Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance

Entrepreneurial Social Competence and Entrepreneurial Orientation to Build SME’s Business Network and Business Performance

“…Most studies state that business performance will be influenced by entrepreneurial orientation which will be measured through some dimensions, such as, innovation, pro activeness, and risk taking [5]- [8]. Yet, some studies stated that the influence of entrepreneurial orientation on business performance will be lasted in short duration [9].…”

“…It is the ability to pursue any opportunity that becomes an important chance to have a high performance of business, by using the existing resources in reaching its success [13]. Entrepreneurial orientation is a company's orientation to have a main principle in its effort to identify and exploit any opportunities [8]. Lumpkin and Dess [8] add other characters, that is to say, aggressive competition and organization's independence besides risk taking, pro-activeness.…”

“…Entrepreneurial orientation is a company's orientation to have a main principle in its effort to identify and exploit any opportunities [8]. Lumpkin and Dess [8] add other characters, that is to say, aggressive competition and organization's independence besides risk taking, pro-activeness. A firm that has proper entrepreneurial orientation will have an ability to perform a better innovation compared with another company [14].…”

“…Indicators to measure the entrepreneurial social competence are (a) Innovation, (b) Risk Taking, (c) Proactiveness and (d) being aggressive in competition [8], [25]. Indicators to measure business network are (a) the amount of business network with production sector, (b) the amount of network with suppliers, (c) the amount of business network with distribution channel [33].…”

“…The characteristics of entrepreneurial such as innovation, risk acceptance, will also help the entrepreneurs to anticipate the new market, and improve the innovative ideas, as well as give proactive influence on business performance. Dare to take a risk reflects the tendency to empower entire resources in an integrated activity which may either fail or succeed and get an enormous profit [8]. Next, a trait to take an opportunity is the ability of entrepreneurs to take an aggressive initiative in performing their business and becomes the leader in shaping business environment which will get big profit.…”