Published date: Oct 10 2024

Journal Title: KnE Social Sciences

Issue title: 8th International Conference on Sustainability (8th ICoS): Entrepreneurship and Creative Economics

Pages: 60–72

DOI: 10.18502/kss.v9i28.17189

Harjono ‎ Student at Post Graduate, University of Merdeka Malang, Malang

Boge Triatmantoboge.triatmanto@unmer.ac.idPost Graduate, University of Merdeka Malang, Malang

Bambang SupriadiPost Graduate, University of Merdeka Malang, Malang

With the use of business competency, this study attempts to investigate how entrepreneurial leadership and orientation affect performance in SMEs located in Surakarta, Indonesia. With 150 respondents from SMEs in Surakarta, Central Java, the author gathered data for this study using causal explanation technique. In order to gather quantitative data, questionnaires, and structured interviews were used. SEM Amos data analysis techniques were then used to look at both direct and indirect influences between the variables that were observed. Based on the research, it can be concluded that work competency has a positive and significant impact on performance, entrepreneurial orientation and leadership have a positive and significant effect on competence, and entrepreneurial orientation and leadership have a positive and significant effect on performance through competence. In order to improve business performance and promote entrepreneurial orientation, this study advises underlying organizations to focus on enhancing creativity and innovation, proactiveness, autonomy, and entrepreneurial competence among entrepreneurs through practical policies and training programs. This research’s uniqueness has theoretical and practical ramifications. The findings offer a paradigm for entrepreneurial leadership in developing nations that is grounded in empirical skills.

Keywords: entrepreneurial orientation, entrepreneurial leadership, competence

[1] Mehmood MS, Jian Z, Waheed A, Younas A, Khan SZ. Impact of entrepreneurial leadership on employee’s innovative behavior: Mediating role of psychological empowerment. ACM International Conference Proceeding Series. 2019:223-229.

[2] Aránega AY, Montesinos CG, del Val Nú nez MT. Towards an entrepreneurial leadership based on kindness in a digital age. J Bus Res. 2023;159(February)

[3] Rajala A, Tidström A. Examining the effects of a coopetitive mindset on SME performance: The moderating role of growth. Ind Mark Manag. 2022;105( July 2021):351-358.

[4] Bagheri A. The impact of entrepreneurial leadership on innovation work behavior and opportunity recognition in high-technology SMEs. J High Technol Manag Res. 2017;28(2):159-166.

[5] Setkute J, Dibb S. ‘Old boys’ club’: Barriers to digital marketing in small B2B firms. Ind Mark Manag. 2022;102(November 2021):266-279.

[6] Ismail VY, Zain E, Zulihar. The portrait of entrepreneurial competence on student entrepreneurs. Procedia - Soc Behav Sci. 2015;169(August 2014):178-188.

[7] Newbert SL, Gopalakrishnan S, Kirchhoff BA. Looking beyond resources: Exploring the importance of entrepreneurship to firm-level competitive advantage in technologically intensive industries. Technovation. 2008;28(1-2):6-19.

[8] Mitchelmore S, Rowley J. Entrepreneurial competencies: A literature review and development agenda. Int J Entrep Behav Res. 2010;16(2):92-111.

[9] Lengnick-Hall CA, Beck TE, Lengnick-Hall ML. Developing a capacity for organizational resilience through strategic human resource management. Hum Resour Manag Rev. 2011;21(3):243-255.

[10] Tsai FS, Cabrilo S, Chou HH, Hu F, Tang AD. Open innovation and SME performance: The roles of reverse knowledge sharing and stakeholder relationships. J Bus Res. 2022;148(May):433-443.

[11] Rashid MDA, Lodh SC. Corporate governance and performance of small and medium sized enterprise (SME): Evidence from Bangladesh. Fac Commer - Pap. 2011:1-44.

[12] Kohtamäki M, Heimonen J, Sjödin D, Heikkilä V. Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory. J Bus Res. 2020;118( June):12-25.

[13] Zhang JA, O’Kane C, Chen G. Business ties, political ties, and innovation performance in Chinese industrial firms: The role of entrepreneurial orientation and environmental dynamism. J Bus Res. 2020;121(August):254-267.

[14] Nguyen PV, Huynh HTN, Lam LNH, Le TB, Nguyen NHX. The impact of entrepreneurial leadership on SMEs’ performance: The mediating effects of organizational factors. Heliyon. 2021;7(6).

[15] Elidjen, Hidayat D, Abdurachman E. The roles of gamification, knowledge creation, and entrepreneurial orientation towards firm performance. Int J Innov Stud. 2022;6(4):229-237.

