Improvement of Business Performance through Entrepreneurial Orientation (original) (raw)
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International Journal of Application on Economics and Business
Enterprises with good business performance are enterprises that are able to survive in fast-moving market. In order to achieve maximum business performance, Small and Medium Enterprises (SMEs) need to have Entrepreneurial Orientation. This study aims to determine the effect of Entrepreneurial Orientation on business performance through Entrepreneurial Competency as a mediation variable among SMEs in culinary sector in Jakarta. The sample used in this study was 100 respondents who are owners of SME businesses in culinary sector in Jakarta. The sample selection technique used was purposive sampling and Smart Partial Least Square (PLS) software version 3.00 was used to make data analysis for this study. The results of this study indicate that innovation, risk taking and proactiveness (Entrepreneurial Orientation) have positive impact on business performance among SMEs in culinary sector in Jakarta.
Journal of Management Scholarship, 2022
The conditions of intense competition make businesses threatened. As a result, the existence of the business becomes something that must be maintained. It is important that entrepreneurial orientation is owned by every business owner, and is forwarded to a learning orientation so that the performance of the business can be improved. The purpose of this study was to determine the relationship between entrepreneurial orientation and learning orientation, and to determine the relationship between learning orientation and business performance. This research used explanatory research, which is research used to determine has or hasn't the effect exogenous variable on endogenous variables. Meanwhile, the exogenous variables in this study are Entrepreneurship Orientation and Learning Orientation, and the endogenous variables are SME Performance. This study used research method of Structural Equation Modeling (SEM). The collecting data is distributing questionnaires. This study uses a cross-sectional time horizon. The observation unit in this research is the owner of UKM Food in Padang City, while the sample in this research is 30 respondents. The results of the study found that entrepreneurial orientation had a significant effect on learning orientation, while learning orientation had no significant effect on business performance.
2021
This study aims to see the effect of entrepreneurial orientation, innovation, and competitive advantage on the performance of the culinary sector SMEs in Bogor, West Java. The research was conducted in the culinary industry sector in the city of Bogor. 270 questionnaires were distributed, but 161 were returned so that the sample in this study was 161 respondents. The research was conducted by using quantitative methods. The data analysis used was path analysis with Amos version 23 software. The results showed that there was a positive and significant influence between entrepreneurial orientation, innovation, and competitive advantage on performance. Entrepreneurial orientation has an influence on innovation and competitive advantage. Then, innovation has an effect on competitive advantage. The results also show that innovation and competitive advantage can mediate the effect of entrepreneurial orientation on performance. The recommendation of this research is to increase the competi...
Assessing the Influence of Entrepreneurial Orientation on Small And Medium Enterprises performance
International Journal of Entrepreneurship, 2018
This study set out to assessing the influence of entrepreneurial orientat ion and SMEs’ performance. A descriptive research design was adopted to gather information from registered SMEs as captured by Corporate Affairs Commission in Nigeria. The data gathered were sourced via the administration of structured questionnaire to 436 owner - managers of SMEs. The study employed the use of structural equation modelling of AMOS 22 to test the hypothesis. The results from statistical analysis indicates a significant impact from all dimensions of entrepreneurial orientation, such as busines s opportunity, inclusive innovation, dynamic operations, value adding activity, risk taking and innovative decisions have significant influence on SMEs performance.
Asian Social Science, 2015
Research examining the relationship between entrepreneurial orientation (EO) and business performance has recently received considerable attention in the marketing and entrepreneurship literature. Empirical studies on the determinants of firm performance have shown that the entrepreneurial orientation of a firm has significant positive influence on the firm performance. However, less attention has been paid to this relationship in the context of SMEs. This study therefore contributes to the existing literature by examining this relationship in SMEs context. The current study suggests that the owners/ managers of SMEs should adopt the EO mindset in order to attain sustainable competitive advantage and superior performance. The current study provides insights to researchers, practitioners, owners and managers on the importance of the dimensions of entrepreneurial orientation.
