Entrepreneurship strategy for improving business performance using internet technology-based business application


Keywords: entrepreneurship, competency, SMEs, internet technology, online business

Abstract

Purpose – to conduct an empirical test over the effect of entrepreneurship competency on business performance using Internet technology-based business applications.

Design/Method/Approach. The research population is from small-and-medium Enterprises (SMEs) in the city of Tarakan. The determined sample is based on the observed area; hence, the technique is called probability sampling area. The data analysis technique is Partial Least Square-Structural Equation Modelling (PLS-SEM), run by WarpPls 6.0.

Findings. This research's results indicate that entrepreneurship competency has a positive impact on Internet technology-based business applications. Besides, internet technology-based business application mediates the effect of entrepreneurship competency on business performance.

Theoretical implications. The results support the Resource-Based View Theory, stating that the competitive advantage of an enterprise is derived from its unique resource.

Practical implications. Internet technology-based business applications can be used as entrepreneurship strategies to develop business performance.

Originality/Value. The originality of this research is the internet technology-based business application as a mediating variable between entrepreneurship competence and business performance.

Research limitations/Future research. The research has its limitations; it only uses limited SME research samples in the city of Tarakan. Future research can expand the sample through other Indonesian cities.

 

Paper type – empirical.

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Author Biography

Mohamad Nur Utomo, Universitas Borneo Tarakan, Indonesia

Faculty of Economics

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Published
2019-06-25
How to Cite
Utomo, M., Ariani, M., Safitri, J., & Kaujan, K. (2019). Entrepreneurship strategy for improving business performance using internet technology-based business application. European Journal of Management Issues, 27(1-2), 36-45. https://doi.org/10.15421/191905