[16] Ahmad NH, Suseno Y, Seet PS, Susomrith P, Rashid Z. Entrepreneurial competencies and firm performance in emerging economies: A study of women entrepreneurs in Malaysia. Contrib Manag Sci. 2018:5-26

[17] Barazandeh M, Parvizian K, Alizadeh M, Khosravi S. Investigating the effect of entrepreneurial competencies on business performance among early stage entrepreneurs Global Entrepreneurship Monitor (GEM 2010 survey data). J Glob Entrep Res. 2015;5(1).

[18] Wales WJ, Kraus S, Filser M, Stöckmann C, Covin JG. The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding. J Bus Res. 2021;128:564-577.

[19] Rostain M. The impact of organizational culture on entrepreneurial orientation: A meta-analysis. J Bus Ventur Insights. 2021;15(September 2020).

[20] Chien SY, Tsai CH. Entrepreneurial orientation, learning, and store performance of restaurant: The role of knowledge-based dynamic capabilities. J Hosp Tour Manag. 2021;46( July 2020):384-392.

[21] Basco R, Hernández-Perlines F, Rodríguez-García M. The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain. J Bus Res. 2020;113(September):409-421.

[22] Xin Y, Khan RU, Dagar V, Qian F. Do international resources configure SMEs’ sustainable performance in the digital era? Evidence from Pakistan. Resour Policy. 2023;80(October 2022):103169.

[23] Gupta V, MacMillan IC, Surie G. Entrepreneurial leadership: Developing and measuring a cross-cultural construct. J Bus Ventur. 2004;19(2):241-260.

[24] Bagheri A, Pihie ZAL. Entrepreneurial leadership learning: In search of missing links. Procedia - Soc. Behav. Sci. 2010;7(2):470-479.

[25] Strobl A, Bauer F, Matzler K. The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions. J. World Bus. 2020;55(2):0-1.

[26] Mehmood MS, Jian Z, Akram U. Be so creative they can’t ignore you! How can entrepreneurial leader enhance the employee creativity?. Think. Ski. Creat. 2020;38(March):100721.

[27] Sarabi A, Froese FJ, Chng DHM, Meyer KE. Entrepreneurial leadership and MNE subsidiary performance: The moderating role of subsidiary context. Int. Bus. Rev. 2020;29(3):101672.

[28] Wahab A, Tyasari I. Entrepreneurial leadership for university leaders: A futuristic approach for Pakistani HEIs. Asia Pacific Manag. Rev. 2020;25(1):54-63.

[29] Hasanah N, Utomo MN, Hamid H. Hubungan Kompetensi Kewirausahaan Dan Kinerja Usaha: Studi Empiris UMKM Di Kota Tarakan. Manag. Insight J. Ilm. Manaj. 2019;13(2):27-38.

[30] Kamuri S. Creating as an entrepreneurial competence, innovation and performance of value-system actors in Kenya’s leather industry. Sci. African. 2021;11.

[31] Hair JF, Hult GTM, Ringle CM, Sarstedt M. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). United States of America: SAGE Publications, Inc.; 2017.

[32] Ferreras-Méndez JL, Llopis O, Alegre J. Speeding up new product development through entrepreneurial orientation in SMEs: The moderating role of ambidexterity. Ind. Mark. Manag. 2022;102(October 2020):240-251.

[33] Melović B, Jocović M, Dabić M, Vulić TB, Dudic B. The impact of digital transformation and digital marketing on the brand promotion, positioning and electronic business in Montenegro. Technol. Soc. 2020;63:101425.

[34] Safuan. Studi Literatur Kepemimpinan Wirausaha Dalam Menghadapi Tantangan Global Jurnal Manajemen Industri dan Logistik Jurusan Teknik Industri, Fakultas Teknik Universitas Muhammadiyah Jakarta Tahun 2018 merupakan tantangan berat yang era persaingan global. Er. J. Manaj. Ind. Dan Logistik. 2019;1( January):171-181.

[35] Yadegaridehkordi E, Foroughi B, Iranmanesh M, Nilashi M, Ghobakhloo M. Determinants of environmental, financial, and social sustainable performance of manufacturing SMEs in Malaysia. Sustain. Prod. Consum. 2023;35:129-140.

[36] Miao Q, Newman A, Schwarz G, Cooper B. How Leadership and Public Service Motivation Enhance Innovative Behavior. Public Adm. Rev. 2018;78(1):71-81.

[37] Koerniawan I, Triatmanto B, Zuhroh D. Increasing SME Performance Through Quality Information Technology and Top Management Support. Innov. Bus. Manag. Account. J. 2024;3(1):63-69.