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All Journal JURNAL ILMU MANAJEMEN DAN BISNIS Fair Value: Jurnal Ilmiah Akuntansi dan Keuangan Al-Kharaj: Journal of Islamic Economic and Business Ilomata International Journal of Management Dinasti International Journal of Digital Business Management Review of Islamic Economics and Finance Budapest International Research and Critics Institute-Journal (BIRCI-Journal): Humanities and Social Sciences Ilomata International Journal of Management
Agus Rahayu
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Religion Arts Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

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Business Environment, Entrepreneurial Competence, and Innovativeness: Evidence from Bandung’s Embroidery SMEs Ludiya, Eka; Agus Rahayu; Hari Mulyadi; Lili Adi Wibowo; Asep Kurniawan
Al-Kharaj: Journal of Islamic Economic and Business Vol. 8 No. 1 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi
Publisher : LP2M IAIN Palopo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24256/kharaj.v8i1.9157

Abstract

In a dynamic and competitive business environment, understanding the factors that drive entrepreneurial innovation is important. This study examines the relationship between entrepreneurial competence and innovation in the context of the embroidery industry in Bandung. Structural Equation Modeling was employed to evaluate the proposed relationships with 90 embroidery entrepreneurs in Bandung. Empirical results show that a conducive business environment is associated with higher levels of innovation among embroidery entrepreneurs in Bandung. In addition, these environmental conditions also strengthen entrepreneurial competence, which in turn drives innovation, with entrepreneurial competence acting as a partial intermediary mechanism in this relationship. This study contributes to the literature on entrepreneurship and innovation by providing empirical evidence confirming the importance of entrepreneurial competence as a mechanism linking environmental conditions and innovation outcomes in small-scale creative industries. Furthermore, the findings emphasize the importance of improving the business environment to encourage entrepreneurial creativity, suggesting that policymakers and local stakeholders need to strengthen their support through access to resources, market information, and institutions. The research any several limitations. First, focuses on entrepreneurs in the embroidery industry in Bandung. This contextual focus suggests that the findings are most relevant to the embroidery sector in Bandung and may not fully reflect conditions in other settings. Second, the study relies on primary data collected through questionnaires, which may be subject to respondents’ perceptions and interpretations.
Co-Authors Afdol Muftiasa Alamsyah, Sindhu Alexi Yohans, Jordy Asep Kurniawan Dani Kurniawan, Dani Dearika Irsanyya, Kharisma Disman Disman Eko Ruslamsyah Farhan, Abin Muhamad Hari Mulyadi Heny Hendrayati Hilda Monoarfa Lena Lestary Lili Adi Wibowo Lili Adibowo Ludiya, Eka Pranadita, Nugraha Puspo Dewi Puspo Dewi Dirgantari Puspo Dewi Dirgantiri Rida Rosida Safitri, Wiji Sutopo Sutopo Ucu Supriatna Vanessa Gaffar Yumna Puspita