How to Survive During Pandemic Situation? the Interface between Entrepreneurial Orientation, Market Orientation, and Smes’ Performance during Covid-19

Abstract

Small businesses are very vulnerable to survive in uncertain situations. This study focuses on the Covid-19 pandemic crisis where many small businesses had to shut down in line with the economic downturn. The previous study acknowledges entrepreneurial orientation as a suitable strategy for small businesses in an uncertain environment. This study explains the effect of entrepreneurial Orientation (EO) on SMEs performance directly and indirectly through Market Orientation (MO) and the role of Market Orientation on SMEs' performance during pandemic situations. The respondents of this study are 154 Small Business in Indonesia. The questionnaire of this study consists of 32 indicators from an independent variable (entrepreneurial orientation) and two dependent variables (market orientation and SMEs' performance). This study uses quantitative methods and Structural Equation Modeling (SEM) with Partial Least Square (PLS) approach. The results highlight that Entrepreneurial Orientation has a positive direct impact on SMEs performance. Meanwhile, the mediating role of Market Orientation does not affect the relationship between EO-SMEs performance. In addition, Market Orientation has no effect on SMEs' performance during pandemic Covid-19.