JEFMS Journal

ABSTRACT:

Performance improvement can be achieved if the organization can exploit and use its resources. One of the resources needed to achieve competitive advantage is entrepreneurial orientation. The entrepreneurial orientation helps organizations continuously create value chains by converting knowledge to be innovative and more competitive. The purpose of this research is to create innovation through entrepreneurial orientation. This study uses a quantitative approach with survey methods in data collection. The research location is in Kampung-Laweyan as the largest batik craft center in Solo. Samples were taken as many as 50 SMEs and analyzed using regression analysis. The results of the analysis show that innovativeness, risk-taking, and competitive aggressiveness have a positive and significant effect on innovation. The Proactive dimension has a positive but insignificant effect on the innovation variable. The Autonomy dimension has a negative and insignificant effect on the innovation variable. Suggestions for further research are that it is necessary to analyze the use of technology, especially for SMEs in anticipating uncertain conditions due to the Covid-19 Pandemic

KEYWORDS:

Innovativeness, Risk-taking, Competitive Aggressiveness, Proactive, Autonomy, Innovation

REFERENCES:

1) Andriani Suryanita. 2006. Analysis of the Influence of Entrepreneurial Orientation and Knowledge Competency Against Capability To Improve Marketing Performance. Thesis. Diponegoro University,Semarang
2) Alegre, J., & Chiva, R. (2013). Linking Entrepreneurial Orientation And Firm Performance: The Role Of Organizational Learning Capability And Innovation Performance. Journal of Small Business Management, 51(4), 491–507.
3) Baker, W. E., & Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of Small Business Management, 47(4), 443–464. https://doi.org/10.1111/j.1540- 627X.2009.00278.x
4) Bhegawati, D. A. S., & Yuliastuti, I. A. N. (2019). Effect Of Product Innovation And Entrepreneurial Orientation On Competitive Advantage In The Coconut Shell Craft Industry In Karangasem Regency. Jurnal Ilmiah Manajemen Dan Bisnis, 4(1), 71. Https://Doi.Org/10.38043/Jimb.V4i1.2153
5) Bleeker, I. (2011). The influence of Entrepreneurial Orientation on the Innovation Process: Thesis- University Of Twente,1–55.
6) Bower, J. L. (1970). Managing The Resource Allocation Process. Boston: Harvard University Press.
7) Campos, H. M., & Valenzuela, F. A. A. (2013). The Relationship Between Entrepreneurial Orientation, Time Orientation And Small Business Performance: An Evidence From Mexico. Revista Da Micro e Pequena Empresa, Campo Limpo Paulista, 7(1), 48–63.
8) Cooper, A. C., Woo, C. Y., & Dunkelberg, W. C. (1988). Entrepreneurs’ perceived chances for success. Journal of Business Venturing, 3(2), 97–108.https://doi.org/10.1016/0883-9026(88)90020-1
9) Ejdys, J. (2015). Entrepreneurial Orientation vs . Innovativeness of Small and Medium Size Enterprises. Journal of Engineering, Project, and Production Management, 6(X),13–24.
10) Gartner, William. (1989). Who Is an Entrepreneur Is the Wrong Question. Entrepreneurship Theory and Practice. 13. 10.1177/104225878801200401.
11) Gosselin Maurice, (2005). An Empirical Study of Performance Measurement in Manufacturing Firm, International Journal of Productivity and Performance Management, Vol. 54No.5/6.pp.419-437
12) Hart, S. L. (1992). An integrative framework for strategy making processes. Academy of Management Review, 17, 327–351.
13) Hitt, M. A., Ireland, R. D., Sirmon, D. G., & Trahms, C. A. (2011). Strategic Entrepreneurship. Academy of Management Executive, May.
