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Kusumawardhani, A., McCarthy, G. & Perera, N. (2012). Autonomy and innovativeness: understanding their relationships with the performance of Indonesian SMEs. The Joint ACERE-DIANA International Entrepreneurship Conference (pp. 1-16). Fremantle, Western Australia: ACERE-DIANA.

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ACERE-DIANA Conference


AbstractThis paper reports on two Entrepreneurial Orientation dimensions: autonomy and innovativeness since there has been no significant research in this area in Indonesia, particularly related to the context of SMEs. The purpose of this paper is to report on an empirical investigation of the role of autonomy and innovativeness in the firm performance of Indonesian SMEs, using a mixed methods approach. Findings from the quantitative data analysis confirmed that autonomy and innovativeness were adopted by Indonesian SMEs. However, these EO dimensions were found to have no significant relationships with firm performance. The qualitative data analysis clarified these findings, indicating that autonomy has not been utilised fully in these companies due to the cultural background of the managers/owners. For innovativeness, the characteristics of the sample industry contribute to the innovation behaviour demonstrated by respondents. This study makes important contributions to entrepreneurship research and has meaningful implications for managers and policy makers. Key words: autonomy, innovativeness, entrepreneurial orientation, firm performance, SMEs, Indonesia, mixed methods

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