Exploring the influence of entrepreneurial orientation on firm performance: Absorptive capacity in family-owned food and beverage enterprises
Article Sidebar
DOI:
Read Counter : 29
Main Article Content
Nony Kezia Marchyta
Evan Wijaya
Clarissa Listya Susilo
Abstract
Growth in Indonesia's food and beverage industry is primarily dominated by family companies that contribute significantly to Gross Domestic Gross. The food and beverage industry is predicted to be one of the sectors with the most dynamic growth. The importance of the performance of family companies engaged in the food and beverage sector in Indonesia and previous research gaps are the reasons for researching and examining the effect of entrepreneurial orientation on firm performance with absorptive capacity as a mediating variable. This research is a quantitative study with a sample of 120 family companies engaged in Indonesia's food and beverage sector, especially in the Jakarta, Surabaya, and Sulawesi regions. Data on research respondents were obtained by distributing research questionnaires through social media or visiting research respondents directly. The data obtained was then analyzed using the Structural Equation Model - Partial Least Square. The results obtained are entrepreneurial orientation positively affects firm performance, entrepreneurial orientation affects absorptive capacity, and absorptive capacity affects firm performance. The role of absorptive as mediation enables the transformation of entrepreneurial orientation to firm performance. Family firms must integrate knowledge and create new capabilities aligned with the knowledge-based view.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
References
Abdallah, A. B., & Al-Ghwayeen, W. S. (2020). Green supply chain management and business performance: The mediating roles of environmental and operational performances. Business Process Management Journal, 26(2), 489–512. https://doi.org/10.1108/BPMJ-03-2018-0091
Alzahrani, S. S. (2021). Role of entrepreneurial orientation in firm performance through project success; Moderating role of absorptive capacity in SMEs of KSA. International Journal of Advanced and Applied Sciences, 8(7), 14–22. https://doi.org/10.21833/ijaas.2021.07.003
Arzubiaga, U., Iturralde, T., Maseda, A., & Kotlar, J. (2018). Entrepreneurial orientation and firm performance in family SMEs: The moderating effects of family, women, and strategic involvement in the board of directors. International Entrepreneurship and Management Journal, 14(1), 217–244. https://doi.org/10.1007/s11365-017-0473-4
Bahtera Adi Jaya. (2025). Rekapitulasi industri F&B di tahun 2024 dan prediksi untuk tahun 2025. Bahtera Adi Jaya. https://bahteraadijaya.com/id/blogs/rekapitulasi-industri-f-b-di-tahun-2024-dan-prediksi-untuk-tahun-2025
Basera, V., Chakaipa, A., Chatiza, K., Muchongwe, N., Chibhoyi, D., & Chisiri, B. (2022). The toll of COVID-19 on restaurant business and the future in Zimbabwe: Case of Manicaland province. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 2(2), 144–173. https://doi.org/10.37715/jtce.v2i2.2666
Chaudhary, S., & Batra, S. (2018). Absorptive capacity and small family firm performance: exploring the mediation processes. Journal of Knowledge Management, 22(6), 1201–1216. https://doi.org/10.1108/JKM-01-2017-0047
Cheng, S.-J., Jia, H.-X., Philip Pong Weng, W., & Wang, L. (2023). Factors influencing consumers’ purchase intention on organic foods via a Theory of Planned Behaviour approach. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 3(1), 98–116. https://doi.org/10.37715/jtce.v3i1.3681
