There are determining factors that are directly related to the generation of opportunities that maximize performance of the small medium enterprise (SME). This research paper focuses on a quantitative paradigm to measure the entrepreneurial orientation, business strategy and SMEs’ performance as variables. A causal model was developed from the literature, from which a set of hypotheses was posed and a questionnaire was made. A sample of 95 small and medium entreprise in Denpasar was subject to the questionnaire. The findings suggest, entrepeneurial orientation have the most important effect on marketing performance rather than business strategy. The results are based on a rather small sample of exporting SMEs in Denpasar Bali; therefore, the generalizability of the results cannot be assured. But this study will sheds more light on the little researched themes of entrepreneurial orientations in the context of SMEs.
Backer, W. E., & Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small business. Journal of Small Business Management, 47(4), 443–464.
Berger, A. N., Hasan, I., & Zhou, M. (2010). The Effects of focus versus differentiation on firm performance?: Evidence from Chinese Firms. Evident from Chinese Firm, 34, 1417–1435.
Best, R. J. (2009). Market-Based Management: Strategy for Growing Customer Value and Profitability. New Jersey: Pearson Education Inc.
Blackburn, R. A., Hart, M., & Wainwright, T. (2013). Small business performance: business, strategy and owner-manager characteristics. Journal of Small Business and Enterprise Development, 20(1), 8–27. https://doi.org/10.1108/14626001311298394
Covin, J., & Slevin, D. (1991). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice, 16(1), 7–24.
Dess, G. G., Lumpkin, G. T., & Covin, J. G. (1997). Entrepreneurial Strategy Making and Firm Performance: Test of Contingency and Configurational Models. Strategic Management Journal, 18(9), 677 – 695.
Ejdys, J. (2016). Entrepreneurial Orientation vs. Innovativeness of Small and Medium Size Enterprises. Journal of Engineering, Project, and Production Management, 6(1), 13–24.
Ferdinand, A. (2002). Marketing Strategy Making: Proses dan Agenda Penelitian. Jurnal Sains Pemasaran Indonesia, 1(1), 1–22.
Ferreira, J. J., Raposo, M. L., Rodrigues, R. G., Dinis, A., & Paco, A. do. (2012). A model of entrepreneurial intention?: An application of the psychological and behavioral approaches. Journal of Small Business and Enterprise Development, 19(3), 424–440. https://doi.org/10.1108/14626001211250144
Gilmore, A. (2011). Entrepreneurial and SME marketing. Journal of Research in Marketing and Entrepreneurship, 13(2), 137–145. https://doi.org/10.1108/14715201111176426
Hair, J. F. J., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis. New Jersey: Pearson / Prentice Hall.
Kotler, P., & Keller, K. L. (2012). Marketing Management. Essex: Pearson Education Limited.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. The Academy of Management Review, 21(1), 135–172.
Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: the moderating role of environment and industry life cycle. Journal of Business Venturing, 16, 429–451.
Lyon, D. W., Lumpkin, G. T., & Dess, G. G. (2000). Enhancing entrepreneurial orientation research: Operationalizing and measuring a key strategic decision making process. Journal of Management, 26(5), 1055–1085.
Morgan, R. E., & Berthon, P. (2008). Market Orientation, Generative Learning, Innovation Strategy and Business Performance Inter-relationship in Bioscience Firms. Journal of Management Studies, 45(8), 1329–1353.
Nummela, N., Saarenketo, S., & Puumalainen. (2004). Towards, Attitude Internationalization?, Internationalization- A prerequisite for successful Internationalization. Canadian Journal O F Administrative Sciences, 21(1), 51–64.
Pearce, J., & Robinson, R. B. (2007). Strategic Management Formulation, Implementation, and Control, 10th Ed. McGraw-Hill.
Sagie, A., & Elizur, D. (1999). Achievement Motive an Entrepreneurial Orientation: A Structural Analysis. Journal of Organizational Behavior, 20(3), 375–387.
Suci, R. P. (2009). Peningkatan Kinerja Melalui Orientasi Kewirausahaan , Kemampuan Manajemen , dan Strategi Bisnis. Jurnal Manajemen Dan Kewirausahaan, 11(1), 46–58.
Verreynne, M.-L., & Meyer, D. (2010). Small business strategy and the industry life cycle. Small Business Economics, 35(November 2008), 399–416. https://doi.org/10.1007/s11187-008-9165-3
Wagner, E. R., & Hansen, E. N. (2005). Innovation in large versus small companies: Insights from the US wood products industry. Management Decision, 43, 837–850.
Wiklund, J. (1999).
In-Text Citation: (Dharmanegara, Yogiarta, & Setena, 2018)
To Cite this Article: Dharmanegara, I. B. A., Yogiarta, I. M., & Setena, I. M. (2018). Entrepreneurial Orientation, Business Strategy, and Small Medium Enterprise’s Performance. International Journal of Academic Research in Business and Social Sciences, 8(11), 484–494.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
