Purpose
This study aims to examine the effect of entrepreneurial orientation (EO) on performance and mediation differentiation strategies and market development in small and medium enterprises (SMEs).
Design/methodology/approach
This research was conducted using a survey method with a population of furniture SMEs in Jepara, Central Java, Indonesia using a sample area by collecting 158 questionnaires. The data analysis method used the partial least square.
Findings
The result shows that EO has an impact on differentiation, market development and performance. Differentiation strategies and market development mediate the influence of EO and performance. The differentiation strategy further mediates the influence of EO on market development and market development mediates the effect of differentiation on performance.
Practical implications
Managers instill entrepreneurial practice in the organization by proactively creating the market and taking high-risk jobs to provide quality products and services. SMEs require capabilities that are difficult to imitate in creating designs and product quality that are different, providing pre and post-sales services and maintaining good relationships with customers and partners. SMEs emphasize flexibility and speed of operation by adjusting the production process to short waiting times and reliable delivery. The government must support general training and market information, network development, access to capital and knowledge transfer.
Originality/value
This paper explains the importance of differentiation and market development strategies in determining the relationship between EO and performance that has not been explored in the context of SMEs in developing countries.
Family firms were widely recognized to have substantial contribution to economy especially in emerging economies. However, some previous studies reveal that family firms tend to be conservative and unwilling to take more risks. We extended the literature by investigating whether there was a difference in risktaking behavior between family and non-family firms in the context of Indonesia. Moreover, the presence of women in the top management also considered negatively correlated with risk-taking strategy. Therefore, this study empirically examined the effects of family ownership and women in top management on risk-taking strategy of firms. Using data of 336 publicly traded firms in Indonesia over 2012-2016, this study confirmed the negative effect of family ownership and women in top management on corporate risk-taking. Family ownership and involvement as the CEO of the firms negatively associated with the level of risk taking. Moreover, our results reveal that the presence of women was matter more to decrease corporate risk-taking when they served in the board of directors rather than in the board of commissioners.
A B S T R A C T
A B S T R A K
Perencanaan strategis telah menjadi praktek yang sangat lumrah dalam organisasi organisasi sektor publik. Penelitian menunjukkan dampak-dampak positif dari perencanaan strategis pada kinerja organisasi. Studi ini menguji dampak dari kepublikan pada formalisasi perencanaan, fleksibilitas dan partisipasi. Bukti empiris yang diperoleh dari
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