Organizational learning, entrepreneurial orientation and personal values towards SMEs’ growth in Indonesia

Abstract

Purpose The purpose of this study is to examine the dimensions of organizational learning (OL), entrepreneurial orientation (EO), personal value toward the firm performance of small and medium enterprises (SMEs) in North Sumatera, Indonesia. Design/methodology/approach This study used a quantitative methodology using Smart partial least squares of the structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 128 respondents are selected. Using a cross-sectional survey design, 11 hypotheses are tested. Findings It is found that the innovativeness of EO and personal value both have a significant relationship with firm growth. While OL is significantly related to the innovativeness of EO, risk-taking of EO and proactiveness of EO. Then, both innovativeness of EO and proactiveness of EO significantly mediate the relationship of OL and firm growth. However, OL, proactiveness of EO and risk-taking of EO are insignificantly related to firm growth, while risk-taking of EO also insignificantly mediates the relationship of OL and firm growth. Originality/value EO (innovativeness, risk-taking and proactiveness) is deemed a crucial factor in running businesses by SMEs, while OL and personal value play a significant role in creating a competitive advantage that is needed for growth.

Building competitive advantages and business success: the role of learning orientation, reward systems and entrepreneurial orientation

“…Liu (2020) states that managers should build a learning mechanism to encourage and develop EO. Furthermore, several studies found a relationship between the organizational learning process and EO (Altinay et al, 2016;Bell et al, 2002;Hakala and Kohtamäki, 2011;Rafiki et al, 2021). LO includes a set of values that influence a firm's propensity to proactively seek new knowledge (Slater and Narver, 1995;Sinkula et al, 1997), as well as a learning climate that will undoubtedly contribute to the development of the innovation process and enhance EO (Kumar et al, 2020;Sheng and Chien, 2016).…”

“…These firms have been identified as the driving force of economic growth and job creation (Pratono and Mahmood, 2015). It is known that such firms have become a key component of the growth of many economies and play an important role in eliminating poverty, alleviating unemployment and reducing wealth inequality (Rafiki et al , 2021). This is especially true for the Portuguese economy.…”

Social network ties, proactive entrepreneurial behavior and successful retail business: a study on Indonesia small enterprises

“…This could be related to the entrepreneurial orientation that has been highlighted by many studies. In fact, both PEB and entrepreneurial orientation play a vital role in affecting business performance (Rafiki et al , 2021). The practical implications of research may be beneficial to business owners or entrepreneurs in the decision-making process toward business success.…”

The influence of entrepreneurial culture and organizational learning on entrepreneurial orientation: the case of new technology-based firms in Iran

“…This paper, therefore, responds to prior calls (Mantok et al, 2019;Rafiki et al, 2023;Rezaei and Fanak, 2019) to explore the OL-EO relationship in NTBFs. Specifically, EO is defined as: "intentions and actions of key players functioning in a dynamic generative process aimed at new-venture creations" (Lumpkin and Dess, 1996, pp.…”

“…Entrepreneurial culture and organizational learning in new technology-based firms OL affects performance (Ratnapalan and Uleryk, 2014), and a firm's survival and success against competitors (Rafiki et al, 2023), and are not effective without an appropriate organizational culture (Alsabbagh and Al Khalil, 2017). When organizational culture is shaded by EO, OL is becoming imperative, which ultimately enhances it (Keiser, 2011).…”