The effect of entrepreneurship orientation and flexibility toward adaptive innovation and improved firm performance


  • Rofiaty Rofiaty Universitas Brawijaya
  • Siti Aisjah Universitas Brawijaya
  • Christine Susilowati Universitas Brawijaya



adaptive innovation, entrepreneurship orientation, firm performance, flexibility


This study analysed the effect of entrepreneurial orientation and flexibility on adaptive innovation and firm performance. The sample of this study consisted of 114 orchid business actors. The data analysis technique used in this study uses quantitative methods with the SEM analysis method (WarpPLS) as an analytical tool to process data. Data was collected by direct interview and through a Google Form. This study proves that entrepreneurial orientation directly and positively affects firm performance and adaptive innovation. Flexible management has a direct and positive effect on firm performance and adaptive innovation, while adaptive innovation has a positive effect on improving firm performance. On the other side, adaptive innovation has not a mediation role of entrepreneurship orientation toward firm performance, but adaptive innovation has a mediation role flexibility toward firm performance. The novelty of this study emphasize on the green economy run by orchid SMEs, that strives to enhance business performance through entrepreneurial orientation, adaptability, and adaptive innovation.


Acosta, A. S., Herrero-Crespo, A., & Agudo, J. C. (2018). Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs). International Business Review, 27(6), 1128-1140.

Alamro, A. S., Awwad, A. S., & Anouze, A. L. M. (2018). The Jordanian manufacturing sector's integrated impact of new product and market flexibilities on operational performance. Journal of Manufacturing Technology Management, 29(7), 1163-1187.

Al-Dhaafri, H.S. & Al-Swidi, A. (2016). The impact of total quality management and entrepreneurial orientation on organizational performance. International Journal of Quality and Reliability Management, 33(5), 597-614.

Al-Dhaafri, H.S. & Alosani, M. S. (2020). Impact of total quality management, organizational excellence and entrepreneurial orientation on organizational performance: empirical evidence from the public sector in UAE. Benchmarking, 27(9), 2497-2519.

Al-Mamary, Y. H., & Alshallaqi, M. (2022). Impact of autonomy, innovativeness, risk-taking, proactiveness, and competitive aggressiveness on students’ intention to start a new venture. Journal of Innovation & Knowledge, 7(4), 1-10.

Andri, K. B., & Tumbuan, W. J. A. (2015). Potensi pengembangan agribisnis bunga anggrek di kota batu jawa timur. Jurnal LPPM Bidang EkoSosBudKum (Ekonomi, Sosial, Budaya, dan Hukum), 2(1), 19-30.

Anwar, M., Khan, S. Z., & Khan, N. U. (2018). Intellectual capital, entrepreneurial strategy, and new ventures performance: mediating role of competitive advantage. Business and Economic Review, 10(1), 63-94.

Arobaya, A. Y. S., Tasik, S., Sadsoeitoeboen, B. M. G., Susanti, C. M. E., Padang, D. A., Kesaulija, & Gunawan, E. (2021). Pemberdayaan masyarakat pemerhati anggrek melalui pelatihan pengenalan jenis dan budidaya anggrek di kampung kwau distrik warmare kabupaten manokwari: community empowerment efforts for orchid enthusiasts through species introduction and cultivation training in kwau village, warmare district, manokwari regency. IGKOJEI: Jurnal Pengabdian Masyarakat, 2(3), 80-88.

Bahrami H. (1992). The emerging flexible organization: perspectives from Silicon Valley. California Management Review. 34(4) 33-52.

Bock, A.J., Opsahl, T., George, G., & Gann, D. M. (2012). The effects of culture and structure on strategic flexibility during business model innovation. Journal of Management Studies. 49(2), 280-305.

BPS. (2021). Luas panen tanaman hias menurut jenis tanaman di propinsi Jawa Timur. Retrieved January 1, 2022 from

Broekaert, W., Andries, P., & Debackere, K. (2016). Innovation processes in family firms: the relevance of organizational flexibility. Small Business Economics. 47(3), 771-785.

