The Triple Helix Model And Financial Performance: A Case Study On MSMEs In Bali

Abstract

Small and medium enterprises (SMEs) in Indonesia are growing rapidly and are the foundation of the Indonesian economy. SMEs face several obstacles in achieving optimal financial performance. This study aims to examine the role of government, academia, and industry in improving SME performance. This study considers marketing innovation and organizational innovation as pillars of SME performance. This study used 399 SMEs in Bali as the research sample. The sampling technique used was stratified random sampling. The analysis technique used was PLS-SEM. The results of this study showed a significant influence of all variables. The results revealed that external sources such as government, universities, and industry help SMEs improve financial performance by collaborating with the three components mentioned above. This study highlights that SMEs in Bali have not maximized their innovation in organizational and marketing activities due to limited resources, support, and appropriate R&D. Based on these findings, this study concludes that SMEs in Bali can improve their performance by collaborating with triple helix model agents.