Moderation Effect of Education to the Effect of Market Orientation and Technology Orientation on Entrepreneurship Orientation at Small-and-Medium Enterprises (SMEs) in East Java, Indonesia

Abstract

The research was aimed to uncover the effect of market orientation and technology orientation on entrepreneurship orientation with education as a moderator variable. This research used the quantitative approach and the causal relationship between variables was investigated through Structural Equation Modeling-Partial Least Squares (SEM-PLS). The research population included Small-and-Medium Enterprises (SMEs) in East Java, Indonesia, and 168 SMEs were selected as the sample. The findings of the research revealed that education attainment levels could reduce the effect of market orientation on entrepreneurship orientation and could increase the effect of technology orientation on entrepreneurship orientation. Based on the findings, it is recommended that SMEs in East Java must improve their entrepreneurship orientation by intensifying the variation of the market’s supply and demand, upgrading technology, and hiring workers who have the required educational background, and then training them on the latest technology