Cho, Y. H., & Lee, J. H. (2020). A study on the effects of entrepreneurial orientation and learning orientation on financial performance: Focusing on mediating effects of market orientation. Sustainability (Switzerland), 12(11), 1–19. https://doi.org/10.3390/su12114594
Darwish, T. K., Zeng, J., Zadeh, M. R., & Haak-Saheem, W. (2018). Organizational learning of absorptive capacity and innovation: Does leadership matter? European Management Review, 17(1), 1–18. https://doi.org/10.1111/emre.12320
Hair, J. F., Hult, G. T., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) using R: A workbook. In Springer. https://doi.org/10.1007/978-3-030-80519-7
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hernández-Perlines, F., Moreno-García, J., & Yáñez-Araque, B. (2017). Family firm performance: The influence of entrepreneurial orientation and absorptive capacity. Psychology and Marketing, 34(11), 1057–1068. https://doi.org/10.1002/mar.21045
Hughes, P., Hodgkinson, I. R., Hughes, M., & Arshad, D. (2018). Explaining the entrepreneurial orientation–performance relationship in emerging economies: The intermediate roles of absorptive capacity and improvisation. Asia Pacific Journal of Management, 35(4), 1025–1053. https://doi.org/10.1007/s10490-017-9539-7
Isma, A., Yusri, M., Bahri, S., Wati, I., & Oktavio, A. (2024). Do family environment and entrepreneurship learning among students contribute to entrepreneurial interest through self efficacy as an intervening variable? IJHESS: International Journal of Health, Economics, and Social Sciences, 6(1), 114-122. https://doi.org/10.56338/ijhess.v6i1.4749
Jiménez-Barrionuevo, M. A. M., Molina, L. M., & García-Morales, V. J. (2019). Combined influence of absorptive capacity and corporate entrepreneurship on performance. Sustainability, 11(11), 1–26. https://doi.org/10.3390/su11113034
Jogiyanto, & Abdillah, W. (2019). Konsep & aplikasi PLS (Partial Least Square) untuk penelitian empiris. BPFE-Yogyakarta.
Kaihatu, T. S., & Oktavio, A. (2020). “The role of functional top management team in initiating the strategic alliances as outcome from innovativeness behavior: Empirical evidence from star hotels”. Jurnal Aplikasi Manajemen, 18(2), 277-288. https://jurnaljam.ub.ac.id/index.php/jam/article/view/1720/1290
Kallmuenzer, A., Strobl, A., & Peters, M. (2018). Tweaking the entrepreneurial orientation–performance relationship in family firms: the effect of control mechanisms and family-related goals. Review of Managerial Science, 12(4), 855–883. https://doi.org/10.1007/s11846-017-0231-6
Kominfo. (2021). Industri makanan dan minuman diakselerasi menuju transformasi digital. Komdigi.go.id. https://www.komdigi.go.id/berita/berita-pemerintahan/detail/industri-makanan-dan-minuman-diakselerasi-menuju-transformasi-digital
Lee, T., & Chu, W. (2017). The relationship between entrepreneurial orientation and firm performance: Influence of family governance. Journal of Family Business Strategy, 8(4), 213–223. https://doi.org/10.1016/j.jfbs.2017.09.002
Liew, M. X., & Loo, Y. M. (2024). The family-level of generational involvement: impact on the nexus between entrepreneurial orientation and business performance among small family businesses. Journal of Family Business Management, 14(3), 475–494. https://doi.org/10.1108/JFBM-01-2023-0013
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance author ( s ): G . T . Lumpkin and Gregory G . Dess Published by : Academy of Management Stable URL : http://www.jstor.com/stable/258632 References Linked references are ava. Academy of Management Review, 21(1), 135–172.
