Entrepreneurial Orientation in Micro and Small Enterprises of Traditional Food Centers in Bandung, West Java
DOI:
https://doi.org/10.21512/bbr.v10i3.5611Keywords:
entrepreneurial orientation, micro and small enterprises, traditional foodAbstract
The research objective was to analyze the determninant factors of Entrepreneurial Orientation (EO) in the Micro and Small Enterprises (MSEs) of the traditional food centers in Bandung. It used the EO dimension at the organizational level. Five dimensions were used to measure the EO level, namely risk-taking, innovativeness, competitive aggressiveness, proactiveness, and autonomy. The questionare’s was distributed to eight MSEs in Bandung. The sample size is 100 employee Structural Equation Model (SEM) analysis techniques with Partial Least Square (PLS) was used to test the samples. This research shows that the EO level in the micro and small enterprises in the traditional food centers in Bandung is at a moderate level. Although EO of MSEs in the traditional food centers in Bandung is in the moderate category, the results of testing on the EO model find out that each EO dimension forms a significant EO construct. The four dominant and recommended dimensions forming an EO construct in MSEs are risk-taking, innovativeness, competitive aggressiveness, and proactiveness. Among the four dimensions, risk-taking is the dominant dimension. It indicates that courage in taking risks in MSEs is a natural characteristic of the EO in the traditional food centers in Bandung.
Plum Analytics
References
Al Mamun, A., Kumar, N., Ibrahim, M. D., & Bin Yusoff, M. N. H. (2017). Validating the measurement of entrepreneurial orientation. Economics & Sociology, 10(4), 51-66.
Alayo, M., Maseda, A., Iturralde, T., & Arzubiaga, U. (2019). Internationalization and entrepreneurial orientation of family SMEs: The influence of the family character. International Business Review, 28(1), 48-59.
Alcalde-Heras, H., Iturrioz-Landart, C., & Aragon-Amonarriz, C. (2019). SME ambidexterity during economic recessions: The role of managerial external capabilities. Management Decision, 57(1), 21-40.
Alhnity, H., Mohamad, A., & Ishak, A. K. (2016). Impact of entrepreneurial orientation on small business performance: Moderating role of government intervention. International Review of Management and Marketing, 6(7S), 95-100.
Allameh, S. M., & Khalilakbar, R. (2018). Exploring the antecedents of innovation performance: The roles of entrepreneurial orientation, learning orientation and organisational learning. International Journal of Business Excellence, 14(4), 470-485.
Aloulou, W. J. (2019). Impacts of strategic orientations on new product development and firm performances: Insights from Saudi industrial firms. European Journal of Innovation Management, 22(2), 257-280.
Arzubiaga, U., Maseda, A., & Iturralde, T. (2019). Entrepreneurial orientation in family firms: New drivers and the moderating role of the strategic involvement of the board. Australian Journal of Management, 44(1), 128-152.
Ayuso, S., & Navarrete‐Báez, F. E. (2018). How does entrepreneurial and international orientation influence SMEs’ commitment to sustainable development? Empirical evidence from Spain and Mexico. Corporate Social Responsibility and Environmental Management, 25(1), 80-94.
Beltrame, F., Floreani, J., Grassetti, L., Mason, M. C., & Miani, S. (2019). Collateral, mutual guarantees and the entrepreneurial orientation of SMEs. Management Decision, 57(1), 168-192.
Boohene, R. (2018). Entrepreneurial orientation, strategic orientation and performance of small family firms in the Kumasi Metropolis. Academy of Entrepreneurship Journal, 24(2), 1-16.
Chabaud, D., & Sattin, J. F. (2019). Back to the roots! Testing Miller’s entrepreneurial orientation construct using Sono-Leontief conditions. Journal of Business Venturing Insights, 11(June), e00113.
Chaudhuri, T. (2017). Revisiting the ‘Kerala Model’ placemaking, environmentalism and regional pride in the Periyar Tiger Reserve. Journal of South Asian Development, 12(2), 155-176.
Chin, W. W. (1998). The Partial Least Squares approach for Structural Equation Modeling. In G. A. Marcoulides (Ed.), Methodology for business and management. Modern methods for business research (pp. 295-336). Mahwah, NJ, US: Lawrence Erlbaum Associates Publishers.
