THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND PRODUCT DEVELOPMENT PERFORMANCE IN FAMILY BUSINESS LOCATED IN JAVA AND BALI: THE MODERATING ROLE OF NETWORKING CAPABILITY AND ENVIRONMENTAL DYNAMISM

Abstract

Product Development Performance (PDP) has an important role to achieve the competitive advantage of the company so that the managerial role is a major factor that can contribute to the success of product development. One of the important factors for understanding Product Development Performance is how a corporate applied the strategic corporate orientation optimally. Strategic orientation can be interpreted as a strategic direction that is determined to be applied by a company as a means of creating the right behaviour in achieving sustainable superior business performance. In this research, we focused in Entrepreneurial Orientation that has been developed in family businesses. Strategic orientation became an important antecedent in enhancing the development of product performance (PDP) because some researchers stated a deeper understanding related to the role of Entrepreneurial Orientation (EO) is needed especially in family businesses. The development of product performance is also supported by other factors, they are Network Capability and Environmental Dynamism. These findings explained that entrepreneurial orientation has a significant positive effect on product development performance when a company has adequate networking capability to manage environmental dynamics. Therefore, this study is focused on looking at the effect of Entrepreneurial Orientation on Product Development Performance with Networking Capability and Environment Dynamic as moderating. The research approach taken is quantitative research, which used data presented in the form of numbers or numerical information. The population in this research is family businesses that are located in Java and Bali, Indonesia and the number is unknown. This study found that family businesses have entered the survival phase have a long-term entrepreneurial orientation, which means that they are able to manage opportunities innovatively by being more proactive in all conditions, and it has an effect on the performance of product/service development. The networking capability has opportunities as an antecedent that can affect the performance of product/service development while environmental dynamism is only a potential moderator.