Brozovic, D. (2018). Strategic Flexibility: A Review of the Literature. International Journal of Management Review, 20(2), 3-31.

Chan, A.T. L., Eric, W. T. N., & Moon, K. K. L. (2017). The effect of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry. European Journal of Operational Research. 259(2), 486-499.

Chesbrough H. W. (2003). Open innovation: the new imperative for creating and profiting from technology. Harvard Business Press.

Christensen, T., & Lægreid, P. (2015). Performance and accountability–a theoretical discussion and an empirical assessment. Public Organization Review, 15(2), 207-225.

Cingöz, A. & Akdoğan, A. A. (2013). Strategic flexibility, environmental dynamism, and innovation performance: an empirical study. Procedia – Social and Behavioral Sciences. 99(November), 582-589.

Dibrell, C., Craig, J. B., & Neubaum, D. O. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research. 67(9), 2000-2007.

Fadda, N. (2018). The effect of entrepreneurial orientation dimensions on performance in the tourism sector. New England Journal of Entrepreneurship, 21(1), 22-44.

Fuertes, V., Egdell, V., & McQuaid, R. (2013). Extending working lives: age management in SMEs. Employee relations, 35(3). 272-293.

George, B., Walker, R. M., & Monster, J. (2019). Does strategic planning improve organizational performance? a meta-analysis. Public Administration Review, 79(6), 810-819.

Gupta, V. K., & Batra, S. (2016). Entrepreneurial orientation and firm performance in indian SMEs: universal and contingency perspectives. International Small Business Journal, 34(5), 660-682.

Ha, J. (2022). Capturing emerging business opportunities through entrepreneurial orientation and innovation behavior: the moderating role of leader-member exchange. Sustainability, 14(6), 1-18.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt M. (2017). A primer on partial least squares structural equation modeling (2nd Ed.). Sage Publications, Inc.

Herciu, M. (2017). Drivers of firm performance: exploring quantitative and qualitative approaches. Studies in Business Economics, 12(1), 79–84.

Hosseini, S.M.P. & S. Narayanan. (2014). Adoption, adaptive innovation, and creative innovation among SMEs in Malaysian manufacturing. Asian Economic Papers, 13(2), 32-58.

Iqbal, S., Martins, J. M., Mata, M. N., Naz, S., Akhtar, S., & Abreu, A. (2021). Linking entrepreneurial orientation with innovation performance in SMEs; the role of organizational commitment and transformational leadership using smart PLS-SEM. Sustainability, 13(8), 1-18.

Jackson, K. & Haubelt, L. (2017). Adaptive innovation: the fabric of effective research and development lockheed martin’s adaptive innovation approach shows how companies can foster a resilient innovation culture. Research-Technology Management, 60(6), 36-41.

Jalali, A., Jaafar, M., & Ramayah, T. (2014). Entrepreneurial orientation and performance: the interaction effect of customer capital. World Journal of Entrepreneurship, Management, and Sustainable Development, 10(1), 48-68.

Kartika, R. S. (2013). Peluang mengembangkan kewirausahaan desa berbasis potensi desa (studi deskriptif di desa karang rejo kecamatan negeri katon kabupaten pesawaran, kampung suka jawa kecamatan bumi ratu kabupaten lampung tengah dan desa sidoasri kecamatan candi puro kabupaten lampung selatan provinsi lampung). Jurnal Bina Praja: Journal of Home Affairs Governance, 5(4), 281-299.

Kemenperin. (2007). One village one product. Retrieved July 16, 2022, from,-Kemenperin-Angkat-Keunggulan-Produk-IKM-Lokal.

Keh, H. T., Nguyen, T. T. M., & Ng, H. P. (2007). The effects of entrepreneurial orientation and marketing information on the performance of SMEs. Journal of Business Venturing, 22(4), 592–611.

