Unlocking Success: Nexus between Entrepreneurial Orientation and Financial Performance in Culinary MSMEs

Usil Sis Sucahyo; Theresia Woro Damayanti; Supramono Supramono

doi:10.14414/jebav.v27i1.4432

Authors

Usil Sis Sucahyo Universitas Kristen Satya Wacana, Salatiga, Jawa Tengah, Indonesia
Theresia Woro Damayanti Universitas Kristen Satya Wacana, Salatiga, Jawa Tengah, Indonesia
Supramono Supramono Universitas Kristen Satya Wacana, Salatiga, Jawa Tengah, Indonesia

DOI:

https://doi.org/10.14414/jebav.v27i1.4432

Keywords:

Financial performance, Entrpreneurial orentantion, Digital tranformation, Working capital, Culinary business

Abstract

This study aims to investigate the impact of entrepreneurial orientation on the financial performance of micro, small, and medium-sized enterprises (MSMEs) in the culinary sector, while also exploring the mediating roles of digital transformation and working capital in this relationship. Data were gathered via a field survey involving 360 culinary MSMEs operators in Semarang City, Salatiga City, and Surakarta City, with a proportional distribution across these locations. Statistical analysis was conducted using SEM-PLS. The results reveal that entrepreneurial orientation significantly influences financial performance, digital transformation, and working capital. Additionally, digital transformation and working capital play mediating roles in the relationship between entrepreneurial orientation and financial performance. This study contributes to theoretical insights by proposing a model to enhance the economic performance of culinary MSMEs, focusing on entrepreneurial orientation, digital transformation, and working capital. From a policy perspective, the government is encouraged to support various initiatives aimed at enhancing entrepreneurial capabilities, fostering the adoption of digital technologies, and promoting effective working capital management within the culinary MSMEs sector.

Author Biographies

Usil Sis Sucahyo, Universitas Kristen Satya Wacana, Salatiga, Jawa Tengah, Indonesia
Usil Sis Sucahyo is an Assistant Professor at the Department of Accounting, Faculty
of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, Indonesia. His current
research mainly focuses on management accounting, accounting for not for profit organisation,
and management control systems. He has published several academic articles in the
Entrepreneurial Business and Economics Review, International Journal of Recent Technology
and Engineering, Journal of Accounting in Emerging Economies. Author’s contact detail: Faculty
of Economics and Business; Universitas Kristen Satya Wacana, Jl. P Diponegoro 52, Salatiga,
Indonesia; usil.sucahyo@uksw.edu ORCID http://orcid.org/0000-0001-8552-7909
Theresia Woro Damayanti, Universitas Kristen Satya Wacana, Salatiga, Jawa Tengah, Indonesia
Theresia Woro Damayanti is Professor in Accounting at the Department of
Accounting, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga,
Indonesia. She is also the head of the PhD program at the Department of Accounting. Her
research interests include taxation and tax system evaluation. She was the author and co-
author of several articles in reputable international journals such as Business: Theory and
Practice, Gender in Management: An International Journal, Montenegrin Journal of Economics,
and Polish Journal of Management Studies. Author’s contact detail: Faculty of Economics and
Business, Universitas Kristen Satya Wacana, Jln Diponegoro 52, Salatiga, Indonesia, e-mail:
theresia.damayanti@uksw.edu ORCID http://orcid.org/0000-0002-4065-3562
Supramono Supramono, Universitas Kristen Satya Wacana, Salatiga, Jawa Tengah, Indonesia
Supramono is Professor in Finance at the Department of Management, Faculty of
Economics and Business, Universitas Kristen Satya Wacana, Salatiga, Indonesia. His research
interests include behavioural finance, capital market, corporate finance, and corporate tax. He
published several articles in reputable international journals as Montenegrin Journal of
Economics, Central European Management, Journal Gender in Management: An International
Journal, Business: Theory and Practice, and Polish Journal of Management Studies. Author’s
contact detail: supramono@uksw.edu ORCID http://orcid.org/0000-0002-2110-0671

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