Government Regulations, Interpreneurial Orientation and Stakeholder Network Capability in Achieving Organizational Performance

The purpose of this study is to analyze government and stakeholder regulations as well as entrepreneurial orientation in achieving organizational performance, this study to measure the impact of the institutional environment as government regulations and managerial ability in maintaining the relationship between stakeholder networks and entrepreneurial orientation in the context of industrial estates in Batam.The results of data analysis from industrial companies in Batam and its surroundings show that the maritime industry in Batam is entrepreneurially oriented and is significantly influenced by government policies as reflected in legal certainty and bureaucratic attitudes that help implement these policies.Besides, it is evident that the ability of management to establish relationships with many stakeholders, which consists of all existing partners and employees, also affects the growth of entrepreneurial orientation. The performance of the maritime industry in Batam is proven to be significantly influenced by entrepreneurial orientation directly.


Introduction
Riau Islands is a maritime area which is about time to develop maritime industry, such as sea transportation, marine tourism, fishing, mining and energy. The natural potential of the sea is a mainstay of wealth owned by the Riau Islands in responding to the challenges of a maritime industry-based economy with this potential Riau Islands Province can increase economic growth and the welfare of marginalized coastal communities in Indonesia. The Batam area is designated as a free trade area and free port for 70 (seventy) years from the enactment of Government Regulation No. 46/2007. Free trade areas and free ports include BatamIsland, Tonton Island, Setokok Island, Nipah Island, Rempang Island. , Galang Island and GalangBaru Island.
In the Batam Free Trade and Free Port Zone, activities in the economic sector are carried out, such as the trade, maritime, industry, transportation, banking, tourism and other sectors, Government Regulation Number 46 of 2007 Article 2 paragraph 1.  (Clauss, 2017). Entrepreneurial orientation as a construct of academic studies on the strategymaking process, and involves some policies and practices that guide entrepreneurial decisions and actions in an organization (Taylor, 2013 In the process of making an entrepreneurial strategy, it is an important element to achieve corporate success. Implementation of entrepreneurial strategies as a strategic need for the company, Dewi et al, (2018). Entrepreneurial orientation (EO) has a positive effect on business performance, and network capability (NC) can significantly moderate the relationship between entrepreneurial orientation and business performance, Zhang (2012). The mindset of company managers as strategic decision-makers, company managers are proactive in making changes and recognizing opportunities according to entrepreneurial orientation and showing specific abilities (Dobrzykowski et al, 2015).Company managers are urged to make changes for the sake of organizational sustainability, based on the entrepreneurial mindset, (Nikfarjam&Zarifi, 2015).This study aims to examine whether government regulation, stakeholder network capabilities, entrepreneurial orientation affect organizational performance.

Government Regulation
The effect of micro-level government regulations on the level of entrepreneurial orientation of a company in this study will be measured through the dimensions of policy quality (Chadee&Roxas, 2013

Stakeholder Network Capability
Network capability is measured by four dimensions, namely coordination, skills, partner knowledge, and internal communication, Dewiet al (2018). Network capability is a mechanism for companies to proactively anticipate market opportunities, direct the use of resources in a more focused and targeted market, and encourage interaction on the introduction of innovative products or services. Network capability is defined as a company's ability to initiate, develop and utilize relationships between internal and external organizations, Zacca (2015).

Entrepreneurial Orientation
Entrepreneurial Orientation refers to the tendency of companies to explore new market opportunities, thus, manifesting through the tendency of companies to accept innovation, risktaking, proactive, competitive, aggressiveness and autonomy, Boso, et al (2013). The dimensions of entrepreneurial orientation are innovative and proactive as well as the tendency to make decisions with measurable risks, entrepreneurial orientation is considered as innovation in business Bounckenet al (2016). Entrepreneurial orientation can influence organizations through the dimensions of the business model. Aspects of entrepreneurial orientation, namely value creation, value proposition and entrepreneurial orientation value proposition can influence innovation separately or at different times, Claus (2015).

Organizational Performance
Performance is measured through four dimensions, namely sales growth, profitability, overall performance and stakeholder satisfaction, Wales (2016). The definition of performance is the quality and quantity of work achieved by an employee in carrying out his duties by the responsibilities given to him Mangkunegara (2015).
According to Adam &Kamase(2019), the results obtained by an organization are both profitoriented and non-profit-oriented organizations that are generated over a while.

Methods
The data used in this study are primary data distributed by online questionnaires and paper questionnaires. The population in this study were medium and large scale companies in Batam, as many as 298 industrial companies in the city of Batam. The sampling technique uses stratified random sampling by taking the sample by paying attention to the strata (level) in the population. The use of samples in this study using sloven with a precision level of 10%. So the samples in this study were 100 industrial companies in the city of Batam. Based on the table, r count is greater than r table and has a positive value, so the question or statement or indicator item is declared valid. Based on these criteria, the construct of reliability of government regulation, stakeholder network capability, entrepreneurial orientation, organizational performance is 0.718, 0.756, 0.754, and 0.761 above the limit value used, namely 0.70, the constructs of government regulation, stakeholder network capability, entrepreneurial orientation, organizational performance said to be reliable.

Multicollinearity Test
Multicollinearity test to test whether the regression model found a correlation between the independent variables. Based on the multicollinearity test results in the table, there is no independent variable that has a tolerance value of ≤ 0.10, which means that there is no correlation between the independent variables. The VIF results also show that there is no independent variable that has a VIF value ≥ 10. So it can be concluded that there is no multicollinearity between the independent variables in the regression model.

Autocorrelation Test
Auto correlation occurs because the residual (confounding error) is not independent of one observation to another. A good regression model is a regression that is free from autocorrelation.

Heteroscedasticity Test
Heteroscedasticity test to test whether there is an inequality of variance from the residuals of one observation to another in the Ghozali regression model (2016).
Based on the scatterplot, the dots spread randomly and are scattered both above and below. It can be concluded that there is no heteroscedasticity in the regression model.

Normality Test
The normality test aims to test the data for the independent and dependent variables in the resulting regression equation, whether they are normally distributed or not.
Based on the normal plot graph, that the regression model violates the assumption of normality.

Coefficient of Determination Test
Based on the amount of adjusted R2 is 0.901, this means that 90.1% of income variation can be explained by variables of government regulation, stakeholder network capability, entrepreneurial orientation, and organizational performance. While the rest is (100% -90.1% = 9.9%) explained by reasons other than the model.

Partial Significance Test (t Test)
Based on the results of the partial test for the government regulation variable, the count is 0.008 with a significance value of 0.994> 0.05, so it does not have a significant effect, the stakeholder network capability has obtained a count of 28.111 with a significance value of 0.00 <0.05, so it has a significant effect, entrepreneurial orientation obtained a count of 0.565 with a significance value of 0.574> 0.05, it does not have a significant effect Based on the research results, it shows that partially government regulation does not affect organizational performance in the maritime industrial area in Batam. This is supported by research by Dewi et al (2018) that government regulation does not directly affect organizational performance but government regulation has a significant effect on entrepreneurial orientation. Based on the results of research, stakeholder network capability has a significant effect on organizational performance, this is supported by research by Zacca (2015) that stakeholder network capability utilizes internal and external networks to improve organizational performance. Based on the research results, entrepreneurial orientation does not have a significant effect on organizational performance, this is contrary to the results of research by Dewi et al (2018) which states that entrepreneurial orientation has a positive impact on improving organizational performance.