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Enhancing Firm Performance through Entrepreneurial Orientation and Organizational Capability Maulana, Irfan Adzan; Susilowati, Christin
Jurnal Kewirausahaan dan Inovasi Vol. 4 No. 4 (2025)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/jki.2025.04.4.14

Abstract

This explanatory quantitative study aims to analyze the influence of entrepreneurial orientation on firm performance among culinary SMEs in Malang City, with organizational capability as a mediating variable. Using a non-probability sampling method and purposive sampling technique, 109 culinary MSME owners in Malang City who have operated their businesses for at least three years and employ at least five employees were selected as the sample. The data were collected through questionnaires and analyzed using Partial Least Squares (PLS) with SmartPLS version 4.1.0.6. The results show that entrepreneurial orientation has a significant influence on firm performance, that entrepreneurial orientation significantly affects organizational capability that organizational capability has a significant influence on entrepreneurial orientation, and that organizational capability mediates the influence of entrepreneurial orientation on firm performance. This study is expected to serve as a reference for culinary SMEs in Malang City to improve their business performance through innovation, proactiveness, measured risk-taking, autonomy, strengthening relationships with external stakeholders, strategic management capabilities, and operational capabilities.