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Small and medium enterprises (SMEs) need to adapt to the changing environment in order to maintain their business. Environmental turbulence can be solved by managing strategic flexibility in exploiting the company's ability to enhance competitive opportunities. The purpose of the research is to evaluate the relationship between entrepreneurial orientation and strategic flexibility on new product development in furniture SMEs. The managers of furniture SMEs in the Jepara district were surveyed for this study. The number of questionnaires analysed with PLS-SEM was 158. The results of the study are that entrepreneurial orientation and strategic flexibility have influence on new product development. This research contribution illustrates the importance of strategic flexibility with flexible use and coordination of resources to create new products through dynamic capabilities. The spirit of entrepreneurial orientation is needed in dynamic market conditions through proactive, innovative, and courageous actions to be able to change strategies quickly by taking opportunities to develop new products so that SMEs still exist in markets, and that this has never been explored in previous studies.
International Journal of Business and Systems Research – Inderscience Publishers
Published: Jan 1, 2022
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