DYNAMIC CAPABILITIES AND CATUR PARAMITHA: THE MEDIATION AND MODERATION ROLE FOR BUSINESS PERFORMANCE

Abstrak

The inconsistency in findings regarding entrepreneurial orientation and business performance necessitates further exploration to elucidate their relationship and enhance the academic literature. This study examines the roles of dynamic capability and Catur Paramitha in mediating and moderating the impact of entrepreneurial orientation on business performance and assessing their direct effects. Employing a quantitative methodology, the research involves a sample of 300 SMEs in Indonesia, analyzed using SmartPLS software. Results reveal that a robust entrepreneurial orientation enhances the dynamic capabilities of SMEs, fostering unique and valuable resources that contribute to superior business performance. Additionally, dynamic capabilities serve as partial complementary mediators, while Catur Paramitha, representing local wisdom, strengthens the positive impact of entrepreneurial orientation on SME performance. This research underscores the significance of entrepreneurial orientation, dynamic capabilities, and Catur Paramitha as vital organizational resources for achieving optimal business performance.