Academic journal article European Research Studies

Improving Anticipative Learning through Entrepreneurial Orientation in Small to Medium Size Enterprises

Academic journal article European Research Studies

Improving Anticipative Learning through Entrepreneurial Orientation in Small to Medium Size Enterprises

Article excerpt

1. Introduction

Recently, SME has become business potential that is encouraged by Indonesia government. The more entrepreneurs, the better and stronger economy pillars in Indonesia. Through SME, local resources, workers and funding will be better absorbed and optimally used (Sudiarta, 2014). Based on statistical data, SME (2014-2015) has business sector proportion as (1) farming, fishery, and forestry; (2) sale, hotel and restaurant sector; (3) manufacturing; (4) communication sector; and (5) service. Recently, SME face many obstacles such as minimum product quality, packaging, marketing strategy and promotion (Ismail, 2016). The biggest problem faced by SME in Indonesia is the knowledge and behavior of SME (Ismail, 2016; Havlicek et al., 2013; Breckova and Havlicek, 2013; Liapis et al., 2013; Thalassinos and Liapis, 2014; Frank et al., 2016; Kosinova et al., 2016).

Individual behaviors such as trait, motivation, believe, personal image, social role, knowledge and skill reflect the ability of how effective entrepreneurs perform business activity (Ismail, 2016). The ability of entrepreneur is reflected by manager's behavior and it becomes the most important thing to reach business growth (Farsi et al., 2013; Pociovalisteanu and Thalassinos, 2008). Competence, market orientation and learning had long been acknowledged as a source to reach competitive advantage (Ismail 2016). Entrepreneurial competence is considered as important factor to determine SME success (Ahmad et al., 2010). Business competence covers knowledge, skill and ability. Entrepreneurial competence is needed to start a business meanwhile managerial ability is needed to develop the business (Ahmad et al., 2010). Entrepreneurial competence comes from trait, character, attitude, social rule and self-image (Ahmad et al., 2010). Previous researches found out that there is no relationship between entrepreneurial orientation and learning process (Beneke et al., 2016), yet recent studies find out that entrepreneurial orientation positively influence organizational learning (Ismail, 2016; Kolchanova and Kolchanova, 2016; Bondarenko et al., 2017).

Many authors have studied the learning process in SME. Organizational learning developed in this study is anticipative learning. Anticipative learning accepts new point of view about new realities. This learning process will ease us to prepare ourselves in facing future with our creative thought and innovation (Chinowsky and Realph, 2007). Based on the explanation above, we will discuss about the influence of social networking and entrepreneurial competence on entrepreneurial orientation and their influence on anticipative learning. This paper is divided into five parts, introduction, literary review and hypothesis development, research method, result and discussion, and conclusion.

2. Literature Review and Hypothesis Development

2.1 The Influence of Social Network on Entrepreneurial Orientation

Social network is a part of social capital theory. Social capital is a valuable source for both individual and groups. Generally, there are eight distinctive elements to create social capital which are participation in social community, proactive in social contexts, trust and safety feeling, neighborhood connection, family and friend connection, tolerance of diversity, value of life, and work connection (Felicio et al., 2014). Network is a relationship that becomes an entity with a set of social relationship such as friendship, informational exchange, cooperation, and knowledge sharing activity (Menelec and Jones, 2015). Closed social network will strengthen member cooperation ((Felicio et al., 2014). Social network is a social relationship among members in an organization in a limited population (Ghauri et al., 2014).

Social network has two components: personal network and larger culture where the individual exist. Culture will influence the way of an individual interact in a certain social network. …

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