Setyowati, Nuning, Kusnandar, Kusnandar, Harisudin, Mohamad, Riptanti, Erlyna Wida, Khomah, Isti, Qonita, Rara Aulia (2025). The role of characteristics and competencies in the business performance of functional beverage SMEs. , (), -.
Nuning Setyowati; Kusnandar Kusnandar; Mohamad Harisudin; Erlyna Wida Riptanti; Isti Khomah; Rara Aulia Qonita. "The role of characteristics and competencies in the business performance of functional beverage SMEs". , , , 2025, -.
Setyowati, Nuning, Kusnandar, Kusnandar, Harisudin, Mohamad, Riptanti, Erlyna Wida, Khomah, Isti, Qonita, Rara Aulia (2025). 'The role of characteristics and competencies in the business performance of functional beverage SMEs', , (), pp. -.
Setyowati, Nuning, Kusnandar, Kusnandar, Harisudin, Mohamad, Riptanti, Erlyna Wida, Khomah, Isti, Qonita, Rara Aulia The role of characteristics and competencies in the business performance of functional beverage SMEs. , 2025; (): -.

The role of characteristics and competencies in the business performance of functional beverage SMEs

Journal of Agricultural Science and Technology
Articles in Press, Accepted Manuscript, Available Online from 16 September 2025    PDF (475.2 K)
Authors
Nuning Setyowati* 1; Kusnandar Kusnandar2; Mohamad Harisudin2; Erlyna Wida Riptanti3; Isti Khomah4; Rara Aulia Qonita5
11) Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia, 2) Center for Study and Assistance for Cooperatives and Small-Medium Enterprises, Institute for Research and Community Service (LPPM), Universitas Sebelas Maret, Indonesia
2Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret
31) Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret2) Center for Study and Assistance for Cooperatives and Small-Medium Enterprises, Institute for Research and Community Service (LPPM), Universitas Sebelas Maret, Indonesia
41Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia
5Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia
Abstract
This study examines the effects of owner characteristics, product competence, and business capital on the business performance of SMEs in the functional beverage sector. It also investigates the mediating role of owner competence in the relationship between owner characteristics and business performance. Employing a quantitative approach, data were collected via a structured questionnaire from 105 functional beverage SMEs in Solo Raya, Indonesia. Structural Equation Modeling with Partial Least Squares was used for analysis. The results indicate that business capital and product competence significantly and positively influence business performance. Owner characteristics do not have a direct effect on business performance but influence it indirectly through full mediation by owner competence. The findings suggest that functional beverage entrepreneurs should enhance their self-competence encompassing knowledge, skills, and business experience, and strengthen business capital to improve performance. Additionally, developing entrepreneurial characteristics is crucial for boosting business outcomes through improved owner competence.

Keywords
Functional beverages; Owner Competence; Owner Characteristics; Product Competence; Business Capital
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