The Effect of Entrepreneurial Orientation on SME Performance with Total Quality Management as an Intervening Variable

Abstract

This study aims to determine the effect of the application of entrepreneurial orientation on the performance of MSMEs with Total Quality Management (TQM) as an intervening variable. This study involves three variables, namely entrepreneurial orientation, TQM, and MSME performance. The population in this study is MSMEs in the food processing sector in the city of Semarang, with a sample of 64 respondents. The research model uses Structural Equation Modeling (PLS-SEM) analysis, which consists of outer model and inner model analysis. The results of this study indicate that entrepreneurial orientation has a positive effect on MSME performance, TQM has a positive effect on MSME performance, entrepreneurial orientation has a positive effect on TQM, and TQM is able to mediate the effect of entrepreneurial orientation on MSME performance.