The Role of Self-Efficacy: Unlocking Business Success Through Innovation and Entrepreneurial Orientation

Abstract

This study explores the relationship between self-efficacy and business success, with entrepreneurial orientation and innovative work behaviour mediating variables. A quantitative approach was employed, involving 292 MSME actors in the creative economy sector verified by the Bandung City Tourism and Culture Office. The research model was tested using the Structural Equation Modeling (SEM) approach with the assistance of IBM SPSS AMOS version 2.9. The analysis revealed that self-efficacy positively and significantly influences innovative work behaviour and entrepreneurial orientation. Furthermore, both mediating variables positively and significantly bridge the relationship with business success. However, in this study, self-efficacy did not have a significant direct effect on business success. These findings offer practical and academic contributions regarding the role of self-efficacy, innovative work behaviour, and entrepreneurial orientation in managing and achieving business success for MSME actors.