The Role of Intrinsic and Extrinsic Motivation in Mediating the Influence of ATM on Business Performance

This study aims to analyze the effect of attitude toward money on the business performance of MSMEs in Java, Indonesia, with the mediation of intrinsic and extrinsic motivation.The underlying theory of this research is the Theory of Early Entrepreneur Performance and Self-Determination Theory.The population in this study were all MSME owners in several Java Island, Indonesia regions.This study used a convenience sampling technique, with a total sample of 132 MSME owners.The research instrument used was a questionnaire with a Likert scale and SEM-PLS analysis method.The results of this study indicate that attitudes toward money, intrinsic motivation, and extrinsic motivation directly influence business performance.The findings also explain that intrinsic and extrinsic motivations act as mediators that strengthen the relationship between the effect of attitude toward money on business performance.The originality of this study concludes that micro-entrepreneurs have intrinsic and extrinsic motivations comparable in orientation.These findings reinforce the findings of previous research and present a different perspective from existing research, which concludes that entrepreneurs have a strong interest or drive to manage a business due to the presence of intrinsic motivation, not extrinsic motivation.