Beyond innovation: how risk-taking and proactiveness drive MSE performance in emerging markets
摘要
The participation of Micro and Small Enterprises (MSEs) in Indonesia’s economic development is crucial, particularly within the food and beverage (F&B) sector. This study aims to examine the influence of Entrepreneurial Orientation (EO) dimensions (innovativeness, risk-taking, and proactiveness) on the product and customer performance of F&B MSE.
This study employs a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM). Questionnaires were distributed to F&B MSE actors in Lampung, Indonesia. This research develops measurement scales for the three EO dimensions, tailored explicitly for the MSE sector.
The results reveal that risk-taking has a significant effect on both customer and overall business performance, but not on product performance. Proactiveness has a notable effect only on product performance. Innovativeness has only a marginal support on product and overall performance, but does not significantly impact customer satisfaction. The results highlight the importance of aligning EO strategies with market insights and customer needs to enhance their effectiveness, particularly in resource-constrained MSE contexts.
The novelty of this study lies in the differential impact of each EO dimension on various performance outcomes, challenging the traditional, linear view that the EO dimensions always positively influence business performance. This study integrates the theories of EO and Market Orientation by explaining how market-driven strategies can enhance the effectiveness of EO dimensions. It also provides practical guidance for MSE managers to prioritize EO strategies that align with market demands and customer needs, thereby enhancing business performance.