An investigation of factors affecting SMEs performance: an Indonesian case

*Cahya Mukti Dwi Kurnia -  Universitas Diponegoro, Indonesia
Edy Raharja -  Universitas Diponegoro, Indonesia
Yohanes Sugiarto -  Universitas Diponegoro, Indonesia
Received: 3 Oct 2018; Published: 30 Jun 2019.
Open Access Copyright 2019 Diponegoro International Journal of Business

Citation Format:
Article Info
Section: Articles
Language: EN
Full Text:
Supp. File(s):
Untitled
Subject
Type Research Instrument
  Download (30KB)    Indexing metadata
Statistics: 54 35
Abstract

The objectives of this paper is to investigate factors that affecting SMEs performance. Particularly, our study examined the effect of entrepreneurial orientation, adaptability to external environment, and competitive advantage to SMEs performance. We also test the effect of entrepreneurial orientation and adaptability to external environment on SMEs competitive advantage. Results of structural equation modeling on 100 SMEs in Semarang, Central Java, Indonesia, suggested that entrepreneurial orientation and competitive advantage has a positive effect on SMEs business performance. However, our prediction that adaptability to external environment positively affect SMEs performance was not supported. Furthermore, our study also found that entrepreneurial orientation and adaptability to external environment positively affect SMEs competitive advantage. 

Note: This article has supplementary file(s).

Keywords
entrepreneurial orientation; adaptability to external environment; competitive advantage, business performance; SMEs; Indonesia

Article Metrics:

  1. Barney, JB, 1991, "Firm Resources and sustained Competitive Advantage", Journal Management, Vol.17, No.1, pp. 99-120
  2. Hertawan, Yudi, 2015," Pengaruh Lingkungan Bisnis Dan Kepemimpinan Stratejik Terhadap Strategi Bersaing dan Kinerja Bisnis (Studi Pada Hotel Non Bintang di Provinsi Kepulauan Riau) ", Jurnal Bisnis Dan Manajemen. Vol.XVI, No 2, pp.90-108
  3. Hill, CH and W Jones GR, 2010, Strategic Management Theory: An Integrated Approach, Grada, Praha
  4. Ireland, R. D., Hitt, M. A., and Sirmon, D. G. 2003. A model of strategic entrepreneurship: The construct and its dimensions. Journal of management, 29(6), 963-989.
  5. Kotler, P., Wong, V., Sunders, J., Amstrong, G, 2005, Principles of Marketing 4th edition. Prentice Hall
  6. Kreiser, Patrick M., Marino, Louis D., Dickson, Pat., Weaver, K Mark, 2010, "Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SME's", Entrepreneurship Theory and Practice, pp.959-984
  7. Kuo, Szu-Yu and Pei-Chun Lin., Chin-Shan Lu, 2017, "The Effects of Dynamic Capabilities, Service Capabilities, Competitive Advantage, and Kenyen Case", International Journal of Business and Management, Vol.7, No.3, pp.194-205
  8. Lumpkin, G.T., and Dess G.G, 1996, "Clarifying The Entrepreneurial Orientation Construct and Linking it to Performance", Academy of Management Review, Vol.21, No.1, pp.135–173
  9. Murzidah, Ahmad Murad and John Doughlas Thomson, 2011, External Environment Factors Influencing the Technology Adoption-Diffusion Decision in Malaysia Manufacturing Small Medium Enterprices (SMEs), Progress in Business Innovation & Technology Management, Vol.1, pp.013- 002.
  10. Nath, P., Nachiappan,S., Ramanathan,R., 2010. “The Impact of Marketing Capability, Operations Capability and Diversification Strategy on Performance Resources Based View", India Market Management, Vol.39, No.2, pp.317-329
  11. Njanja, WL, 2012,"The Effect of the External Environment on Internal Management Strategies within Micro, Small and Medium Enterprises: Kenyen Case", International Journal of Business and Management, Vol.7, No.3, pp.194-205
  12. Pearce, John A and Richard B Robinson, 2008, Manajemen Strategis: Formulasi, Implementasi dan Pengendalian, Penerbit Salemba Empat, Jakarta
  13. Perlines, Felipe Hernandez and Estaben Mancebo-Lozano, 2016, "Conditional Mediation Of Competitive Strategy And Environment In International Entrepreneurial Orientastion Of Family Business ", Europen Journal Of Family Business, Vol.6, pp.86-98
  14. Prakash, Gyan, 2014, " QoS In The Internal Supplay Chain: The Next Lever of Competitive Advantage and Organisational Performance", Production Planningand Control: The Management of Operations, Vol. 25, No.7, pp.572-591
  15. Prieto, IM and Elena Revilla, 2006, "Learning Capability and Business Performance: A NonFinancial and Financial Assessment", The Learning Organization, Vol.13, No.2, pp.166–185
  16. Rauch, A and Wiklund J., Lumpkin G. T., Frese M, 2009, "Entrepreneurial Orientation and Business Performance: an Assessment of Past Research and Suggestions For The Future", Entrepreneurship: Theory and Practice, Vol.33, No.3, pp.761–787
  17. Reeves, M., and Deimler, M. 2012. Adaptability: The new competitive advantage. Own the Future: 50 Ways to Win from the Boston Consulting Group, 19-26.
  18. Semrau, Thorsten., Tina Ambos., Sascha Kraus, 2015, "Entrepreneurial Orientation and SME Performance Across Societal Cultures: An International Study", Journal of Business Research, xxxx (article in press)
  19. Svarova, Monika and Jaroslav Virchota, 2014, "Influence of Competitive Advantage on Formulation Business Strategy", Procedia Economics And Finance, Vol.12, pp.687-694.
  20. Talaja, A, 2012, "Testing VRIIN Framework: Resource Value and Rareness as Sources of Competitive Advantage and Above Average Performance", Journal Management, Vol.17, No.2, pp.51-64
  21. Wadongo, B and Odhuno E., Kambona O., Othuan L, 2010, "Key Performance Indicators in The Kenyan Hospitality Industry: A Managerial Perspective", Benchmarking: an International Journal, Vol.17, No.6, pp.858-875
  22. Ward, PT and Rebecca D, 2000, "Manufacturing Strategy in Context: Enviroment, Competitive Strategy and Manufacturing Strategy", Journal of Operations Management, Vol.18, pp.123-138
  23. Winata, Felix Andhy., Miyasto., J Sugiarto, 2015, Pengaruh Kualitas Hubungan dan Kemampuan Adaptasi Terhadap Lingkungan yang Mempengaruhi Keunggulan Bersaing dan Implikasinya Pada Kinerja Perusahaan (Studi Pada PT AGA PRATAMA), Tesis Program Pasca Sarjana Magister Manajemen Universitas Diponegoro (tidak dipublikasikan)
  24. Wu,LY, 2010, "Applicability of the Resource-Based and Dynamic-Capability Views Under Environmental Votality. Journal Business Research, Vol.63, No.1, pp.27-31
  25. Zehir, C., Can, E., & Karaboga, T. 2015. Linking entrepreneurial orientation to firm performance: the role of differentiation strategy and innovation performance. Procedia-Social and Behavioral Sciences, 210, 358-367.
  26. Zuzák, R, 2011, Strategické Řízení Podniku, Grada, Praha