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July 2025 ISSN : 1907-6576 .
ISSN : 2615-5370 .
Analysis of Entrepreneurial Orientation.
Environmental Adaptability, and Strategic Orientation on Business Performance Through the Mediation of Competitive Advantage Ling ling Berliani1.
Susilo Toto Raharjo2 1Faculty of Economics and Business.
Diponegoro University Abstract Abstractionis study aims to analyze the influence of entrepreneurial orientation, business environment adaptability, and strategic orientation on competitive advantage and business performance, and to examine the mediating role of competitive advantage.
The research involved 66 coffee shop entrepreneurs in Tegal Regency selected through purposive sampling.
Data were analyzed using Structural Equation Modeling (SEM) with SmartPLS.
The results show that entrepreneurial orientation significantly affects competitive advantage .
t = 2.
and business performance .
t = 2.
p = 0.
Business environment adaptability also significantly influences competitive advantage .
t = 4.
p = 0.
and business performance .
t = 1.
p = 0.
Strategic orientation has a positive effect on competitive advantage .
t = 3.
p = 0.
and business performance .
t = 1.
p = 0.
Competitive advantage significantly affects business performance .
t = 2.
= 0.
and mediates the influence of entrepreneurial orientation .
= 0.
, environmental adaptability .
= 0.
, and strategic orientation .
= 0.
on business performance.
These findings highlight the importance of competitive advantage as a mediating and strategic factor in improving business performance in dynamic market environments Keywords: entrepreneurial orientation.
environmental adaptability.
strategic orientation.
competitive advantage.
business performance.
Received: July 3rd, 2025 Revised: July 24th, 2025 *Corresponding author: : linglingberliani2023@gmail.
Accepted: July 30th, 2025 Introduction One business sector that experiences high demand over time is the consumer goods trade.
Specifically, changes in consumer behavior within the consumer goods subsector are constantly evolving in line with global lifestyle trends.
(Arisanti, 2.
Among these trends, coffee shops are currently gaining popularity among the general public.
This is driven by the changing trend of coffee drinking, which is no longer limited to the interpretation of coffee as a beverage, but rather, has become a lifestyle.
(Taufani, 2.
Many people consider coffee shops to be the best place to unwind, whether with friends, family, or alone.
Due to their strategic locations, many students also use them as study (Hidayat & Alliyah, 2.
Furthermore, coffee shops are now highly relied upon for business meetings, social gatherings, and informal gatherings with friends and family.
It's no surprise that the coffee shop business is currently experiencing tremendous growth.
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The coffee shop phenomenon is spreading throughout Indonesia.
This is supported by the fact that Indonesia is the world's third-largest coffee producer, according to the United States Department of Agriculture (USDA).
Customers now have more choices than ever when it comes to where and how they purchase food and beverages, thanks to the proliferation of restaurants and coffee shops.
(Rose & Nofiyanti, 2.
Across various regions in Indonesia, the coffee shop trend has mushroomed, regardless of geographic differences, including in coastal areas like Tegal Regency.
While rarely mentioned in national business development.
Tegal Regency is unique in its current rise in the coffee shop trend.
This demonstrates that Tegal Regency is currently experiencing economic growth, with increased community independence in developing businesses like coffee shops.
The Number of coffe shop Jumlah coffeA Figure 1.
Increase in the number of coffee shops in Tegal Regency Source: Tegal Regency Cooperatives Office 2023 This phenomenon has occurred in coffee shops in Tegal Regency over the past three years.
This figure is significant for a city regency that has not previously had a track record of consumerism.
The entrepreneurs' courage to open these businesses demonstrates that Tegal Regency residents' interest in coffee shops should be quite high.
(Pratiwi & Dwijayanti, 2.
Coffee shops are currently being utilized in various situations by the public, prompting many business owners to enter the coffee shop industry, seeing a surge in interest from various groups of coffee shop visitors.
However, not all coffee shops in Tegal Regency attract a large number of customers.
In reality, only a few are consistently busy.
This is influenced by several factors, such as the products offered, the coffee shop's location, the brand, the product price, consumer lifestyle, promotional techniques, and so on.
(Wowor et al.
