The Impact of Entrepreneurial Orientation on SMEs Performance in West Java Province: Market Orientation as Mediating Variable

Abstract

In this study, we examine the effect of Entrepreneurial Orientation on the performance of SMEs by using the mediating impact of Market Orientation. We used respondents from four regions in the West Java Province of Indonesia. After the questionnaires were distributed using the purposive sampling method, a total of 188 respondents were obtained. The analytical technique used in this study was Structural Equation Modeling (SEM). From the results of the study, it was found that orientations can affect the performance of SMEs. Entrepreneurship Orientation and Market Orientation can affect the performance of SMEs. From testing the mediating effect, it is found that Market Orientation can mediate the relationship between Entrepreneurial Orientation and the performance of SMEs. The research results can provide information for entrepreneurs who want to explore Entrepreneurial Orientation and Market Orientation.

Social Capital, Financial Capital, and Entrepreneurial Orientation: Keys to Performance in Indonesia’s MSME Clothing Industry

“…A study conducted in West Java Province found that EO has a positive and significant effect on the performance of SMEs. The study also suggested that market orientation is an important variable that can bridge the relationship between EO and SME performance (Manali et al, 2022). Finally, a study explored the impact of EO and risk-sharing on organizational performance, and the influencing role of news media and public opinion.…”