scholarly journals The effect of entrepreneurial orientation variables on business performance in the SME industry context

2020 ◽  
Vol 32 (1) ◽  
pp. 35-62
Author(s):  
Ni Made Wahyuni ◽  
I Made Sara
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Textile Industry ◽  
Business Performance ◽  
Learning Orientation ◽  
Potential Contribution ◽  
Significant Positive Effect ◽  
Content Type ◽  
And Performance ◽  
Positive Effect

Purpose The purpose of this study is to provide new practical and theoretical insights into how small and medium-sized enterprises (SMEs) adjust and further develop business competencies, innovations and performance by using market orientation, learning orientation behaviors and entrepreneurial orientation. Design/methodology/approach The data was collected from manufacturing SMEs of textile products that had a number of employees between 5 and 99 people in the province of Bali, Indonesia, in 2016. Bali province was chosen as a research location because Bali was one of the tourism centers in Indonesia and even in the world was considered suitable for this research. It was because it had textile product industries that contributed in the fulfillment of the needs of tourism clothing, national economy, the fulfillment of fashion needs and foreign exchange contributors from non-oil exports (Industry and Trade Service of Bali). Findings Based on the results of descriptive and inferential analysis that has been conducted, it can be concluded that the answer to the problems and objectives that have been determined is market orientation, learning orientation and entrepreneurial orientation affect business performance through knowledge competence and innovation directly and its influence is significantly positive. But market orientation, learning orientation and entrepreneurial orientation do not directly have a significant positive effect on innovation through knowledge competence. Market orientation, learning orientation and entrepreneurship orientation indirectly have a significant positive effect on business performance through knowledge and innovation competencies. Originality/value The lack of studies in the existing literature underscores the potential contribution of this subsequent study. The novelty of the research is first to develop a concept of learning orientation that is linked to competence of knowledge, which this link has not been much expressed in the context of industry SMEs; second, to build the concept of innovation development of small and medium-sized industry of textile industry based on market orientation by strengthening the mediation role of competence of knowledge.

Entrepreneurial orientation and performance of small and medium-sized enterprises

2019 ◽  
Vol 29 (5) ◽  
pp. 551-572 ◽  
Author(s):  
Syed Zulfiqar Ali Shah ◽  
Maqsood Ahmad
Keyword(s):  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Two Dimensions ◽  
Equation Modeling ◽  
Current View ◽  
Significant Positive Effect ◽  
Content Type ◽  
Differentiation Strategy ◽  
And Performance ◽  
Positive Effect

Purpose This paper aims to investigate the effects of entrepreneurial orientation (EO) on the performance of small and medium-sized enterprises (SMEs) with mediating role of differentiation strategy in Pakistan. Design/methodology/approach A theoretical framework has been developed to base the hypotheses, as also to determine the exact approach in this study. To establish the influence of EO on the performance of SME, a five-point Likert scale questionnaire has been used to collect data from middle and senior managers who operate in SMEs in the manufacturing sectors. The sample illustrates 166 incumbents, comprising 68.07 per cent from middle management and 31.93 per cent from senior management operating in manufacturing sector of SMEs, by means of a stratified random sampling technique. The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested by using structural equation modeling (SEM) technique. Findings EO, as a whole, presents a significant positive effect on the performance of SMEs. Moreover, differentiation strategy partially mediated the relationship between EO and performance of SMEs. Two dimensions of EO, proactiveness and risk-taking propensity, strongly increased firm performance while innovativeness, competitive aggressiveness, autonomy and competitive energy did not cause any significant change. The findings differ from the current view of western enterprises that innovativeness (INO) played a major role by increasing performance of SMEs. The results transpired that innovativeness (INO) tends to reduce performance of SMEs, but the p-value did not reach a high significance value. Research limitations/implications The main limitation of this empirical study is comparatively a small size of the sample. The analysis of power suggests that a larger sample could have provided more reliable and extensive results. Regardless of that, the analysis of reliability, using the Cronbach's alpha, exhibited the consistency of outcomes in providing an accurate portrait of the EO influences on the performance of SME. Practical implications The study verifies that two dimensions of EO have considerable effects on the performance of SMEs, while the others have not, whereas, the EO, as whole, has significant positive effect on performance of SMEs. These findings should be helpful for researchers looking for appropriate performance measures, and for entrepreneurs aiming at getting support for their decisions and evaluating their performance. Originality/value The current study appears to be first of its kind focusing on the link between EOs, as whole, and its dimensions, to performance of SMEs and differentiation strategies within the specific context of Pakistan.

