Cohesion Entrepreneurial Orientation in Mediating the Effect of Knowledge Management and Business Environment On the Performance of Small-Scale Restaurant Business in Pekanbaru

The problem phenomenon that occurs in Small and medium-sized enterprises (SMEs), many Small and mediumsized enterprises (SMEs) are unable to grow and develop or in the sense of the word do not move up a level/class, this researcher's assumption is related to the behavior of Small entrepreneurs and medium-sized enterprises (SMEs) themselves are less diligent (perseverance) and less persistent (tenaciousness).This research aims to see the effect on the performance of small-scale restaurant business in Pekanbaru, Riau, Indonesia.In this case, the research respondents involved are 174 restaurants in Pekanbaru City, Riau Province Indonesia.Furthermore, the data collected were processed using Structural Equation Modeling (SEM) PLS.This study proposed cohesion entrepreneurial orientation as a strategy to improve small-scale restaurant business.The results of the research further show that knowledge management affect the performance of small-scale restaurant business.Business environment affects the performance of small-scale restaurant business.Cohesion entrepreneurial orientation mediates the effects of knowledge management and business environment on the performance of small-scale restaurant business.Eventually, these results encourage dynamics capabilities theory and entrepreneurship theory, where small-scale restaurant business that carry out identification on the changes of business environment can face the changes with integrated entrepreneurship-oriented behavior so it can improve the performance of small-scale restaurant business.