, 2.
Ultimately, coffee shops that fail to maintain good business performance cannot sustain their business.
The number of coffee shops in Tegal Regency has indeed increased significantly year after year.
However, several shops have closed within a year or so.
Table 1.
List of coffee shops in Tegal Regency that closed within one year Coffee Shop Name Slawi Competition Place One Way Cafe Brow Cafe Green Garden Cafe Uncle Cafe Milk Coffee Right Aligned New Kmu Coffee Rawamba Coffee Kalih Coffee Source: Tegal Regency Cooperatives Office 2023 Management Department.
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It can be concluded that approximately 9.
09% of coffee shops opened fail within a year.
This phenomenon is important to highlight because it is undoubtedly caused by poor business management.
On the background explainedThis indicates a gap phenomenon.
Over the past three years, the number of coffee shops in Tegal Regency has increased significantly, reaching 110 outlets.
This figure is very encouraging for a regency previously unknown for its consumptive lifestyle, especially in the context of coffee shops.
The courage of these entrepreneurs to open coffee shops is an indicator of the high level of public interest in coffee shops in Tegal Regency.
Coffee shops, which are now a favorite place for people to socialize, work, and relax, are increasingly attracting the attention of business people to enter this industry.
However, behind the rapid growth in the number of coffee shops, there is a contrasting reality.
Not all coffee shops are consistently successful in attracting and retaining customers.
Only a handful are able to survive with good business performance and a busy customer base.
Factors such as product variety, strategic location, brand strength, pricing, consumer lifestyle, and promotional strategy influence a coffee shop's success or failure (Wowor et al.
, 2.
This reality is reflected in the fact that 09% of coffee shops had to close their doors within less than a year of their establishment, as recorded by the Tegal Regency Cooperatives Office in 2023.
The closure of several coffee shops in Tegal Regency has drawn significant attention because it indicates problems in business management and administration.
The inability of businesses to survive indicates that their business models and procedures are not sufficiently adaptive, creative, and innovative in addressing market dynamics and consumer needs (Farida & Setyawan, 2.
This situation requires businesses to conduct a comprehensive evaluation and adopt strategies that are more responsive to changes in the business environment to achieve their primary goals of profitability, business sustainability, and long-term success.
By gaining a deeper understanding of the factors influencing business performance and competitive advantage of coffee shops in Tegal Regency, this study aims to identify how entrepreneurial orientation, business environment adaptability, and strategic orientation can play key roles in improving business performance and maintaining business sustainability amidst intense competition.
This research is also to fillresearch gapAlthough several studies have examined the relationship between these variables, the results still show differences and inconsistencies.
For example, some studies state that entrepreneurial orientation has a significant effect on competitive advantage and business performance (Rini et al.
, 2.
, while others find no significant effect (Yuliana & Widowati.
A similar finding applies to the variable of business environmental adaptability, where some studies indicate an effect of adaptability on competitive advantage and business performance (Ikhwani et al.
, 2023.
Hidayat et al.
, 2.
, while others find no such effect (Nurbatiy, 2020.
Vega et al.
, 2.
Furthermore, strategic orientation remains a matter of debate, with some supporting its effect on competitive advantage (Mulyono, 2.
, but others finding no effect on business performance (Nugroho et al.
, 2.
This discrepancy in research results highlights an important research gap that needs to be filled: the lack of studies that simultaneously examine these five variables within a single, comprehensive model.
Therefore, this study will conduct a more in-depth and integrated examination of the relationships among entrepreneurial orientation, strategic orientation, business environment adaptability, business performance, and competitive advantage, in order to provide a more accurate and contextual understanding, specifically within the coffee shop industry in Tegal Regency.
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This study offers significant scientific novelty in understanding the dynamics of the coffee shop business in Tegal Regency through the simultaneous testing of five key variables: entrepreneurial orientation, strategic orientation, business environment adaptability, business performance, and competitive advantage.
This novelty lies in the comprehensive integration and testing of variables that have largely not been studied simultaneously and in an integrated manner within the same research model, particularly in the context of the coffee shop industry in a developing region such as Tegal Regency.
