THE EFFECT OF INNOVATION, ORGANIZATIONAL CULTURE AND ENTREPRENEURIAL ORIENTATION ON BUSINESS PERFORMANCE: A STUDY ON SMALL AND MEDIUM ENTERPRISES IN MAKASSAR CITY, INDONESIA

Abstract

This study aims to examine the influence of innovation variables, organizational culture and entrepreneurial orientation on the performance of small and medium enterprises in Makassar City, Indonesia. The research method used in this research is a quantitative analytic approach with multiple regression analysis, F test, and t-test. The results of this study indicate that simultaneously the variables of innovation, organizational culture and entrepreneurial orientation influence the performance of Small and Medium Enterprises and partially the variables of innovation, organizational culture and entrepreneurial orientation affect the performance of Small and Medium Enterprises. So, it is suggested to small entrepreneurs in particular to maintain their abilities related to innovation and entrepreneurial orientation and to implement organizational culture in carrying out business activities to improve business performance.

Keywords

• innovation
• organizational culture
• entrepreneurial orientation
• business performance
• small and medium enterprises (smes)