Abstract

This study purpose to predict entrepreneurial commitment as an antecedent of entrepreneurial orientation of SME employees in Bali. This research was conducted on SME employees in Bali with a total of 165 respondents with 90,91% response rate and total 150 questionnaire returned. Respondents were selected by purposive sampling method, where each research instrument uses a 5 Likert scale measurement. The initial evaluation is carried out by estimating the evaluation of the measurement model that is validity and reliability of each reflective construct. The evaluation of structural models for testing research models using the WarpPLS 4.0 program. The significance of the parameters is determined by resampling bootstrapping and using 500 sub-samples of equal size to that of the original sample. The results of this study provide a view that entrepreneurial commitment as an antecedent capable to influence entrepreneurial orientation of SME employees in Bali, be proven of each entrepreneurial commitment dimensions. Entrepreneurial orientation can be predicted by affective commitment of SME employees in Bali significantly. Calculative commitment can influence entrepreneurial orientation of SME employees in Bali not significantly. Entrepreneurial orientation predicted by normative commitment of SME employees in Bali significantly.Keywords: commitment, affective, calculative, normative, entrepreneurial orientationJEL Classifications: L1, L26DOI: https://doi.org/10.32479/irmm.8971

Highlights

  • Commitment comes from the Latin word committere which means combining, uniting, trusting and working, which is something that causes a person to be able to continue working in a company and this is done with sincerity and pleasure (Meyer and Allen, 1990)

  • For affective commitment of 1.596, calculative commitment is 2.275, normative commitment is 2.818, and entrepreneurial orientation is 2.550, so it is free from problems of vertical colinearity, lateral and common method bias

  • Evaluation Results of Structural Model The evaluation results of the antecedent of entrepreneurial orientation research model: An entrepreneurial commitment view is the result of testing the research hypothesis, where the correlation coefficient values in each path are relationships between variables, P values for each path that indicate the significance level of the pathway, and the R square value which shows the contribution of predictor variables to the research criterion variables can be seen in the following Figure 2

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Summary

Introduction

Commitment comes from the Latin word committere which means combining, uniting, trusting and working, which is something that causes a person to be able to continue working in a company and this is done with sincerity and pleasure (Meyer and Allen, 1990). High credibility that is able to produce a commitment and only with high commitment a company is able to produce good business (Gundlach et al, 1995; Karam, 2017). In connection with this to achieve business success, it is very necessary to commit an entrepreneur to support the achievement of the goals of a business organization (Simon et al, 2011; Chen, 2018). The success of a business organization is determined by an entrepreneur who has talent, vision, characteristics and values in achieving the goals of trust and commitment (Frank et al, 2010). To support the success of the company embodied trust, responsibility and confidence and a clear commitment from entrepreneurs so that business goals can be achieved

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