Furthermore, this study balances the debate over previous research findings that indicate inconsistent influence of each variable.
It is hoped that it can provide a more valid and contextual empirical contribution to the development of entrepreneurial management theory and practice and business strategy in the micro and small business sector, particularly coffee shops.
With this approach, this study not only enriches the academic literature but also provides applicable strategic recommendations for business actors in facing the challenges and changes in the rapid and dynamic business environment.
Formulation Of The Problem Based on the problem formulation that has been explained in the background, the research questions are as follows:
Does the entrepreneurial orientation perspective have an influence on business performance? Does the adaptability of the business environment have an impact on business performance? Does strategic orientation affect business performance? Does the entrepreneurial orientation perspective have an influence on competitive advantage? Does the adaptability of the business environment have an influence on competitive advantage? Does strategic orientation have an influence on competitive advantage? Does competitive advantage affect business performance? Does competitive advantage mediate the effect of entrepreneurial orientation on business Does competitive advantage mediate the effect of business environment adaptability on business Does competitive advantage mediate the effect of strategic orientation on business performance? This section describes the problem that arises from a gap between the expectation and the actual condition .
There are several kinds of gaps: the theoretical .
gap obtained from literature review, the empirical gap obtained from the results of previous research, the practical .
gap obtained from phenomena in the field, threats and challenges, as well as opportunities.
Researchers must be able to distinguish between problems and symptoms .
igns/indications of a Symptoms are generally easier to identify, while the problem is the cause of the symptom that needs to be investigated.
The introduction should explain the purpose, the urgency, and the benefits of the research.
In this section, the state of the art and novelty of the research should be emphasized.
The introductory section also contains what has been researched, what is currently being done, what will be done and what is the research gap.
The paper should at least contain the Introduction.
Literature Review.
Methods.
Results and Discussion.
Conclusions, and Bibliography.
(Cambria, 12pt, 1.
15 spac.
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Methods Types and Sources of Research Data Data Types This research uses a mixed methods approach, a combination of quantitative and qualitative According to Creswell .
, mixed methods combines elements of both types of research to obtain more comprehensive, valid, reliable, and objective data (Sugiyono, 2.
This approach stems from the debate between two fundamental paradigms: positivism/empiricalism .
and constructivism/phenomenology .
, thus, mixed methods is based on the post-positivist The choice of this method is based on the principles put forward by Creswell .
, such as triangulation to achieve harmony in results and complementarity to accommodate complex indicators that may be contradictory in society.
The research model used is an explanatory sequential strategy, in which quantitative research is conducted first to obtain numerical data which is then analyzed, followed by qualitative research as an in-depth study to explain the initial findings holistically and This strategy was chosen to ensure that the research results leave no gaps or unanswered questions.
Data source This study uses two types of data sources to support the analysis and hypothesis testing: primary data and secondary data.
Primary data is the primary data obtained directly from the field through questionnaires and interviews with coffee shop owners in Tegal Regency, which serves as the primary reference for the study.
Meanwhile, secondary data consists of supporting data obtained from public information, such as books, theses, journals, and other scientific documents.
This secondary data is used to complement and support the explanation of how entrepreneurial orientation, business environmental adaptability, and strategic orientation influence business performance through the mediation of competitive advantage.
Population and Sample This study took a population of 110 coffee shop entrepreneurs in the Food and Beverage sector of Tegal Regency, according to data from the Tegal City Cooperatives and SMEs Sub-dept.
(Sudin KUMKMP).
This population is considered homogeneous according to Sugiyono's .
definition in the study.
The research sample used a population census technique, so that the entire population was sampled to ensure credible, valid, and reliable data.
In the qualitative analysis, informant samples were selected using purposive sampling based on diverse quantitative findings .
aximum variatio.
Informant sampling was carried out until data saturation was achieved, with five informants representing different data variations.
Data Analysis Techniques Qualitative data To ensure there is no confusion in understanding the steps of this research, the author has provided a brief overview of the data analysis techniques that will be used in this study.
The following is the intended model.
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Diagram 3.
