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The mediating effect of strategy on entrepreneurial orientation and performance

Yuli Budiati (Department of Management, Fakultas Ekonomi, Universitas Semarang, Semarang, Indonesia) (Department of Management, Fakultas Ekonomi dan Bisnis, Universitas Sebelas Maret, Surakarta, Indonesia)
Wisnu Untoro (Department of Management, Fakultas Ekonomi dan Bisnis, Universitas Sebelas Maret, Surakarta, Indonesia)
Lilik Wahyudi (Department of Management, Fakultas Ekonomi dan Bisnis, Universitas Sebelas Maret, Surakarta, Indonesia)
Mugi Harsono (Department of Management, Fakultas Ekonomi dan Bisnis, Universitas Sebelas Maret, Surakarta, Indonesia)

Journal of Research in Marketing and Entrepreneurship

ISSN: 1471-5201

Article publication date: 23 September 2021

Issue publication date: 27 June 2022

948

Abstract

Purpose

This study aims to examine the effect of entrepreneurial orientation (EO) on performance and mediation differentiation strategies and market development in small and medium enterprises (SMEs).

Design/methodology/approach

This research was conducted using a survey method with a population of furniture SMEs in Jepara, Central Java, Indonesia using a sample area by collecting 158 questionnaires. The data analysis method used the partial least square.

Findings

The result shows that EO has an impact on differentiation, market development and performance. Differentiation strategies and market development mediate the influence of EO and performance. The differentiation strategy further mediates the influence of EO on market development and market development mediates the effect of differentiation on performance.

Practical implications

Managers instill entrepreneurial practice in the organization by proactively creating the market and taking high-risk jobs to provide quality products and services. SMEs require capabilities that are difficult to imitate in creating designs and product quality that are different, providing pre and post-sales services and maintaining good relationships with customers and partners. SMEs emphasize flexibility and speed of operation by adjusting the production process to short waiting times and reliable delivery. The government must support general training and market information, network development, access to capital and knowledge transfer.

Originality/value

This paper explains the importance of differentiation and market development strategies in determining the relationship between EO and performance that has not been explored in the context of SMEs in developing countries.

Keywords

Acknowledgements

This paper is supported by the domestic education funding scholarship (BPPDN) from the Directorate General of Higher Education, the Ministry of National Education and Culture, Republic of Indonesia (No. 2903,34/D3/PG/2017). The authors are grateful to the anonymous referees and editors for their constructive and helpful suggestions.

Citation

Budiati, Y., Untoro, W., Wahyudi, L. and Harsono, M. (2022), "The mediating effect of strategy on entrepreneurial orientation and performance", Journal of Research in Marketing and Entrepreneurship, Vol. 24 No. 1, pp. 1-22. https://doi.org/10.1108/JRME-05-2020-0048

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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