THE ROLE OF ENTREPRENEURSHIP ORIENTATION IN MEDIATION OF SOCIAL CAPITAL AND INNOVATION TO INCREASE MARKETING PERFORMANCE OF SMALL MEDIUM ENTERPRISES (SMEs)
Achmad Zaini (a) , Diana Eka Poernamawati (b)

State Polytechnic of Malang (a)
State Polytechnic of Malang (b)

Abstract

Abstract - This study aims to analyze the role of entrepreneurship in mediating social capital and innovation to improve the marketing performance of SMEs. This research was conducted in East Java, Indonesia on exporting SMEs in East Java who are incorporated as followers of the Facebook account: UKM Jatim until May 2021, with a sample of 100 exporting SMEs. Research analysis using Partial Least Squares (PLS) method. The results showed that there were 4 direct correlations that had a significant positive effect, namely: the social capital variable on entrepreneurial orientation, social capital variable on innovation, the entrepreneurial orientation variable on marketing performance and the innovation variable on entrepreneurial orientation. There are 2 correlations that have no direct effect, namely: The social capital variable on marketing performance and the innovation variable on marketing performance. The results also show that there are 4 correlations that indirectly have a significant positive effect, namely: social capital variable on marketing performance through entrepreneurial orientation. Social capital variable on entrepreneurial orientation through innovation. The innovation variable on marketing performance through entrepreneurial orientation. And social capital variables on marketing performance through innovation and entrepreneurial orientation. There is 1 correlation that has no indirect effect, namely: social capital variable on marketing performance through innovation. These results indicate that the role of the entrepreneurial orientation variable is very important in order to increase the influence of social capital and innovation on marketing performance. This role is proven in the results of PLS calculations regarding the total indirect effect, namely: the correlation of social capital on marketing performance and innovation on marketing performance from previously no effect to influential. Likewise, the correlation of social capital on market

Keywords: social capital, entrepreneurial orientation, innovation, marketing performance, East Java SMEs

Topic: Entrepreneurship