Enhancing Business Performance in Culinary MSMEs: The Mediating Role of Job Training in the Relationship Between Work Resilience and Work Experience

Enhancing Business Performance in Culinary MSMEs: The Mediating Role of Job Training in the Relationship Between Work Resilience and Work Experience

Imam Baizawi¹, Hafasnuddin², Syafruddin Chan³

¹Master of Management Program, Syiah Kuala University

^2,3Department of Management, Syiah Kuala University

DOI: https://dx.doi.org/10.47772/IJRISS.2025.907000325

Received: 09 July 2025; Accepted: 16 July 2025; Published: 16 August 2025

ABSTRACT

This study investigates the effects of work resilience, work experience, and job training on business performance among Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector of Banda Aceh, Indonesia. The culinary sector was selected due to its dominant role in the local economy, accounting for 32.83% of all MSMEs in the city. Using a quantitative explanatory approach, data were collected from 196 managerial respondents through structured questionnaires. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that both work resilience and work experience have significant and positive direct effects on business performance. Moreover, job training not only directly enhances performance but also mediates the relationships between resilience and experience with performance. These findings suggest that resilient and experienced business actors are more likely to engage in training, which in turn strengthens their ability to manage, adapt, and grow their businesses effectively. Although the effect sizes for resilience were relatively small, the indirect effects through training were statistically significant. This study contributes to the literature by emphasizing the role of individual psychological and experiential factors in MSME performance, with job training acting as a strategic lever for capability development. The findings offer practical implications for MSME development programs, particularly in designing tailored training interventions that align with the psychological and experiential profiles of entrepreneurs. Limitations include the study’s cross-sectional nature and geographic focus, which restricts generalizability. Future research is encouraged to apply longitudinal methods across varied MSME sectors.

Keywords: Work Resilience, Work Experience, Job Training, Business Performance, Culinary MSMEs

INTRODUCTION

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the structure of the Indonesian economy. According to data from the Ministry of Cooperatives and SMEs (2023), MSMEs contribute 61% to Gross Domestic Product (GDP) or equivalent to IDR 9,580 trillion, and absorb 117 million workers, or 97% of the total national workforce. This role makes MSMEs the backbone of the national economy, as well as an important pillar in absorbing employment and alleviating poverty. In Banda Aceh, the development of MSMEs shows an increasing trend, especially in the culinary sector which reached a portion of 32.83% of the total 15,230 business units recorded in 2025 (Banda Aceh City Government, 2025). This figure shows the dominance of the culinary sector in the local economic structure, and is a priority in developing a regional economy based on creativity and local excellence.

Despite the growth, the performance of MSME businesses—especially in the culinary sector—still faces various significant challenges. Tight competition, fluctuations in raw material prices, changes in consumer preferences, and limited capital are the main obstacles that affect business sustainability and performance. The BPS Aceh report (2024) shows that more than 35% of MSMEs in the culinary sector have experienced a decline in turnover in the last two years, mainly due to unpreparedness in facing market dynamics and weak adaptive capacity of business actors. In this context, business performance is not only determined by technical aspects or business capital, but also by a number of non-financial determinants, such as job training, work experience, and work resilience. Job training is one of the strategic interventions that can improve the quality of MSME human resources. Elshifa (2024) stated that technology-based training provides real benefits in accelerating the learning process and increasing work efficiency, especially among micro-entrepreneurs who have limited time and resources. The results of Hayat.’s research (2023) show that training designed according to needs not only improves technical skills but also strengthens work motivation and loyalty.

