Financial Governance of Intangible Success Factors: An Option in Building Business Resilience and Sustainability

Abstract

The aim of this research is to analyze the financial intangible success factors related to business resilience and sustainability. The research population are all small and medium industries at Probolinggo region. Data collection techniques used proportional random sampling. The number of respondents are 100 respondents who are performing well, as a minimum requirement that is needed in data analysis techniques structural equation model. Gradually, it will be applied two kinds of analysis techniques (1) factor analysis, is used to confirm the factors most dominant variable in one group and (2) regression weight in structural equation model, used for confirmatory examine how much the relationship between variables. Furthermore, modeling of the complete structural equation model needs to step (a) the development of the model, (b) the making path diagram, (c) selecting an input matrix and estimation of the model, (d) evaluation criteria of goodness-of-fit and (e) the interpretation and modification of the model. Based on the results of data analysis revealed that financial intangible success factors significantly influence to the business resilience and sustainability as well. Shortly, Financial intangible will be an option to improve business resilience and sustainability.