Organizational learning, entrepreneurial orientation and personal values towards SMEs’ growth in Indonesia

Ahmad Rafiki · Muhammad Dharma Tuah Putra Nasution · Yossie Rossanty · Pipit Buana Sari

37 citations0/0 files storedJournal of Science and Technology Policy Management

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Entrepreneurship Studies and Influences Innovation and Knowledge Management Organizational Learning and Leadership

Abstract

Purpose The purpose of this study is to examine the dimensions of organizational learning (OL), entrepreneurial orientation (EO), personal value toward the firm performance of small and medium enterprises (SMEs) in North Sumatera, Indonesia. Design/methodology/approach This study used a quantitative methodology using Smart partial least squares of the structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 128 respondents are selected. Using a cross-sectional survey design, 11 hypotheses are tested. Findings It is found that the innovativeness of EO and personal value both have a significant relationship with firm growth. While OL is significantly related to the innovativeness of EO, risk-taking of EO and proactiveness of EO. Then, both innovativeness of EO and proactiveness of EO significantly mediate the relationship of OL and firm growth. However, OL, proactiveness of EO and risk-taking of EO are insignificantly related to firm growth, while risk-taking of EO also insignificantly mediates the relationship of OL and firm growth. Originality/value EO (innovativeness, risk-taking and proactiveness) is deemed a crucial factor in running businesses by SMEs, while OL and personal value play a significant role in creating a competitive advantage that is needed for growth.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1997Dynamic capabilities and strategic management 2018When to use and how to report the results of PLS-SEM 1988On the Evaluation of Structural Equation Models 2007Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance 1992Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries 1996Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance

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