The Mediating Role of Strategy Flexibility at the Effects of Entrepreneurial Orientation and Market Orientation on Business Performance Small Medium Enterprise Craft Sector in Indonesia
Indra Kurniawan1, Ubud Salim2, Margono Setiawan3, Mintarti Rahayu4
1Indra Kurniawan, Department of Management, STIE PGRI Dewantara, Jombang, Indonesia.
2Ubud Salim, Department of Management, Brawijaya University, Malang, Indonesia.
3Margono Setiawan, Department of Management, Brawijaya University, Malang, Indonesia.
4Mintarti Rahayu, Department of Management, Brawijaya University, Malang, Indonesia.
Manuscript received on 17 October 2019 | Revised Manuscript received on 23 October 2019 | Manuscript Published on 02 November 2019 | PP: 634-641 | Volume-8 Issue-2S9 September 2019 | Retrieval Number: B11340982S919/2019©BEIESP | DOI: 10.35940/ijrte.B1134.0982S919
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The research intends to test the effects of entrepeneurship orientation and market orientation on business performance with strategic flexibility as mediator. Considering Indonesia has been even today eagerly support entrepreneurial, it intends to explore relationship between the three variables in small and medium enterprises context. The study takes place in Indonesia with 194 sampel. For questionnaire distribution, it makes use of online tool with google form. The unit of analysis is owners, managers or decision-makers at the SMEs. For data analysis, it applies structural equation model with WarpPLS approach. The results demonstrate that entrepreneurial orientation does not significant effect on business performance, but has a positive effect on strategic flexibility. While market orientation has a positive effect on business performance, but it does not have significant effect on strategic flexibility. It means that strategic flexibility mediate relationship between entrepreneurial orientation and performance, while it does not hold true for relationship between market orientation and business performance.
Keywords: Entrepreneurial Orientation, Market Orientation, Strategic Flexibility, and Business Performance.
Scope of the Article: Marketing and Social Sciences