scholarly journals The Mediating Role of Strategy Flexibility at the Effects of Entrepreneurial Orientation and Market Orientation on Business Performance Small Medium Enterprise Craft Sector in Indonesia

2019 ◽  
Vol 8 (2S9) ◽  
pp. 634-641
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Equation Model ◽  
Strategic Flexibility ◽  
And Performance ◽  
Medium Enterprises ◽  
Positive Effect

The research intends to test the effects of entrepeneurship orientation and market orientation on business performance with strategic flexibility as mediator. Considering Indonesia has been even today eagerly support entrepreneurial, it intends to explore relationship between the three variables in small and medium enterprises context. The study takes place in Indonesia with 194 sampel. For questionnaire distribution, it makes use of online tool with google form. The unit of analysis is owners, managers or decision-makers at the SMEs. For data analysis, it applies structural equation model with WarpPLS approach. The results demonstrate that entrepreneurial orientation does not significant effect on business performance, but has a positive effect on strategic flexibility. While market orientation has a positive effect on business performance, but it does not have significant effect on strategic flexibility. It means that strategic flexibility mediate relationship between entrepreneurial orientation and performance, while it does not hold true for relationship between market orientation and business performance.

scholarly journals Entrepreneurial knowledge, skills, competencies and performance

2019 ◽  
Vol 13 (1) ◽  
pp. 29-48 ◽  
Author(s):  
Abdullah Al Mamun ◽  
Syed Ali Fazal ◽  
Rajennd Muniady
Keyword(s):  
Market Orientation ◽  
Low Income ◽  
Mediation Effect ◽  
Enterprise Performance ◽  
Content Type ◽  
Entrepreneurial Skills ◽  
And Performance ◽  
Entrepreneurial Activities ◽  
Positive Effect ◽  
Entrepreneurial Competency

Purpose This study aims to examine the effect of entrepreneurial skills, market orientation, sales orientations and networking on entrepreneurial competency and performance of micro-enterprises in Kelantan, Malaysia. Design/methodology/approach Adopting a cross-sectional design, this paper collected data through structured interviews from 403 micro-entrepreneurs from “Majlis Amanah Rakyat,” Kelantan and “Majlis Agama Islam dan Adat Istiadat,” Kelantan. Findings The findings reveal that entrepreneurial skills, market orientation and networking have a positive effect on entrepreneurial competency. Then, entrepreneurial competency, entrepreneurial skills and networking have a positive effect on enterprise performance. The findings show a significant mediation effect of entrepreneurial competency on the relationships between entrepreneurial skills, market orientation and networking and enterprise performance. Originality/value Addressing the understudied “human factor” in entrepreneurship, this paper extends the resource-based view and enriches the existing entrepreneurship literature in Malaysia. It provides useful insights into the improvement of micro-enterprise performance, which is crucial for promoting entrepreneurial activities and for enhancing socio-economic conditions among low-income households in Malaysia. Thus, the government and developmental organizations should focus on the development of entrepreneurial skills, market-oriented approach, networking traits and entrepreneurial competencies and subsequently encourage poor households to perform entrepreneurial activities.

Market orientation and women-owned SMEs performance

2020 ◽  
Vol 9 (2) ◽  
pp. 215-234 ◽  
Author(s):  
Muhammad Amir Rashid ◽  
Masood Nawaz Kalyar ◽  
Imran Shafique
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Strategic Decision ◽  
Hierarchical Regression ◽  
Full Potential ◽  
Survey Questionnaire ◽  
Content Type ◽  
And Performance ◽  
Practical Implications

PurposeThis research aims to investigate the contingent effect of entrepreneurial orientation (EO) and strategic decision responsiveness (SDR) on the link of market orientation (MO) and performance of women-owned small and medium-sized enterprises (WSMEs).Design/methodology/approachData were collected from 909 WSMEs of Punjab province Pakistan through survey questionnaire. Hierarchical regression is employed to perform the analysis.FindingsResults reveal that although higher-level dimensions of MO directly affect the WSMEs performance, however this linkage becomes stronger under SDR and higher-level dimensions of EO.Practical implicationsManagers should emphasis on the demonstration of EO's dimensions and SDR to utilize the full potential of MO to promote WSMEs performance.Originality/valueTo study the contingent effect of SDR and EO's dimensions in the MO–WSMEs performance nexus is the novelty of this study.

