The Impact of the EFQM Model on Business Sustainability Using Structural Equation Modelling

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Danis Maulana
Nur Lailany Fenny Beauty
Farizi Rachman
Fitri Hardiyanti
Muhammad Lukman Arif

Abstract

Wirausaha Merdeka is a program initiated by the Republic of Indonesia’s Ministry of Education, Culture, Research, and Technology. This program is aimed at students who have an interest in the world of entrepreneurship. Shipbuilding Institute of Polytechnic Surabaya adopts the Project Based Learning Technopreneurship learning scheme. Through this program, 103 new businesses have been created in various fields of business. As new businesses, they are susceptible to failure due to several factors. Based on a survey that has been conducted, there are 77.7% of tenants who do not continue their business after the program. This indicates a high rate of business failure among entrepreneurs. In response to this issue, this research is conducted to identify the factors influencing business sustainability using the Structural Equation Modelling method. The variables used in this study are derived from the European Foundation for Quality Management Model 2020. The research results indicate that organizational culture & leadership, driving performance & transformation, and strategic & operational performance positively influence business sustainability. Purpose, vision & strategy, creating sustainable value, and stakeholder perception negatively influence business sustainability. Meanwhile, engaging stakeholders does not significantly affect business sustainability.

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How to Cite
Danis Maulana, Nur Lailany Fenny Beauty, Farizi Rachman, Fitri Hardiyanti, & , M. L. A. (2024). The Impact of the EFQM Model on Business Sustainability Using Structural Equation Modelling. Jurnal Entrepreneur Dan Entrepreneurship, 13(1), 1–14. https://doi.org/10.37715/jee.v13i1.4104
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