KUSUMAWARDHANI, Amie (2012) AUTONOMY AND INNOVATIVENESS: UNDERSTANDING THEIR RELATIONSHIPS WITH PERFORMANCE OF INDONESIAN SMES. ACERE DIANA.

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Abstract

This paper reports on two Entrepreneurial Orientation dimensions: autonomy and
innovativeness since there has been no significant research in this area in Indonesia,
particularly related to the context of SMEs. The purpose of this paper is to report on an
empirical investigation of the role of autonomy and innovativeness in the firm
performance of Indonesian SMEs, using a mixed methods approach. Findings from the
quantitative data analysis confirmed that autonomy and innovativeness were adopted by
Indonesian SMEs. However, these EO dimensions were found to have no significant
relationships with firm performance. The qualitative data analysis clarified these findings,
indicating that autonomy has not been utilised fully in these companies due to the cultural
background of the managers/owners. For innovativeness, the characteristics of the sample
industry contribute to the innovation behaviour demonstrated by respondents. This study
makes important contributions to entrepreneurship research and has meaningful
implications for managers and policy makers.

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