scholarly journals Can innovation mediate the effect of adaptability, entrepreneurial orientation on business performance?

2021 ◽  
Vol 11 (8) ◽  
pp. 2301-2312 ◽  
Author(s):  
Enni Savitri ◽  
Emrinaldi Nur DP ◽  
Almasdi Syahza

Business performance is one of the entrepreneurial behavior benchmarks. Small, and Medium Enterprises (SMEs) are required to have dynamic capabilities and strategies that can seize opportunities and improve the market. The aim of this paper is to analyze the effect of adaptability and entrepreneurial orientation on business performance through innovation as mediation. Based on interviews and questionnaires distributed to 115 SMEs in coastal areas. The research results show that adaptability and entrepreneurial orientation have effects on innovation. Adaptability and entrepreneurial orientation have no effects on business performance. Innovation has effects on business performance. Adaptability and entrepreneurial orientation have effects on business performance through innovation as mediation. This study enriches the current literature by providing a contribution and insights to understanding how Resources Based View (RBV) theory affects business performance and innovation on SMEs in coastal areas in Indonesia. The implications of this study on entrepreneurship orientation in SMEs will help to increase resources for innovation. This emphasizes how the RBV approach used in this research helps improve business efficiency by leveraging existing capital in microbusinesses into a source of excellence. The government is working on policies to enhance the efficiency of SMEs in Indonesia.

2019 ◽  
Vol 1 (2) ◽  
pp. 108-124
Author(s):  
Retno Dwi Haryanti ◽  
Grace Tiana Solovida ◽  
Rudi Suryo Kristanto

Small and Medium Enterprises (SME’s) is a business activity that is able to share work and provide economic services widely to the community and can play a role in the process of equity and increase community income, encourage economic growth, and the role in realizing national stability. The growth of SMEs requires good performance from entrepreneurs who with an entrepreneurial spirit to make business in. The aims of this research are to analyze the influence of managerial skill, entrepreneurship behavior and motivation to business performance on SME’s of Food in Gesing Village, Kandangan District, Temanggung Regency. There are 100 SME owners were taken as samples in this study. The data were collected using a questionnaire. The data analysis technique used multiple linear regression analysis. The results showed that the managerial skill, entrepreneurial behavior and motivation have a positive and significant effect on the performance of SME’s of food. This shows that the better the managerial skill, entrepreneurial behavior, and motivation, the higher the performance of SMEs. the value of Adjusted R square is 0.782 shows the variation of business performance of SME’s in Gesing can be explained by managerial ability factor, entrepreneurship and motivation behavior is 78.2%, while 21.8% is explained other factors outside in the model.


2020 ◽  
Vol 2 (3) ◽  
pp. 690
Author(s):  
Fernando Gho Danny ◽  
Louis Utama

Purpose – This paper examines the relationship between entrepreneurial orientation, innovation capacity, and firm performance in the creative industries context. Design/methodology/approach – The developed conceptual model is tested using partial least square ( PLS ) using a sample of 30 creative industries small medium enterprises owners. Findings – The result of the PLS model shows that both EO and IC act as a basis for improved business performance among small and medium enterprises. Based on the research findings, it can be argued that both EO and EO fully unlock their value-creating potential among small and medium enterprises. Originality/value – In addition to providing initial insight on the relationship between entrepreneurial action, innovative capacity, and performance with the creative industries, the paper also is one of the first on the creative industries to focus on firm-level strategy.Tujuan dari makalah ini adalah membahas hubungan antara orientasi kewirausahaan, kapasitas inovasi, dan kinerja perusahaan dalam konteks industri kreatif. Desain / metodologi / pendekatan - Model konseptual yang dikembangkan diuji menggunakan partial least square (PLS) menggunakan sampel 30 pemilik UKM industri kreatif. Temuan - Hasil model PLS menunjukkan bahwa baik EO dan IC bertindak sebagai dasar untuk meningkatkan kesuksesan proyek di antara usaha kecil dan menengah. Berdasarkan temuan penelitian, dapat dikatakan bahwa EO dan IC sepenuhnya membuka kunci potensi penciptaan nilai mereka di antara perusahaan kecil dan menengah. Orisinalitas / nilai – Dalam studi ini selain memberikan wawasan awal antar tindakan kewirausahaan, kapasitas inovaif dan kinerja dalam indsutri kreatif. Makalah ini juga merupakan salah satu yang pertama di industri kreatif untuk fokus pada tingkat perusahaan. Kata kunci: Entrepreneurial marketing, Innovation, Competitive Advantage, Creativity in Marketing, Entrepreneurial orientation.