Moderation effect of competence of knowledge and innovation: case of Bali

2020 ◽  
Vol 26 (6) ◽  
pp. 1307-1327 ◽  
Author(s):  
Irwan Usman ◽  
Haris Maupa ◽  
Muhammad Idrus ◽  
Siti Haerani ◽  
Nurjanna Nurjanna
Keyword(s):  
Market Orientation ◽  
Textile Industry ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Hypothesis Test ◽  
Field Studies ◽  
Small Scale ◽  
Content Type ◽  
Moderation Effect ◽  
Medium Enterprises

PurposeThis paper examines how market orientation and competence of knowledge reinforce the innovation and in turn improve the business performance.Design/methodology/approachThis research applied research design with quantitative approach based on positivism philosophy, that is, research aimed to test the theory and data which is general to produce findings that are special through hypothesis test. This study was supplemented by field studies as a necessary source of data in the form of trends, attitudes, opinions, perceptions of owners, managers or senior employees of SMEs in the textile industry in Bali, related to the variables used in this study.Findings(1) Market orientation influences business performance, (2) competence of knowledge moderates the influence of market orientation on business performance, (3) innovation moderates the influence of market orientation on business performance.Originality/value(1) Novelty of this research is developing the concept of competence of knowledge associated with business performance in which this relationship has not yet been expressed. (2) Building the concept of innovation development of small-scale industry based on the market orientation. (3) Developing the concept of innovative development of small and medium enterprises of textile industry based on competence of knowledge. (4) Investigating the concept of market orientation and competence of knowledge in an integrated and holistic way to strengthen the innovation and business performance of SMEs of the textile industry in Bali.

Market orientation, entrepreneurial orientation and business performance among small retailers

2015 ◽  
Vol 43 (7) ◽  
pp. 580-596 ◽  
Author(s):  
Sami Kajalo ◽  
Arto Lindblom
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Business Performance ◽  
Marketing Capabilities ◽  
Performance Impact ◽  
Content Type ◽  
Equation Modelling ◽  
Research Findings ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of market orientation (MO) and entrepreneurial orientation (EO) on business performance among small retailers. In particular, the goal is to understand and determine to what extent MO and EO influence firm performance directly, and to what extent MO and EO are connected to performance via marketing capabilities. Design/methodology/approach – The developed conceptual model is tested using structural equation modelling (SEM) using a sample of 202 small retailers. Findings – The result of the SEM model shows that both MO and EO act as a basis for improved business performance among small retailers. However, the performance impact of MO and EO is not that straightforward. Based on the research findings, it can be argued that both MO and EO require marketing capabilities to more fully unlock their value-creating potential among small retail firms. Originality/value – This study has provided new insights regarding the impact of MO and EO on business performance in the context of small retail firms. In particular, the study has contributed to the literature by demonstrating the routes through which MO and EO impact on performance.

The empirical model of trust, loyalty, and business performance of the dairy milk supply chain

2017 ◽  
Vol 119 (12) ◽  
pp. 2765-2787 ◽  
Author(s):  
Aries Susanty ◽  
Arfan Bakhtiar ◽  
Ferry Jie ◽  
Mustofa Muthi
Keyword(s):  
Business Performance ◽  
Significant Positive Effect ◽  
Collaborative Communication ◽  
West Java ◽  
Content Type ◽  
Dairy Farmer ◽  
Central Java ◽  
Dairy Cooperatives ◽  
Positive Effect ◽  
Central Java Province

