Moderating Role of Islamic Work Ethics on The Effect of Innovation and Entrepreneurship Orientation on Entrepreneurial Behavior and Business Performance.

Abstract

The purpose of this research is to explore the effect of innovation and entrepreneurial orientation on entrepreneurial behavior and business performance. More specifically, it aims at examining and explaining the moderating role of Islamic work ethics. This research design used explanatory research. Data collection was done by a survey method. The sampling technique was purposive sampling with a sample size of 99 small and medium enterprises in Kendari City. Respondents who became the sample were business owners. The analysis method in testing the hypothesis was Partial Last Square (PLS). The results showed that innovation had no significant effect on business performance but had a positive effect on entrepreneurial behavior, and entrepreneurial orientation had a positive and significant effect on entrepreneurial behavior and business performance. Entrepreneurial behavior had a positive and significant effect on business performance. Furthermore, the effect of innovation and business performance moderated by Islamic work ethics had a positive and insignificant effect, the effect of entrepreneurial orientation on business performance moderated by Islamic work ethics had a negative and insignificant effect. Finally, the effect of entrepreneurial behavior on business performance moderated by Islamic work ethics had a positive and insignificant effect.