The Role of Innovative Behavior in Entrepreneurial Performance

Oct 13, 2025 by vinooalluri.com 111 views

The Influence of Self Efficacy, Leadership, and Business Experience on Entrepreneurial Performance with Innovative Behavior as an Intervening Variable in Members of the Indonesian Young Entrepreneurs Association (HIPMI) Branch Management Agency (HIPMI)

Introduction

Young entrepreneurs, especially members of the Indonesian Young Entrepreneurs Association (HIPMI) Medan City, often face challenges in maintaining their business performance. Some of them do not have adequate confidence (self-efficacy) and good abilities in running a business, which has a negative impact on the development of their business. Lack of confidence in entrepreneurship and the lack of expertise in the business field they are undergoing further aggravating this problem. Therefore, good leadership and business experience are very important to increase the self-efficacy of entrepreneurs.

The Importance of Self Efficacy, Leadership, and Business Experience in Entrepreneurial Performance

Self-efficacy is a crucial factor in determining an entrepreneur's ability to perform well in their business. It refers to an individual's confidence in their ability to succeed in specific situations or tasks. Entrepreneurs with high self-efficacy are more likely to take risks, innovate, and persevere in the face of challenges. On the other hand, entrepreneurs with low self-efficacy may struggle to overcome obstacles and may be more likely to give up on their business ventures.

Leadership is another critical factor in determining entrepreneurial performance. Effective leaders are able to motivate and direct their teams, which can lead to improved productivity and performance. Good leadership can also help entrepreneurs to build strong relationships with their customers, suppliers, and partners, which is essential for business success.

Business experience is also an important factor in determining entrepreneurial performance. Entrepreneurs with more experience tend to be more familiar with the dynamics of the business they live, which in turn can improve their performance. They are also more likely to have developed a network of contacts and relationships that can help them to access resources, expertise, and opportunities.

The Role of Innovative Behavior in Entrepreneurial Performance

Innovative behavior is an important variable in this study. The results show that innovative behavior has a positive and significant influence on performance. Entrepreneurs who are able to innovate will be able to find new ways to improve their products and services, thereby improving overall performance. Innovative behavior can take many forms, including the development of new products, services, or business models, as well as the adoption of new technologies or processes.

Research Methodology

This study uses a quantitative descriptive approach to the population of 350 respondents' HIPMI Branch Management Agency (BPC) members. The sample was determined using the Slovin formula so that 187 respondents were obtained. The sampling method used is simple random sampling. Data analysis was carried out through Partial Least Squares Structural Equation Modeling (PLS-SEM) with the help of the SmartPLS program.

Findings and Analysis

The results of this study show that:

Self Efficacy has a positive and significant influence on performance. This shows that the higher the confidence of an entrepreneur, the better the performance in running a business.
Leadership also has a positive and significant influence on performance. Entrepreneurs who have good leadership capabilities are able to motivate and direct their teams, so that they have a positive impact on work.

3 Entrepreneurs who have more experience tend to be more familiar with the dynamics of the business they live, which in turn can improve their performance.

Innovative behavior is an important variable in this study. The results show that innovative behavior has a positive and significant influence on performance. Entrepreneurs who are able to innovate will be able to find new ways to improve their products and services, thereby improving overall performance.
However, interestingly, self-efficacy has no significant influence on innovative behavior. This shows that although self-confidence is important, it is not always directly correlated with the ability to innovate.
On the other hand, leadership and business experience are proven to have positive and significant influence on innovative behavior. That is, entrepreneurs who have good leadership and more experience are more likely to behave innovatively.
Finally, self-efficacy has a negative and insignificant influence on performance through innovative behavior. This shows that although self-efficacy plays a role in influencing performance directly, its effects through innovative behavior are not proven significant.

Conclusion

From the results of this study, it can be concluded that to improve the performance of entrepreneurs, Medan City HIPMI members need to improve their leadership and business experience, as well as developing innovative behavior. Self-efficacy development can be an important first step, but it should not be the only focus. Involvement in leadership training and direct experience in the field can improve the ability of young entrepreneurs in overcoming existing challenges, so that they can compete effectively in the market.

Recommendations

Based on the findings of this study, the following recommendations are made:

Leadership training: HIPMI members should participate in leadership training programs to develop their leadership skills and abilities.
Business experience: HIPMI members should gain more experience in the business field by taking on new challenges and responsibilities.
Innovative behavior: HIPMI members should develop innovative behavior by finding new ways to improve their products and services.
Self-efficacy development: HIPMI members should develop their self-efficacy by building their confidence and abilities in running a business.

By following these recommendations, HIPMI members can improve their entrepreneurial performance and compete effectively in the market.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the study only focuses on HIPMI members in Medan City, which may not be representative of all young entrepreneurs in Indonesia. Secondly, the study uses a quantitative approach, which may not capture the complexities and nuances of entrepreneurial performance. Finally, the study only examines the influence of self-efficacy, leadership, and business experience on entrepreneurial performance, and does not examine other factors that may influence performance.

