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

Wahyuni, Ni Made and Sara, I Made (2020) The effect of entrepreneurial orientation variables on business performance in the SME industry context. Journal of Workplace Learning, 32 (1). pp. 35-62. ISSN 1366-5626

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Abstract

The purpose of this study is to provide new practical and theoretical insights into how small andmedium-sized enterprises (SMEs) adjust and further develop business competencies, innovations andperformance by using market orientation, learning orientation behaviors and entrepreneurial orientation. The data was collected from manufacturing SMEs of textile productsthat had a number of employees between 5 and 99 people in the province of Bali, Indonesia, in 2016. Baliprovince was chosen as a research location because Bali was one of the tourism centers in Indonesia and evenin the world was considered suitable for this research. It was because it had textile product industries thatcontributed in the fulfillment of the needs of tourism clothing, national economy, the fulfillment of fashionneeds and foreign exchange contributors from non-oil exports (Industry and Trade Service of Bali). Based on the results of descriptive and inferential analysis that has been conducted, it can beconcluded 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 competenceand innovation directly and its influence is significantly positive. But market orientation, learning orientation andentrepreneurial orientation do not directly have a significant positive effect on innovation through knowledgecompetence. Market orientation, learning orientation and entrepreneurship orientation indirectly have asignificant positive effect on businessperformance through knowledgeand innovation competencies.

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