Enhancing the Performance of Pesantren-Based Business Units through Entrepreneurial Orientation: The Mediating Role of Competitive Advantage

Abstract

Objective – This research examines the influence of entrepreneurs' orientation, competitive advantages, and SME performance. Design/methodology/approach – With the assistance of AMOS software, the data analysis involved the creation of measurement and structural models utilising the structural equation modelling technique. Data samples were subsequently bootstrapped utilising 250 samples to assess the indirect effect of entrepreneurial orientation on the performance of SMEs via competitive advantage. Findings – The results of this study indicate that competitive advantage plays a mediating role in the relationship between entrepreneurial orientation and the performance of SMEs, specifically regarding both firm growth and personal wealth performance metrics. This study has enhanced the current body of work by offering evidence regarding utilizing personal wealth as an indicator of SMEs’ performance.. Research limitations/implications – This research was only conducted in Indonesia specializing on bussines unit pesantren. As a recommendation, the author suggests further study in the same context of object. Researchers also suggest that further research can explore other constructs that can influence the perfomance of SME. Practical implications – The results of this study are anticipated to provoke discussion over the suitability of personal wealth as an indicator of SME performance.  These findings are anticipated to serve as a foundation for subsequent research. Originality/value – This research examines the  impact of greenwashing on the relationship between entrepreneurs' orientation, competitive advantages, and SME performance. This research also provides insight how SME perfomance specially on business unit pesantren