This research aims to determine the relationship between knowledge management (KM) and strategic improvisation with performance of small-medium enterprises (SMEs). The research employs a quantitative mail survey method and data were collected randomly from the owner/managers of registered SMEs. A total of 131 usable responses were received. Partial Least Square (PLS) modelling was used to estimate the hypothesized research model. Significant relationship was found to exist between KM and performance, and also between strategic improvisation and performance.
The complex relationship between firm performance and entrepreneurial resources raises attention to development program with aim of promoting entrepreneurial mindset to the SMEs. This study has intention to determine the impact of entrepreneurial orientation on firm performance, which involves two mediating variables: reward philosophy and marketing capability. Reward philosophy and incentive system are the most under-researched area in human resource, especially in the context of small business. With SMEs data survey in Indonesia, the result reveals that reward philosophy is not sufficient to explain the relationship between entrepreneurial orientation and firm performance. It requires marketing capability, which can transform reward philosophy to performance. This study contributes to the development of resource-based theory, through discussing the role of dynamic capability. The research uses quantitative approach with the SMEs in Surabaya as unit analysis. Data analysis involves 390 SMEs taken from random sample selection process. The analysis involves descriptive, regression and structural equation modeling (SEM) approaches to test the hypotheses. The finding explains full mediating effect of employee compensation and marketing capability in converting entrepreneurial orientation to gain greater firm performance.
a b s t r a c tThis study investigates the entrepreneurial ecosystem to determine the role of environmental turbulence in the relationship between entrepreneurial orientation (EO) and firm performance. This study attempts to provide additional insight to understand the relationship between EO and performance. This study uses a structural equation model with data from small and medium-sized enterprises Q2 operating in Indonesia. The results indicate that environmental turbulence may have either a positive or negative impact on firm performance by encouraging firms to be more effective and achieve greater performance or having a negative effect on firms with superior entrepreneurial orientation.
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