Competitive Advantage and Innovation as Mediator of the Influence of Entrepreneurial Orientation on Firm Performance and Business Environment as Moderation of the Influence of Entrepreneurial Orientation on Competition Advantage (Study of Batik Craft SMEs in East Java)
Abstract
The purpose of this study is to investigate and analyze the relationship between entrepreneurship orientation, competitive advantage, and innovation in relation to company performance, as well as the business environment as a moderating variable. This study's population consists of business players and strategic decision makers in the batik crafts industry, with respondents based in Malang Raya, Tulungagung, Trenggalek, Probolinggo, Surabaya, Sidoarjo, and Bangkalan. SEM with AMOS software and a 5-point Likert scale were employed as the analysis tool. According to the findings of the study, entrepreneurial approach has a considerable effect on competitive advantage and innovation, but not on performance. Entrepreneurial orientation includes being aggressive in competition, being able to take risks by viewing uncertain situations as challenges, being motivated to work in environmentally friendly industries, and prioritizing opportunities for business success over business failure. Performance is significantly influenced by competitive advantage and innovation. Process innovation by business actors efficiently reduces the use of raw materials that generate hazardous waste, also market innovation by promoting items through digital marketing and designing appealing product layouts. The indirect impact demonstrates that competitive advantage mediates the influence of entrepreneurial attitude on performance, whereas innovation does not. The business environment is able to moderate the influence of entrepreneurial orientation on competitive advantage.
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PDFDOI: https://doi.org/10.25292/atlr.v6i0.583
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Advances in Transportation and Logistics Research
ISSN: 2622-5778 (online)
Published by: Institut Transportasi dan Logistik Trisakti, Jakarta - Indonesia
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