ABSTRACT
This study aims to analyze the effect of entrepreneurial orientation on the performance of MSMEs and the role of business innovation as a mediating variable. This type of research is an explanatory research with a quantitative approach. Research variables include entrepreneurial orientation, business innovation, and the performance of MSMEs. This study reached all the people who owned MSMEs in Pujon Kidul Village with a sample size of 65 people. Data was obtained directly from respondents by distributing questionnaires. The results of this study indicate that entrepreneurial orientation does not have a direct influence on the performance of MSMEs with a significance value of 0.35. The effect of entrepreneurial orientation on the performance of MSMEs mediated by business innovation has a significance value of <0.
