The Impact of Entrepreneurial Orientation on Performance through Competence in Rattan Handicraft SMEs

Abstract

This study aimed to analyze the relationship between entrepreneurial orientation to performance with competence as mediation. This quantitative study was conducted at Rattan Handicraft MSMEs in Gresik Regency, East Java, Indonesia. The sampling technique used census/full sampling with a sample of 82 MSME employees. The data analysis method uses Path analysis through several stages, including linearity assumption, measurement model test (outer model), structural model test (inner model), and hypothesis testing. The results of this study indicate an influence between entrepreneurial orientation and competence, the influence between entrepreneurial orientation on performance, and the influence between competence on performance, and competence can mediate the relationship between entrepreneurial orientation and performance. The practical contribution of this research is that it can Business development strategies as well as manpower development in MSMEs. The implications of this research can bring a deeper understanding of the dynamics involved in achieving performance excellence in the context of business and development strategies that can increase the success of MSMEs in achieving goals.