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The Business Performance of Culinary Sector: A Study of SMEs Sector in Bali

Author

Listed:
  • N.N. Kerti Yasa
  • G.N. A.J. Widagda
  • D. Asih
  • N.L. Wayan Sayang Telagawathi
  • G.A. Ketut Giantari
  • Made Setini
  • Endi Rekarti

Abstract

Purpose: The study aims to explain the role of business innovation strategies mediating the effect of entrepreneurial orientation on the performance of SMEs. Approach/Methodology/Design: The method of determining the sample used is purposive sampling, the culinary sector SMEs in Denpasar City. The sample used was 120 culinary SMEs represented by the owner/manager as respondents. Data collection is done by distributing questionnaires offline and online using Google forms that have been tested for validity and reliability. The data analysis technique used is the SEM-PLS Analysis. Findings: The results showed that the entrepreneurial orientation variable positively and significantly affects business performance. Entrepreneurial orientation has a positive and significant effect on business innovation strategies, and business innovation strategies also have a positive and significant effect on business performance. Practical Implications: Therefore, the culinary sector SMEs in the Denpasar city must always improve its entrepreneurial orientation culture, especially in the courage to bear the risk, increase innovation in distribution innovation to customers be able to improve their business’s performance achievements. Originality/Value: The business innovation strategy can significantly mediate the effect of entrepreneurial orientation on the culinary sector SMEs' business performance.

Suggested Citation

  • N.N. Kerti Yasa & G.N. A.J. Widagda & D. Asih & N.L. Wayan Sayang Telagawathi & G.A. Ketut Giantari & Made Setini & Endi Rekarti, 2020. "The Business Performance of Culinary Sector: A Study of SMEs Sector in Bali," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 184-196.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:184-196
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    References listed on IDEAS

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    More about this item

    Keywords

    Entrepreneurial orientation; business innovation strategy; business performance; SMEs; culinary sector.;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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