THE ROLE OF THE GOVERNMENT IN STRATEGIC MANAGEMENT AND ORIENTATION OF ENTREPRENEURSHIP TO SMALL MEDIUM ENTERPRISE BUSINESS PERFORMANCE

Main Article Content

Y. RAHMAT AKBAR
https://orcid.org/0000-0002-6798-7159
. NEFRIDA

Abstract

Empowerment of Micro, Small and Medium Enterprises is very strategic because of its great potential in driving the community's economic activities, and at the same time becomes the source of income for most of the community in improving their welfare. The role of government is necessary to be able to improve the performance of these SMEs. This study aims to determine and analyze the effect of strategic management and entrepreneurial orientation on the performance of small and medium businesses, both directly and through the role of government. The population in this research are small and medium entrepreneurs in the city of Pekanbaru. The sampling technique used was accidental sampling with a total of 60 respondents. To process data that has been obtained from questionnaires and test hypotheses using Partial Least Square (PLS) analysis techniques. The results of this study indicate that strategic management strengthened by the government will have a positive and significant impact on the performance of SMEs. Meanwhile, entrepreneurial orientation, strengthened by the role of government, also has a positive and significant effect in improving the performance of SMEs. Likewise, the direct influence of strategic management and entrepreneurial orientation on the performance of SMEs. Their influence has a positive and significant effect.

Keywords:
Strategic, orientation, entrepreneurship, small medium enterprise.

Article Details

How to Cite
AKBAR, Y. R., & NEFRIDA, . (2021). THE ROLE OF THE GOVERNMENT IN STRATEGIC MANAGEMENT AND ORIENTATION OF ENTREPRENEURSHIP TO SMALL MEDIUM ENTERPRISE BUSINESS PERFORMANCE. Asian Journal of Advances in Research, 6(3), 27-36. Retrieved from http://mbimph.com/index.php/AJOAIR/article/view/1911
Section
Original Research Article

References

UUD pasal. Undang-Undang Dasar. Jakarta: Lembaran Negara Republik Indonesia. 1945;33-34.

Kepres RI No.99. Keputusan Presiden Republik Indonesia. Jakarta: Lembaran Negara Republik Indonesia; 1998.

Isa M. Analisis kompetensi kewirausahaan, orientasi kewirausahaan, dan kinerja industri mebel. Jurnal Manajemen dan Bisnis. 2012;15(1):172-185.

Mark Plus. Wadah kreatif pacu peningkatan kapasitas bisnis UKM. Jakarta, DKI, Indonesia; 2016.

Sukesti F. Strategi pengembangan UKM Melalui Peningkatan Modal Kerja dengan Variabel Intervening Pengembangan Bisnis Pada UKM Makanan Kecil di Kota Semarang. Prosiding Seminar Nasional & Internasional. Indonesia; 2015.

Grant D. Intestinal transplantation: 1997 report of the international registry1-3. Transplantation. 1999;67(7):1061-1064.

Mosakowski E. A resource-based perspective on the dynamic strategy-performance relationship: An empirical examination of the focus and differentiation strategies in entrepreneurial firms. Journal of Management. 1993;19(4):819-839.

Barney J. Firm resources and sustained competitive advantage. Journal of Management. 1991;17(1):99-120.

Musfialdy M. Integrasi sumber daya strategis, orientasi kewirausahaan sebagai basis strategi bersaing serta pengaruhnya terhadap kinerja usaha di provinsi riau. Jurnal Sosial Ekonomi Pembangunan. 2013;4(10):23-48.

Purwanto I. Manajemen Strategi. Bandung: CV. YRama Widya; 2012.

Hakimpoor H. Strategic planning process dimensions and SMEs performance. Proceedings of 10th Global Business and Social Science Research Conference. 2014;23-24.

Sosiawani I, Ramli A, Mustafa M, Yusoff R. Strategic planning and firm performance: A proposed framework. International Academic Research Journal of Business and Technology. 2015;1(2):201-207.

Aremu MA, Aremu MA, Olodo HB. Impact of strategic management on the performance of small and medium scale. Journal of Sustainable Development in Africa. 2015;17(1):113-126.

