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THE CONTINGENCY APPROACH OF DIGITALIZATION AND ENTREPRENEURIAL ORIENTATION ON SMEs- PERFORMANCE
LD Gadi Djou a, Fitri Lukiastuti b,

University of Flores, Ende, NTT, Indonesia
gadidjou67[at]gmail.com
STIE Bank BPD Jateng, Semarang, Indonesia
fitri111269[at]stiebankbpdjateng.ac.id


Abstract

The ability to enter the international market has become a competitive necessity for many firms, and one important for survival and growth in the era of globalization. At the same time, digitalization is transforming the locus of entrepreneurial opportunities and entrepreneurial practices, thus offering new perspectives on internationalization. When entering international market, SMEs will require innovativeness capability, proactiveness and risk taking. However, there is a gap in the literature exploring the interplay of digitalization and entrepreneurial orientation in the internationalization process. The objective of the present study aims at developing insights that explain how SMEs in Semarang in the batik industry can use the tactics and strategies associated with entrepreneurial orientation (EO) to achieve superior performance in the digitalization age. Results from a survey in 63 SMEs show that: 1) SMEs that display high levels of EO report a higher level of performance, 2) SMEs that display high levels of digitalization report a higher level of EO, 3) the relationship between EO and performance is moderated by digitalization and 4) the relationship between digitalization and performance is moderated by EO. These results indicate that for those firms, innovativeness capability, risk taking and proactiveness are crucial to their success in foreign markets. Instead, SMEs should develop a clear vision on digitalization that is characterized by innovation, being ahead of the competition, and a willingness to take risks. Word limits The abstract text body is limited to 500 words.

Keywords: entrepreneurial orientation; digitalization; foreign markets; SMEs-performance

Topic: Innovation and entrepreneurship

Link: https://ifory.id/abstract/L7xMjGfzABgm

Conference: The 3rd Asia Pacific Management Research Conference (APMRC 2019)

Plain Format | Corresponding Author (Fitri Lukiastuti Sawaloedjo)

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