Business Strategy Role as Mediation of Management Capability and Orientation of Entrepreneurship on Business Performance (A Study on Micro and Small Scale Seaweed Business in Takalar District, South Sulawesi Province)

Abstract

This study aims to examine and analyze: (1) whether the business strategy is directly influenced by management ability, entrepreneurship orientation, (2) whether business performance is influenced by management ability, entrepreneurship orientation, both directly and indirectly, through business strategy as mediation. Theoretically, the results of this research is expected to be enrich and complete the repertoire of knowledge in strategic management field, especially micro and small entrepreneurship, so it can be useful for academics, practitioners and government. The population in this study is businessman. Respondents used as sample are 82 people seaweed entrepreneurs at micro and small scale based on Law No. 20 of 2008 in Takalar District South Sulawesi Province. The sampling method is census and an analytical method used in hypothesis testing is Path Analysis. The results of this study indicate that: (1) management capability indirectly affects on business strategy, (2) entrepreneurship orientation directly influences business strategy. (3) management capability directly affects business performance 4) entrepreneurship orientation indirectly affects on business performance but through business strategy as a mediating variable (5) business strategies directly affect the performance of the business. An important finding in this study shows that: the management ability and their respective business strategies directly affect the performance of the business, while management ability and entrepreneurship orientation indirectly affect on business performance but through business strategy.