14) Kimberly, J.R. (1981) Managerial Innovation. In: Nystrom, P.C. and Starbuck, W.H., Eds., Handbook of Organizational Design, Oxford University Press, New York, Vol. 1, 84-104.
15) Kemlu.go.id. (2020, April 6). Pemerintah Indonesia telah menyiapkan dukungan fiskal sebesar Rp 720 triliun untuk program pemulihan ekonomi akibat wabah COVID-19. https://kemlu.go.id/pretoria/id/news/7012/pemerintah-indonesia-telah menyiapkan-dukungan-fiskal-sebesar-rp-720-triliun-untuk-program-pemulihan-ekonomi-akibat-wabah-covid-19
16) Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking it to Performance.
17) Academy of Management Journal, 21(1), 135–172.
18) MacMillan and Jones, P. (1984). Designing Organization to Compete. Journal of Business Strategy, 4, 11–26.
19) Miller, D., & Friesen, P. H. (1984). Organizations: A Quantum View. In Relations industrielles (Vol. 39, Issue 3). Prentice-Hall. https://doi.org/10.7202/050068ar
20) Narver, J. C., & Slater, S. F. (1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4), 20. https://doi.org/10.2307/1251757
21) Nelson, R. R. (1991). Why Do Firms Differ, and How Does it Matter? Strategic Management Journal, 12, 61–74.
22) Parkman, I. D., Holloway, S. S., & Sebastiao, H. (2012). Creative industries: Aligning entrepreneurial orientation and innovation capacity. 14(1), 95–114.https://doi.org/10.1108/14715201211246823
23) Pearce II, J. A., & Robinson Jr R. B. (2011). Strategic management: formulation, implementation, and control. 12th ed. Boston, MA: McGraw-Hill Irwin.
24) Personalfinance.kontan.co.id. (2020). Ini tips agar pelaku UMKM bisa bertahan hadapi krisis akibat pandemi virus corona. https://personalfinance.kontan.co.id/news/ini-tips-agar-pelaku-umkm-bisa-bertahan-hadapi-krisis-akibat-pandemi-virus corona?page=all
25) Porter, M. (1985). Competitive Advantage. New York: FreePress.
26) Robbins, C. (2010). Beyond preservation: New directions for technological innovation through intangible cultural heritage. International Journal of Education and Development using ICT. 6 (2),. Open Campus, The University of the West Indies, West Indies.
27) Rogers, M. (2004). Networks, Firm Size and Innovation, Small Business Economics 22(2):141-153 . DOI:10.1023/B:SBEJ.0000014451.99047.69
28) Sahut, J.-M., & Peris-Ortiz, M. (2014). Small business, innovation, and entrepreneurship. 42(4), 663–668. https://doi.org/10. 1 007/s 1 1 1 87-0 1 3-952 1 -9
29) Schumpeter, J. A. (1934). The Theory of Economic Development. Cambridge, MA: Harvard Uni- Versity Press.
30) Schumpeter, J. A. (1942). Capitalism, Socialism, and Democracy. New York, Harper & Brothers.
31) Supranoto, Meike. (2009). Strategi Menciptakan Keunggulan Bersaing Produk Melalui Orientasi Pasar , Inovasi, Dan Orientasi Kewirausahaan Dalam Rangka Meningkatkan Kinerja Pemasaran ( Studi empiris pada: Industri Pakaian Jadi Skala Kecil dan Menengah di kota Semarang ). https://www.researchgate.net/publication/277873063
32) Sumarsono, Sony. (2010). Entrepreneurship.Yogyakarta: Graha Science.
33) Thompson, V. A. (1965) Bureaucracy and Innovation. Administrative Science Quarterly Special Issue on Professionals in Organizations (Jun., 1965) 10 (1), 1-20.
34) Wijatno, Serian. (2009). Introduction to Entrepreneurship. Jakarta: Grasindo.
35) Wu, W., Chang, M., & Chen, C. (2008). Promoting innovation through the accumulation of intellectual capital , social capital , and entrepreneurial orientation. R&D Management , 38(3),265–277.
36) Venkatraman, N. (1989a). Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement. Management Science. 35, 942–962.
37) Zuraya, N. (2020, July 15). Tiga Dampak Besar Pandemi Covid-19 bagi Ekonomi RI. https://republika.co.id/berita/qdgt5p383/tiga-dampak-besar-pandemi-covid19-bagi-ekonomi-ri