The Effect of Corporate Entrepreneurship on Firm Performance (Case Study on SMEs Processing Refined Seaweed Product in South Sulawesi, Indonesia)

Abstract

This study aims to examine and explain the effect of corporate entrepreneurship through all three dimensions, namely innovativeness, pro-activeness, and risk-taking on SMEs performance in South Sulawesi - Indonesia. The data was collected from 36 SMEs in processing refined seaweed products. The questionnaire is the main instrument to collect data, and secondary data obtained from interviews. The data were analyzed using Generalized Structured Component Analysis (GSCA). The result reveals that overall corporate entrepreneurship has positive effect on SMEs performance. More specifically, it is found that each dimension of corporate entrepreneurship such as innovativeness, pro-activeness, and risk taking has positive and significant effect on SMEs performance.

Keywords: innovativeness, pro-activeness, risk-taking, SMEs performance