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  • Issue #2
  • The influence of social entrepreneurship orientation and competitive advantage on the performance of rural social enterprises

The influence of social entrepreneurship orientation and competitive advantage on the performance of rural social enterprises

  • Received March 21, 2024;
    Accepted May 1, 2024;
    Published May 22, 2024
  • Author(s)
    Link to ORCID Index: https://orcid.org/0000-0001-7611-7676
    Yesi Mutia Basri
    ORCID Researcher ID ,
    Link to ORCID Index: https://orcid.org/0000-0001-9786-9391
    Poppy Nurmayanti
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0003-1630-4546
    Vince Ratnawati
    ORCID Researcher ID ,
    Link to ORCID Index: https://orcid.org/0000-0002-4359-7105
    Jeni Wardi
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0001-7303-5800
    Qomariah Lahamid
    ORCID ,
    Link to ORCID Index: https://orcid.org/0009-0002-0529-1970
    Linda Hetri Suriyanti
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0003-1996-6991
    Desrir Miftah
    ORCID
  • DOI
    http://dx.doi.org/10.21511/ppm.22(2).2024.29
  • Article Info
    Volume 22 2024, Issue #2, pp. 379-388
  • TO CITE АНОТАЦІЯ
  • 459 Views
  • 115 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The development gap between urban and rural areas is a concern in many countries, including Indonesia. Currently, the government has introduced rural businesses to overcome this problem. This study aims to analyze the effect of social entrepreneurship on the performance of rural social entrepreneurs and test competitive advantage as a mediator. The population includes village-owned enterprises in Riau Province, Indonesia; the sample was stratified randomly. Village-owned enterprises are distributed based on classification, namely basic, growing, developing, and advanced. Respondents are managers of village-owned enterprises. Each village received five questionnaires, and 399 company managers decided to join the survey. The study employed structural equation modeling partial least squares to prove that competitive advantage influences organizational performance with a p-value of 0.000 < 0.05. Social entrepreneurial orientation influences competitive advantage and company performance with a p-value of 0.000. Competitive advantage is proven to mediate the relationship between social entrepreneurial orientation and performance, with a p-value of 0.000. The research results stress the importance of social entrepreneurship in improving company performance in rural areas. For this reason, the government should provide high-quality social entrepreneurship training.

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  • PAPER PROFILE
  • AUTHORS CONTRIBUTIONS
  • FIGURES
  • TABLES
  • REFERENCES
  • Keywords
    competitive advantage, performance, social entrepreneurship orientation, village-owned enterprises
  • JEL Classification (Paper profile tab)
    M13, M21, O15, O18
  • References
    33
  • Tables
    6
  • Figures
    1
    • Figure 1. Full structural equation model
    • Table 1. Operational definitions of variables
    • Table 2. Characteristics of respondents
    • Table 3. Descriptive statistics
    • Table 4. Loadings, cross-loadings, and AVE
    • Table 5. Cronbach’s alpha, composite reliability, and R Square
    • Table 6. Mean, STDEV, t-values, p-values
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    • Conceptualization
      Yesi Mutia Basri, Poppy Nurmayanti, Jeni Wardi, Qomariah Lahamid, Linda Hetri Suriyanti, Desrir Miftah
    • Data curation
      Yesi Mutia Basri, Poppy Nurmayanti, Jeni Wardi, Linda Hetri Suriyanti
    • Formal Analysis
      Yesi Mutia Basri, Poppy Nurmayanti, Qomariah Lahamid, Linda Hetri Suriyanti
    • Funding acquisition
      Yesi Mutia Basri, Poppy Nurmayanti, Qomariah Lahamid, Linda Hetri Suriyanti
    • Investigation
      Yesi Mutia Basri, Jeni Wardi, Linda Hetri Suriyanti, Desrir Miftah
    • Methodology
      Yesi Mutia Basri, Jeni Wardi, Desrir Miftah
    • Writing – original draft
      Yesi Mutia Basri, Vince Ratnawati, Linda Hetri Suriyanti
    • Writing – review & editing
      Yesi Mutia Basri, Vince Ratnawati, Qomariah Lahamid, Linda Hetri Suriyanti, Desrir Miftah
    • Software
      Vince Ratnawati, Desrir Miftah
    • Supervision
      Vince Ratnawati, Desrir Miftah
    • Validation
      Vince Ratnawati
    • Visualization
      Vince Ratnawati
    • Project administration
      Qomariah Lahamid
    • Resources
      Qomariah Lahamid
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