Environmental Mediation of Entrepreneurial Competencies: Evidence from Agricultural Product SMEs

Abstract

Small and Medium Enterprises (SMEs) that focus on agriculture product play an important role in economic development in general. Especially for Indonesia including Bali as  one of regency that still concern on tourism  based on agricultural activities. Related to this perspective, it is very important to develop entrepreneurial orientation (EO) and update entrepreneurial competence (EC) to emerge in today's competitive era, because community farmer  that involve in agriculture industry never aware about how the important make the link between tourism and agriculture.  This study specifically addresses this aspect and seeks to determine the need to identify entrepreneurial orientation and entrepreneurial competence in SMEs in order to improve community farmer performance and increase the competencies. Researchers have collected data from farmer community in Gianyar Regency, Bali using a proportional random sampling technique with a total sample 128 respondent. Structural equation analysis based on partial least squares (PLS) was used to analyze data and test hypotheses. The results of the analysis found a positive relationship between entrepreneurial orientation and SME performance, entrepreneurial competence and SME performance, entrepreneurial orientation and entrepreneurial competence. In addition, entrepreneurial competence is proven to be a mediator between entrepreneurial orientation and SMEs performance. Lastly, this research can be used by different stakeholders to put more emphasis on developing competency levels and determining the level of orientation towards better SMEs performance.