The Role of Market Regulation in Enhancing Productivity Based on Business Capacity Development and Business Interest: The Case of Street Vendors in Banda Aceh City, Indonesia

This study examines and analyzes the role of market regulation in promoting productivity based on business capacity building and business interests of street vendors in Banda Aceh, Indonesia. A total of 225 street vendors were chosen as respondents in this study using quota sampling techniques. By using a Moderating Regression Analysis (MRA) based on Structural Equation Modelling (SEM), this study found that business capacity development and business interest have a positive effect on street vendor productivity. Market regulation moderates the effect of developing business capacity on increasing street vendor productivity. Conversely, market regulation does not moderate the effect of business interest on street vendor productivity. This research implies that to increase street vendors 'productivity, strengthening market regulations is needed to support the development of street vendors' capacity in the city of Banda Aceh.