The Effects of Access to Finance, Innovative Millennial Entrepreneurship, and Information Technology on Organizational Performance in the Handicraft Industry in Central Jawa

Sonea Valensita Sekarmelati; Iwan Hermawan; Irin Mirrah Luthfia

doi:10.14710/jab.v15i2.87817

DOI: https://doi.org/10.14710/jab.v15i2.87817

The Effects of Access to Finance, Innovative Millennial Entrepreneurship, and Information Technology on Organizational Performance in the Handicraft Industry in Central Jawa

Sonea Valensita Sekarmelati - Department of Business Administration, Applied Business Administration Study Program, Politeknik Negeri Semarang, Jl. Prof. H. Soedarto, S.H., Tembalang, Semarang, Central Java, Indonesia 50275|Politeknik Negeri Semarang, Indonesia

*Iwan Hermawan

- Department of Business Administration, Applied Business Administration Study Program, Politeknik Negeri Semarang, Jl. Prof. H. Soedarto, S.H., Tembalang, Semarang, Central Java, Indonesia 50275|Politeknik Negeri Semarang, Indonesia

Irin Mirrah Luthfia

Received: 11 Aug 2026; Revised: 8 Sep 2026; Accepted: 11 Sep 2026; Available online: 20 Oct 2026; Published: 20 Oct 2026.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

BibTex Citation Data :

@article{JAB87817,
    author = {Sonea Valensita Sekarmelati and Iwan Hermawan and Irin Mirrah Luthfia},
    title = {The Effects of Access to Finance, Innovative Millennial Entrepreneurship, and Information Technology on Organizational Performance in the Handicraft Industry in Central Jawa},
    journal = {Jurnal Administrasi Bisnis},
  volume = {15},
    number = {2},
    year = {2026},
    keywords = {Access to Finance, Innovative Millennial Entrepreneurship, Information Technology, Organizational Performance, Handcraft Industry.},
    abstract = {  The creative craft industry is one of Indonesia’s leading creative economy subsectors and the second-largest contributor to exports after fashion. However, craft business owners in Central Java experienced a 47.44% decline in average income during 2022–2024. This study examines the effects of Access to Finance, Innovative Millennial Entrepreneurship, and information technology on organizational performance among millennial craft business owners in Central Java, based on Dynamic Capabilities Theory. This study employed a positivistic quantitative approach with a cross-sectional design. The population consisted of 134,666 business units within priority MSME clusters in Central Java. A sample of 162 millennial craft business owners was selected using non-probability purposive sampling. Data were analyzed using multiple linear regression with SPSS after ordinal data transformation using the Method of Successive Intervals (MSI). The results show that Access to Finance (β = 0.415; Sig. = 0.000), Innovative Millennial Entrepreneurship (β = 0.312; Sig. = 0.000), and information technology (β = 0.281; Sig. = 0.000) each have a positive and significant effect on organizational performance. Thus, H1, H2, and H3 are accepted. The three variables collectively explain 61.0% of organizational performance variation (R² = 0.610; F = 82.229; Sig. = 0.000), with Access to Finance as the dominant predictor. These findings support Dynamic Capabilities Theory and provide implications for strengthening financing access, entrepreneurial innovation, and information technology literacy.  },
   issn = {2548-4923},   pages = {117--130}  doi = {10.14710/jab.v15i2.87817},
    url = {https://ejournal.undip.ac.id/index.php/janis/article/view/87817}
}

Citation Format:

