The mediating role of competitiveness between entrepreneurial competence and business success

Abstract

The purpose of this study is to analyze the effects of entrepreneurial competence and competitiveness as mediating variable on the business success of apparel small- and medium-sized enterprises (SMEs) in Greater Bandung (five cities/regencies). To collect data, some questionnaires were used. Out of the 128 companies in the apparel SMEs population, 96 were selected as representative sample. The Partial Least Square Structural Equation Modeling (PLS-SEM) was used to test the hypotheses. The research outcomes revealed that entrepreneurial competence affected competitiveness, entrepreneurial competence affected business success directly and indirectly through competitiveness, and competitiveness affected business success. The managerial implication of this study is also discussed.

Keywords

• business success
• competitiveness
• entrepreneurial competence
• small medium enterprises