Entrepreneurial Orientation and New Product Development Performance in the MSME Creative Industry in Padang City: The Mediating Role of Business Model Innovation

Zidhan, Vedi Athaguna (2024) Entrepreneurial Orientation and New Product Development Performance in the MSME Creative Industry in Padang City: The Mediating Role of Business Model Innovation. S1 thesis, Universitas Andalas.

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Abstract

In today's business landscape, Entrepreneurial Orientation (EO) is recognized as a crucial factor in improving business performance. Although the positive relationship between EO and business performance has been widely documented, there is a growing emphasis on the importance of effectively considering and managing inter-capabilities. This study analyzes the relationship between EO and New Product Development (NPD) performance, with Business Model Innovation (BMI) as a mediating variable. This study was conducted using a sample of 98 MSME owners in the Creative Industry in Padang City, and the proposed model was tested through modeling of structural equations and analysis of partial least squares. The findings showed that EO had a positive effect on BMI and NPD performance. In addition, BMI has a partial mediating role in the relationship between EO and NPD performance. This study makes a new contribution to the EO and BMI literature by providing evidence that business model innovation is an important mechanism to channel entrepreneurial orientation into the innovation process, thereby increasing the success of new product development. The study also offers practical recommendations for MSME owners and outlines potential further research directions.

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