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

Summary/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.

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