The Effect Of Entrepreneurial Orientation, Product Innovation, And Dynamic Capabilities On Business Performance In Small And Medium-Sized Enterprises In Malang City
DOI:
https://doi.org/10.29284/8zj0q098Keywords:
entrepreneurial orientation, product innovation, dynamic capabilities, business performance.Abstract
This research investigates how entrepreneurial orientation, product innovation, and dynamic capabilities influence the business performance of MSMEs in Malang City. A quantitative design was applied, involving 208 MSME participants chosen through purposive sampling. Data were obtained using a Likert-scale questionnaire ranging from 1 to 5, then examined through validity and reliability testing, classical assumption checks, and multiple linear regression using SPSS 26. The findings indicate that the three predictors collectively contribute significantly to the performance of MSMEs (Sig. = 0.000 < 0.05). Individually, entrepreneurial orientation and dynamic capabilities were found to positively and significantly strengthen business performance, whereas product innovation did not show a meaningful influence. The determination value of 97.1% indicates that the model has a very high explanatory power for the variation in MSME performance. This finding confirms that the success of MSMEs in Malang City is largely determined by the ability of business actors to adapt, take risks, and develop robust business strategies.
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This work is licensed under a Creative Commons Attribution 4.0 International License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
