Entrepreneurial orientation and business performance: The moderating role of environmental uncertainty
.R. Lestari, R. F. Yorshela and F.L. Ardianti
Department of Agroindustrial Technology, Faculty of Agricultural Technology,
Universitas Brawijaya, Malang, Indonesia
Abstract
This study-s purpose to investigate the relationship between entrepreneurial orientation (EO) and business performance, operating in dynamic environments on food sector small and medium-sized enterprises (SMEs) in Indonesia. To achieve this goal, we use a structural equation modeling and were analyzed with Partial Least Square. The result indicates that EO have a positive influence on business performance, while environmental uncertainty encouraging firms more effective and achieve greater performance with stronger entrepreneurial orientation. The findings highlight the moderating role of environmental dynamic between EO and firm performance for achievement better competitiveness. An important implication is that SMEs must be more innovative proactive, innovative, and risk-taking for anticipate environmental uncertainty to improve performance.
Keywords: entrepreneurial orientation, environmental uncertainty, business performance.
Topic: Management and Business