Entrepreneurial Knowledge, Market Orientation, Digitalization, and Entrepreneurial Competencies: Evidence from SMEs in Indonesia

Abstract

This study aims to acknowledge how Entrepreneurial Knowledge, Market Orientation, Digitalization, and Entrepreneurial Competencies are linked. The data for the study were analyzed using Partial Least Square (PLS). This research covers 142 SMEs in Indonesia based in Malang, East Java. The study used proxies such as creativity, problem-solving, skill, and leadership as a proxy for Entrepreneurial Knowledge, promotion, market needs, and cost analysis as a proxy for Market Orientation. Technology to promote and social media as a proxy for digitalization and Entrepreneurial Competencies variables, measured through identifying customers, wants, developing trust, and negotiating. This study indicates that Entrepreneurial Knowledge, Market Orientation, and Digitalization significantly affect SMEs' Entrepreneurial Competencies in Indonesia. This study recommends applying Entrepreneurial Knowledge, Market Orientation, and Digitalization in SMEs. Furthermore, this study suggests that the government pays more attention to digitalization development for SMEs in general and SMEs in Malang City. Especially during the current pandemic crisis, the role of using technology has dramatically helped SMEs survive. The supporting infrastructure for digitalization, such as easy internet access connectivity, especially in the country's remote areas, can be improved.