The Effects of Entrepreneur Orientation and Strategic Agility on SMEs Business Performance during the Recession

ABSTRACT : This research is expected to provide empirical evidence regarding the effect of entrepreneurorientation and strategic agility on SME business performance during the recession due to the Covid-19pandemic. A total of 135 respondents who are SME owners were asked to answer some questions in the form ofa questionnaire. The survey target is SMEs engaged in the manufacturing industry sector in Balikpapan City,Indonesia. The data that has been collected will be tested using Smart-PLS Software. The results show thatentrepreneur orientation has no significant positive effect on business performance. Entrepreneur orientation hasa positive and significant effect on strategic agility. Strategic agility has a positive and significant effect onbusiness performance. Furthermore, the results also confirm that strategic agility plays a role in mediating therelationship between entrepreneur orientation and business performance. This study is expected to help SMEowners, particularly the manufacturing sector, to understand the importance of strengthening entrepreneurorientation and implementing strategic agility to maintain and improve business performance

KEYWORDS : Resources Base View (RBV), Entrepreneur Orientation, Strategic Agility, BusinessPerformance, Small and Medium Enterprises (SMEs).