Mixed Method Data Analysis Model Quantitative Data Analysis The analysis was carried out using Structural Equation Modeling (SEM) with the help of PLS 4.
software to test the influenceEase, usefulness and credibility towards repeat usage intention are mediated by usage satisfaction in Bank Jateng's smart behavior.
Results and Discussion Data Analysis Results The following is a table that combines data on respondents' gender, age, and education along with a brief explanation below.
Table 2.
Respondent Identity Respondent Number of Percentage Category Characteristics (%) Man Gender Woman Total < 20 years 20 Ae 35 years Age 36 Ae 50 years > 50 years Total Elementary/Middle School Senior High School Diploma Education Bachelor's/Master's/Doctoral Degree Total The table above combines the demographic data of the study respondents, including gender, age, and education.
This data shows that the majority of respondents were male .
%).
In terms of age, most respondents were between 20 and 35 years old .
54%) and 36 and 50 years old .
64%).
In terms of education level, the majority of respondents had a diploma or a bachelor's degree or higher, at 36% and 39.
09%, respectively.
The census sampling method ensures that this data is representative without any selection based on these demographic characteristics.
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Instrument Validity Test Validity testing using convergent validity.
Calculations using PLS 4 yield the following results:
Figure 4.
Outer Loading Results The results in the form of images are supported by the results in the following table:
Table 3.
Outer Loading Test Results Outer Variables Indicator AVE Information Loading X1.
Valid X1.
Valid X1.
Valid X1.
Valid X2.
Valid X2.
Valid X2.
Valid X3.
Valid X3.
Valid X3.
Valid X3.
Valid X3.
Valid X3.
Valid Valid Valid Valid Valid Valid Valid Valid Source: processed data, 2025 Management Department.
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Based on the table above, it shows that the indicators for each variable in this study have an average loading factor value of > 0.
7, which can be explained that the indicators are able to measure the The level of convergent validity indicated by the AVE value >0.
50 has fulfilled the requirements for good convergent validity.
Discriminant Validity Discriminant validity should be assessed using the Fornell and Rucker criteria.
Discriminant validity is a form of assessment to ensure that the variables are theoretically distinct and empirically proven/statistically tested.
The Fornell and Rucker criteria state that the square root of the AVE is greater than the correlation between the variables.
as follows.
Table 4.
Results of the Discriminant Validity Test (Fornell Larcker Criterio.
Adaptability Environment Business Environmental Adaptability Business Superiority Compete Performance Business Orientation Entrepreneurship Orientation Strategy Superiority Compete Performance Business Orientation Entrepreneurship Orientation Strategy Source: Processing Output with smartPLS 4.
From table 4.
above it can be concludedDiscriminant Validity Ae The Fonnell-Lacker Criterion is This can be seen from the value of each variable being greater than its relationship with other Reliability Test Composite Reliability and Cronbach's Alpha tests aim to assess the reliability of instruments within a research model.
If all latent variable values have a Composite Reliability or Cronbach's Alpha value of Ou 0.
70, this indicates good reliability of the construct, indicating that the questionnaire used as a research tool is consistent.
Table 5.
Reliability Test Results Environmental Adaptability Business Superiority Compete Performance Business Orientation Entrepreneurship Orientation Strategy Cronbach's Composite .
Composite .
Average variance extracted (AVE) Information Reliable Reliable Reliable Reliable Reliable Source: Primary data processed 2025 Management Department.
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These results show that each research variable is reliable > 0.
7, in other words, the question item indicators used in this research have high consistency in measurement.
Inner Model Structural model evaluation is related to testing the hypothesis of the influence between research As follows.
Figure 5.
Inner Model R-Square (R.
Value The R-square statistic measures the extent to which the variation in an endogenous variable can be explained by other exogenous variables in the model.
Qualitative interpretations of the R-square values are 0.
ow influenc.
, 0.
oderate influenc.
, and 0.
igh influenc.
Table 6.
R-Square R-square Competitive Advantage Business Performance Source:Data was processed with SmartPLS 4 Based on the data processing results above, it can be concluded that the magnitude of the influence on Business Performance is 96.
5% .
strong influenc.
The magnitude of the influence is 96.
5%, while the remaining 3.
5% can be explained by other factors not discussed in this study.
