MSME Legitimacy During a Pandemic

Abstract

This study aims to determine what factors influence MSME during the pandemic in relation to issues of leadership, legitimacy, green management, social responsibility and partnership. This research is quantitative by using SEM (Structural Equation Modelling). The sample comes from Bandung, Surabaya and Situbondo with totalling 120 MSME respondents. There are correlations among leadership with green management, leadership with social responsibility, green management with legitimation and social responsibility with legitimation. However, the value of r or the determinant of almost all variables is lower than 0.5, which indicates that the level of prediction is not high in explaining the actions that MSME should take when facing a pandemic crisis. This study highlights the importance of the factors that influence MSMEs in facing a crisis, in this case is a pandemic. The factors found turned out to have predictions that were not too high, so the interviews be done, which was qualitative in nature in helping to investigate problems deeply in MSME during the pandemic. An important finding in a crisis is that MSME actually seeks legitimacy from the government, especially to gain access to assistance.