Strategic Synergies: The Impact of Entrepreneurial Behavior on Linking Orientation, Values, and Organizational Success

Abstract

This study explores the interplay between organizational and individual factors in driving entrepreneurial activities and their influence on organizational performance. Focusing on entrepreneurial orientation, individual values, and the mediating role of entrepreneurial behavior, data were collected from 133 SME managers in Bali, Indonesia, and analyzed using structural equation modeling. The findings confirm that entrepreneurial orientation significantly enhances organizational performance, with entrepreneurial behavior playing a critical mediating role. Organizations with a strong entrepreneurial orientation can effectively convert strategic initiatives into measurable performance gains through entrepreneurial actions. Conversely, while individual values positively impact organizational performance, it does not significantly influence entrepreneurial behavior, indicating that personal values such as autonomy and innovation do not inherently lead to entrepreneurial activities driving performance. The study offers theoretical and practical insights. It underscores the importance of entrepreneurial behavior as the mechanism translating entrepreneurial orientation into performance gains and identifies challenges in leveraging individual values for entrepreneurial outcomes. Managers are advised to foster a culture that promotes entrepreneurial behavior by aligning organizational strategies with personal values, encouraging innovation, and rewarding entrepreneurial initiatives. The research contributes to entrepreneurship literature by emphasizing entrepreneurial behavior's mediating role in achieving organizational success. Future studies should explore the influence of industry-specific factors and market conditions, utilizing longitudinal approaches to examine these relationships over time, providing a comprehensive understanding of the dynamics between entrepreneurial orientation, individual values, entrepreneurial behavior, and organizational performance.