Innovation Performance as Mediator: Does Entrepreneurial Orientation Predict Business Sustainability?

There has been a steady decline in sales of small and medium enterprises caused by the recent global occurrence. Viewing these current changes, it is clear that the sustainability of local businesses and their ecology are under threat, and that an entrepreneurial viewpoint would yield a deeper understanding and solution to this emerging problem. The purpose of this study is to find out and analyze the entrepreneurial orientation impact on business sustainability during COVID-19 pandemic. Structural equation modeling and the partial least squares model were used to present path modeling and multigroup analysis. Data have been collected during November-December 2020 when the pandemic was still at large. Using a sample of 101 young online business owners in Jakarta area, our results reveal that entrepreneurial orientation has a positive and significant impact directly on business sustainability and indirectly mediated by innovation performance. This study suggests that online small and medium entrepreneurs need to implement entrepreneurial orientation strategy and make an innovation for their products/services to make their business sustain. [ABSTRACT FROM AUTHOR]