Journal of Engineering and Applied Sciences
ISSN: Online 1818-7803ISSN: Print 1816-949x
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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
Indra Kurniawan, Ubud Salim, Margono Setiawan and Mintarti Rahayu
Page: 5807-5818 | Received 21 Sep 2022, Published online: 21 Sep 2022
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Abstract
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.
How to cite this article:
Indra Kurniawan, Ubud Salim, Margono Setiawan and Mintarti Rahayu. 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.
DOI: https://doi.org/10.36478/jeasci.2019.5807.5818
URL: https://www.makhillpublications.co/view-article/1816-949x/jeasci.2019.5807.5818