Description
Title: Furniture SMEs in East Java’s competitive advantage: the importance of entrepreneurship orientation
Abstract: This study examines the ways in which furniture SMEs in East Java, Indonesia, are entrepreneurially oriented in order to gain a competitive advantage. The survey method is used in this study’s quantitative methodology. This study uses 84 owners of small and medium enterprises (SMEs) that manufacture furniture in Western East Java, Indonesia, who were given questionnaires to complete themselves as part of a self-administered survey. The structural equation model (SmartPLS 3.0) was used to analyze data for a measurement. Only four of the five hypotheses, i.e., the influence of entrepreneurial orientation consisting of proactiveness, innovativeness, aggressiveness, and autonomy, had positive significant and positive effects on competitive advantage. The risk-taking hypothesis for SMEs Furniture’s competitive advantage, on the other hand, has no positive and significant impact. According to the study’s findings, aggressiveness has a strong influence on the entrepreneurial orientation dimension. Theoretically, this study’s findings suggest that entrepreneurs in the furniture industry need to continually increase their entrepreneurship aggression by introducing novel products made of regional materials and adhering to market trends. This study contributes to the theory of aggressiveness in entrepreneurship to promote innovations that will boost the competitiveness of local resource-using industries and support government initiatives. In order to improve competitiveness for a labor-intensive industry with trustworthy local content and support economic growth in Indonesia, the furniture industry must be aggressive.
Keywords: entrepreneurial orientation; aggressiveness; SME; furniture
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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