The Effect of Entrepreneurial Orientation on Melinjo Processing Industries in Batang Regency

  • Intan Adhitya Rosmasari School of Business, IPB University Jl.Raya Pajajaran,Bogor 16151
  • Siti Jahroh School of Business, IPB University Jl.Raya Pajajaran,Bogor 16151
  • Budi Purwanto Department of Management, Faculty of Economics and Management, IPB University Jl. Agatis, Campus IPB Dramaga, Bogor 16680

Abstract

Micro, small and medium enterprises play an important role in improving the people’s economy. The contribution of small enterprises can increase state income, absorb labor, improve welfare evenly, and stimulate people’s economy by leading to the entrepreneurial orientation to support better business performance. The purposes of the study were to find out the effect of entrepreneurial orientation on business performance and the effect of entrepreneurial characteristic on entrepreneurial orientation and performance. The respondents were taken from 60 independent entrepreneurs and KWT Tani rejo of the melinjo chips processing industry in Batang Regency. The data were analyzed using Partial Least square (PLS) approach. The results showed that entrepreneurial characteristic influenced entrepreneurial orientation and business performance. In addition, entrepreneurial orientation had a positive effect on the performance of melinjo chips processing business. Entrepreneurs who implement entrepreneurial orientation from innovativeness, proactiveness, competitive aggressiveness, risk-taking and power of autonomy side will have a good impact on their business performance.

Keywords: MSMEs, entrepreneurial characteristic, entrepreneurial orientation, business performance, PLS

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Published
2019-05-26
How to Cite
Rosmasari, I. A., Jahroh, S., & Purwanto, B. (2019). The Effect of Entrepreneurial Orientation on Melinjo Processing Industries in Batang Regency. Indonesian Journal of Business and Entrepreneurship (IJBE), 5(2), 148. https://doi.org/10.17358/ijbe.5.2.148