Hypothesis Testing Results (Path Coefficient Estimatio.
To determine whether it is significant or not, look at the t-table at alpha 0.
%) = 1.
Then the t-table is compared with the calculated t-statistic.
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Table 7.
Hypothesis Testing Results Original Sample Standard T statistics sample mean deviation (|O/STDEV|) values (O) (M) (STDEV) Business Environment Adaptability > Competitive Advantage Business Environment Adaptability -> Business Performance Competitive Advantage -> Business Performance Entrepreneurial Orientation -> Competitive Advantage Entrepreneurship Orientation > Business Performance Strategic Orientation -> Competitive Advantage Orientation_Strategy -> Business Performance Source: Processing Output with smartPLS 4.
4,125
0,000
1,984
2,736
2,273
2,281
3,236
1,994
Table 8.
Hypothesis Testing Results Original Sample Standard
sample mean
(O)
(M)
(STDEV)
Business Environment Adaptability -> Competitive Advantage -> Business Performance Entrepreneurial Orientation -> Competitive Advantage -> Business Performance Strategic Orientation -> Competitive Advantage -> Business Performance Source: Processing Output with smartPLS 4.
T statistics (|O/STDEV|) values 2,110 2,021 2,163 Based on the results of the hypothesis testing above, the following is known:
The first hypothesis (H.
was accepted, indicating a significant influence of entrepreneurial orientation on business performance, with a t-statistic of 2.
281 and a p-value of 0.
This indicates that the stronger the entrepreneurial orientation of a business actor, the more significantly their business performance will improve.
The second hypothesis (H.
was accepted, indicating that business environment adaptability has a significant positive effect on business performance, with a t-statistic of 1.
984 and a p-value of 0.
This indicates that the ability of business actors to adapt to the business environment has a significant impact on business performance.
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The third hypothesis (H.
is accepted, strategic orientation has a significant positive effect on business performance with a t-statistic of 1.
994 and a p-value of 0.
Thus, implementing a good strategic orientation can significantly improve business performance.
The fourth hypothesis (H.
was accepted, as entrepreneurial orientation had a significant positive effect on competitive advantage, with a t-statistic of 2.
273 and a p-value of 0.
This indicates that a strong entrepreneurial orientation helps business actors build competitive advantage.
The fifth hypothesis (H.
is accepted, business environmental adaptability has a significant positive effect on competitive advantage with a t-statistic of 4.
125 and a p-value of 0.
The ability to adapt to the environment makes a real contribution to increasing competitive advantage.
The sixth hypothesis (H.
was accepted, strategic orientation had a significant positive effect on competitive advantage with a t-statistic of 3.
236 and a p-value of 0.
This means that an effective strategic orientation is crucial in strengthening a business actor's competitive position.
The seventh hypothesis (H.
was accepted, competitive advantage has a significant positive effect on business performance with a t-statistic of 2.
736 and a p-value of 0.
The competitive advantage possessed by business actors significantly contributes to improving business The eighth hypothesis (H.
is accepted, competitive advantage mediates the influence of entrepreneurial orientation on business performance with a t-statistic of 2.
021 and a p-value of This indicates the important role of competitive advantage as a mediator in the relationship between entrepreneurial orientation and business performance.
The ninth hypothesis (H.
is accepted, competitive advantage also mediates the effect of environmental adaptability on business performance with a t-statistic of 2.
110 and a p-value of This confirms that the effect of environmental adaptability on business performance occurs through competitive advantage.
The tenth hypothesis (H.
is accepted, competitive advantage mediates the influence of strategic orientation on business performance with a t-statistic of 2.
163 and a p-value of 0.
In other words, competitive advantage is a significant mediating factor in the relationship between strategic orientation and business performance.
Factors Affecting Business Performance through the Integration of Quantitative and Qualitative Results The Influence of Entrepreneurial Orientation on Business Performance Entrepreneurial orientation has a significant influence on competitive advantage, with a tstatistic of 2.
281 and a p-value of 0.
This means that the higher the entrepreneurial spirit of a business actor, the greater the opportunity to create competitive advantage.
Business actors who are willing to take risks and are innovative are able to create added value that competitors do not have.
