Entrepreneurial Orientation, Adaptive Capability, and Innovation

This study aimed to confirm the Resource-Based View (RBV) under a dynamic perspective. Thus, the model developed was to test adaptive capability as a mediating variable between entrepreneurial orientation and innovation. The study was conducted on the Batik Industry in Central Java, Indonesia, which involved 198 respondents with a 51% response rate. The results showed that entrepreneurial orientation had a significant positive effect on adaptive capability and innovation. In addition, entrepreneurial orientation had a significant effect on innovation. The results of the analysis of the mediating variable indicated that entrepreneurial orientation had a significant effect on innovation through adaptive capability. This finding was in line with the RBV stating that the ability to recognize or create opportunities would create adaptive behavior and encourage innovation. These findings also confirmed the resource management theory stating that to achieve superior performance, a combinat...