TY - JOUR T1 - The Role of Business External Environment as a Moderation of the Effect of Entrepreneurial Orientation on Business Performance that is Mediated in Flexibility of Strategy AU - Kurniawan, Indra AU - Salim, Ubud AU - Setiawan, Margono AU - Rahayu, Mintarti JO - Journal of Engineering and Applied Sciences VL - 14 IS - 16 SP - 5807 EP - 5818 PY - 2019 DA - 2001/08/19 SN - 1816-949x DO - jeasci.2019.5807.5818 UR - https://makhillpublications.co/view-article.php?doi=jeasci.2019.5807.5818 KW - Entrepreneurial orientation KW -flexibility strategy KW -business external environment KW -business performance KW -positive effect KW -WarpPLS AB - This study aims to examine the entrepreneurial orientation associated with business performance by incorporating flexibility strategies as mediation and the external environment of the business as moderation by taking studies in the small handicraft industry sector in East Java Indonesia. Data collection techniques used questionnaires distributed to UKM owners or managers of the craft sector as many as 198 entrepreneurs. The results of testing structural equation modeling with WarpPLS show that entrepreneurial orientation does not have a significant positive effect on business performance while entrepreneurial orientation on flexibility strategies has a significant positive effect. The results of the verification of the flexibility strategy mediate the relationship between entrepreneurial orientation to performance while the external business environment is not able to moderate the relationship between entrepreneurial orientation and performance. ER -