-up failure in Indonesia. A total of 84.5% of respondents agreed that a performance management system is very important in a company. The questionnaire results also show some of the reasons start-ups fail in Indonesia, namely: lack of capital/investors (17.2%), losing the competition (5.3%), poor performance management system (58.6%), legality policy (3.4%), products that do not fit the market (13.8%) and poor product quality (1.7%). Analysis of the matrix shows that human resource risk falls into the unacceptable (red) category, which means that mitigation is necessary because it greatly affects the failure or success of a company.

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Journal Info

Abbrev

edv

Publisher

Subject

Aerospace Engineering Computer Science & IT Health Professions Neuroscience Social Sciences

Description

Eduvest - Journal of Universal Studies is a double blind peer-reviewed academic journal and open access to multidiciplinary fields. The journal is published monthly by Green Publisher Indonesia. Eduvest - Journal of Universal Studies provides a means for sustained discussion of relevant issues that ...