IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2025i2p92-112.html

Investigating Entrepreneurial Orientation Values towards Business Performance: Evidence from Emerging Economy

Author

Listed:
  • Ayu Desi Indrawati
  • Armanu
  • Eka Afnan Troena
  • Agung Yuniarinto

Abstract

The study aimed to investigate the influence of human capital and collective organizational engagement on entrepreneurial orientation value and SME performance. Furthermore, we examine the role of entrepreneurial orientation values based on elaborating personal value theory, local wisdom values, and entrepreneurial orientation concepts in mediating the influence of human capital and collective organizational engagement on SME performance. This study used a quantitative approach involving 270 sample SMEs in Indonesia divided into four business sectors, i.e., trade, agricultural, non-agricultural industry, and services. It was conducted using a Likert scale questionnaire and analyzed with SmartPLS. This study showed that human capital and collective organizational engagement can improve the SME's performance, both directly and indirectly, through the entrepreneurial orientation value. Furthermore, human capital, collective organizational engagement, and entrepreneurial orientation value can be unique and valuable intangible resources that will influence the performance of SMEs and further strengthen the RBV theory. The implication of this study’s finding, which also reveals the mediating role of entrepreneurial orientation value, can help researchers understand the mechanisms underlying the influence of human capital and collective organizational engagement on SME performance and assist organizations in developing plans to enhance business performance.

Suggested Citation

  • Ayu Desi Indrawati & Armanu & Eka Afnan Troena & Agung Yuniarinto, 2025. "Investigating Entrepreneurial Orientation Values towards Business Performance: Evidence from Emerging Economy," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 92-112.
    • Handle: RePEc:bas:econst:y:2025:i:2:p:92-112
    as

    Download full text from publisher

    File URL: http://archive.econ-studies.iki.bas.bg/2025/2025_02/2025_02_06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adel Ben Youssef & Issam Mejri, 2023. "Linking Digital Technologies to Sustainability through Industry 5.0: A bibliometric Analysis," Sustainability, MDPI, vol. 15(9), pages 1-20, May.
    2. Aliaa El Shoubaki & Issam Laguir & Matthijs den Besten, 2020. "Human capital and SME growth: the mediating role of reasons to start a business," Small Business Economics, Springer, vol. 54(4), pages 1107-1121, April.
    3. Nopadol Rompho, 2017. "HC and financial performance with two HRM strategies," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 66(4), pages 459-478, April.
    4. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.
    5. Vehbi Ramaj & Anita Cucovic & Gezim Jusufi, 2022. "Innovation as a Success Key for Manufacturing SMEs: Empirical Insights from Kosovo," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 113-127.
    6. Ummu Salma Al-Azizah & Bagus Pamungkas Wibowo, 2023. "Impact of Intellectual Capital on Financial Performance: Panel Evidence from Banking Industry in Indonesia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 51-65.
    7. Weronika Toszewska-Czerniej, 2018. "Creating value of organization through human capital management," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 17(4), pages 443-457, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Enrico Santarelli & Hien Thu Tran, 2018. "The interaction of institutional quality and human capital in shaping the dynamics of capital structure in Vietnam," WIDER Working Paper Series wp-2018-66, World Institute for Development Economic Research (UNU-WIDER).
    2. , Aisdl, 2020. "Sustainability model of Vietnamese women entrepreneurship," OSF Preprints kjmdr, Center for Open Science.
    3. Teixeira, Aurora A.C. & Tavares-Lehmann, Ana Teresa, 2014. "Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter?," Research Policy, Elsevier, vol. 43(4), pages 737-748.
    4. Hu, Shan & Zhang, Heqi & Wang, Yudong, 2025. "Does e-commerce development drive regional entrepreneurial activity? Spatial spillover effect and mechanism analysis," International Journal of Production Economics, Elsevier, vol. 284(C).
    5. H. T. Tran & E. Santarelli, 2013. "Determinants and Effects of Innovative Activities in Vietnam. A Firm-level Analysis," Working Papers wp909, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Marco Vacchi & Cristina Siligardi & Davide Settembre-Blundo, 2024. "Driving Manufacturing Companies toward Industry 5.0: A Strategic Framework for Process Technological Sustainability Assessment (P-TSA)," Sustainability, MDPI, vol. 16(2), pages 1-25, January.
    7. León Mendoza, Juan Celestino & Valcárcel Pineda, Paolo, 2022. "Influencia de las características sociodemográficas personales en el éxito empresarial en Perú [Influence of personal sociodemographic characteristics on business success in Peru]," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 33(1), pages 326-352, June.
    8. Christopher Boudreaux & George Clarke & Anand Jha, 2022. "Social capital and small informal business productivity: the mediating roles of financing and customer relationships," Small Business Economics, Springer, vol. 59(3), pages 955-976, October.
    9. E. Santarelli & H. T. Tran, 2013. "Diversification Strategies and Firm Performance: A Sample Selection Approach," Working Papers wp896, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Zhang, Ye & Johan, Sofia & Fu, Kun & Hughes, Mathew & Scholes, Louise & Liu, Jiajia, 2024. "The effect of lead investor’s human capital on funding performance: The moderating role of investment ambition," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 90(C).
    11. Tran, Hien Thu, 2019. "Institutional quality and market selection in the transition to market economy," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    12. Ram Subramaniam & Murali Sambasivan, 2025. "Analyzing the role of digital/non-digital technology entrepreneur typology in external factors’ influence on venture launch decisions," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-19, December.
    13. Thanh-Hang Pham & Manh-Toan Ho & Thu-Trang Vuong & Manh-Cuong Nguyen & Quan-Hoang Vuong, 2020. "Entrepreneurial Finance: Insights from English Language Training Market in Vietnam," JRFM, MDPI, vol. 13(5), pages 1-23, May.
    14. Phuoc Vu Ha & Michael Frömmel, 2019. "Social Capital, Credit Choices And Growth In Vietnamese Household Businesses," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-19, September.
    15. Souksavanh VIXATHEP, 2017. "Entrepreneurship, Human and Social Capital, and Government Policy in Small and Medium Enterprise Development in Laos," Japan Social Innovation Journal, University of Hyogo Institute for Policy Analysis and Social Innovation, vol. 7(1), pages 1-33, March.
    16. Susanne Durst & Serdal Temel & Christoph Hinteregger & Rustem Baris Yesilay, 2017. "New Product Introduction in Turkish Firms: Insights Across Sectors," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(03), pages 1-22, June.
    17. Souksavanh VIXATHEP & Nobuaki MATSUNAGA, 2015. "Entrepreneurial Human and Social Capital in Small Businesses in Vietnam - An Extended Analysis -," GSICS Working Paper Series 29, Graduate School of International Cooperation Studies, Kobe University.
    18. M. Sodini & F. Sabatini & A. Antoci, 2014. "Online and offline social participation and social poverty traps. Can social networks save human relations?," Working Paper CRENoS 201404, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    19. Lee Jin Young & Yoon Nara & Lee Chong Kyoon, 2026. "Untangling the Role of Government Support on the Financial Performance of Social Entrepreneurship: Application of Resource Dependence Theory," Entrepreneurship Research Journal, De Gruyter, vol. 16(1), pages 127-155.
    20. Shabeeb Ahmad Gill & Amber Raza & Kiran Farooq & Mohyi Aldin Yaqob Abu Alhoul & Ali Saleh Alshebami & Salem Handhal Marri, 2024. "Effects of People Equity and Entrepreneurial Orientation on Firm Performance: The Mediation Role of Social Capital," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 19411-19438, December.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2025:i:2:p:92-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.