The role of innovation strategies in mediating covid-19 perceptions and entrepreneurship orientation on Endek weaving craft business performance

Abstract

This study aims to examine the role of innovation strategies in mediating Covid-19 perceptions and entrepreneurial orientation on the performance of endek weaving craft business in Bali Province. The theoretical basis used is RBV (Resources Based View) which argues that each company has varying resources with differences in resulting performances. The test was carried out by quantitative analysis using a Structural Equation Model (SEM) based on Partial Least Square (PLS). Data were collected from 139 MSME of endek weaving craftsmen. The results of testing the effect of Covid-19 perceptions and entrepreneurial orientation on business performance were insignificant. Meanwhile, those on innovation strategies and entrepreneurial orientation were positively significant. The results of testing the effect of innovation strategy on business performance and collaboration between the government and the private sector in moderating the innovation strategy on business performance were positively significant and insignificant. The results of testing the effect of innovation strategies mediating Covid-19 perceptions on business performance and mediating entrepreneurial orientation on business performance were positively significant. The study actually confirms that the innovation strategy is a strong mediating variable to bridge the relationships between entrepreneurial orientation variables, Covid-19 perceptions, and business performance. The collaboration between the government and the private sector is also an insignificant moderator to achieve the business performance of MSME actors.

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