Title: The role of strategic flexibility on the influence of entrepreneurial orientation on new product development

Authors: Yuli Budiati; Wisnu Untoro; Lilik Wahyudi; Mugi Harsono

Addresses: Universtas Sebelas Maret, Surakarta, Indonesia; Economic Faculty, Universitas Semarang, Semarang, Indonesia ' Faculty of Economic and Business, Universitas Sebelas Maret, Surakarta, Indonesia ' Faculty of Economic and Business, Universitas Sebelas Maret, Surakarta, Indonesia ' Faculty of Economic and Business, Universitas Sebelas Maret, Surakarta, Indonesia

Abstract: Small and medium enterprises (SMEs) need to adapt to the changing environment in order to maintain their business. Environmental turbulence can be solved by managing strategic flexibility in exploiting the company's ability to enhance competitive opportunities. The purpose of the research is to evaluate the relationship between entrepreneurial orientation and strategic flexibility on new product development in furniture SMEs. The managers of furniture SMEs in the Jepara district were surveyed for this study. The number of questionnaires analysed with PLS-SEM was 158. The results of the study are that entrepreneurial orientation and strategic flexibility have influence on new product development. This research contribution illustrates the importance of strategic flexibility with flexible use and coordination of resources to create new products through dynamic capabilities. The spirit of entrepreneurial orientation is needed in dynamic market conditions through proactive, innovative, and courageous actions to be able to change strategies quickly by taking opportunities to develop new products so that SMEs still exist in markets, and that this has never been explored in previous studies.

Keywords: entrepreneurial orientation; flexibility strategy; new product development; small and medium enterprises; SMEs.

DOI: 10.1504/IJBSR.2022.125489

International Journal of Business and Systems Research, 2022 Vol.16 No.5/6, pp.533 - 551

Received: 29 May 2020
Accepted: 14 Aug 2020
Published online: 12 Sep 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article