Kim, K. H., & R.A. Pierce, R. A. (2013). Encyclopedia of creativity, invention, innovation and entrepreneurship: Adaptive creativity and innovative creativity. Springer.

Kimathi, M. H., Galo, M. N., & Melissa, A. G. (2015). Effect of leverage on performance of non-financial firms listed at the Nairobi securities exchange. Journal of Finance and Accounting, 3(5). 132-139.

Klingebiel, R. & Rammer, C. (2011). Resource allocation flexibility for innovation performance: The effects of breadth, uncertainty, and selectiveness. ZEW Discussion Papers No. 11-073.

Lee, E. A., Seo, J. H., & Shim, Y. S. (2019). A study on the entrepreneurial orientation and the performance of startups: the mediating effects of technological orientation and social capital. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 14(2), 47-59.

Li, Y., Su, Z., & Liu, Y. (2010). Can strategic flexibility help firms profit from product innovation?. Technovation, 30(5-6), 300-309.

Linton, G., & Johan, K. (2016). Configurations of entrepreneurial orientation and competitive strategy for high performance. Journal of Business Research, 70(January), 168-176.

Lucas, R. E. (1978). On the size distribution of business firms. The Bell Journal of Economics, 9(2), 508–523.

Lewis, B. R., & Hawksley, A. W. (1990). Gaining competitive advantage in fashion retailing. International Journal of Retail & Distribution Management, 18(4), 21.

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review. 21(2), 135-172.

Mahmood, R., & Hanafi, N. (2013). Entrepreneurial orientation and business performance of women-owned small and medium enterprises in malaysia: competitive advantage as a mediator. International Journal of Business and Social Science, 4(1), 82-90.

Mahrous, A. A., & Genedy, M. A. (2019). Connecting the dots: The relationship among intra-organizational environment, entrepreneurial orientation, market orientation, and organizational performance. Journal of Entrepreneurship in Emerging Economies, 11(1), 2-21.

Mao, H., Wang, Z., & Yi, L. (2021). Does entrepreneurial orientation lead to successful sustainable innovation? the evidence from Chinese environmentally friendly companies. Sustainability, 13(18), 1-18.

Margaretha, F., & Supartika, N. (2016). Factors affecting profitability of small medium enterprises (SMEs) firm listed in Indonesia stock exchange. Journal of Economics, Business and Management, 4(2), 132-137. 10.7763/JOEBM.2016.V4.379.

Martin, S. L., & Javalgi, R. G. (2016). Entrepreneurial orientation, marketing capabilities, and performance: the moderating role of competitive intensity on latin american international new ventures. Journal of Business Research, 69(6), 2040-2051.

Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791.

Miroshnychenko, I., Strobl, A., Matzler, K., & De Massis, A. (2020). Absorptive capacity, strategic flexibility, and business model innovation: empirical evidence from Italian SMEs. Journal of Business Research, 130 (June), 670-682.

Nadkarni, S., & Herrmann, P. (2010). CEO personality, strategic flexibility, and firm performance: the case of the indian business process outsourcing industry. Academy of Management Journal, 53(5), 1050–1073.

Obeidat, B. Y., Abdallah, A. B., Aqqad, N. O., Akhoershiedah, A. H. O. M., & Maqableh, M. (2017). The effect of intellectual capital on organizational performance: the mediating role of knowledge sharing. Communications and Network, 9(1), 1-27.

Oke, A. (2013). Linking manufacturing flexibility to innovation performance in manufacturing plants. International Journal of Production Economics, 143(2), 242-247.

Paci, A. M., Lalle, C., & Chiacchio, M. S. (2013). Education for innovation: trends, collaborations and views. Journal of Intelligent Manufacturing, 24(3), 487-493.

