Organizational learning, entrepreneurial orientation and personal values towards SMEs’ growth in Indonesia

Abstract

Purpose

The purpose of this study is to examine the dimensions of organizational learning (OL), entrepreneurial orientation (EO), personal value toward the firm performance of small and medium enterprises (SMEs) in North Sumatera, Indonesia.

Design/methodology/approach

This study used a quantitative methodology using Smart partial least squares of the structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 128 respondents are selected. Using a cross-sectional survey design, 11 hypotheses are tested.

Findings

It is found that the innovativeness of EO and personal value both have a significant relationship with firm growth. While OL is significantly related to the innovativeness of EO, risk-taking of EO and proactiveness of EO. Then, both innovativeness of EO and proactiveness of EO significantly mediate the relationship of OL and firm growth. However, OL, proactiveness of EO and risk-taking of EO are insignificantly related to firm growth, while risk-taking of EO also insignificantly mediates the relationship of OL and firm growth.

Originality/value

EO (innovativeness, risk-taking and proactiveness) is deemed a crucial factor in running businesses by SMEs, while OL and personal value play a significant role in creating a competitive advantage that is needed for growth.

Citation

Rafiki, A., Nasution, M.D.T.P., Rossanty, Y. and Sari, P.B. (2023), "Organizational learning, entrepreneurial orientation and personal values towards SMEs’ growth in Indonesia", Journal of Science and Technology Policy Management, Vol. 14 No. 1, pp. 181-212. https://doi.org/10.1108/JSTPM-03-2020-0059