Purpose The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and business performance. Design/methodology/approach Data used in this study were primary data which were collected through personal interviews and closed questionnaires using a five-point Likert scale ranging from 1 to 5. The sample consisted of 170 individual dairy farmer and several dairy cooperatives, which were located in Central Java Province (Boyolali and Semarang Districts) and West Java Province (West Bandung District). The study used partial least squares with the aid of the SmartPLS software program to analyze the hypothesis. Findings The results of hypothesis testing indicate that collaborative communication and price satisfaction had a significant positive effect on trust for Central Java and West Java Province. Meanwhile, power dependence had a significant negative effect on trust only for West Java Province. Trust had a significant positive effect on supplier loyalty for both of the two provinces. Significant positive effect of supplier loyalty on business performance was supported in Central Java Province, whereas in West Java Province, supplier loyalty had a positive but not significant effect on business performance. Research limitations/implications The limitation of this study is related to the number of samples, the type of scale used to measure a business performance, and the focus that is only on the relationship between the fargmers and cooperative to improve the performance of cooperative without considering the role of management. So, the future research may replicate this study in another region or in the other contexts of agribusiness sector that usually depends on farmer as a producer of the raw material. It may also enhance the measurement of business performance of dairy cooperative by using a direct measure of financial performance and non-financial performance and broaden the scope of research into the role of management of dairy cooperative. Practical implications It is recommended that managers of dairy cooperatives always involve the farmers when making marketing decisions especially concerning prices, products, market, and promotion. As organizational stakeholders, their involvement is vital in determining the ability of the dairy to achieve its goals. The other recommendation is the managers of cooperatives must have a clear policy on the price of milk, and this policy should indicate the transparency and accountability. Then, regarding the long-term benefit of dairy cooperative, it is recommended for dairy cooperatives to add the value of the milk so they can access wider markets, which, in turn, will maximize returns to the members. Based on this recommendation, it is better if the dairy cooperative in Indonesia not only serves as a marketing cooperative, but also serves as a farm supply cooperative which may process or formulate the milk into a more valuable product. Social implications The research confirms that individual dairy farmer’s loyalty can benefit the business of dairy cooperative. It may encourage more dairy cooperative to tap the good relationship with the individual dairy farmer at the initial stage of the economic growth of their business. Intensifying competition between dairy cooperatives would potentially bring even better quality and quantity of milk from the loyal dairy farmer. Originality/value Although this research used the conceptual model from the previous study, this research will make some improvement. First, it used more indicators to measure each dimension of the construct, and the investigation was slightly more complex and broader since the object of the research was represented by two regions, namely, Central Java Province and West Java Province.

scholarly journals Mediating effect of relational capabilities in the relationship between entrepreneurial orientation and SMEs performance

2021 ◽  
Vol 17 (1) ◽  
pp. 129-146
Author(s):  
Nuryakin ◽  
Keyword(s):  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Business Performance ◽  
Theory And Practice ◽  
Mediating Effect ◽  
Significant Positive Effect ◽  
Central Java ◽  
Relational Capabilities ◽  
Positive Effect

Purpose: The aim of this research is to analyze empirical evidence of the effect of entrepreneurial orientations on SMEs' business performance. The previous study found that entrepreneurial orientation became an important key for an entrepreneur to enhance business performance. This study also examined the role of relational capabilities as an intervening variable to achieve business performance. Methodology: The sample in this study was the furniture SMEs in the region of central Java with a sample size of 208 SMEs. This study used purposive sampling methods. Structural Equation Modelling (SEM) was used to test results of the data analysis with the help of software AMOS/Amos Graph. Findings: The results of the study showed that entrepreneurial orientation has a significant positive effect on business performance. Entrepreneurial orientation has a significant positive effect on relational capabilities. Relational capabilities are mediated the positive relationship between entrepreneurial orientation and business performance significantly. Implications for theory and practice: The results of this study indicate the effect of entrepreneurial orientation on business performance and relational capabilities and mediating role of relational capabilities. Therefore, SMEs ought to develop relational capabilities with SMEs networks through strengthening entrepreneurial orientation to achieve SMEs' performance. Originality and value: The main contribution of the study from the combination of entrepreneurial orientation and relational capabilities of SMEs to enhance business performance.

scholarly journals PENGARUH BERANTAI BUDAYA ORGANISASI DAN HUMAN RESOURCE PRACTICES TERHADAP KREATIFITAS DAN KINERJA USAHA UMKM

2018 ◽  
Vol 7 (3) ◽  
pp. 61
Author(s):  
Sulhaini Sulhaini ◽  
Rusdan Rusdan ◽  
Rahman Dayani ◽  
Baiq Ismiwati
Keyword(s):  
Organizational Culture ◽  
Market Orientation ◽  
Human Resource ◽  
Direct Effect ◽  
Business Performance ◽  
Learning Orientation ◽  
Human Resource Practices ◽  
Purposive Sampling ◽  
Learning Orientations ◽  
And Performance