Pardi, Suharyono, Imam, S., & Zainul, A. (2014). The effect of market orientation and entrepreneurial orientation toward learning orientation, innovation, competitive advantages, and marketing performance. European Journal of Business Management, 6(21), 69-80.

Robbins, S. P., & Coulter, M. K. (2004). Manajemen (7th Ed.). PT. Indeks.

Radipere, S. (2014). The effects of entrepreneurial orientation on business performance. Mediterranean Journal of Social Sciences, 5(16), 141-152. 10.5901/mjss.2014.v5n16p141.

Rofiaty, Chong, D., Nusron A., Yulianti N.A.,, & Sunaryo. (2022). Entrepreneurship orientation and performance of green economy SMEs during covid-19 pandemic: the mediating of strategic agility. Journal of Economics, Business, & Accountancy Ventura, 25(1), 48-60.

Rofiaty. (2019). The relational model of entrepreneurship and knowledge management toward innovation, strategy implementation and improving islamic boarding school performance. Journal of Modelling in Management, 14(3), 662-685.

Sekaran, U., & Bougie, R. (2016). Research methods for business: a skill building approach (7th Ed.). Wiley.

Sellappan, P., & Shanmugam, K. (2021). Delineating entrepreneurial orientation efficacy on retailer’s business performance. Management Decision, 59(4), 858-876.

Shalender, K., & Yadav, R. K. (2019). Strategic flexibility, manager personality, and firm performance: the case of Indian automobile industry. Global Journal of Flexible Systems Management, 20(1), 77-90.

Shi, D., & Daniels, R. L. (2003). A survey of manufacturing flexibility: implications for e-business flexibility. IBM Systems Journal, 42(3), 414- 426.

Sopiah & Syihabudhin. (2008). Manajemen Bisnis Ritel. Andi Offset.

Sushil. (2000). Concept of systemic flexibility. Global Journal of Flexible Systems Management, 1(1), 77-80.

Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2-3), 172–194.

Tomášková, E., & Kanovská, L. (2022). Impact of cooperation flexibility on innovation flexibility in SMEs. Equilibrium, 17(2), 533–566.

VOI. (2022). Indonesian ornamental plant exports increase 69,7 % during the pandemic. Retrieved January 1, 2022

Volberda H. W. (1997). Building flexible organization for fast moving markets. Long Range Planning, 30(2), 169-183.

Wiklund, J. (1999). The sustainability of the entrepreneurial orientation-performance relationship. Entrepreneurship Theory and Practice, 24(1), 37- 48.

Yousuf, A., Lorestani, V. Z., Oláh, J., & Felföldi, J. (2021). Does uncertainty moderate the relationship between strategic flexibility and companies performance? evidence from small and medium pharmaceutical companies in Iran. Sustainability, 13, 1-17.

Yu, F. (2012). Strategic flexibility, entrepreneurial orientation and firm performance: evidence from small and medium-sized business (SMB) in China. African Journal of Business Management, 6(4), 1711-1720. 10.5897/AJBM11.1910.

Zhang, J.A., Edgar, F., Geare, A., & O’Kane, C. (2016). The interactive effects of entrepreneurial orientation and capability-based HRM on firm performance: the mediating role of innovation ambidexterity. Industrial Marketing Management, 59(November), 131-143.

Zhou, K.Z., & Wu, F. (2009). Technological capability, strategic flexibility, and product innovation. Strategic Management Journal, 31(5), 547-561.

Zhou, S., Baskaran, A., Tang. M., & Rasiah, R. (2017). Adaptive innovation in the evolution of a latecomer firm: The case of Asiainfo, China. Institutions and Economies, 9(2), 75-108.




How to Cite

Rofiaty, R., Aisjah, S. ., & Susilowati, C. . (2023). The effect of entrepreneurship orientation and flexibility toward adaptive innovation and improved firm performance. BISMA (Bisnis Dan Manajemen), 15(1), 96–118.



Abstract views: 572 , PDF Downloads: 666