The Role of Strategic Entrepreneurship in Mediating Strategic Orientation on BPRS Performance in Indonesia

The coronavirus pandemic (Covid-19) has caused a deterioration in the performance of Islamic Rural Banks (Bank Perkreditan Rakyat Syariah or BPRS), forcing BPRS to revamp their business strategies in order to survive and gain a competitive advantage. This research aims to examine the direct influence of Strategic Orientation (SO), specifically Entrepreneurial Orientation, Market Orientation, Technology Orientation, and Learning Orientation; as well as the indirect influence of these four SOs on company performance, through the mediating role of Strategic Entrepreneurship. The study tests the conceptual framework using a questionnaire, with the unit of analysis being BPRS, and employs structural equation modeling (SEM) analysis using the partial least squares (PLS) approach. The research shows that Learning Orientation has an influence on performance, both directly and through the mediation of Strategic Entrepreneurship. Meanwhile, Technology Orientation has no influence on performance, either directly or through the mediation of Strategic Entrepreneurship. This research has important implications for BPRS to revamp their business strategies to maintain competitive advantage. One such implication is improving the company’s learning capabilities, for example, through sharing sessions or off-site training as one of the benefits or rewards for high-achieving employees. This study contributes to the development of Strategic Management science by demonstrating how Strategic Entrepreneurship mediates the relationship between Market Orientation and Learning Orientation in improving company performance.