The Effect of Entrepreneurial Orientation on SMEs Performance: The Mediating Role of Mass Media

ABSTRACT : Small and Medium Entrepresies (SMEs) play a strategic role in the Indonesian economy through their contribution to Gross Domestic Product and employment. However, the chip cluster SMEs still face various challenges, such as high competition, limited innovation, and suboptimal use of mass media in supporting business performance. This study aims to analyze the effect of Entrepreneurial Orientation on the performance of SMEs clusters in the potato chip industry in Malang Regency and to examine the role of mass media as a mediating variable in this relationship. This study uses a quantitative approach with an explanatory design. Data were collected through questionnaires distributed to 152 SMEs actors in the potato chip industry in Malang Regency using purposive sampling. Data analysis was performed using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method to test the measurement model and structural model. The results of the study indicate that Entrepreneurial Orientation, which includes the dimensions of innovation, proactivity, and risk-taking, has a positive effect on the performance of SMEs. The mass media has also been proven to have a positive effect on the performance of SMEs through increased product visibility, expanded market reach, and strengthened relationships with consumers. In addition, mass media acts as a partial mediator in the relationship between Entrepreneurial Orientation and SMEs performance. These findings confirm that entrepreneurial orientation will be more effective in improving business performance if supported by optimal use of mass media.