Business Strategy as a Mediation of Management Capabilities and Entrepreneurial Orientation in Business Performance

Abstract

Objective - This article aims to analyze the influence of mediating Business Strategy variables on Management Capabilities (MC) and Entrepreneurial Orientation (EO) toward Business Performance. Methodology/Technique - This study was conducted on group of students of Economics and Business Department who practiced as entrepreneurs, using Path Analysis (Amos,18.0). Findings - The results of the analysis show that the management capabilities do not support the indirect influence of business strategies on business performance. However, entrepreneurial orientation supports the indirect influence of business strategies on business performance. Meanwhile, management capabilities have a significant direct effect on business performance. Novelty - Without going through a business strategy, entrepreneurial orientation does not have a significant direct effect on business performance, because business strategy supports business performance or direct influence. Type of Paper: Empirical Keywords: Business Strategy; Management Capabilities; Entrepreneurial Orientation; Business Performance. JEL Classification: M16, M21, M29. DOI: https://doi.org/10.35609/jber.2019.4.1(5)