Entrepreneurial Orientation and SME Performance under Digital Market Competition
DOI:
https://doi.org/10.62731/rgjeb.v2i1.13Keywords:
Digital Market Competition, Entrepreneurial Orientation, PLS-SEM, SME performance, , SMEsAbstract
This study aims to examine the effect of entrepreneurial orientation on SME performance and to analyze the moderating role of digital market competition in this relationship. The study responds to the growing pressure faced by SMEs in digital markets, where price transparency, fast promotion, customer switching, and platform-based competition require stronger strategic orientation. This research used a quantitative explanatory design with a cross-sectional survey. Data were collected from 240 SME owners and managers who had used digital channels for marketing, sales, or customer communication. The research instrument used a structured questionnaire measured with a five-point Likert scale. Data were analyzed using Partial Least Squares Structural Equation Modeling with SmartPLS 4. The results show that entrepreneurial orientation has a positive and significant effect on SME performance, with a path coefficient of 0.462, t-statistic of 7.814, and p-value of 0.000. Digital market competition also significantly strengthens the effect of entrepreneurial orientation on SME performance, with a path coefficient of 0.173, t-statistic of 3.102, and p-value of 0.002. The model explains 51.4% of the variance in SME performance. This study concludes that innovation, proactiveness, and calculated risk-taking improve SME performance, especially when SMEs face intense digital market competition. The findings contribute to SME and entrepreneurship literature by integrating entrepreneurial orientation and digital market competition in explaining business performance.
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Copyright (c) 2026 M. Akbar Ramadhan, Vina Oktaviani, Damar Setiawan (Author)
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