Meanwhile, work resilience is an important psychological factor that has not received much attention in MSME studies. Hartmann et al. (2019) define work resilience as an individual’s capacity to remain productive under work pressure. Shepherd et al. (2020) added that individuals with high levels of resilience tend to see opportunities in crises, innovate, and remain flexible in decision making. In the world of MSMEs, where business owners often play multiple roles, this capacity determines the resilience and growth of a business. This finding is reinforced by Kašpárková et al. (2018) and Hartmann et al. (2019) who stated that work resilience directly contributes to individual work performance and competitiveness in a stressful work environment. Another factor that is no less important is work experience, both in the form of general human capital and firm-specific human capital. Worrall et al. (2000) showed that work experience that is relevant to the business context can increase work effectiveness and productivity. This is also supported by Hayat, R. S., & Meena, U. (2023) who found that business experience is positively correlated with business continuity and risk management ability. However, not all studies found a consistent relationship. A meta-analysis by Van Iddekinge et al. (2019) stated that previous work experience does not always have a significant effect on performance in a new context. In fact, Sovia (2021) in a study of MSME actors in Indonesia found that work experience does not always have an impact on increasing productivity if it is not accompanied by innovation and managerial skills. These findings indicate a research gap regarding a comprehensive understanding of the determinants of MSME business performance. Most previous studies tend to focus on a single aspect—such as training or work experience—without integrating psychological elements such as work resilience (Shepherd et al., 2020; Hartwig et al., 2020). In addition, there are limitations in the local context—especially in Banda Aceh—where the role of these three variables has not been studied simultaneously and contextually, especially in the culinary sector which has great potential but is vulnerable to market changes.

Based on the identification of the gap, this study has novelty in two main aspects. First, this study integrates three important variables—job training, work experience, and work resilience—in explaining the performance of MSME businesses, especially in the culinary sector of Banda Aceh. This approach allows for a more complete and contextual understanding. Second, this study focuses on psychological factors of resilience that are still rarely studied in the literature on MSMEs in Indonesia, even though their potential is very large in increasing the resilience and innovation of business actors in crisis and pressure situations. Thus, this study is expected to provide theoretical and practical contributions in the development of MSME strengthening strategies, as well as become the basis for making evidence-based policies to improve business performance sustainably in an increasingly dynamic economic era.

LITERATURE REVIEW

Work Resilience, Work Experience, Job Training and Business Performance

The performance of MSME businesses is influenced by various individual and institutional factors, including the psychological capacity of business actors, professional experience, and access to job training. One psychological factor that is increasingly receiving attention in the context of business uncertainty is work resilience—the ability of individuals to survive, recover, and adapt positively amidst work pressure. Research by Hartmann et al. (2022) confirms that work resilience contributes to decision-making capabilities, innovation, and business continuity, especially in the informal sector and MSMEs facing high uncertainty. On the other hand, work experience functions as an accumulation of practical knowledge and managerial skills obtained through direct involvement in business activities. Hayat, R. S., & Meena, U. (2023) state that long and relevant work experience significantly strengthens decision-making capacity, risk mitigation, and resource management, all of which have a direct impact on the performance of micro and small businesses.

In addition, job training has been shown to be an important catalyst in improving the skills, efficiency, and competitiveness of business actors. Research by Van der Sluis et al. (2020) shows that structured and relevant training to the needs of MSMEs can increase business productivity and adaptability, especially in the era of digitalization and changes in consumption patterns. Based on these findings, it can be hypothesized that work resilience, work experience, and job training have a significant effect on business performance.

H1-3: The Effect of Work Resilience, Work Experience, and Job Training on Business Performance

Work Resilience,  Work Experience, and Job Training

Business actors’ readiness and participation in job training do not solely depend on the availability of programs, but are also influenced by internal factors such as work resilience and work experience. Resilient individuals tend to have higher learning motivation, are open to change, and do not give up easily when facing learning challenges (Kašpárková et al., 2018). They see training as an opportunity to develop and strengthen business competitiveness. This is in line with the findings of Hartmann et al.  (2019) et al, which states that resilience has a positive relationship with engagement in self-development activities, including job training. Meanwhile, work experience influences perceptions of training needs. The greater a person’s experience in managing a business, the higher their awareness of the importance of updating knowledge and improving competence through training (Van der Sluis & Van Praag, 2020). Experienced entrepreneurs tend to be more selective, but also more active in seeking training that suits their business needs. Thus, work resilience and work experience are assumed to influence the involvement and effectiveness of job training attended by MSME actors.

H4-5: The Effect of Work Resilience and Work Experience on Job Training

Work Resilience, Work Experience, and Work Training on Business Performance through Work Training

Work training not only functions as a stand-alone factor, but also as a mediator that strengthens the influence of work resilience and work experience on business performance. Individuals with high levels of work resilience tend to be more active in participating in training, and the results of the training are optimally utilized to improve business performance (Appiah et al., 2019). Likewise, business actors with adequate work experience can convert training results into practical strategies that are relevant to their business context . Research by Hayat, (2023) shows that work training acts as a bridge between personal competence and business achievement, especially in a competitive business environment. In other words, training is an important mechanism that transforms internal potential into external performance. On this basis, it can be assumed that work training acts as a mediating variable in the relationship between work resilience and work experience on business performance.

