Entrepreneurial Orientation, Business Strategy, and Small Medium Enterprise's Performance

Ida Bagus Agung Dharmanegara,I Made Setena,I Made Yogiarta

doi:10.6007/ijarbss/v8-i11/4923

Ida Bagus Agung Dharmanegara, I Made Setena + Show 1 more

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https://doi.org/10.6007/ijarbss/v8-i11/4923

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Abstract

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.

Highlights

Small-and medium-sized enterprises (SMEs) are seemed to be the engines of economic growth, which it not yet achieved the desired trajectory of success
The results show the indirect effect of entrepreneurial orientation on marketing performance through the micro-small business strategy; with coefficient were 0.627 x 0.271 = 0.169
The importance of knowledge in entrepreneurial orientation and business performance has been widely recognized by previous empirical results

Summary

Introduction

Small-and medium-sized enterprises (SMEs) are seemed to be the engines of economic growth, which it not yet achieved the desired trajectory of success. SMEs have to struggle and compete with larger enterprises in a different and niche arena through product innovativeness and competitiveness (Wagner & Hansen, 2005). Despite the difficulties in comparing data between one country and another, there are general patterns in the relative productivity and distribution of firms by size among the region’s SMEs. Despite the difficulties in comparing data between one country and another, there are general patterns in the relative productivity and distribution of firms by size among the region’s SMEs It is self-evident that every small firm aims to grow, and it has demonstrated their ability to cope with economic turbulences successfully. As Verreynne & Meyer (2010) argued that performance differences in small firms are often the subject of research, media attention and government policy

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