Model of Commitment for Sustainability Indonesian SME's Performance: A Literature Review

Abstract

Small and medium enterprises (SMEs) have the majority of business enterprises in developing and developed countries, in addition to being one of the contributors to national GDP, SMEs also have a significant role in employment, but they have fundamental problems in terms of resources management and performance which could potentially damage the sustainability of their business. Various methods and research to review the performance and sustainability of SME businesses have been developed. However, the current research focuses more on internal and external factors partially. This research tries to take a different perspective in an effort to improve the performance of SMEs by focusing on internal factors of human resources at the individual level. Commitment which is considered an important variable is a basic pillar in the development of human resources in the SME sector. Research on commitment so far has paid much attention to large-scale businesses and has also focused on commitment studies only from the employee side. For this reason, a comprehensive study of commitments needs to be done both in terms of employees and the organization. This study will examine whether the commitment of the model can contribute to improving the performance of SMEs and can be used as a concept of continuous improvement for improving the performance of SMEs.