The Influence of Entrepreneurship Orientation, Business Environment and Management Ability on Business Performance of MSMEs Cafe in Tebing Tinggi City, Indonesia

Authors

  • Christin Natalia Sianipar Sekolah Tinggi Ilmu Ekonomi Bina Karya Tebing Tinggi, Indonesia

DOI:

https://doi.org/10.56225/finbe.v1i3.115

Keywords:

entrepreneurial orientation, business environment, management ability, MSMEs performance

Abstract

Global business pressures and competition affect Micro, Small and Medium Enterprises (MSMEs), such as globalization, technological improvements, demographic and social changes, the ability to innovate, financial support, and entrepreneurship. This research was conducted to investigate the effect of entrepreneurial orientation, business environment and management ability on performance. The purpose of this study was to determine the effect of entrepreneurial orientation on performance, to determine the effect of the business environment on performance, to determine the effect of management ability on performance and to determine the effect of entrepreneurial orientation, business environment and management ability on performance. The sample used in this study was 30 small-scale cafes using the census method. Based on the results of research with multiple regression analysis results from the t test that the influence of entrepreneurial orientation influences performance, the business environment affects performance, management ability affects performance. While the effect on the simultaneous test between entrepreneurial orientation, business environment and management ability have a significant effect on MSMEs performance.

References

Akpoviroro, K. S., & Owotutu, S. O. (2018). Impact of external business environment on organizational performance. International Journal of Advance Research and Innovative Ideas in Education, 4(3), 498–505.

Aldrich, H. E., & Pfeffer, J. (1976). Environments of organizations. Annual Review of Sociology, 2, 79–105. https://doi.org/10.1146/annurev.so.02.080176.000455

Azmi, M. R., Lubis, A. N., & Sembiring, B. K. F. (2019). The Effect of Entrepreneurial Networking and Entrepreneurial Marketing on Business Performance by Competitive Advantage SME’s Culinary Sector in Medan. Int. J. Res. Rev, 6(9), 264–286.

Baron, R. A. (1998). Cognitive mechanisms in entrepreneurship: Why and when enterpreneurs think differently than other people. Journal of Business Venturing, 13(4), 275–294. https://doi.org/10.1016/S0883-9026(97)00031-1

Chell, E. (2007). Social enterprise and entrepreneurship: Towards a convergent theory of the entrepreneurial process. International Small Business Journal, 25(1), 5–26. https://doi.org/10.1177/0266242607071779

Dess, G. G., & Lumpkin, G. T. (2005). The role of entrepreneurial orientation in stimulating effective corporate entrepreneurship. Academy of Management Perspectives, 19(1), 147–156. https://doi.org/10.5465/ame.2005.15841975

Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2014). Strategic management: Text and cases (10th ed.). McGraw-Hill Education New York.

Ferdianto, D. (2016). Manfaat Yang Dicari Nasabah Umkm Dalam Layanan Kredit Modal Kerja Di Bank Umum Surabaya. STIE Perbanas Surabaya.

Ghozali, I. (2016). Aplikasi Analisis multivariete dengan program IBM SPSS 23 (Edisi 8). Cetakan Ke VIII. Semarang: Badan Penerbit Universitas Diponegoro, 96.

Hyatt, D. G., & Berente, N. (2017). Substantive or symbolic environmental strategies? Effects of external and internal normative stakeholder pressures. Business Strategy and the Environment, 26(8), 1212–1234. https://doi.org/10.1002/bse.1979

Ireland, R. D., Hitt, M. A., Camp, S. M., & Sexton, D. L. (2001). Integrating entrepreneurship and strategic management actions to create firm wealth. Academy of Management Perspectives, 15(1), 49–63. https://www.jstor.org/stable/4165710

Kounev, S., Brosig, F., Huber, N., & Reussner, R. (2010). Towards self-aware performance and resource management in modern service-oriented systems. 2010 IEEE International Conference on Services Computing, 621–624.

Kurtz, D. J., & Varvakis, G. (2016). Dynamic capabilities and organizational resilience in turbulent environments. In Competitive strategies for small and medium enterprises (pp. 19–37). Springer.

Latief, B. (2012). Faktor-faktor yang mempengaruhi kinerja karyawan PT. Mega Mulia Servindo di Makasar. Jurnal Manajemen Dan Akuntansi, 1(2), 61–70.

Machuki, V. N., & Aosa, E. (2011). The influence of the external environment on the performance of publicly quoted companies in Kenya. Business Administration and Management, 1(7), 205–218.

Moeheriono, E., & Si, D. M. (2012). Pengukuran Kinerja Berbasis Kompetensi. Jakarta: Raja Grafindo Persada.

Mudrajad, K. (2011). Metode Kuantitatif; Teori dan Aplikasi untuk Bisnis & Ekonomi. Edisi Keempat Yogyakarta: Unit Penerbit Dan Percetakan Sekolah Tinggi Ilmu Manajemen YKPN.

Mulyasa, H. E. (2022). Manajemen dan kepemimpinan kepala sekolah. Bumi Aksara.

Nurani, N., Nurjanah, R., & Prihantoro, I. (2020). Competence of Human Resources of Small and Medium Enterprises (MSMEs) of West Java through Intellectual Property Rights (IPR) Protection in the COVID-19 Pandemic Era. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(10), 3878–3896.

O’Brien, L., Merson, P., & Bass, L. (2007). Quality attributes for service-oriented architectures. International Workshop on Systems Development in SOA Environments (SDSOA’07: ICSE Workshops 2007), 3.

Otache, I., & Mahmood, R. (2015). Corporate entrepreneurship and business performance: The role of external environment and organizational culture: A proposed framework. Mediterranean Journal of Social Sciences, 6(4 S3), 524–531.

Pheng, L. S., & Chuan, Q. T. (2006). Environmental factors and work performance of project managers in the construction industry. International Journal of Project Management, 24(1), 24–37.

Riyanti, B., & Prasetio, A. P. (2019). Gaya Kepemimpinan Sebagai Faktor Yang Mempengaruhi Kinerja Karyawan Puskesmas. ISEI Business and Management Review, 3(2), 71–78. https://doi.org/10.36217/ibmr.v3i2.118

Semuel, H., Siagian, H., & Octavia, S. (2017). The Effect of Leadership and Innovation on Differentiation Strategy and Company Performance. Procedia - Social and Behavioral Sciences, 237, 1152–1159. https://doi.org/10.1016/j.sbspro.2017.02.171

Supriyono, R. A. (2018). Akuntansi keperilakuan. UGM PRESS.

Zahoor, N., Golgeci, I., Haapanen, L., Ali, I., & Arslan, A. (2022). The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic: Exploratory case studies from Finland. Industrial Marketing Management, 105(August 2022), 502–514. https://doi.org/10.1016/j.indmarman.2022.07.006

Downloads

Published

2022-12-31

How to Cite

Sianipar, C. N. (2022). The Influence of Entrepreneurship Orientation, Business Environment and Management Ability on Business Performance of MSMEs Cafe in Tebing Tinggi City, Indonesia. Frontiers in Business and Economics, 1(3), 108–114. https://doi.org/10.56225/finbe.v1i3.115
Abstract viewed = 228 times