Role of individual entrepreneurial orientation and innovation in SME performance: Gender perspectives

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Individual entrepreneurial orientation and innovation are essentials for small and medium enterprises (SMEs) to drive their performance, including surviving or even growing during economic crises. The entrepreneur’s gender might have an impact on those relationships. Hence, this study aims to analyze whether there were some differences in the five dimensions of individual entrepreneurial orientation and differences in the influence of individual entrepreneurial orientation and innovation on performance between male and female entrepreneurs. The study was performed through an online survey of 352 SME owners in Indonesia. Structural equation modeling (SEM) and multi-group analysis were conducted to test the hypotheses. The results demonstrated that all dimensions of individual entrepreneurial orientation are valid for developing this construct, but only the risk-taking dimension distinguishes male and female entrepreneurs the most. Male entrepreneurs are more willing to take risks than female. Furthermore, individual entrepreneurial orientation affects performance mediated by innovation, and this effect is not different between male and female entrepreneurs. These findings enrich the literature on the impact of gender on entrepreneurial orientation and the influence of innovation on SME performance. In Indonesia, individual entrepreneurial orientation affects performance assisted by innovation; however, this influence is not different for SMEs managed by male and female entrepreneurs.

Acknowledgment
We acknowledge and thank all of the respondents and parties who supported this research. This study was funded by the Directorate of Research and Community Engagement, Universitas Indonesia, contract number NKB-1782/UN2.RST/HKP.05.00/2020.

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    • Figure 1. Conceptual model
    • Table 1. General sample information
    • Table 2. Reliability and convergent validity
    • Table 3. Discriminant validity
    • Table 4. Analysis of the individual entrepreneurial orientation as the second-order construct
    • Table 5. Descriptive mean difference t-test
    • Table 6. Path coefficients
    • Table 7. Multi-group analysis (male vs. female)
    • Table A1. Measurement items
    • Conceptualization
      Rifelly Dewi Astuti, Tengku Ezni Balqiah
    • Data curation
      Rifelly Dewi Astuti, Elevita Yuliati
    • Formal Analysis
      Rifelly Dewi Astuti, Tengku Ezni Balqiah
    • Investigation
      Rifelly Dewi Astuti, Tengku Ezni Balqiah
    • Methodology
      Rifelly Dewi Astuti, Tengku Ezni Balqiah
    • Project administration
      Rifelly Dewi Astuti, Elevita Yuliati
    • Resources
      Rifelly Dewi Astuti, Elevita Yuliati
    • Validation
      Rifelly Dewi Astuti, Tengku Ezni Balqiah
    • Visualization
      Rifelly Dewi Astuti, Elevita Yuliati
    • Writing – original draft
      Rifelly Dewi Astuti, Tengku Ezni Balqiah, Elevita Yuliati
    • Writing – review & editing
      Rifelly Dewi Astuti, Tengku Ezni Balqiah
    • Supervision
      Tengku Ezni Balqiah
    • Software
      Elevita Yuliati