Innovation as Intervening Variable between Entrepreneurial Orientation and Learning Orientation with Company Performance on MSEs in Ambon City

Abstract

The purpose of this study was to analyze the role of innovation as intervening variable or mediation on the entrepreneurial orientation and learning orientation towards the SMEs performance in Ambon city. The samples of this research were 299 units of SMEs in Ambon city. The data were analyzed through structural equation model (SEM) by the assistance of Amos 2.1 software. The result shows that entrepreneurial orientation has positive effect the company performance, learning orientation has positive effect the company performance, innovation mediated the impact of entrepreneurial orientation towards company performance, and innovation mediated the impact of learning orientation towards company performance on SMEs in Ambon city.

Effect of Entrepreneurial Orientation on SMEs’ Innovation Performance in Sri Lanka

“…Further, SMEs are essential for domestic economies' strength and play a prominent role in enhancing innovation and employment. On the other hand, Organization for Economic Cooperation and Development [3] stated that there is an increasing number of SMEs in many countries worldwide, and over 90% of new business establishments each year are represented by SMEs in most countries.…”