Analysis of the Entrepreneurial Orientation Impacts of Food and Beverages SMEs in Jabodetabek

Abstract

This research shows how entrepreneurial orientation, dynamic capability, and innovation capability impact the performance of food and beverage SMEs in the Jabodetabek area, with competitive advantage acting as a mediating factor. SMEs in this sector face growing challenges in improving performance and maintaining a competitive edge in an increasingly dynamic business landscape. The objective of this study is to show that enhancing entrepreneurial orientation, along with developing dynamic and innovation capabilities, can significantly influence both firm performance and competitive standing. Data was collected through structured questionnaires distributed to SME owners in Jabodetabek, and the analysis involved regression and mediation techniques. The results demonstrate that entrepreneurial orientation, dynamic capability, and innovation capability strongly influence both firm performance and competitive advantage. Furthermore, competitive advantage serves as an important mediator in the relationship between these factors and performance, emphasizing its role in optimizing business capabilities for better outcomes. The study suggests that for SMEs to succeed in a competitive market, they need to foster an entrepreneurial approach while continuously adapting and innovating. It contributes to the existing literature by providing empirical evidence on how these capabilities can enhance performance and competitiveness in SMEs. For SME owners and managers, the findings highlight the need to build dynamic and innovative capabilities to remain competitive and ensure sustainable business success. Future studies could explore these dynamics across different industries and regions.