This is a differentiating factor that provides a more competitive position in the market.
Informant IL stated that with strategic business skills, entrepreneurs will find it easier to achieve high business "After going through many dynamics.
I began to build a more sustainable work system.
I learned a lot from direct experience in the field, from managing inconsistent suppliers to dealing with sudden decisions about HR.
From there.
I realized the importance of daily data as a decision-making tool.
Now I'm more focused on integrating operational recording systems with marketing insights, so it's not only Management Department.
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efficient on the backend but also adaptive to changes in consumer behavior.
This approach is quite significant in maintaining the pace of business growth.
" (IL, 2.
This research disagrees with research conducted by Mahmoud .
Entrepreneurial innovation is the desire of entrepreneurs to encourage and support creativity in the form of launching new or improved products or services.
Innovation allows companies to differentiate their products from In a competitive business environment, companies that are not entrepreneurially oriented will disappear from the market quickly.
Organizations that act entrepreneurially are better positioned to adapt to a changing business environment.
This study also disagrees with Asyhari's .
statement, which states that entrepreneurial orientation enables companies to seek and exploit market opportunities where competitors have not yet reached, take risks, and introduce new products to achieve sustainable competitive advantage (Asyhari et al.
, 2.
In relation to the above, the findings of Ilyas et al.
's .
study state that entrepreneurial orientation in the form of the need for achievement, independence, and extra effort influences the performance of SMEs in South Sulawesi.
The Influence of Environmental Adaptability on Business Performance The results of the study indicate that business environment adaptability has a positive and significant impact on business performance, with a t-statistic of 1.
984 and a p-value of 0.
048, which is lower than the 0.
05 significance level.
This finding suggests that businesses that are able to adapt effectively to changing market trends, technology, and consumer needs will achieve significant improvements in business performance.
These findings confirm that environmental adaptability is not merely a reactive response to change, but rather a strategic capability that needs to be integrated into business planning and implementation Strong adaptability enables companies to anticipate risks and capitalize on opportunities arising from external environmental dynamics, thereby maintaining and enhancing competitiveness (Teece.
Pisano, & Shuen, 1.
Relevant qualitative findings from this study confirm this internal change process, as stated below:
"From chaotic to structured.
Initially.
I did everything myself, but now I have a system in place, albeit one that remains flexible.
Stock management, finances, and even communication between staff are now much more streamlined.
But there's still room for spontaneity to keep the business alive.
" (SQN, 2.
This statement emphasizes that environmental adaptability is not only about adjusting to external conditions, but also has an impact on improving internal management that is more efficient and organized, while maintaining the space for innovation and spontaneity that is important for business continuity.
Previous research supporting these findings includes a study by Lee and Trimi .
, which emphasized the importance of organizational adaptability as a foundation for innovation and improved business performance in the face of rapid market change.
Furthermore.
Wan and Yiu .
demonstrated that companies with high levels of adaptability are better prepared to face uncertainty and have greater opportunities for product and process innovation.
This aligns with the concept of dynamic capabilities, which states that the ability to adapt and transform resources according to environmental needs is key to business continuity (Eisenhardt & Martin, 2.
Operationally, the environmental adaptation process drives improvements in internal management, such as inventory management, financial management, and staff communication, all of which contribute to a more structured yet flexible work system.
This enables businesses to operate efficiently while maintaining the ability to innovate and respond quickly to market changes.
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From a practical perspective, business actors are expected to focus not only on adaptability but also on developing innovative strategies and building sustainable competitive advantages.
Integrating adaptability with proactive strategies will result in more optimal business performance and resilience to external pressures (Zhou & Wu, 2.
The Influence of Strategic Orientation on Business Performance Strategic orientation has also been shown to significantly influence competitive advantage, with a t-statistic of 1.
994 and a p-value of 0.
A strategy focused on creating added value for customers can become the basis for competitive advantage.
With a clear strategy, business actors can focus more on developing products, services, and customer experiences.
Strategic clarity also helps in facing competition and market changes.
SQN informants stated that with an entrepreneurial orientation in the form of innovative strength, entrepreneurs will more easily generate high competitive advantages.
