Pengaruh Orientasi Kewirausahaan dan Inovasi Produk Pada Kinerja Bisnis UMKM Kopi Temanggung

Abstract

This research contributes to an advance in scientific discussion of the inconsistent findings on the effect of entrepreneurial orientation on product innovation. Contradictory results also occur in the relationship between the influence of product innovation and business performance. Therefore, this research contributes to promoting product innovation by empowering the effect of entrepreneurial orientation on product innovation. This study has three purposes, namely analyzing the effect of entrepreneurial orientation on product innovation, examining the relationship between product innovation and business performance, and investigating the impact of entrepreneurial orientation on business performance. The respondents of this study were 104 coffee MSMEs located in Temanggung. Data were taken using the purposive sampling method with a questionnaire and distributed online during July-August 2022. This study used Partial Least Square Structural Equation Model (PLS-SEM) to examine three hypotheses. This analysis proves that entrepreneurial orientation improves product innovation. Then, product innovation has a positive effect on business performance. Entrepreneurial orientation and product innovation concurrently increase the level of business performance level. This study backs a scientific contribution that product innovation mediates the positive relationship between entrepreneurial orientation and business performance.