Strategic Orientation Based on Business Environment and Entreprenurs Behavior as Well as its Effects on SME Performance and Competitiveness in Bali Indonesia

Abstract

The purpose of this study is to test and to analyze the role of the external business environment and internal supports entrepreneurial behaviour in improving the implementation of strategies oriented to improve the performance of the business that drives the creation of high competitiveness in export-oriented SMEs at Bali.

Data were collected through a questionnaire involving 175 export-oriented SMEs in Bali, but 138 questionnaires that used for the analysis. Non-response bias test showed there is no significant difference between the questionnaires back in time with the late (less than one month), so the data can be used for further analysis. Prior to testing hypotheses with path analysis through software programmed AMOS 7.

This study finding that the existence of export-oriented SMEs in Bali has not been proven to align the orientation strategy with the business environment both external and internal to optimize business performance. However, adjustment activities with the business environment for business strategies appropriate to support entrepreneurial behaviours in carrying out management functions can create a superior competitive advantage for export-oriented SMEs in Bali.