Chin, W. W., Mills, A. M., Steel, D. J., & Schwarz, A. (2014). Multi-group invariance testing: An illustrative comparison of PLS permutation and covariancebased SEM invariance analysis. In International Conference on Partial Least Squares and Related Methods (pp. 267-284). Springer, Cham.
Covin, J. G., & Miller, D. (2014). International entrepreneurial orientation: Conceptual considerations, research themes, measurement issues, and future research directions. Entrepreneurship Theory and Practice, 38(1), 11-44.
Cuevas-Vargas, H., Parga-Montoya, N., & Fernández-Escobedo, R. (2019). Effects of entrepreneurial orientation on business performance: The mediating role of customer satisfaction—A formative–Reflective model analysis. SAGE Open, 9(2), 1-14.
Eshima, Y., & Anderson, B. S. (2017). Firm growth, adaptive capability, and entrepreneurial orientation. Strategic Management Journal, 38(3), 770-779.
Febrian, A. F., Maulina, E., & Purnomo, M. (2018). The influence of social capital and financial capability on sustainable competitive advantage through entrepreneurial orientation: Empirical evidence from Small and Medium Industries in Indonesia using PLS-SEM. Advances in Social Sciences Research Journal, 5(12), 218-232.
Ghozali, I. (2014). Structural Equation Modeling metode alternatif dengan Partial Least Squares (PLS). Semarang: Universitas Dipenegoro Semarang.
Hernández-Perlines, F., & Ibarra Cisneros, M. A. (2017). Analysis of the moderating effect of entrepreneurial orientation on the influence of social responsibility on the performance of Mexican family companies. Cogent Business & Management, 4(1), 1-17.
Imran, M., Jian, Z., Haque, A., Urbański, M., & Nair, S. (2018). Determinants of firm’s export performance in China’s automobile industry. Sustainability, 10(11), 1-23.
Jansson, J., Nilsson, J., Modig, F., & Hed Vall, G. (2017). Commitment to sustainability in small and mediumsized enterprises: The influence of strategic orientations and management values. Business Strategy and the Environment, 26(1), 69-83.
Kaushal, D., Kumar, S., Negi, A., & Raj, R. (2017). Effects of differentiation strategy as a mediating variable in the relationship between entrepreneurial orientation and SMEs performance: A study of Indian SMEs. International Journal of Economic Research, 14(16), 489-505.
Kallmuenzer, A., Strobl, A., & Peters, M. (2018). Tweaking the entrepreneurial orientation–performance relationship in family firms: The effect of control mechanisms and family-related goals. Review of Managerial Science, 12(4), 855-883.
Kee, D., & Rahman, N. (2018). Effects of entrepreneurial orientation on start-up success: A gender perspective. Management Science Letters, 8(6), 699-706.
Khandwalla, P. N. (1977). The design of organizations. New York: Harcourt Brace Jovanovich.
Kljucnikov, A., Belás, J., & Smrcka, L. (2016). The role of risk-taking and competitive aggressiveness in management of SMEs. Polish Journal of Management Studies, 14(1), 129-139.
Kozubíková, L., Vojtovič, S., Rahman, A., & Smrčka, L. (2016). The role of entrepreneur’s gender, age and firm’s age in autonomy. The case study from the Czech republic. Economics and Sociology, 9(2), 168-182.
Kozubíková, L., & Zoubková, A. (2016). Entrepreneur’s attitude towards innovativeness and competitive aggressiveness: The case study of Czech microenterprises. Journal of International Studies, 9(1), 192-204.
Lechner, C., & Gudmundsson, S. V. (2014). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), 36-60.
Lee, S. M., & Peterson, S. J. (2000). Culture, entrepreneurial orientation, and global competitiveness. Journal of World Business, 35(4), 401-416.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172.
Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451.
Maldonado-Guzman, G., Lopez-Torres, G. C., & Castro, S. Y. P. (2016). Entrepreneurial orientation level in Mexican SMEs. Journal of Management & Sustainability, 6(2), 89-96.
