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All Journal Al-Kharaj: Journal of Islamic Economic and Business
Balya, Muhammad Rafi Raihan
Unknown Affiliation
Economics, Econometrics & Finance

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The Influence of Entrepreneurial Orientation and Innovation on the Performance of MSMEs in Indonesia: A Case Study of Generation Z MSMEs Balya, Muhammad Rafi Raihan; Yuldinawati, Lia
Al-Kharaj: Journal of Islamic Economic and Business Vol. 7 No. 2 (2025): 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.v7i2.7488

Abstract

This study aims to investigate the influence of entrepreneurial orientation and innovation on the performance of Micro, Small, and Medium Enterprises (MSMEs) operated by Generation Z in Indonesia. Using a quantitative approach, data were collected through a structured questionnaire distributed to 400 young MSME owners across various regions. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that entrepreneurial orientation significantly and positively affects both innovation and business performance, while innovation also has a significant positive impact on performance. These results highlight the importance of fostering entrepreneurial behavior and innovation capabilities to enhance the competitiveness of Generation Z entrepreneurs. The study offers practical implications for policymakers, educators, and support institutions to strengthen youth-led MSMEs in the digital economy.
Co-Authors Lia Yuldinawati