Does Entrepreneurial Autonomy Foster SME Growth Under Technological Turbulence? The Empirical Evidence from Indonesia

Abstract

This study aims to determine the impact of technological turbulence on the relationship between autonomy, pricing capability, and firm performance. The structural equation model was proposed to investigating the complex relationship of the observed variables. Hence, this study carried out a survey that involved small and medium-sized enterprises (SMEs) in Indonesia context. The results indicate that the pricing capability provides mediating effect on the relationship between autonomy and firm performance. Under moderate technological turbulence, the firms with high autonomy level achieve high performance by enhancing pricing capability. On the other hand, the firms with strong entrepreneurial autonomy suffer under high technological turbulence. This study extends the works on the entrepreneurial behaviors by answering the question on how technological turbulence influences the initiative to promote entrepreneurial autonomy.