H6-8 The Effect of Work Resilience, Work Experience, and Work Training on Business Performance through Work Training

Based on the description of the theory and previous research, the framework of thought in this research is as illustrated in Figure 1:

Figure 1. Conceptual Framework

RESEARCH METHODOLOGY

This study was conducted among culinary MSMEs in Banda Aceh, a dominant sector in the local small business landscape. A quantitative approach with an explanatory design was used to examine causal relationships between independent variables (work resilience and work experience) and the dependent variable (business performance), with job training as a mediating variable. Respondents were selected using purposive sampling, targeting business owners or managerial staff who had been operating for at least six months (Sugiyono, 2021). Using Slovin’s formula with a 5% margin of error from a population of 5,000 culinary MSMEs, a sample of 196 respondents was obtained. Data were collected through structured questionnaires using a Likert scale, designed to capture respondents’ perceptions of each research variable.

Data analysis employed Partial Least Squares–Structural Equation Modeling (PLS-SEM) using SmartPLS software, chosen for its suitability in handling complex models and small to medium sample sizes (Hair et al., 2021).

Model quality was assessed through:

• Convergent validity (AVE > 0.50),
• Discriminant validity (Fornell-Larcker and HTMT < 0.85),
• Composite reliability (CR > 0.70).

RESULTS AND DISCUSSION

This study focused on Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector of Banda Aceh, which accounts for the largest proportion (32.83%) of MSMEs—5,000 out of 15,230 registered units (Banda Aceh Government, 2025). These businesses include traditional food stalls, cafes, home catering, and modern food outlets. The sector plays a strategic role in driving the local economy, preserving culinary heritage, and generating employment. Most managerial employees operate independently or within family businesses, typically at a micro or small scale. Challenges include intense competition, limited capital, and the need for technological adaptation. These factors make the culinary sector highly relevant for studying the impact of work resilience and work experience on business performance, with job training as a mediating variable.

Measurement Model Evaluation

The measurement model was assessed using PLS-SEM, with results presented in Figure 2.

Figure 2. The Result of Direct Hypothesis Testing

Convergent Validity

Convergent validity can be categorized as valid based on the result of a loading factor of more than 0.60 and an average variance extracted (AVE) of more than 0.50 (Yamin, 2023).

Table 1. Outer Loadings

Source: SmartPLS data processing results (2025)

Based on the results listed in the outer loadings table that has been presented, each valid item measures the variable (second-order level) that it measures with a loading factor above 0.60. Likewise, the AVE value of each variable is greater than 0.50, meaning that 50% or more variance of the dimensions can be explained, and overall, the AVE value of the variable can be accepted as a good convergent validity.

Table 2. HTMT (Heterotrait – Monotrait – Ratio)

Source: SmartPLS data processing results (2025)

The Heterotrait-Monotrait Ratio (HTMT) values for all constructs are below 0.90, which meets the threshold recommended by Henseler et al. (2015). An HTMT value below 0.90 indicates adequate discriminant validity, meaning each construct is conceptually distinct and not empirically redundant. Thus, the model fulfills the discriminant validity requirement, confirming that all constructs are unique and non-overlapping.

Reliability Test

Construct reliability was assessed using composite reliability and Cronbach’s alpha. A construct is considered reliable if both values exceed 0.60–0.70 (Ghozali, 2021).

Table 3. Composite Reliability and Cronbach’s Alpha

Source: SmartPLS data processing results (2025)

As shown in the table, all constructs—business performance, job training, work experience, and work resilience—have composite reliability and Cronbach’s alpha scores above 0.60, indicating that all constructs are reliable.

Direct Effect

The following summarizes the results of hypothesis testing based on path coefficients, significance values, and effect sizes obtained through PLS-SEM analysis.

