The effect of entrepreneurship orientation and flexibility toward adaptive innovation and improved firm performance

Abstract

This study analysed the effect of entrepreneurial orientation and flexibility on adaptive innovation and firm performance. The sample of this study consisted of 114 orchid business actors. The data analysis technique used in this study uses quantitative methods with the SEM analysis method (WarpPLS) as an analytical tool to process data. Data was collected by direct interview and through a Google Form. This study proves that entrepreneurial orientation directly and positively affects firm performance and adaptive innovation. Flexible management has a direct and positive effect on firm performance and adaptive innovation, while adaptive innovation has a positive effect on improving firm performance. On the other side, adaptive innovation has not a mediation role of entrepreneurship orientation toward firm performance, but adaptive innovation has a mediation role flexibility toward firm performance. The novelty of this study emphasize on the green economy run by orchid SMEs, that strives to enhance business performance through entrepreneurial orientation, adaptability, and adaptive innovation.

THE IMPACT OF RELIGIOSITY AS MODERATOR ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION, MARKET ORIENTATION AND THE PERFORMANCE OF SMEs

“…Conversely, the lower the level of entrepreneurial orientation implemented in SMEs in Padang City, the lower the level of performance of SMEs. The finding of this study is in line with several previous studies which found that entrepreneurial orientation had a positive and significant effect on the performance of SMEs (Alvarez-Torres et al, 2019;Cuevas-Vargas et al, 2019;Rofiaty et al, 2022;Sakib et al, 2022;Sefnedi et al, 2022).…”

“…In this study, the entrepreneurial orientation variable was measured by using 5 indicators (Alvarez-Torres et al, 2019) namely innovation, risk-taking, proactiveness, autonomy, and competitive aggressiveness. The results of previous studies explain that the stronger the entrepreneurial orientation, the higher the company's performance (Alvarez-Torres et al, 2019;Cuevas-Vargas et al, 2019;Rofiaty et al, 2022;Sakib et al, 2022;Sefnedi et al, 2022). Based on the results of these previous studies, the study proposed the following hypothesis: H 1 : Entrepreneurial orientation positively affects SMEs' performance…”

“…Entrepreneurial orientation is conceptualized as the ability of a firm's resources that can be used as a means or opportunity in creating a firm's advantage to improve firm performance, but its form cannot be seen as or intangible resource (Alvarez-Torres et al, 2019). Entrepreneurial orientation can be used as the key to success for the success of a business because SMEs that apply a good entrepreneurial orientation can encourage growth and business survival (Rofiaty et al, 2022). In this study, the entrepreneurial orientation variable was measured by using 5 indicators (Alvarez-Torres et al, 2019) namely innovation, risk-taking, proactiveness, autonomy, and competitive aggressiveness.…”

“…Empirically, the variable that can affect company performance including SMEs performance is the entrepreneurial orientation (Alvarez-Torres et al, 2019;Cuevas-Vargas et al, 2019;Rofiaty et al, 2022;Sakib et al, 2022;Sefnedi et al, 2022). The entrepreneurial orientation is conceptualized as the ability of a company's intangible resources in creating a competitive advantage to enhance company performance (Kiyabo & Isaga, 2020).…”

role prescriptions of women leaders to achieve competitive advantage

“…Studies have shown that innovation is a key driver of business success. Companies that combine the capacity to innovate with resources are more successful in developing new capabilities and achieving competitive advantage (Rofiaty et al, 2022;Skordoulis et al, 2020).…”