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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
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    File URL: http://archive.econ-studies.iki.bas.bg/2025/2025_02/2025_02_06.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    Full references (including those not matched with items on IDEAS)

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    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

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