Mason, M. C., Floreani, J., Miani, S., Beltrame, F., & Cappelletto, R. (2015). Understanding the impact of entrepreneurial orientation on SMEs’ performance. The role of the financing structure. Procedia Economics and Finance, 23, 1649-1661.
McCarthy, D. J., Puffer, S. M., & Lamin, A. (2018). Entrepreneurial orientation in a hostile and turbulent environment: Risk and innovativeness among successful Russian entrepreneurs. European Journal of International Management, 12(1-2), 191-221.
Micheels, E. T., & Boecker, A. (2017). Competitive strategies among Ontario farms marketing direct to consumers. Agricultural and Food Economics, 5, 1-23.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791.
Mintzberg, H. (1973). Strategy-making in three modes. California Management Review, 16(2), 44-53.
Mishra, R., & Mishra, O. N. (2019). Prioritising dimensions of entrepreneurial orientation for supply chain flexibility development in an uncertain environment. Journal of Manufacturing Technology Management, 30(2), 483-505.
Mohamad, M., & Chin, O. (2019). Business networking and sustainability of small rural business: Mediating effects of entrepreneurial orientation. Management Science Letters, 9(4), 595-606.
Neneh, B. N., & Van Zyl, J. (2017). Entrepreneurial orientation and its impact on firm growth amongst SMEs in South Africa. Problems and Perspectives in Management, 15(3), 166-178.
Oni, O., Agbobli, E. K., & Iwu, C. G. (2019). Entrepreneurial orientation and performance of small business in Vryburg Region North West Province South Africa. Journal of Reviews on Global Economics, 8, 63-71.
Purnomo, M. (2014). Agilitas organisasi-organisasi entrepenerial. Jurnal Aplikasi Bisnis, 5(1), 24-48.
Rank, O. N., & Strenge, M. (2018). Entrepreneurial orientation as a driver of brokerage in external networks: Exploring the effects of risk taking, proactivity, and innovativeness. Strategic Entrepreneurship Journal, 12(4), 482-503.
Sarstedt, M., Ringle, C. M., Smith, D., Reams, R., & Hair Jr, J. F. (2014). Partial Least Squares Structural Equation Modeling (PLS-SEM): A useful tool for family business researchers. Journal of Family Business Strategy, 5(1), 105-115.
Schachtebeck, C., Groenewald, D., & Nieuwenhuizen, C. (2018). Assessment of entrepreneurial and intrapreneurial orientation constructs: An analysis of past research. Journal of Business and Retail Management Research, 13(2), 264-273.
Sung, C., & Park, J. (2018). Sustainability orientation and entrepreneurship orientation: Is there a tradeoff relationship between them? Sustainability, 10(2), 1-14.
Stambaugh, J. E., Martinez, J., Lumpkin, G. T., & Kataria, N. (2017). How well do EO measures and entrepreneurial behavior match? International Entrepreneurship and Management Journal, 13(3), 717-737.
Stanley, L. J., Hernández-Linares, R., López-Fernández, M. C., & Kellermanns, F. W. (2019). A typology of family firms: An investigation of entrepreneurial orientation and performance. Family Business Review, 32(2), 174–194.
Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational Statistics & Data Analysis, 48(1), 159-205.
Wales, W., Cox, K. C., Lortie, J., & Sproul, C. R. (2019). Blowing smoke? How early-stage investors interpret hopeful discourse within entrepreneurially oriented business plans. Entrepreneurship Research Journal, 9(3), 1-16.
Wales, W. J., Shirokova, G., Sokolova, L., & Stein, C. (2016). Entrepreneurial orientation in the emerging Russian regulatory context: The criticality of interpersonal relationships. European Journal of International Management, 10(3), 359-382.
Yu, A., Lumpkin, G. T., Praveen Parboteeah, K., & Stambaugh, J. E. (2019). Autonomy and family business performance: The joint effect of environmental dynamism and national culture. International Small Business Journal, 37(2), 153-185.
Zhu, C., Liu, A., & Chen, G. (2018). High performance work systems and corporate performance: The influence of entrepreneurial orientation and organizational learning. Frontiers of Business Research in China, 12, 1-22.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)
