Entrepreneurial Orientation and Sme Performance: Dynamic Capabilities as Mediation Study on Smes in Indonesia

The purpose of this study to analyze the relationship between entrepreneurial orientation and SMEs performance, entrepreneurial orientation with dynamic capabilities, and dynamic capabilities with SMEs performance. In addition to analyzing whether dynamic capabilities can mediate the relationship between entrepreneurial orientation and SME performance. The research data to be used is SMEs data in Indonesia with primary data through questionnaires and secondary data published by the Government of Indonesia. The research sample is 350 SMEs in Indonesia. Data analysis techniques using SEM. The results showed (1) there was a positive relationship between entrepreneurial orientation and SMEs performance, (2) there was a positive relationship with entrepreneurial orientation with SMEs performance (3) there was a positive relationship between dynamic capabilities and SMEs performance (4) there was a positive relationship with entrepreneurial orientation, SMEs performance through dynamic capabilities as mediation. Keywords: Entrepreneurial Orientation, Dynamic Capabilities, SMEs Performanc