The Effect of Entrepreneurial Orientation on SMEs Business Performance in Indonesia
Journal of Entrepreneurship Education, 2019
This study aims to analyze the effect of entrepreneurial orientation on business performance. Entrepreneurial orientation is measured through innovativeness, proactiveness, risk taking, and aggressiveness, while business performance is measured through the Balanced Scorecard perspective. The research method uses explanatory methods with data collection techniques through questionnaires and interviews. Population is SMEs in the manufacturing industry sector in West Java, Indonesia measuring 203,181 with proportional random sampling technique obtained by sample 346 SMEs. The data that has been collected is then analyzed using a Likert scale system, descriptive syllogism analysis and Structural Equation Modeling (SEM). The results showed that entrepreneurial orientation in all dimensions (innovativeness, proactiveness, risk taking, and aggressiveness) tended to be low. Likewise with business performance (perspective: financial, customers, internal business processes, learning and growth) are at a level that tends to be low, which illustrates entrepreneurial orientation positively influences business performance. The implication of this research is that the lack of development of the desire of SMEs actors to seek business opportunities and become leaders in an increasingly dynamic business environment, if not allowed to hinder the growth of business performance, also weakens competitiveness so that SMEs products are not marketable. This finding implies, to improve business performance, SMEs players in running their businesses are always entrepreneurial oriented.
Entrepreneurial Orientation, Business Strategy, and Small Medium Enterprise's Performance
International Journal of Academic Research in Business and Social Sciences, 2018
There are determining factors that are directly related to the generation of opportunities that maximize performance of the small medium enterprise (SME). This research paper focuses on a quantitative paradigm to measure the entrepreneurial orientation, business strategy and SMEs' performance as variables. A causal model was developed from the literature, from which a set of hypotheses was posed and a questionnaire was made. A sample of 95 small and medium entreprise in Denpasar was subject to the questionnaire. The findings suggest, entrepeneurial orientation have the most important effect on marketing performance rather than business strategy. The results are based on a rather small sample of exporting SMEs in Denpasar Bali; therefore, the generalizability of the results cannot be assured. But this study will sheds more light on the little researched themes of entrepreneurial orientations in the context of SMEs.
The purpose of this study is to investigate the relationship of entrepreneurial orientation and business environment on firm performance, underpinned by Resource based view. Their relationship receives a considerable scholarly attention in the literature, but few studies have been conducted among Nigerian SMEs. SMEs are considered as important to the economic growth of Nigeria and they constitute the major source of employment and significantly contribute to the gross domestic production. Based on the theoretical consideration, a model was proposed to examine this relationship. A quantitative method was used with a total of 640 questionnaires personally distributed to the owner/managers of SMEs in Nigeria. A total of 511 questions was duly completed and returned representing 79.8% response rate. The study finding is in support of previous researchers who have suggested the positive relationship of entrepreneurial orientation and firm performance in many organizations. The finding from the study indicated no relationship between the business environment and firm performance. The finding from this study will benefit SME owner/managers, regulatory agency ie small and medium enterprise development agency of Nigeria, it will also help in policy formulation and will serve as a frame of future reference.
Effect of Entrepreneurial Orientation on the Performance of Small Enterprises
Several studies have revealed the importance of the entrepreneurial orientation (EO) concept in improving firm performance since its inception. However, because of the complications that small businesses face, there are still concerns about whether EO can improve their performance. This study investigated the effect of EO on the performance of small enterprises in Abuja, Nigeria. The objective of the study is to specifically assess the effect of the dimensions of EO viz. autonomy, innovativeness, proactiveness and risktaking on the business performance of small enterprises in Abuja. The study made use of a survey research design to target a population of 2750 small enterprises in Abuja. Using the Taro Yamane formula, a sample size of 349 was obtained. Of the questionnaires randomly issued to the small enterprises, 338 were completed and returned representing a 96.84% response rate. The questionnaires contained closed-ended questions that were rated on a 5-point Likert scale. The data was then analysed using descriptive statistics and multiple linear regression. Arising from the result, the regression model was significant at 0.000 with the calculated value greater than the critical value (16.910>2.399), hence, the null hypothesis was rejected. It was concluded that, overall, EO has a significant effect on business performance. However, of the dimensions tested, autonomy is insignificant, while innovativeness, proactiveness and risk-taking are significant. The study recommends that entrepreneurial development initiative that aims at building the EO dimensions of small enterprises should focus on innovativeness, proactiveness and risk-taking, rather than autonomy.