The Impact of Value Creation on Business Performance : The Case of Small & Medium Businesses in West Java

Lina Auliana


Although value creation has been proven to be effective factor for good businees performance, it may not be  the case for smalland medium enterprises (SMEs). This study is aimed at investigating  the impact of value creation of the performance of small and medium busineesses. The study employedpath analysis and data of 30 samples of  leading small and medium busineesses inWest Java, Indonesia.This provincehas considerable potential to serve as a center of small and mediumindusry developmentfor its abundant source of raw materials and being the largest market potential in the country.The results of hypothesis testing revealed that the network partnership,  benefits of customer and business domain had great and significant correlation with business performance. The results also indicated that SMEs failed to consider the creation of benefits over their product.


Keywords: SMEs development, Value creation

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