Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia’s economy. Currently, approximately 65.5 million MSMEs operate across various sectors, including food, beverages, textiles, handicrafts, and digital technology. Their contribution is substantial, accounting for approximately 61% of the national GDP and employing the majority of the workforce. Despite this significance, MSMEs led by male entrepreneurs continue to face structural challenges related to innovation, market access, and digitalization. This study aims to examine the influence of entrepreneurial orientation on MSME performance, with innovation serving as a mediating variable. A quantitative approach was employed using a survey of 411 male entrepreneurs, measured through a five-point Likert scale questionnaire. Data were analyzed using PLS-SEM. The results indicate that entrepreneurial orientation has a significant impact on both innovation and MSME performance, with innovation partially mediating this relationship. Dimensions of entrepreneurial orientation such as innovativeness, risk-taking, proactiveness, passion, perseverance, autonomy, and competitiveness are key drivers of MSME performance. These findings support entrepreneurial orientation as a multidimensional construct and highlight the strategic role of innovation in enhancing MSME performance.

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Driving MSME Performance Through Entrepreneurial Orientation and Innovation: A Study of Male Entrepreneurs in Indonesia

  • Bimo Wicaksono Putro,
  • Lia Yuldinawati

摘要

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia’s economy. Currently, approximately 65.5 million MSMEs operate across various sectors, including food, beverages, textiles, handicrafts, and digital technology. Their contribution is substantial, accounting for approximately 61% of the national GDP and employing the majority of the workforce. Despite this significance, MSMEs led by male entrepreneurs continue to face structural challenges related to innovation, market access, and digitalization. This study aims to examine the influence of entrepreneurial orientation on MSME performance, with innovation serving as a mediating variable. A quantitative approach was employed using a survey of 411 male entrepreneurs, measured through a five-point Likert scale questionnaire. Data were analyzed using PLS-SEM. The results indicate that entrepreneurial orientation has a significant impact on both innovation and MSME performance, with innovation partially mediating this relationship. Dimensions of entrepreneurial orientation such as innovativeness, risk-taking, proactiveness, passion, perseverance, autonomy, and competitiveness are key drivers of MSME performance. These findings support entrepreneurial orientation as a multidimensional construct and highlight the strategic role of innovation in enhancing MSME performance.