The Impact of Personality Traits and Governance Mechanisms on Business Performance of SMEs in Kendari City

The purpose of this paper is to empirically investigate the impact of personality traits and governance mechanisms on business performance of small and medium enterprises (SMEs) in Processing Industry Kendari city. Data were collected through the use of self-administered questionnaire in a survey. A total of 97 SMEs provided the data for the study. Data analysis included factor analysis, descriptive statistics, and regression analysis. The results show that personality traits and governance mechanisms have a positive effect on performance of SMEs in Kendari City. This study has implications for small and medium enterprises (SMEs) aiming at increasing their business performance. Moreover, in order to maximize performance of SMEs, organizations should increase both their personality traits and their governance mechanisms activities as these factors operate synergistically. Originality the impact of personality traits and governance mechanisms are an important research area for investigators in the literature of management, strategy, and human resources. However, most of the empirical studies were conducted in large-scale firms in developed countries and ignored small and medium-sized business (SMEs) in general, and in developing countries in particular. The results offer both theoretical and managerial implications.