The Effect of Design Quality and Service Quality on Business Performance in Sewing Service SMEs in Lubuklinggau

Abstract

This study aims to determine and analyze the effect of design quality and service quality on business performance among tailoring service MSMEs in Lubuklinggau City, both partially and simultaneously. This research employed a quantitative approach with a causal associative research design. The population consisted of tailoring service MSMEs in Lubuklinggau City that met the research criteria, totaling 70 business units. The sample consisted of 33 respondents selected using purposive sampling. Data were collected through questionnaires using a Likert scale and observations. The data were analyzed using multiple linear regression with the assistance of SPSS 25, including validity, reliability, classical assumption, t-test, F-test, and coefficient of determination analyses. The results showed that design quality had a positive and significant effect on business performance, with a t-value of 6.328 and a significance value of 0.000 < 0.05. Service quality also had a positive and significant effect on business performance, with a t-value of 7.352 and a significance value of 0.000 < 0.05. Service quality had a more dominant effect than design quality. Simultaneously, design quality and service quality had a positive and significant effect on business performance, with an F-value of 50.416 and a significance value of 0.000 < 0.05. The coefficient of determination (R²) of 0.771 indicates that 77.1% of the variation in business performance can be explained by design quality and service quality, while the remaining 22.9% is influenced by other factors outside the research model. Therefore, improving design quality, particularly service quality, is an important factor in enhancing the business performance of tailoring service MSMEs in Lubuklinggau City