The Effect of Entrepreneurial Orientation, Environmental Adaptability and Strategic Orientation on Business Performance

Abstract

The purpose of this study is to examine the influence of entrepreneurial orientation, environmental adaptability, and strategic orientation on business performance through competitive advantage in pandan (pandanus) craftsmen in Jombang. The population in this study was 1634 pandan craftsmen with a sample of 128 respondents. Structural Equation Modeling (SEM) was run with AMOS software. The results of the analysis showed that entrepreneurial orientation, environmental adaptability, and strategic orientation have a positive effect on competitive advantage in improving business performance. The most dominant variables affecting business performance mediated by competitiveness advantage are environmental adaptability, strategic orientation and entrepreneurial orientation. Pandan craftsmen are suggested to create a competitive advantage in the context of marketing strategy; the pandan craftsmen must be able to distribute the products quickly at competitive prices. In the context of entrepreneurial orientation, pandan craftsmen must emphasize innovation/creativity and have the courage to take risks.

Keywords: entrepreneurial orientation, environmental adaptability, strategic orientation, competitive advantage, and business performance