Effect Moderating Entrepreneurship Orientation on Intervening Variables Competitive Advantage Strategy Using Structural Equation Modeling

Small and medium enterprises (SMEs) are one of the business sectors that have played a vital role in the Indonesian economic system. Surabaya has a fairly large number of industrial SMEs, consisting of small and medium industries. The phenomena faced by small printing industry SMEs in the city of Surabaya are generally related to the problems of the competitive environment, leadership and entrepreneurial orientation of owners / managers in managing their businesses, and this is in line with the existence of theoretical and empirical gaps. Therefore, it is necessary to study and research further by exploring more comprehensively about the moderating effect of entrepreneurial orientation on business strategies on the performance of small printing industry SMEs in Surabaya, which are influenced by industrial environmental variables, transactional leadership using Moderating Structural Equation Modeling (MSEM). The results showed that the performance model of small printing industry SME companies with Entrepreneurship Orientation as moderating is a fit model based on the Goodness of Fit (GoF) criteria. Industrial environment, Transactional Leadership, Entrepreneurship Orientation, Competitive advantage strategy, and Performance of small industry SMEs are valid and reliable indicators. The competitive advantage strategy with indicators of low cost strategy, and differentiation strategy is influenced by the Industrial environment and Transactional Leadership. Entrepreneurship Orientation with indicator indicators Dare to open new marketing areas, dare to face competition, and have creativity in introducing new products that moderate the competitive advantage strategy is strengthening in influencing the performance of small industrial SMEs. Furthermore, the performance of small industrial SMEs with financial and non-financial indicators is influenced by the industrial environment and transactional leadership.