Key Performance Indicators Based on External and Internal Environments of Micro and Small Enterprise in Propinsi Lampung

Abstract

The improvement of Micro and Small Enterprise (MSE) depends on how an excellent performance is conducted Excellent performance could be managed effectively and efficiently if it is supported by an optimal performance measurement process, based on its appropriate key performance indicator. Identification of key performance indicator on MSE is developed based on expert and its stake holders elicitation judgment that is conducted by depth interview technique to describe the influence of external and internal environment to the MSE performance. SWOT analysis is used to explore strategy that can exploit MSE's internal strengths to overcome its external threats, and exploit its opportunities to minimize its weaknesses. Structural Equation Modeling (SEM) is used to confirm the key performance indicator that is essential in MSE's performance measurement process. On the performance measurement model, key performance indicator are determined based on its external and internal environment. Verification on 120 MSE banana chips in Lampung Province shows 7 of key performance indicator that could influence the MSE performance, and will be used in the MSE's performance measures.