Table 4.  Direct  Hypothesis Testing

Source: SmartPLS data processing results (2025)

Based on the hypothesis testing, Work Resilience has a significant positive effect on Business Performance (T = 3.916; p < 0.001; β = 0.205), although the effect size is small (f² = 0.070). Similarly, Work Experience also shows a significant positive effect on Business Performance (T = 4.352; p < 0.001; β = 0.323) with a moderate effect size (f² = 0.165). Both predictors demonstrate that higher resilience and experience among managerial employees are associated with better business outcomes. Work Resilience significantly influences Job Training (T = 2.521; p = 0.012; β = 0.382), as does Work Experience (T = 2.970; p = 0.003; β = 0.446), both with moderate effect sizes (f² = 0.181 and 0.247, respectively). This suggests that resilient and experienced individuals are more likely to engage in or benefit from training. Finally, Job Training significantly and positively affects Business Performance (T = 7.024; p < 0.001; β = 0.425) with a moderate effect (f² = 0.287), indicating that quality training contributes substantially to business success.

Indirect Effect

This section presents the indirect effects of work resilience and work experience on business performance through the mediating role of job training.

Tabel 5. Indirect Hypothesis Testing

The results show that Work Resilience has a significant indirect effect on Business Performance through Job Training (T = 3.063; p = 0.002; β = 0.190), indicating a positive mediation. Likewise, Work Experience also shows a significant indirect effect on Business Performance via Job Training (T = 2.119; p = 0.034; β = 0.162). These findings suggest that both resilience and experience enhance participation in training, which in turn improves business performance.

DISCUSSION

The findings show that work resilience significantly and positively affects the business performance of culinary MSMEs in Banda Aceh (T = 3.916; p < 0.001), although the effect size is relatively low (f² = 0.070). Measured through productivity, energy at work, and stress management, resilience helps business actors stay optimal under pressure, especially important in informal sectors. This aligns with Kašpárková et al. (2018), who highlight resilience as a driver of work engagement and performance. Work experience also shows a significant and moderate effect on business performance (T = 4.356; p < 0.001; f² = 0.165), reinforcing Pyatt’s (1966) view of experience as human capital that enhances productivity. Longer experience equips MSME actors with better decision-making, operational, and financial management skills. In terms of job training, both work resilience (T = 2.521; p = 0.012; f² = 0.181) and work experience (T = 2.970; p = 0.003; f² = 0.247) significantly influence participation in training. Resilient individuals tend to be more proactive and motivated to engage in training (Robertson et al., 2015), while experienced business owners better recognize the need for skill upgrades and are more receptive to new knowledge (Mongilala et al., 2022). Training itself significantly boosts business performance (T = 7.024; p < 0.001; f² = 0.287), by enhancing technical, managerial, and service competencies. This finding is consistent with Kalli et al. (2023), who noted that effective training directly improves individual and business outcomes.

Regarding mediation, both work resilience (T = 3.063; p = 0.002) and work experience (T = 2.119; p = 0.034) have significant indirect effects on business performance through job training. Although the mediation strength (υ) is modest (0.026 and 0.035, respectively), the positive path coefficients (β = 0.190 and β = 0.162) confirm that training partially transmits the influence of resilience and experience. These findings support the view that training tailored to individual capacity enhances performance (Robertson et al., 2015; Mohamud et al., 2023).

Managerial Implications

The findings of this study highlight the importance of enhancing work resilience and leveraging employee experience to improve business performance in the MSME culinary sector. Managers and business owners should prioritize developing psychological resilience among their team members through supportive work environments, stress management programs, and flexible work arrangements. Given that resilience positively influences both training participation and performance, MSME stakeholders—including local governments and business associations—should integrate resilience-building modules into entrepreneurial development programs. Furthermore, the significant role of job training as a mediator suggests that training programs must be targeted, practical, and aligned with the experience levels of MSME actors. Experienced entrepreneurs tend to better appreciate and apply new knowledge, so designing contextual, hands-on training tailored to their background will increase its effectiveness. Government agencies, NGOs, and training providers should collaborate to offer continuous learning opportunities that address real business challenges, thereby enhancing not only individual competencies but also overall MSME competitiveness in a dynamic market.

CONCLUSION

This study confirms that work resilience, work experience, and job training significantly influence business performance among MSMEs in the culinary sector of Banda Aceh. Work resilience and work experience not only have direct positive effects on performance but also indirectly enhance it through their influence on job training. Job training serves as a crucial mechanism that translates individual capacity into improved business outcomes. These findings emphasize the strategic value of investing in human capital and structured training programs to support MSME sustainability and competitiveness.