Author(s):  
Ana Sofia Coelho ◽  
Ana Lisboa ◽  
José Carlos M. R. Pinho

Currently, small and medium enterprises that are family businesses (SMEFs) assume an important role in the global economy. Further, innovation and flexibility became vital to firms' survival and prosperity in the market during these volatile times. Firms should not only possess critical resources, but also be able to recombine them. Characterized by resource restrictions, SMEFs can rely on dynamic capabilities to access resources and be competitive in the market. In this regard, networking capabilities (NC) and resource combinations (RC) such as exploitative and explorative product development and on market-related capabilities emerge as key dynamic capabilities. This chapter examines the role of Entrepreneurial Orientation (EO) on NC and RC. Using a qualitative method of in-depth case study, the chapter analyzes 12 Portuguese SMEFs.


2016 ◽  
Vol 14 (1) ◽  
pp. 183-191 ◽  
Author(s):  
Caroline Chidinma Maduekwe ◽  
Peter Kamala

Failure to budget has been identified as one of the main causes of failure of Small and Medium Enterprises (SMEs). This study seeks to determine the extent to which SMEs in the Cape Metropolis use budgets. Specifically, the study aims to determine the types of budgets used, methods of budgeting employed, purpose for which budgets are used, perceived effectiveness of budgets used and factors that may inhibit SMEs from using budgets. Data were collected using a questionnaire and analyzed using both descriptive and inferential statistics. The findings of this study revealed that most of the SMEs sampled used budgets. The three most frequently used budgets were sales budgets, purchases budgets and cash budgets, while the most frequently used budgeting method was fixed budgeting. The findings also revealed that budgets were mostly used for monitoring, measuring business performance, future planning and control purposes. The findings further revealed that budgets were perceived to be effective but the lack of top management support and qualified personnel were the main factors that inhibit SMEs from using budgets. This study not only fills the gap in the literature on the use of budgets, but also provides invaluable insights on their use by SMEs. These insights could inform future endeavours of the Government when developing interventions meant to avert the high failure rates of these entities. The findings may also assist SMEs to gauge and review their own use of budgets with a view to optimising the benefits derived from these tools, as well as to overcome the factors that could inhibit them from using the budgets in the first place


2021 ◽  
Vol 12 (1) ◽  
pp. 82-101
Author(s):  
Siti Almaidah Siti Almaidah

Micro small and medium enterprises (MSMEs) in the structure of the Indonesian economy occupy the first place in quantity and is a new source in the growth of the domestic economy. During the economic crisis, MSMEs have a high endurance to sustain the Indonesian economy, can even survive the global crisis. Besides that MSMEs also have an important role including as the main driver of job creation, and economic growth both nationally and regionally. To deal with the rapidly changing business environment, MSMEs must have a competitive advantage, good strategic planning, entrepreneurial orientation, and effective performance achievement through innovation efforts. This study aims to test and analyze the influence of the business environment, strategic planning and entrepreneurial orientation on business performance with innovation as mediating variables. The sample in this study was 60 MSMEs in the Surakarta region, and sampling uses purposive sampling, with limits according to the criteria set out in the population and willing to be respondents. This study uses a survey research design. The method of analysis is carried out through testing the quality of data and hypothesis testing using path analysis techniques with SPSS tool version 20. The results showed that the business environment, strategic planning, entrepreneurial orientation had a positive and significant effect on innovation. Innovation variables are variables that mediate the influence of the business environment, strategic planning, and entrepreneurial orientation on business performance.


2012 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Rina Herani ◽  
Otto Andersen

Small and medium enterprises (SMEs) have a critical role in economic growth in Indonesia and become the backbone for job creation, poverty alleviation, and safeguard during the crisis. However, they are highly exposed to uncertain environments. The present study aimed to investigate the influence of SMEs’ entrepreneurial orientation on business performance when uncertain environments exist. A total of 152 Indonesian SMEs were studied in order to assess this relationship. Moderated regression analysis is performed as the main statistical procedures to analyse the moderating role of environmental uncertainty on the influence of entrepreneurial orientation on business performance. Surprisingly, the result of the present study did not confirm the previous predominant studies which found that entrepreneurialorientation dimensions are positively associated with business performance in growing in an uncertain environment. Indonesian entrepreneurs were reluctant to innovate, be proactive, and take risks when an uncertain environment exists. The present study was an endeavour to provide better insight in explaining the inconsistent and ambiguous findings from existing literature.


Author(s):  
Yueh-Hua Lee

Previous studies have shown the relevance of corporate entrepreneurial orientation (EO), marketing orientation (MO), and business performance. However, considerable variation exists in the magnitude of the relationship between EO and business performance, and no significant relationship between EO and performance has yet been found. Our central argument is that the benefits of EO depend on firm MO, and the performance of a firm is highest when EO and MO are aligned. This study explored the influence of entrepreneurial–marketing alignments on the performance of small and medium enterprises (SMEs) and determined the variables that are most conducive of the alignment effect on SME growth in the context of the Taiwanese economy. Understanding this relationship is essential for guiding entrepreneurial behavior to improve firm performance.


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