THE IMPACT OF ENTREPRENEURIAL ORIENTATION AND MARKET OF SMES PERFORMANCE ORIENTATION THAT INFLUENCED BY EXTERNAL ENVIRONMENT AND NETWORKING CAPABILITIES

Abstract

Entrepreneurial and market orientation can positively affect the performance of SMEs (Small and Medium Enterprises), yet these two orientations are not enough to enable SMEs to perform well in a dynamic and uncertain business environment. SMEs in Indonesia are both facing challenges and opportunities from changes in the existing external environment. SMEs must have networking capacities to access external resources. The networks are expected to impact entrepreneurial orientation and market orientation to enable SMEs to perform better. This study aims to empirically examine the effect of entrepreneurial and market orientations on the performance of SMEs, influenced by external environment and networking capabilities. This study proposes a conceptual framework that integrates external environment, thenetwork capabilities, entrepreneurial orientation, marketing orientation, and the performance of SMEs in an uncertain external environment.