Innovativeness as the Key to MSMEs’ Performances

Annuridya Rosyidta Pratiwi Octasylva, Lilik Noor Yuliati, Hartoyo Hartoyo and Agus W. Soehadi
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Annuridya Rosyidta Pratiwi Octasylva: School of Business, IPB University, Bogor 16151, Indonesia
Lilik Noor Yuliati: Department of Family and Consumer Sciences, IPB University, Bogor 16680, Indonesia
Hartoyo Hartoyo: School of Business, IPB University, Bogor 16151, Indonesia
Agus W. Soehadi: School of Business and Economics, Universitas Prasetiya Mulya, Tangerang 15339, Indonesia

Sustainability, 2022, vol. 14, issue 11, 1-14

Abstract: Research on Micro Small Medium Enterprises (MSME) has always been an exciting area of study because of its crucial role; however, it turns out that MSMEs have many problems. The problems, such as human resources and their abilities, are rarely discussed. MSMEs tend to be formed because of a compulsion to do so, whereas companies are created by opportunities; therefore, it is essential to include entrepreneur orientation and dynamic capability elements in making MSME performance models. This study used SEM analysis with 333 respondents spread across six provinces in Indonesia. The results showed that innovativeness, which is part of entrepreneur orientation, is critical in the formation of MSMEs’ performances. Moreover, based on the calculation of indirect effects, it revealed that innovativeness through marketing capabilities has a significant influence on the performance of MSMEs.

Keywords: performance; dynamic capability; entrepreneur orientation; innovativeness; MSMEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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