Journal La Bisecoman

Networking Capability As A Mediating Mechanism of Entrepreneurial Orientation on Msme Business Performance

2026-09-24T04:03:16+00:00

This study aims to examine the effect of entrepreneurial orientation on business performance and to investigate the mediating role of networking capability in the relationship between entrepreneurial orientation and business performance among micro and small enterprises in South Manokwari Regency, West Papua Province. The study employed a quantitative research approach using a survey method. Data were collected from 168 micro and small enterprise owners through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling. The findings reveal that entrepreneurial orientation has a positive and significant effect on networking capability and business performance. Networking capability also has a positive and significant effect on business performance. Furthermore, networking capability significantly mediates the relationship between entrepreneurial orientation and business performance. The results indicate that enterprises characterized by higher levels of innovativeness, proactiveness, and risk-taking are more capable of developing strategic business networks, which subsequently enhance business performance. The study demonstrates that entrepreneurial orientation serves as a strategic resource that directly improves business performance while simultaneously strengthening networking capability as an important mechanism for accessing external resources and opportunities. The findings contribute to the entrepreneurship and small business literature by providing empirical evidence on the complementary role of networking capability in explaining how entrepreneurial orientation translates into superior business performance. The study also offers practical implications for enterprise owners and policymakers seeking to strengthen the competitiveness and sustainability of micro and small enterprises in emerging regional economies.

Entrepreneurial Leadership and SME Performance: Examining the Mediating Role of Innovation Capability

2026-09-24T04:13:31+00:00

This study examined the effect of entrepreneurial leadership on SME performance through the mediating role of innovation capability among Micro, Small, and Medium Enterprises (SMEs) in Makassar City, Indonesia. A quantitative approach with an explanatory research design was employed. Data were collected from 80 SME owners and managers using purposive sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results revealed that entrepreneurial leadership positively and significantly affects innovation capability and SME performance. Innovation capability also has a positive and significant effect on SME performance and significantly mediates the relationship between entrepreneurial leadership and SME performance. These findings indicate that entrepreneurial leadership contributes to improved business performance both directly and indirectly through the development of innovation capability. The study concludes that innovation capability serves as an important mechanism linking entrepreneurial leadership to SME performance. The findings support the Resource-Based View and Dynamic Capability Theory and provide empirical evidence on the importance of entrepreneurial leadership and innovation capability in enhancing SME performance.

The Potential of Local Wisdom Based MSMEs in Improving the Economy

2026-09-24T04:14:43+00:00

This study analyzes the strategic potential of local wisdom based Micro, Small, and Medium Enterprises (MSMEs) in Palangka Raya City. This economic pillar accounts for 23.4% of the Gross Regional Domestic Product (Palangka Raya City Government, 2022). Despite having unique Dayak cultural assets, the synergy between the MSME economy and cultural assets has not been optimal due to operational challenges. This study fills this gap by mapping the potential and formulating development strategies. Using a descriptive analytical qualitative approach, data were collected through indepth interviews, observations, and documentation studies, and then analyzed thematically. The objectives to (1) map local wisdom SME products, (2) analyze business models and challenges, and (3) formulate a strategic model have been achieved. The results show great potential in Rattan Weaving and Speckled Thread Batik, but are constrained by traditional business models and the "authenticity commercialization paradox." A holistic development strategy model was formulated, focusing on capacity building, access to capital, digital transformation, and institutional strengthening.

Privacy by Design Business Intelligence for MSME Performance Management

2026-09-29T08:24:14+00:00

Micro, small, and medium enterprises increasingly generate sales, inventory, promotion, project, invoice, and payment data, yet these records often remain fragmented and underused for managerial decisions. This study develops a low-cost, privacy-oriented business intelligence design for Indonesian enterprises by combining a dimensional data warehouse, a scheduled data integration pipeline, a standardized performance-indicator dictionary, and role-based dashboards. The research applies a design science approach and reports the problem-diagnosis and artifact-design stages. A preliminary needs assessment involving ten enterprises in Solo Raya found that 70 percent still relied on manual records or basic spreadsheets, 80 percent had no performance dashboard, 60 percent lacked clear access restrictions, and 50 percent experienced delays in recognizing restocking, promotion, receivable, or project-status signals. These findings were translated into two analytical domains covering product-based and service-based enterprises. The resulting design integrates revenue, margin, inventory, lead conversion, project completion, receivables, repeat orders, and customer-service indicators while embedding data minimization, pseudonymization, role-based access, audit trails, retention rules, and backup controls. The study concludes that business intelligence for resource-constrained enterprises should be treated as an integrated management and governance capability rather than merely a visualization tool. Field implementation and before-and-after performance testing are recommended as the next research stage.