Purpose This study aims to provide empirical findings of the extent to which the ambidexterity found in innovation and social networks will mediate the relationship between entrepreneurial orientation (EO) and firm performance (FP). This study also compares the ambidextrous strategy between the balanced dimension (BD) and combined dimension (CD) and examines their contribution to the small- and medium-sized enterprises (SMEs’) performance. Design/methodology/approach The current study used an explanatory research design by surveying a total of 205 fashion firms’ owners/managers in Yogyakarta, Indonesia, using a semi-structured questionnaire. Path analysis with mediating tests and independent t-tests were used. Findings The results revealed that innovation and social network ambidexterity mediate the relationship between EO and the SMEs’ performance. One ambidextrous strategy, the BD strategy, is superior to the CD one. The study makes an interesting discovery: the CD strategy apparently dominates FP when EO does not exist. Practical implications The study suggests that no ambidextrous strategy (i.e. BD and CD) used by the SMEs can fit all situations. In detail, the study provides four different strategies for SMEs to build organizational ambidexterity, namely, innovate and sustain; elevate; expand; and collaborate and survive. It is also suggested that the SMEs consider two main principles when dealing with an ambidextrous strategy, “anything that is too much is not always good” and “one size does not fit all.” By doing so, the SMEs are expected to be able to use internal and external resources and choose the most appropriate ambidextrous strategy to respond to the relevant situation (e.g. the changes of consumer behavior due to the COVID-19 pandemic). Originality/value Using a dynamic capability approach by integrating two perspectives, i.e. the internal (resource-based theory) and external (resource-dependency theory) perspectives, makes the study relevant and valuable to better understand the role and type of ambidexterity among SMEs as a mediating factor between EO and FP. This paper breaks new ground by confirming a paradoxical phenomenon concerning organizational ambidextrous practices within SMEs. Additionally, four strategies for ambidextrous were developed to respond to the anomaly.
PurposeThis paper offers innovative strategies on how small- and medium-sized enterprises (SMEs) can respond to the COVID-19 crisis by incorporating an entrepreneurial orientation concept corresponding to the nature of the environmental shock.Design/methodology/approachThis paper conceptualises a solution by elaborating three critical items, namely entrepreneurial orientation, adaptive process and strategy types as key factors to develop the framework solution. This paper outlines a strategy proposal for SMEs to respond to the crisis.FindingsThe environmental factor represents the crisis, which leads to a degree of innovation, i.e., radical and incremental, and can be approached using an adjusted adaptive consolidation process from Child. This paper identifies four strategy options from Miles and Snow to respond to the crisis; i.e. (1) defender–exploitative innovation; (2) analyser–organisational ambidexterity; (3) prospector–exploratory innovation and (4) reactor–abandon or shut down the business.Originality/valueWhile most of the suggestions from previous COVID-19-related works are acknowledged, this paper brings more insight from an academic perspective, specifically organisational theory, to cope with the pandemic crisis. The steps and strategy to be chosen can guide policymakers to decide what is their best move to respond to this crisis. In addition, the proposed strategies call for future research to provide empirical evidence by exploring and examining various scenarios in different kinds of businesses.
Purpose This study aims to examine the moderating effect of firm age and size on the relationship between network characteristics (network centrality, network density and tie strength) and firm performance. This study also aims to investigate the difference in the effect of network characteristics on the firm performance of Javanese and Minang ethnic enterprises. Design/methodology/approach An explanatory research design was adopted, which involved a survey in the form of a structured questionnaire of target owners and managers of 34 Javanese ethnic enterprises in North Sumatra, Indonesia and 100 Minang ethnic enterprises in Yogyakarta, Central Java, Jakarta and Bogor, Indonesia. The data is analysed using structural equation modelling. Findings The findings of this study confirm resource dependency and social capital theory. Network centrality, network density and tie strength have a significant effect on firm performance. The results also show support for the moderating role of firm age on the relationship between network characteristics and firm performance. The moderating role of firm size is not supported. The comparative test of the influence of the three network characteristics on ethnic enterprise performance confirms that Javanese ethnic enterprises have identity-based networks, while Minang ethnic enterprises use calculative-based networks. Originality/value The originality of this study lies in the investigation of the role of family and external partners in the running of ethnic enterprises at start-up and during the growth phase. The definition of “family” is based on a kinship perspective due to the specificity of Asian cultures, particularly in Indonesia. Of the hundreds of tribes in Indonesia, the Javanese and Minang were chosen because both are well-known as entrepreneurial tribes, have unique cultural values and have active migrants to other provinces.
Purpose This study aims to examine the effect of entrepreneurial intention and attitude towards knowledge sharing on new business creation by comparing two generations, Y generation (millennials) and Z generation (post-millennial). In addition, the current study uses a social cognitive theory as a point of departure to test the research hypotheses. Design/methodology/approach This study deploys a quantitative approach (hypothetic-deductive approach) by surveying 300 respondents representing the two Indonesian generations. The questionnaire consisting of demographic items (age, education, etc.) and variables was the primary research instrument. This study used regression analysis, a Wald test for examining the proposed hypotheses and a t-test to provide a deeper analysis of the findings. Findings Findings from the current study show that Gen Y is still seeking a balance for their learning sources by involving in their social environments as well as exploring the digital world. In contrast, Gen Z is much more dominant in the independence to learn things that interest them. They have less dependency on social patrons but prioritise themselves as the leading model. Practical implications The findings of this study provide practical implications for higher education institutions in the development of entrepreneurship education to achieve learning effectiveness. Originality/value This study aims to contribute by providing empirical evidence in the effect of entrepreneurial orientation and attitude towards knowledge sharing on new venture creation with particular reference to Gen Y and Gen Z, suggested by previous studies. Although Gen Y and Gen Z are digital natives, this study provides insight into a shift in the characteristic of two generations, as also found in comparison to previous generations, such as Baby-Boomer vs Gen X and Gen X vs Gen Y. This study proclaims the need to adjust organisational theories to enable them to explain the shifting phenomena at the micro and macro level for every generation. Exploratory research to better understand the characteristics of a generation in other settings is a crucial proposal proposed by this study.
Many business schools in the world seek to create newly aspiring entrepreneurs starting from their university years. Many Indonesian universities also engage in this challenging effort. This study investigates the effect of students’ individual entrepreneurial orientation (IEO) on entrepreneurial intention (EI) through regression analysis and t-test on 200 students from several major Indonesian universities. Our results indicate that all IEO dimensions (i.e., innovativeness, risk-taking, proactiveness, passion, and perseverance) positively affect EI. These findings fill in the gap regarding the IEO studies in other contexts by adding two new dimensions, namely passion and perseverance. Further, this study demonstrates that students who have taken entrepreneurship courses exhibit greater effect of IEO on EI, but only in two dimensions (i.e., risk taking and proactiveness). Besides, students who actively participate in student organizations exhibit higher IEO than those who do not, especially in three dimensions dimensions (i.e., innovativeness, risk taking, proactiveness). Hence, this study underscores the importance of various learning exposures (not only in the classroom) for university students to develop their IEO.
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