The Role of Government, Social Capital And Entrepreneurial Orientation To Export Performance of Craft SME at Bali Province

Abstract

Small medium enterprises (SMEs) is an artery of the national or regional economy. SMEs in Indonesia has been able to donate foreign exchange through exports. Bali is one of the tourist destination of the world that has the potential of natural beauty and unique value in the form of cultural uniqueness. Handicraft industry is one of the main sectors that support tourism in Bali. The performance of SMEs is also determined by the aspect of Government policy, social aspects of culture and economy. The current SME, particularly SME craft in Bali province, which has an export permit has to face up to the challenges of trade liberalisation. To face the challenges of trade liberalisation, the perpetrators of the SMEs need to have entrepreneurial orientation and a strong social capital. The purpose of this research is to analyze: (1) the influence of the Government's role orientation towards entrepreneurship; (2) the influence of the role of Government against the export performance; (3) the influence of social capital on the entrepreneurial orientation; (4) the influence of the role of Government against the export performance; (5) the influence of the entrepreneurial orientation towards export performance; (6) the entrepreneurial orientation in mediate the influence of Government's role in the export performance; and (7) the entrepreneurial orientation in mediate the influence of social capital on performance of SME export Handicrafts in Bali province. The data analysis was done with the method of SEM-PLS. Results of the research and analysis of the data show that the role of the Government is a positive and significant effect directly against the entrepreneurial orientation, but the effect is not significantly to SME export performance craft in the province of Bali. Social capital is a positive and significant effect directly against the orientation of entrepreneurship and SMEs export performance craft in the province of Bali. Entrepreneurial orientation in the mediated role of Government against the export performance was also significant, with the influential nature of pure mediation. Entrepreneurial orientation also mediate the relationship of social capital against SMEs export performance craft in the province of Bali significantly with partial mediation. The Government of the need to optimise the development of entrepreneurship education, as well as provide training in entrepreneurship for the perpetrators of the SMEs. Perpetrators of SMEs also need to develop social capital, considering social capital will open opportunities and a better share of the market for SMEs.

Keywords: the role of government, social capital, Entrepreneurial orientation, export performance