Limitations of the Study

While the study offers valuable insights, it is limited by its cross-sectional design, which restricts the ability to observe causal relationships over time. Additionally, the focus on the culinary sector in Banda Aceh limits the generalizability of the findings to other sectors or regions. The study also relies solely on self-reported questionnaire data, which may introduce response bias. Although the sample size of 196 respondents is adequate, it may not fully reflect the diversity of businesses within the culinary MSME sector. These limitations suggest the need for future research to employ longitudinal methods, expand geographic coverage, and adopt multi-sectoral approaches. Employing mixed-methods designs could also help mitigate bias and provide deeper insights into the mechanisms by which resilience, experience, and training influence business performance. Acknowledging these constraints provides a clearer direction for subsequent studies and highlights opportunities to strengthen the robustness and applicability of future research findings.

REFERENCES

1. Appiah, B. K., Donghui, Z., & Majumder, S. C. (2019). Impact of ethnicity and self-employment on initial financing and business performance in entrepreneurship in China. Journal of Chinese Economic and Foreign Trade Studies, 12(3), 151-166.
2. Pyatt, G. (1966). Human capital: A theoretical and empirical analysis, with special reference to education the residual factor and economic growth econometric models of education.
3. Tambunan, T. (2008). Development of SME in ASEAN with Reference to Indonesia and Thailand. Southeast Asian Journal of Economics, 53-83.
4. Takeuchi, R., Gong, Y., Boon, C., & Jiang, K. (2022). Strategic Human Resource Management and Organizational Effectiveness. New York: Taylor & Francis.
5. Hartmann, S., Weiss, M., Newman, A., & Hoegl, M. (2019). Resilience in the workplace: A multilevel review and synthesis. Applied Psychology, 68(4), 579–620. https://doi.org/10.1111/apps.12192
6. Hartmann, S., Weiss, M., Newman, A., & Hoegl, M. (2022). Workplace resilience: Foundations and organizational outcomes. Organizational Psychology Review, 12(1), 5–28. https://doi.org/10.1177/20413866211065778
7. Nekhili, M., Boukadhaba, A., Nagati, H., & Chtioui, T. (2021). ESG performance and market value: The moderating role of employee board representation. The International Journal of Human Resource Management, 32(14), 3061-3087.
8. Hayat, R. S., & Meena, U. (2023)Dhar, R. L., Basu, S., & Ghosh, A. (2021). Linking training and performance in SMEs: The role of learning transfer climate and individual motivation. Journal of Small Business Management, 59(2), 295–312. https://doi.org/10.1080/00472778.2020.1725816
9. Worrall, L., Cooper, C. L., & Campbell‐Jamison, F. (2000). The impact of organizational change on the work experiences and perceptions of public sector managers. Personnel Review, 29(5), 613-636.
10. Kašpárková, L., Vaculík, M., Procházka, J., & Schaufeli, W. B. (2018). Why resilient workers perform better: The roles of job satisfaction and work engagement. Journal of Workplace Behavioral Health, 33(1), 43–62. https://doi.org/10.1080/15555240.2018.1441720
11. Kementerian Koperasi dan UKM Republik Indonesia. (2023). Laporan Tahunan Perkembangan UMKM 2022. Jakarta: Kemenkop UKM. [Report detailing UMKM contributions to GDP and employment.]
12. Luthans, F., Youssef-Morgan, C. M., & Avolio, B. J. (2021). Psychological capital and beyond: A meta-analysis of workplace outcomes. Journal of Organizational Behavior, 42(3), 259–283.
13. McKinsey Global Institute. (2020). The future of work in Indonesia: Emerging trends and strategic priorities. Retrieved from https://www.mckinsey.com/future-of-work-id
14. Banda Aceh City Government. (2025). Economic Data of MSMEs in Banda Aceh. Accessed from https://bandaacehkota.go.id/dataekonomi-umkm
15. Pocztowski, A., & Pauli, U. (2022). The impact of contextual factors on talent management practices in SMEs. Human Systems Management, 41(1), 87-101.
16. Shepherd, D. A., Williams, T. A., & Patzelt, H. (2020). Thinking about entrepreneurial decision‑making: Review and research agenda. Journal of Management, 46(1), 99–135. https://doi.org/10.1177/0149206318799443