Entrepreneurial Orientation (EO), Agility Capability (AC), and Competitive Advantage (CA)

Abstract

Small and medium-sized enterprises (SMEs) must be prepared to face an uncertainty business environment due to the New Normal era and the Industrial Revolution 4.0. This research investigates the nexus between EO, AC, CA, and ITO in small and medium-sized tour operators (SMTOs) in East Java, Indonesia. Data were collected from 127 directors or managers of SMTOs in Surabaya and Malang, East Java. The empirical data were analyzed by using Structural Equation Modeling (SEM) with WarpPLS 6.0. The results show that EO positively affects AC and CA. AC also has a positive effect on CA. Surprisingly, ITO has no effect on the relationship between EO and AC. Therefore, directors or managers of SMTOs should consider EO as the main factor for achieving AC and creating a CA. Besides, they must evaluate ITO in order to escalate its values for SMTOs to face the New Normal as well as the Industrial Revolution 4.0. In the future, it is necessary to add aspects of information technology (IT) knowledge and IT Objects to find out more about the IT Competency of the SMTOs. The novelty of this research lies within its country and industrial setting and the addition of ITO as a moderating variable.

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