Organizational health performance of micro and small enterprises run by women: A short longitudinal study

Abstract

This study aimed to develop a new scale for measuring and evaluating organizational health performance (OHP) tailored explicitly for Indonesia's MSE sector managed by women. The research involved a comprehensive literature review, focus group discussions, and assessments of content validity to establish an initial model comprising five key factors: institutional resources, leader involvement, work environment quality, organizational values, and operational stability. This model included 36 initial items that underwent further testing. The next phase utilized exploratory factor analysis (EFA) to identify the scale's underlying structure, followed by confirmatory factor analysis (CFA) to evaluate the scale's validity and reliability using data collected from 267 MSEs in Indonesia. The EFA and CFA validated the initial instrument for measuring organizational health in micro and small enterprises. The final scale consists of 34 items categorized into five factors: institutional resources, leader involvement, work environment quality, organizational values, and operational stability. The scale developed in this research acts as a diagnostic tool, enabling organizations to identify areas for improvement and highlight the aspects of their organizational health performance that require attention, particularly within MSEs.