Entrepreneurial Orientation and Organizational Commitment in SMEs as Form of Business Performance Improvement

Abstract

Small and Medium Enterprises (SMES) play an important role in economic growth throughout the world. The objective of this study is to determine and analyze the impact of entrepreneurial orientation and organizational commitment in SMES as a form of improvement in business performance in Indonesia. This study uses a quantitative approach with the survey method of 6,708 SMES who have a business license. This study will be taken 200 samples, with a random backup technique of 10%, spread across 17 districts. Analysis of technical data in this study uses structural equations modeling (SEM) using AMOS Software. The results of the study is similar with the empirical data received. The result of the entrepreneurship orientation tests is partially proved positive and significant effect on the organizational commitment performance. Entrepreneurial orientation variables are not proven as positive and significantly in improving the SME performance. Organizational commitments are not proven as positive and significant effect on SME performance. Entrepreneurial orientation does not prove to be an intermediary between organizational commitment variables in SME performance. Keywords: Entrepreneurial Orientation, Organizational Commitment, SMEs Performance