DOES ENTREPRENEURIAL ORIENTATION AFFECT THE SUSTAINABILITY OF SMES? Evidence from SMEs in East Java Indonesia
- Deasy Tantriana
- Heri Pratikto
- Puji Handayati
- Cipto Wardoyo
- ( paper pages. 413 - 437 )
Abstract
Entrepreneurial orientation (EO), dynamic
capabilities (DC), and competitive advantage (CA) have become interesting
research subjects related to small and medium enterprises (SMEs) in dealing
with external environmental uncertainties. This study investigated the effect
of EO on firm performance by considering the roles of DC and CA. We proposed
that DC and CA mediate the relationship between EO and perfomance (P). The study adopted a survey research design. Data were
collected using a cluster random sampling selected sample of 248 SMEs in Surabaya,
East Java, Indonesia, and the research framework was assessed using structural
equation modelling (SEM). The results showed that EO positively affects SME
performance, but CA and DC do not mediate the relationship between EO and SME
performance. To
the best of the authors’ knowledge, in the context of emerging economies like Indonesia, this study is the first to offer empirical evidence
of the mediating role of competitive advantage and dynamic skills in the
relationship between EO and SME performance.
Citation
Deasy Tantriana, Heri Pratikto, Puji Handayati, Cipto Wardoyo.
2023.
"DOES ENTREPRENEURIAL ORIENTATION AFFECT THE SUSTAINABILITY OF SMES? Evidence from SMEs in East Java Indonesia"
The Nigerian Journal of Economic and Social Studies,
65 (3): 413 - 437.
JEL Classification
B16, M12, M13
