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The impact of market orientation, entrepreneurial orientation, and innovativeness on MSMEs' business performance in Indonesia Erdavit, Muhamad Arief; Yohana, Vania
Junal Ilmu Manajemen Vol 7 No 3 (2024): July: Management Science and Field
Publisher : Institute of Computer Science (IOCS)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/jmas.v7i3.536

Abstract

The aim of this article is to investigate the market orientation, entrepreneurial orientation, innovativeness model as a mediator of the business performance of MSMEs in Indonesia. This research uses a quantitative approach, with a sample of 164 MSMEs owners in Indonesia who filled out an online questionnaire. The analysis technique uses Structural Equation Model (SEM) with SmartPLS 3.0 software. The research results show that entrepreneurial orientation and innovativeness have a direct influence on business performance in a positive way, and market orientation and entrepreneurial orientation have an indirect influence on business performance through innovativeness. The implications of this research show that entrepreneurial orientation has the most important role in influencing the business performance of MSMEs in Indonesia compared to other variables, so that MSME owners in Indonesia need to increase their entrepreneurial orientation capacity in running their business.