The Influence of Entrepreneurial Orientation and Learning Orientation on SME Performance through Business Model Innovation
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Authors:Dewi Najibah1*, Antin Rakhmawati2
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Abstract
The fluctuating performance of Micro, Small, and Medium Enterprises (MSMEs) in Pasuruan Regency highlights the need to strengthen internal organizational capabilities and adaptive business strategies. This study aims to examine the effects of Entrepreneurial Orientation and Learning Orientation on MSME Performance, both directly and indirectly through Business Model Innovation. A quantitative explanatory design was employed involving 100 MSME owners, founders, and key managers selected through purposive sampling. Data were collected using questionnaires and analyzed through Partial Least Squares Structural Equation Modeling with SmartPLS 4.0. The findings indicate that Entrepreneurial Orientation and Learning Orientation significantly affect both Business Model Innovation and MSME Performance. Business Model Innovation also significantly influences MSME Performance and partially mediates the relationships between Entrepreneurial Orientation and MSME Performance and between Learning Orientation and MSME Performance. These results demonstrate that entrepreneurial and learning capabilities contribute to firm performance not only directly but also through their translation into business model innovation. The study contributes to the understanding of how internal strategic orientations and business model innovation interact in shaping MSME performance and implies that MSMEs should continuously transform entrepreneurial and learning capabilities into business model innovation to strengthen competitiveness, adaptability, and sustainable performance.
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