Abstract

The creative craft industry is one of Indonesia’s leading creative economy subsectors and the second-largest contributor to exports after fashion. However, craft business owners in Central Java experienced a 47.44% decline in average income during 2022–2024. This study examines the effects of Access to Finance, Innovative Millennial Entrepreneurship, and information technology on organizational performance among millennial craft business owners in Central Java, based on Dynamic Capabilities Theory. This study employed a positivistic quantitative approach with a cross-sectional design. The population consisted of 134,666 business units within priority MSME clusters in Central Java. A sample of 162 millennial craft business owners was selected using non-probability purposive sampling. Data were analyzed using multiple linear regression with SPSS after ordinal data transformation using the Method of Successive Intervals (MSI). The results show that Access to Finance (β = 0.415; Sig. = 0.000), Innovative Millennial Entrepreneurship (β = 0.312; Sig. = 0.000), and information technology (β = 0.281; Sig. = 0.000) each have a positive and significant effect on organizational performance. Thus, H1, H2, and H3 are accepted. The three variables collectively explain 61.0% of organizational performance variation (R² = 0.610; F = 82.229; Sig. = 0.000), with Access to Finance as the dominant predictor. These findings support Dynamic Capabilities Theory and provide implications for strengthening financing access, entrepreneurial innovation, and information technology literacy.

Note: This article has supplementary file(s).

Fulltext View|Download | Research Instrument

The Effects of Access to Finance, Innovative Millennial Entrepreneurship, and Information Technology on Organizational Performance in the Handicraft Industry in Central Jawa

Subject
Type	Research Instrument
	Download (281KB) Indexing metadata

Email colleagues

Keywords: Access to Finance, Innovative Millennial Entrepreneurship, Information Technology, Organizational Performance, Handcraft Industry.

Article Metrics:

Article Info

Section: Articles

Language : EN

In Vol 15, No 2 (2026)

Most cited articles

Pengaruh Keselamatan Dan Kesehatan Kerja Terhadap Prestasi Kerja Karyawan Pada PT. PLN (Persero) APJ Semarang Pengaruh Nilai Pelanggan dan Kualitas Layanan Terhadap Loyalitas Pelanggan, Melalui Kepuasan Pelanggan Pada Pelanggan Bus Efisiensi (Studi PO Efisiensi Jurusan Yogyakarta-Cilacap) Pengaruh E-Service Quality dan E-Security Seals Terhadap E-Satisfaction Melalui Keputusan Pembelian Konsumen E-Commerce (Studi Kasus pada Konsumen Lazada Indonesia) Pengembangan Pariwisata Berbasis Budaya dan Kearifan Lokal More cited articles

Last update:

No citation recorded.

Last update: 2026-10-20 16:06:08

No citation recorded.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Starting from 2022, the author(s) whose article is published in the Jurnal Administrasi Bisnis (JAB) attain the copyright for their article and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. By submitting the manuscript to JAB, the author(s) agree with this policy. No special document approval is required.

The author(s) guarantee that:

their article is original, written by the mentioned author(s),
has never been published before,
does not contain statements that violate the law, and
does not violate the rights of others, is subject to copyright held exclusively by the author(s), and is free from the rights of third parties, and that the necessary written permission to quote from other sources has been obtained by the author(s).

The author(s) retain all rights to the published work, such as (but not limited to) the following rights:

Copyright and other proprietary rights related to the article, such as patents,
The right to use the substance of the article in its own future works, including lectures and books,
The right to reproduce the article for its own purposes,
The right to archive all versions of the article in any repository, and
The right to enter into separate additional contractual arrangements for the non-exclusive distribution of published versions of the article (for example, posting them to institutional repositories or publishing them in a book), acknowledging its initial publication in this journal (Jurnal Administrasi Bisnis).

Suppose the article was prepared jointly by more than one author. Each author submitting the manuscript warrants that all co-authors have given their permission to agree to copyright and license notices (agreements) on their behalf and notify co-authors of the terms of this policy. Jurnal Administrasi Bisnis (JAB) will not be held responsible for anything that may arise because of the writer's internal dispute. Jurnal Administrasi Bisnis (JAB) will only communicate with correspondence authors.

Authors should also understand that their articles (and any additional files, including data sets, and analysis/computation data) will become publicly available once published. The license of published articles (and additional data) will be governed by a Creative Commons Attribution-ShareAlike 4.0 International License. Jurnal Administrasi Bisnis (JAB) allows users to copy, distribute, display and perform work under license. Users need to attribute the author(s) and Jurnal Administrasi Bisnis (JAB) to distribute works in journals and other publication media. Unless otherwise stated, the author(s) is a public entity as soon as the article is published.