Suci RP. Peningkatan kinerja melalui orientasi kewirausahaan, kemampuan manajemen, dan strategi bisnis (Studi pada Industri Kecil Menengah Bordir di Jawa Timur). Jurnal Manajemen dan Kewirausahaan. 2009;11(1):46-58.

Lumpkin GT, Dess GG. Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of management Review. 1996;21(1):135-172.

Miller D. A reflection on EO research and some suggestions for the future. Entrepreneurship Theory and Practice. 2011;35(5):873-894.

Davidsson P, Delmar F, Wiklund J. Entrepreneurship as growth; growth as entrepreneurship. Entrepreneurship and the Growth of Firms. 2006;1(2):21-38.

Wiklund J, Shepherd D. Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses. Strategic Management Journal. 2013;24(13):1307-1314.

Aloulou W, Fayolle A. A conceptual approach of entrepreneurial orientation within small business context. Journal of Enterprising Culture. 2005;13(01):21-45.

Brown TE, Davidsson P. Entrepreneurial orientation versus entrepreneurial management: Relating Miller/Covin & Slevin's conceptualization of entrepreneurship to Stevenson's. Frontiers of Entrepreneurship Research. 1998;352-353.

Covin JG, Slevin DP. A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice. 1991;16.1:7-26.

Nelson B, Coulthard M. The impact of the entrepreneurial orientation on performance in Australian franchise firms. Monash University: Department of Management; 2005.

Lee DY, Tsang EW. The effects of entrepreneurial personality, background and network activities on venture growth. Journal of Management Studies. 2001;38(4):583-602.

Ferreira J, Azevedo S. Entrepreneurial orientation as a main resource and capability on small firms. Munich: Personal RePEc Archive; 2007.

Gitman LJ, Juchau R, Flanagan J. Principles of managerial finance. AU: Pearson Higher Education; 2015.

Sedarmayanti H. Good governance (kepemerintahan yang baik). Bandung: CV. Mandar Maju; 2004.

Kuper A. Reconstructing global governance: Eight innovations. Globalization theory: Approaches and Controversies. 2007;225-239.

Wheelen TL, Hunger JD. The usefulness of strategic management concepts to small businesses and entrepreneurial ventures. International Journal of Management. 1992;9(4):399-405.

Carrier C. Intrapreneurship in small businesses: an exploratory study. Entrepreneurship Theory and Practice. 1996;21(1):5-20.

Antoncic B, Hisrich RD. Privatization, corporate entrepreneurship, and performance: Testing a normative model. Journal of Developmental Entrepreneurship. 2003;8(3): 197.

Miles MP, Covin JG. Exploring the practice of corporate venturing: Some common forms and their organizational implications. Entrepreneurship Theory and Practice. 2002;26(3):21-40.

Jones GR, Butler JE. Managing internal corporate entrepreneurship: An agency theory perspective. Journal of Management. 1992; 18(4):733-749.

Rahim HL, Zainal Abidin Z, Mohtar S, Ramli A. The effect of entrepreneurial leadership towards organizational performance. International Academic Research Journal of Business and Technology; 2015.

Venkataraman S, Sarasvathy SD. Strategy and entrepreneurship: Outlines of an untold story. 650668: Handbook of Strategic Management; 2001.

Vitale R, Giglierano J, Miles M. An exploratory study of selfadministrated quick-audits as a management diagnostic to assess marketing and entrepreneurial orientations in established and startup firms. Journal of Research in Marketing and Entrepreneurship. 2003;6(1):64-77.

Hair J, Black W, Babin B, Anderson. Multivariate Data Analysis 5th Edition. New Jersey: Prentice Hall International Inc; 2008.

Akbar YR. Analisis kuantitatif, pengolahan data statistik menggunakan SPSS & Pengumpulan Data Survei Google Form/SurveyMonkey. Purwokerto: CV Pena Persada; 2020.

Akbar YR. Penyuluhan dan pengolahan data sosial ekonomi perikanan. Jurnal Pengabdian Masyarakat Multidisiplin. 2020;4(1):48-55.