The Relationship Between Entrepreneurship Orientation and Organizational Learning Toward Business Strategy and Business Performance of Cocoa’s Small and Medium Enterprises (SME) in East Kalimantan

Abstract

The objective of this research was tested the relationship between entrepreneurship orientation and organizational learning toward business strategy and business performance of cocoa’s small and medium enterprises (SME) in East Kalimantan.The study was a confirmatory carries out by testing several hypotheses in order to figure out the causal relationship of all the above variables. All Small and Medium Enterprises (SME) of cocoa in East Kalimantan. A standardized questionnaire was distributed among different people pertinent to cocoa’s industry (distributors, whole sellers, retailers, sales force and employees etc). Questionnaires were used by random sampling technique. A model with hypotheses of the relationships between the constructs was built. The technical analysis applied to test the research hypothesis was Structural Equation Modeling (SEM) by AMOS program.The result of research showed that there were direct, significant and positive relationships between entrepreneurship orientation and organizational learning and business strategy; there were direct, significant and positive relationships between organizational learning and business strategy and  business performance. There were no relationships between entrepreneurship orientation and business performance and there were no relationships between organizational learning and business strategy at cocoa’s small and medium enterprises (SME) in East Kalimantan.Benefit of this research can be used as scientific information regarding the variables of entrepreneurship orientation, organizational learning, business strategy and business performance. It can also be used as a basis to motivate improvement small scale industry.

Keywords: Entrepreneurship orientation, organizational learning, business strategy, business performance