Key Performance Indicator for Intrinsic Motivation in Micro, Small and Medium Enterprises (MSMEs) in Padang City

Olandari Mulyadi; Ai Elis Karlinda; Desi Permata Sari

doi:10.55980/ebasr.v4i3.288

Authors

Olandari Mulyadi Fakultas Ekonomi dan Bisnis, Universitas Putra Indonesia “YPTK” Padang, Padang, Indonesia
Ai Elis Karlinda Fakultas Ekonomi dan Bisnis, Universitas Putra Indonesia “YPTK” Padang, Padang, Indonesia
Desi Permata Sari Fakultas Ekonomi dan Bisnis, Universitas Putra Indonesia “YPTK” Padang, Padang, Indonesia

DOI:

https://doi.org/10.55980/ebasr.v4i3.288

Keywords:

Key Performance Indicator, Data Analytics, Intrinsic Motivation, Performance Management, MSMEs

Abstract

Despite the widespread adoption of Key Performance Indicators (KPIs) as performance management tools, existing literature has predominantly examined their effectiveness in large organizations and employee-oriented contexts. In MSMEs, where business owners simultaneously act as managers and operators, intrinsic motivation plays a central role in sustaining performance and long-term business viability. However, prevailing KPI frameworks remain largely formalistic and insufficiently aligned with the practical and psychological realities faced by MSME owners. This study examines the relationships between five KPI implementation methods and the intrinsic motivation of MSME owners across different business sectors in Padang City. This study employed a quantitative explanatory design involving 100 MSME owners. Multiple linear regression was used to examine the relationships between five KPI implementation methods and intrinsic motivation. The regression analysis was designed to assess both the simultaneous and individual associations of the five KPI methods with intrinsic motivation. The findings suggest a potential positive association between data analytics–based KPIs and intrinsic motivation. Data-driven performance feedback may help MSME owners assess business progress and make more informed decisions. The study contributes theoretically by highlighting the potential motivational relevance of data analytics–based performance management practices in owner-managed MSMEs rather than viewing these practices solely as performance measurement tools, thereby extending the literature on performance management and motivation in the MSME context. The findings suggest that MSME development programs and policy interventions may benefit from integrating basic data analytics capabilities with appropriate KPI frameworks to support evidence-based performance management to strengthen intrinsic motivation and support sustainable business growth.

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