Influence of Entrepreneurial Orientation on Business Performance Mediated by Differentiation Strategy in Batik Nitik SME

Abstract

The objective of this study was to examine the direct and indirect effects of entrepreneurial orientation on business performance mediated by differentiation strategy in small and medium enterprises (SMEs) engaged in batik crafts, namely nitik batik in Trimulyo Village, Jetis District, Bantul Regency. The population in this study consisted of 84 SMEs. The sampling technique used was the census technique to collect data. Quantitative research methods were applied, using questionnaires as the main data collection instrument. Data analysis was carried out using Partial Least Squares (PLS) version 4.0. The findings showed that: Entrepreneurial Orientation had a significant effect on business performance, Entrepreneurial Orientation had a positive effect on differentiation strategy, Differentiation strategy had a positive effect on business performance, and Entrepreneurial Orientation had a positive effect on business performance mediated by differentiation strategy. The results of the analysis showed that the application of entrepreneurial orientation affected business performance mediated by differentiation strategy in Batik Nitik SMEs.