The Business Performance of Culinary Sector: A Study of SMEs Sector in Bali

N.N. Kerti Yasa, G.N. A.J. Widagda, D. Asih, N.L. Wayan Sayang Telagawathi, G.A. Ketut Giantari, Made Setini, Endi Rekarti
International Journal of Economics and Business Administration, Volume VIII, Issue 4, 184-196, 2020
DOI: 10.35808/ijeba/578


Purpose: The study aims to explain the role of business innovation strategies mediating the effect of entrepreneurial orientation on the performance of SMEs. Approach/Methodology/Design: The method of determining the sample used is purposive sampling, the culinary sector SMEs in Denpasar City. The sample used was 120 culinary SMEs represented by the owner/manager as respondents. Data collection is done by distributing questionnaires offline and online using Google forms that have been tested for validity and reliability. The data analysis technique used is the SEM-PLS Analysis. Findings: The results showed that the entrepreneurial orientation variable positively and significantly affects business performance. Entrepreneurial orientation has a positive and significant effect on business innovation strategies, and business innovation strategies also have a positive and significant effect on business performance. Practical Implications: Therefore, the culinary sector SMEs in the Denpasar city must always improve its entrepreneurial orientation culture, especially in the courage to bear the risk, increase innovation in distribution innovation to customers be able to improve their business’s performance achievements. Originality/Value: The business innovation strategy can significantly mediate the effect of entrepreneurial orientation on the culinary sector SMEs' business performance.

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