This research aimed at examining the chain of effects of organisational culture and human resource practices towards SMEs’ creativity and performance. The study contributes to the literature by giving explanations related to how human resource practices, market and learning orientations affect the creativity and performance of SMEs. Population in this research was all SMEs producing handicraft, food / beverage and others in Mataram-Indonesia. Sample firms were selected using purposive sampling. The results showed that organizational culture, namely market orientation and learning orientation affect creativity and business performance in different ways. Learning orientation does not have a strong effect on creativity but has a direct effect on business performance. Meanwhile market orientation and human resource practices have no direct effect on business performance but through their influence on creativity. Market orientation and human resource practices ensure high business performance through its influence on creativity improvement. Market orientation becomes a source of creative ideas as its dimensions provide opportunities for SMEs to find useful ideas. Furthermore, human resource practices maintain / motivate employees for continuous creative endeavors, faster and better than to competitors. This creates higher customer value, stronger competitive advantage and greater guarantees business success /business performance.Penelitian ini menguji pengaruh berantai dari budaya organisasi dan human resource practices terhadap kreatifitas dan kinerja usaha UMKM. Studi ini berkontribusi pada literature dengan memberikan penjelasan terkait bagaimana human resource practices, market dan learning orientations mempengaruhi kreatifitas dan kinerja usaha UMKM. Populasi dalam penelitian ini adalah semua UMKM dibidang usaha pengolahan baik kerajinan maupun makanan/minuman dan lainnya. Teknik sampling yang digunakan adalah purposive sampling dari teknik sampling Non-Probability Sampling. Hasil penelitian menunjukkan bahwa budaya organisasi, yaitu market orientation dan learning orientation mempengaruhi kreatifitas dan kinerja usaha dengan cara yang berbeda. Learning orientation tidak berpengaruh kuat terhadap kreatifitas tetapi berpengaruh langsung terhadap kinerja usaha. Sedangkan market orientation memiliki pengaruh yang sama dengan human resource practices, yaitu tidak berpengaruh langsung terhadap kinerja usaha tetapi melalui pengaruhnya terhadap kreatifitas. Market orientation dan human resource practices menjamin kinerja usaha yang tinggi melalui pengaruhnya terhadap peningkatan kreatifitas. Market orientation menjadi sumber inspirasi ide-ide kreatif karena adanya orientasi kepada konsumen dan pesaing memberikan peluang bagi UMKM untuk menemukan ide. Selanjutnya, human resource practices menguatkan motivasi karyawan untuk berkreasi secara berkelanjutan, lebih cepat dan lebih unggul dari pesaing. Hal ini menciptakan keunggulan bersaing yang lebih kuat dan menjadi jaminan kesuksesan usaha/kinerja usaha yang lebih tinggiKeywords :human resource practices, organizational culture, creativity

scholarly journals Entrepreneurial orientation, entrepreneurial education and performance

2018 ◽  
Vol 12 (2) ◽  
pp. 124-134 ◽  
Author(s):  
Yun Hee Cho ◽  
Joo-Heon Lee
Keyword(s):  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Early Stage ◽  
Entrepreneurship Education ◽  
Growth Potential ◽  
Industrial Society ◽  
Content Type ◽  
Korean Economy ◽  
Business Angel ◽  
And Performance

PurposeKorean economy is demanding to change from an industrial society to an entrepreneurial society. It is asking for a generational change from the preexisting paradigms of such as labor consciousness, the concept of work and company management. Entrepreneurship is one of the key elements that will lead to a successful business performance under highly uncertain business conditions. The purpose of this paper is to examine the relationship between entrepreneurial orientation and business performance. Also, the authors look for the role of entrepreneurship education in the influence of entrepreneurial orientation on financial and nonfinancial business performance.Design/methodology/approachTo accomplish the purpose of this study, the authors carried out a survey targeting nascent entrepreneurs and total early-stage entrepreneurs with less than seven years of experience. Based on the Miller’s (1983) definition, a group of questions for entrepreneurial orientation, similar to Covin and Slevin (1989), were developed.FindingsFirst, among the subfactors of entrepreneurial orientation, it was clear that innovative progressiveness affected nonfinancial business performance. Second, risk-taking propensity did not influence both financial business performance and nonfinancial business performance. Third, entrepreneurship education had no connection with entrepreneurial orientation or business performance.Practical implicationsNonfinancial business performances are related with long-term goals and growth potential. Innovative proactiveness affects nonfinancial business performance. Thus, entrepreneurs should look for ways to promote their innovative proactiveness. Entrepreneurship education for experienced entrepreneurs is not as effective as that for students.Originality/valueIn the authors’ study, survey questionnaires were sent to 200 nascent and total early-stage entrepreneurs searching for business angel investments or entrepreneurship consultants in Korea. A total of 180 entrepreneurs answered the survey questions online. There are not so many valid studies examining the effect of entrepreneurship education for nascent and total early-stage entrepreneurs in Korea.

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