The Role of Opportunity Recognition as a Learning Outcome in Mediating the Relationship between Entrepreneurial Orientation and MSME Performance

Palupi Permata Rahmi; Suryana; Chairul Furqon; Mokh Adib Sultan; Asti Nur Aryanti; Sri Yusriani

doi:10.46245/ijorer.v6i5.1005

Palupi Permata Rahmi Universitas Pendidikan Indonesia, Indonesia
Suryana Universitas Pendidikan Indonesia, Indonesia
Chairul Furqon Universitas Pendidikan Indonesia, Indonesia
Mokh Adib Sultan Universitas Pendidikan Indonesia, Indonesia
Asti Nur Aryanti Universitas Indonesia Membangun, Indonesia
Sri Yusriani Universiti Sains Malaysia, Malaysia

DOI: https://doi.org/10.46245/ijorer.v6i5.1005

Keywords: Culinary MSMEs, Entrepreneurial Orientation, Opportunity Recognition, Business Performance

Abstract

Objective: This study examines the effect of Entrepreneurial Orientation (EO) on the business performance of culinary Micro, Small, and Medium Enterprises (MSMEs) in West Java, with opportunity recognition positioned as a mediating variable and learning outcome. Method: Using a quantitative approach with an explanatory survey, the Ministry of Communication and Information collected data from 301 MSME owners or managers registered in the Digital Entrepreneurship Academy (DEA) program. EO was measured through five dimensions: innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy, while business performance was assessed through internal process perspectives. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results: The findings show that EO has a positive and significant direct effect on business performance and indirectly through opportunity recognition. Opportunity recognition partially mediates the relationship between EO and performance, highlighting its strategic role. Novelty: The novelty of this study lies in conceptualizing opportunity recognition not only as a cognitive ability but as a learning outcome of entrepreneurial behavior. This perspective emphasizes its developmental potential through entrepreneurship education and training, providing theoretical insight and practical implications for MSME resilience and growth strategies in emerging economies

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