Future Research Directions

This study provides several directions for future research. Firstly, future studies should examine the influence of other factors on entrepreneurial performance, such as education, experience, and networking. Secondly, future studies should examine the impact of self-efficacy, leadership, and business experience on entrepreneurial performance in different contexts and industries. Finally, future studies should examine the effectiveness of leadership training and business experience programs in improving entrepreneurial performance.

Conclusion

In conclusion, this study provides valuable insights into the influence of self-efficacy, leadership, and business experience on entrepreneurial performance with innovative behavior as an intervening variable in members of the Indonesian Young Entrepreneurs Association (HIPMI) Branch Management Agency (HIPMI). The study shows that self-efficacy, leadership, and business experience have a positive and significant influence on entrepreneurial performance, and that innovative behavior is an important intervening variable. The study also provides recommendations for improving entrepreneurial performance, including leadership training, business experience, and innovative behavior.
Q&A: The Influence of Self Efficacy, Leadership, and Business Experience on Entrepreneurial Performance

Q: What is self-efficacy and how does it relate to entrepreneurial performance?

A: Self-efficacy refers to an individual's confidence in their ability to succeed in specific situations or tasks. In the context of entrepreneurship, self-efficacy is critical in determining an entrepreneur's ability to perform well in their business. Entrepreneurs with high self-efficacy are more likely to take risks, innovate, and persevere in the face of challenges.

Q: How does leadership impact entrepreneurial performance?

A: Leadership is a critical factor in determining entrepreneurial performance. Effective leaders are able to motivate and direct their teams, which can lead to improved productivity and performance. Good leadership can also help entrepreneurs to build strong relationships with their customers, suppliers, and partners, which is essential for business success.

Q: What is the role of business experience in entrepreneurial performance?

A: Business experience is an important factor in determining entrepreneurial performance. Entrepreneurs with more experience tend to be more familiar with the dynamics of the business they live, which in turn can improve their performance. They are also more likely to have developed a network of contacts and relationships that can help them to access resources, expertise, and opportunities.

Q: How does innovative behavior impact entrepreneurial performance?

A: Innovative behavior is an important variable in this study. The results show that innovative behavior has a positive and significant influence on performance. Entrepreneurs who are able to innovate will be able to find new ways to improve their products and services, thereby improving overall performance.

Q: What are the implications of this study for young entrepreneurs?

A: The findings of this study have several implications for young entrepreneurs. Firstly, they should focus on developing their self-efficacy, leadership, and business experience. Secondly, they should develop innovative behavior by finding new ways to improve their products and services. Finally, they should participate in leadership training and gain more experience in the business field.

Q: What are the limitations of this study?

A: This study has several limitations that should be noted. Firstly, the study only focuses on HIPMI members in Medan City, which may not be representative of all young entrepreneurs in Indonesia. Secondly, the study uses a quantitative approach, which may not capture the complexities and nuances of entrepreneurial performance. Finally, the study only examines the influence of self-efficacy, leadership, and business experience on entrepreneurial performance, and does not examine other factors that may influence performance.

Q: What are the future research directions for this study?

A: This study provides several directions for future research. Firstly, future studies should examine the influence of other factors on entrepreneurial performance, such as education, experience, and networking. Secondly, future studies should examine the impact of self-efficacy, leadership, and business experience on entrepreneurial performance in different contexts and industries. Finally, future studies should examine the effectiveness of leadership training and business experience programs in improving entrepreneurial performance.

Q: What are the practical implications of this study for policymakers and educators?

A: The findings of this study have several practical implications for policymakers and educators. Firstly, they should develop programs that focus on developing the self-efficacy, leadership, and business experience of young entrepreneurs. Secondly, they should provide opportunities for young entrepreneurs to gain more experience in the business field. Finally, they should encourage innovative behavior by providing resources and support for entrepreneurs to develop new products and services.

Q: What are the implications of this study for business owners and managers?

A: The findings of this study have several implications for business owners and managers. Firstly, they should focus on developing the self-efficacy, leadership, and business experience of their employees. Secondly, they should encourage innovative behavior by providing resources and support for employees to develop new products and services. Finally, they should participate in leadership training and gain more experience in the business field.

Q: What are the implications of this study for researchers and academics?

A: The findings of this study have several implications for researchers and academics. Firstly, they should examine the influence of other factors on entrepreneurial performance, such as education, experience, and networking. Secondly, they should examine the impact of self-efficacy, leadership, and business experience on entrepreneurial performance in different contexts and industries. Finally, they should examine the effectiveness of leadership training and business experience programs in improving entrepreneurial performance.