Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java

Purpose - This study aims to examine comprehensively the factors determining the performance of small and medium enterprises (SMEs) producing Indonesian special food in East Java. Design/methodology/approach - This study is quantitative and qualitative. Primary data was collected from entrepreneurs...

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Main Author: Benny Hutahayan
Format: Article
Language:English
Published: Emerald Publishing 2019-09-01
Series:Asia Pacific Journal of Innovation and Entrepreneurship
Subjects:
Online Access:https://www.emerald.com/insight/content/doi/10.1108/APJIE-09-2018-0053/full/pdf?title=factors-affecting-the-performance-of-indonesian-special-food-smes-in-entrepreneurial-orientation-in-east-java
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author Benny Hutahayan
author_facet Benny Hutahayan
author_sort Benny Hutahayan
collection DOAJ
description Purpose - This study aims to examine comprehensively the factors determining the performance of small and medium enterprises (SMEs) producing Indonesian special food in East Java. Design/methodology/approach - This study is quantitative and qualitative. Primary data was collected from entrepreneurs in East Java, those producing Indonesian special food. Secondary data was obtained from the literature, literature study, journals, Central Bureau of Statistics and the office of industry, trade, cooperatives and SMEs in East Java. Areas selected for this study were Surabaya, Madiun, Malang, Pasuruan, Lamongan and Banyuwangi. The population was small and medium entrepreneurs producing Indonesian special food in the selected cities. Based on the PLS sampling rule, the number of samples in each research area was 50, with total of 300 respondents (50 × 6). The methods of collecting primary data were interviews and questionnaire. Data analysis was done using GSCA. Findings - The study firstly found the significant influence of entrepreneurial orientation on business strategies of SMEs producing Indonesian special food in East Java. SME managers have a high entrepreneurial orientation. Secondly, it found a significant influence of entrepreneurial orientation on business performance of SMEs producing Indonesian special food in East Java. Thirdly, the study found that government policy is not a moderating variable. Additionally, business strategies have a significant influence on the performance of SMEs producing Indonesian special food in East Java. Finally, dynamics of the environment and business strategy have a significant influence on the performance of manufacturing industry in South Sulawesi. Originality/value - To know the effect of entrepreneurial orientation, environmental dynamism, consisting of uncertainty of environment and intensity of competition, and business strategies toward business performance. Considering the findings of the previous studies, the authors would like to re-examine the effect of entrepreneurial orientation on business performance, which also compares the findings of previous studies, especially, the one by Lee and Tsang (2003) on SMEs in Singapore.
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spelling doaj.art-7dc463e8f8824b06bee5436e86df109e2022-12-22T04:24:58ZengEmerald PublishingAsia Pacific Journal of Innovation and Entrepreneurship2398-78122019-09-0113223124610.1108/APJIE-09-2018-0053634127Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East JavaBenny Hutahayan0Brawijaya University, Malang, IndonesiaPurpose - This study aims to examine comprehensively the factors determining the performance of small and medium enterprises (SMEs) producing Indonesian special food in East Java. Design/methodology/approach - This study is quantitative and qualitative. Primary data was collected from entrepreneurs in East Java, those producing Indonesian special food. Secondary data was obtained from the literature, literature study, journals, Central Bureau of Statistics and the office of industry, trade, cooperatives and SMEs in East Java. Areas selected for this study were Surabaya, Madiun, Malang, Pasuruan, Lamongan and Banyuwangi. The population was small and medium entrepreneurs producing Indonesian special food in the selected cities. Based on the PLS sampling rule, the number of samples in each research area was 50, with total of 300 respondents (50 × 6). The methods of collecting primary data were interviews and questionnaire. Data analysis was done using GSCA. Findings - The study firstly found the significant influence of entrepreneurial orientation on business strategies of SMEs producing Indonesian special food in East Java. SME managers have a high entrepreneurial orientation. Secondly, it found a significant influence of entrepreneurial orientation on business performance of SMEs producing Indonesian special food in East Java. Thirdly, the study found that government policy is not a moderating variable. Additionally, business strategies have a significant influence on the performance of SMEs producing Indonesian special food in East Java. Finally, dynamics of the environment and business strategy have a significant influence on the performance of manufacturing industry in South Sulawesi. Originality/value - To know the effect of entrepreneurial orientation, environmental dynamism, consisting of uncertainty of environment and intensity of competition, and business strategies toward business performance. Considering the findings of the previous studies, the authors would like to re-examine the effect of entrepreneurial orientation on business performance, which also compares the findings of previous studies, especially, the one by Lee and Tsang (2003) on SMEs in Singapore.https://www.emerald.com/insight/content/doi/10.1108/APJIE-09-2018-0053/full/pdf?title=factors-affecting-the-performance-of-indonesian-special-food-smes-in-entrepreneurial-orientation-in-east-javaentrepreneurial orientationbusiness strategiesgovernment policiesperformance of smes
spellingShingle Benny Hutahayan
Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java
Asia Pacific Journal of Innovation and Entrepreneurship
entrepreneurial orientation
business strategies
government policies
performance of smes
title Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java
title_full Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java
title_fullStr Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java
title_full_unstemmed Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java
title_short Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java
title_sort factors affecting the performance of indonesian special food smes in entrepreneurial orientation in east java
topic entrepreneurial orientation
business strategies
government policies
performance of smes
url https://www.emerald.com/insight/content/doi/10.1108/APJIE-09-2018-0053/full/pdf?title=factors-affecting-the-performance-of-indonesian-special-food-smes-in-entrepreneurial-orientation-in-east-java
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