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Analysis of the Influence of Entrepreneurial Orientation, Learning Orientation, and Dynamic Capability on Strategic Flexibility and SMEs Performance

In: Proceedings of the International Conference on Economics, Management, and Accounting (ICEMAC 2022)

Author

Listed:
  • Muhammad Nur Irfan

    (University of Indonesia, Faculty of Economics and Business)

  • Ratih Dyah Kusumastuti

    (University of Indonesia, Faculty of Economics and Business)

Abstract

Currently, SMEs are competing with accelerated technological and market advances and increasingly challenging innovations. SMEs struggle to implement innovations because they may lack managerial and technical skills. However, they could reap higher returns if they were more flexible and quick to respond to changes in the dynamic business environment. This study aims to analyze the role of strategic flexibility in the relationship between strategic orientations (entrepreneurship orientation and learning orientation), dynamic capabilities, and financial performance and innovation performance of SMEs in Indonesia’s creative sector. This study took data from 119 respondents from creative sector SMEs in Indonesia. The data processing method used to process the survey data is the partial-least square structural equation model (PLS-SEM). The results of the research data analysis show that strategic flexibility mediates the variables of entrepreneurial orientation, learning orientation, and dynamic capabilities on SMEs financial performance and innovation performance. As well as other findings in this study indicate that the innovation performance can mediate the relationship between strategic flexibility and financial performance.

Suggested Citation

  • Muhammad Nur Irfan & Ratih Dyah Kusumastuti, 2023. "Analysis of the Influence of Entrepreneurial Orientation, Learning Orientation, and Dynamic Capability on Strategic Flexibility and SMEs Performance," Advances in Economics, Business and Management Research, in: Prasetyo Hartanto (ed.), Proceedings of the International Conference on Economics, Management, and Accounting (ICEMAC 2022), pages 308-326, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-226-2_27
    DOI: 10.2991/978-94-6463-226-2_27
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