The Influence of Entrepreneurship Orientation on Firm Performance: A Case Study of the Salatiga Food Industry, Indonesia

Abstract

Entrepreneurship has an important role in the economic development of a country. One element that represents the entrepreneurship quality is its orientation. The orientation of entrepreneurship includes several dimensions which are needed for achievement, an internal locus of control, self-reliance, extroversion, being proactive, risk-taking, and innovation. These dimensions are believed to be able to improve the company’s performance. The purpose of this study is to find out how the entrepreneurship orientation influences the firm performance. This study aims to discover which dimensions of entrepreneurship orientation are the most influential toward the firm performance. The samples were comprised 40 entrepreneurs. The primary data were collected from the respondents by distributing questionnaires to the entrepreneurs of food firms in Salatiga, Indonesia. A multiple regression analysis method was applied in this study. The results show that among the dimensions in entrepreneurship orientation, only the risk-taking and innovative dimensions influence the company’s performance. Innovativeness has a higher effect on firm performance.

Citation

Erista, I.F.S., Andadari, R.K., Usmanij, P.A. and Ratten, V. (2020), "The Influence of Entrepreneurship Orientation on Firm Performance: A Case Study of the Salatiga Food Industry, Indonesia", Ratten, V. (Ed.) Entrepreneurship as Empowerment: Knowledge Spillovers and Entrepreneurial Ecosystems, Emerald Publishing Limited, Leeds, pp. 45-61. https://doi.org/10.1108/978-1-83982-550-720201005