Maharajh, R., Dhliwayo, S., & Chebo, A. K. (2024). The influence of family dynamics on business performance: does effective leadership matter? Journal of Family Business Management, 14(3), 515–533. https://doi.org/10.1108/JFBM-04-2023-0058
Nabass, E. H., & Abdallah, A. B. (2019). Agile manufacturing and business performance: The indirect effects of operational performance dimensions. Business Process Management Journal, 25(4), 647–666. https://doi.org/10.1108/BPMJ-07-2017-0202
Nurhayati-Wolff, H. (2024a). Foodservice industry in Indonesia - Statistics & facts. Statista. https://www.statista.com/topics/11041/foodservice-industry-in-indonesia/#topicOverview
Nurhayati-Wolff, H. (2024b). Gross domestic product (GDP) at current market prices from food and beverage service activities in Indonesia from 2014 to 2023. Statista. https://www.statista.com/statistics/1019670/indonesia-gdp-food-and-beverage-service-activities/
Oktavio, A., Kaihatu, T. S., & Kartika, E. W. (2019). Learning orientation, entrepreneurial orientation, innovation and their impacts on new hotel performance: Evidence from Surabaya. Jurnal Aplikasi Manajemen, 17(1), 8–19. https://doi.org/10.21776/ub.jam.2019.017.01.02
Purwiantri, L. (2021). Pengaruh market orientation, entrepreneurial orientation terhadap kinerja perusahaan dengan mediasi absorptive capacity. Jurnal Ilmiah Bisnis Dan Ekonomi Asia, 15(2), 126–142. https://doi.org/10.32815/jibeka.v15i2.350
Pütz, L., & Werner, A. (2024). Absorptive capacity in family firms: a systematic literature review. In Review of Managerial Science (Vol. 18, Issue 2). Springer Berlin Heidelberg. https://doi.org/10.1007/s11846-023-00651-y
Raisal, I., Tarofder, A. K., & Ilmudeen, A. (2021). The nexus between entrepreneurial orientation and performance: enabling roles of absorptive capacity. World Journal of Entrepreneurship, Management and Sustainable Development, 17(2), 153–166. https://doi.org/10.1108/WJEMSD-06-2019-0041
Rezaei, J., & Ortt, R. (2018). Entrepreneurial orientation and firm performance: the mediating role of functional performances. Management Research Review, 41(7), 878–900. https://doi.org/10.1108/MRR-03-2017-0092
Santos, I. L. dos, Vieira Marinho, S., & Santos, R. C. dos. (2021). The systematization knowledge of articles adherent to familiness, entrepreneurial orientation and absorptive capacity. Journal of Family Business Management, 11(4), 512–537. https://doi.org/10.1108/JFBM-04-2020-0037
Stam, E., & van de Ven, A. (2021). Entrepreneurial ecosystem elements. Small Business Economics, 56(2), 809–832. https://doi.org/10.1007/s11187-019-00270-6
Susanto, R. D., Tjandinegara, R., Iskandar, V., & Kartika, E. W. (2021). Technology Acceptance Model (TAM) analysis of the use of OVO application in F&B service industry in Indonesia. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 1(1), 1–14. https://doi.org/10.37715/jtce.v1i1.1796
Taouab, O., & Issor, Z. (2019). Firm performance: Definition and measurement models. European Scientific Journal ESJ, 15(1), 93–106. https://doi.org/10.19044/esj.2019.v15n1p93
Teknosional. (2024). Revolusi industri 5.0 era kolaborasi manusia dan mesin. Teknosional.Com. https://www.teknosional.com/revolusi-industri-5-0/
Tho, N. D. (2017). Knowledge transfer from business schools to business organizations: The roles absorptive capacity, learning motivation, acquired knowledge and job autonomy. Journal of Knowledge Management, 21(5), 1240–1253. https://doi.org/10.1108/JKM-08-2016-0349
Upe, J. A., & Aswan, A. (2022). Internal factors improving viability of small food and beverage businesses: The case of Indonesia. Problems and Perspectives in Management, 20(1), 117–127. https://doi.org/10.21511/ppm.20(1).2022.11
Yasin, M., & Andjarwati, T. (2024). Macro fundamental analysis on profit management as an intervening variable on financial performance. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 4(2), 202–212. https://doi.org/10.37715/jtce.v4i2.5076
Zellweger, T. M., Nason, R. S., & Nordqvist, M. (2012). From longevity of firms to transgenerational Entrepreneurship of families: Introducing family entrepreneurial orientation. Family Business Review, 25(2), 136–155. https://doi.org/10.1177/0894486511423531