The Effect of Entrepreneurial Orientation, Product Innovation, and Information Technology on the SME’s Performance Facing the Era of Industrial Revolution 4.0: Intellectual Capital as Mediator

Abstract

This paper aims to analyze the effect of entrepreneurial orientation, product innovation, and information technology on SME’s performance facing the era of industrial revolution 4.0 with intellectual capital as mediation variable. This research is associative causal research using the quantitative approach. The subjects of the research are owners of convection SME’s in Kebumen Regency – Central Java, with the number of population in this research 155. The number of samples in this research 112. The sampling technique using simple random sampling technique. The data collection used a questionnaire that had been tested for validity and reliability. The data analysis technique use multiple regression. The results of the research show that entrepreneurial orientation, product innovation, and information technology has positive and significant effect on SME’s performance. Intellectual capital has positive and significant effect on SME’s performance. Intellectual capital mediates the effect of entrepreneurial orientation, product innovation, and information technology on SME’s performance. From these results, it can be concluded that entrepreneurial orientation, product innovation, information technology, and intellectual capital have a large contribution to the better business performance in SME’s.