MSME's sustainable economic behavior for struggling poverty: Agency theory vs. bounded rationality theory

Setiawan Noviarto, Palupi L. Samputra

Research output: Contribution to journalConference articlepeer-review

Abstract

Covid-19 pandemic is attacking almost whole parts of the world. This negatively affects the most Sustainable Development Goals (SDGs) agenda. This study is intended to identify the MSME's sustainable economic behavior for struggling poverty through the literature review of agency theory and bounded theory. This literature review uses contextual techniques related to MSME's sustainable economic behavior for struggling poverty with the support of Agency Theory and Theory of Bounded Rationality. The literature exam includes about 15 books and 20 journals collected from the University of Indonesia's virtual library facilities and the Google Scholar application for 2015 - 2020 by using a systematic mapping study. Results indicate that agency theory is an element of different interests (between MSEs and Principals/guarantor of purchasing MSMEs products) then the theory of bounded rationality as elements of rationality and utility (the minimal state of MSMEs). Moreover, the influence that influences (influences) intend to survive or survive economically for Micro, Small, and Medium Enterprises. It is recommendable to apply the agency theory and bounded rationality theory to have a further empirical study on MSMEs' economic resilience.

Original languageEnglish
Article number012120
JournalIOP Conference Series: Earth and Environmental Science
Volume716
Issue number1
DOIs
Publication statusPublished - 1 Apr 2021
Event1st Journal of Environmental Science and Sustainable Development Symposium, JESSD 2020 - Jakarta, Virtual, Indonesia
Duration: 28 Sep 202030 Sep 2020

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