Publication Date: 2023/02/02
Abstract: TMicro, Small, and Medium-Scale Enterprises (MSMEs) with good market performance and competitive business strategies may potentially improve the national economy. They also represent a rapid-growing trading sector that contributes to the state’s economy and revenue through tax payments. The present study attempted to examine and evaluate the effect of market performance on MSME’s business strategy and its implication on tax obligation. This quantitative survey study utilized a questionnaire as its research instrument. The population of this study comprised 1099 registered MSME actors in Batik Trusmi in Plered district, Cirebon Regency. This study focuses on batik crafters and showrooms in Batik Trusmi, the largest batik showroom in West Java that promotes the local potential and supports economic growth during the COVID-19 pandemic. The samples of this study were attained by using the convenience sampling technique, which was conducted by considering ease in terms of finding the address, access to transportation, and consent to participate in the study. The number of the respondents that was recruited in this study comprised 97 respondents. The data were analyzed using Structural Equation Modeling (SEM) assisted by utilizing SmartPLS 3.0. The results of this study demonstrated that market performance positively and significantly affected both business strategy and tax obligation. Additionally, it was found that tax obligation affected market performance and business strategy. Originality produces new knowledge without repeating what has already been done by others.
Keywords: Market performance, Business strategy, Tax obligation.
DOI: https://doi.org/10.5281/zenodo.7597102
PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT23JAN629((1).pdf
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