ANALYZING THE ROLE OF SUSTAINABLE ENTREPRENEURIAL ORIENTATION ON INDONESIAN SMES’ BUSINESS PERFORMANCE
The main objective of the current research is to analyze the role of sustainable entrepreneurial orientation toward Indonesian SMEs' business performance. Sustainable entrepreneurial innovation is a construct derived from the entrepreneurial orientation, which is adjusted to the current sustainable development issues that put businesses not only aim for profit but also the sustainability of society and the environment. To achieve the objective, we develop a conceptual framework that includes the sustainable innovation constructs to better understand the process of how sustainable entrepreneurial orientation would determine the overall business performance of a business. 187 Indonesian SME owners and managers were participating to become respondents and provide data needed for the Partial Least Square (PLS) analysis. The key finding from the current research is that sustainable entrepreneurial orientation is a key determinant that could improve all of the constructs of sustainable innovation, which consist of knowledge, product, and market innovation capabilities. In addition, sustainable entrepreneurial innovation also has a significant effect on overall business performance, thus strengthening the role of sustainable entrepreneurial orientation for a business should they would like to improve their overall business performance and innovation capabilities. The theoretical and practical implications for the current research result are discussed within the article.
Sustainable entrepreneurial orientation; Sustainable innovation; Business Performance