ACHIEVING PERFORMANCE THROUGH STRATEGIC AGILITY AND ENTREPRENEURIAL INNOVATION: AN EMPIRICAL RESEARCH IN SMEs SECTOR

Abstract

Small and medium enterprises (SMEs) are often considered sig­ni­fi­cant in developing countries like Indonesia. However, there are several pro­blems regarding the quality of human resources and technical and non-tech­ni­cal skills, weaknesses in seizing opportunities, and lack of innovation. For this re­ason, SMEs need to be continuously developed both in quantity and quality, es­­pecially in improving their performance to contribute to economic de­ve­lop­ment. Therefore, this study examines the factors directly or indirectly related to improving its performance. This study empirically predicts that strategic agi­lity can influence entrepreneurial innovation and organizational learning. Fur­­thermore, this study proposes a relationship between strategic agility, en­tre­­preneurial innovation, and organizational learning on performance in SMEs. This research was conducted by taking samples from SMEs in the food and beverage, fashion, service, and other sectors. Sampling was conducted on 110 owners or managers of UKM in the Bandung, Garut, and Sumedang areas. Da­ta analysis in this study used SEM-PLS. The results show that strategic agi­li­­ty positively relates to entrepreneurial innovation and organizational learn­ing. Then, these findings show that organizational learning has the most sig­ni­fi­­cant influence on performance compared to strategic agility and entre­pre­ne­u­rial innovation. This study implies that SMEs can respond quickly to external cha­nges, find creative solutions, and have agile capabilities in work processes. Re­commendations for further research include environmental uncertainty mo­de­rating variables linking strategic agility and performance.

Keywords

• strategic agility, entrepreneurial innovation, organizational learning, performance, smes