Abstract
The business sector has started to understand and follow business management that creates a balance between economy, society, and environment for the strength, stability, and sustainability of the business and society as a whole. However, the matter remains a challenge for many organizations, especially for Small and Medium Enterprises (SMEs) businesses. This research aims 1) to analyze the direct influence of entrepreneurial orientation on the corporate sustainability performance of community enterprises in the three southern border provinces and 2) to analyze the indirect influence of entrepreneurial orientation on corporate sustainability performance through the mediator variable which is knowledge integration capability of community enterprises in the three southern border provinces. This research uses an organizational level analysis unit and uses Structural Equation Modeling (SEM) on data collection via questionnaires of 384 community enterprises in three southern border provinces. The sampling was done by multi-stages level and stratified sampling using proportions and specific selection. The results of the research showed that the results of the consistency of the structural equation modeling of the cause and effect factors affecting the corporate sustainability performance of community enterprises of three southern border provinces, consistent with the empirical data at a good level. The entrepreneurial orientation had a direct effect on knowledge integration capability with the highest influence coefficient. In addition, the entrepreneurial orientation had an indirect influence on corporate sustainability performance through knowledge integration capability.
Highlights
The implementation results of the sustainability performance are the basis for the success of businesses in the 21st century
From the criteria of Hair et al (2010) explained that factor loadings should equal or more than 0.5 that mean all observed variables of each latent variables have high covariance
The results showed that entrepreneurial orientation (EO) and knowledge integration capability (KIC) could explain the variance of corporate sustainability performance (CSP) (94.0%) and EO had indirect effect on CSP through KIC
Summary
The implementation results of the sustainability performance are the basis for the success of businesses in the 21st century. If SMEs are striving to solve social and environmental problems by enable businesses to innovate and compete amid rapid changes in the global economy. Many literature reviews and related research studies support the view that entrepreneurial orientation affects the organization's performance. There are important variables that affect CSP, namely the concept of knowledge integration capability (KIC). The sustainable advantages related to the ability and resources of each organization to create a competitive advantage by utilizing existing ability and internal and external performance to manage internal and external environment changes. The concept of KIC is creating and applying knowledge both inside and outside the organization to produce products and services, an effective ability is important to business organizations. It was found that EO had a clear relationship with the EO and activities of EO affecting the organization performance (Kim et al 2012)
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