"I play with storytelling.
Every menu item has a story, like "Kopi Senja Rasa Rindu" (Sunset Coffee with a Taste of Longin.
, which is not only delicious but also evokes memories.
The seating is also arranged so people can 'experience' the atmosphere.
I believe innovation isn't just about form, but also about " (SQN, 2.
This research aligns with research conducted by Subayo & Samari .
, which states that business strategy is a business's ability to capitalize on existing opportunities.
Business strategies, with indicators such as cost leadership, differentiation, and focus, have been shown to significantly impact business performance (Subayo & Samari, 2.
The combination of these three strategies together forms an effective business strategy and will certainly impact competitive advantage.
With a cost leadership strategy, costs are more efficient.
with a differentiation strategy, businesses can adapt to market demands.
and with a focus strategy, businesses can penetrate markets.
Butkovic .
argues that a stronger business strategy will improve business performance, as it will provide opportunities to create new ideas and penetrate markets.
By implementing a good combination strategy, companies have been shown to be able to respond to environmental changes, resulting in business survival (Subagyo.
This research aligns with previous research that stated that implementing a combination strategy leads to higher business performance.
The Influence of Entrepreneurial Orientation on Competitive Advantage Based on the latest quantitative analysis, entrepreneurial orientation has a positive and significant effect on competitive advantage, with a t-statistic of 2.
273 and a p-value of 0.
025, which is less than 0.
These findings indicate that entrepreneurial spirit, such as innovation, proactivity, and risk-taking, has been proven to enhance the ability of business actors to create a real competitive advantage in the coffee This finding represents a significant update from previous findings that indicated no significant This change reinforces the understanding that entrepreneurial orientation is a key element in developing competitive advantage, directly impacting business performance.
Qualitative data also supports these quantitative findings.
MAN informants explained that entrepreneurial orientation serves as a foundation for deeply understanding market trends and applying them to create a distinct advantage:
"I observe market trends not only from what goes viral on social media, but also from the activity patterns of the local community.
I often chat with old and new customers, then observe their habits:
arrival times, favorite orders, and length of stay.
From there.
I can read the direction of my local market.
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I also diligently benchmark in other cities, not to copy, but to see how far trends have developed outside before entering Tegal.
" (MAN, 2.
This approach demonstrates that an entrepreneurial orientation helps business actors accurately and quickly understand market needs, enabling them to respond with innovative and relevant strategies.
In other words, an entrepreneurial orientation builds the foundation for competitive advantage through developing market insight and continuous adaptation.
Previous research by Ikhwani et al.
and Munawar .
supports these findings, stating that entrepreneurial orientation makes a significant contribution to strengthening competitive advantage by increasing adaptability and innovation.
Therefore, these research findings confirm that businesses that cultivate a strong entrepreneurial culture will be better prepared to face dynamic and complex market competition.
The Influence of Environmental Adaptability on Competitive Advantage Business environment adaptability also showed a significant influence on business performance, with a t-statistic of 4.
125 and a p-value of 0.
This indicates that a coffee shop's ability to adapt to changes in the external environment significantly impacts business results.
A dynamic business environment demands that business owners be responsive and flexible in developing strategies.
This adaptability plays a crucial role in maintaining business sustainability and growth.
This finding supports the literature stating that adaptive capacity is key to creating unique value and maintaining a competitive position.
Informant IL stated that with the ability to adapt to circumstances, entrepreneurs will more easily generate a high competitive advantage.
"I have, especially when the cafe trend started shifting towards grab & go or coffee by the liter during the pandemic.
Meanwhile.
I built this cafe from the concept of a slow bar that's comfortable for hanging But I didn't lose my enthusiasm.
I adapted by creating to-go versions of some of the menu items, plus slightly overhauling the layout to suit all types of customers.
The point is to be flexible without losing character.
" (IL, 2.
This research aligns with research conducted by Ikhwani et al.
, which showed that environmental adaptability positively influences sustainable competitive advantage.
This suggests that adaptability plays a role in determining sustainable competitive advantage in businesses or This finding aligns with previous research that found environmental adaptability influences sustainable competitive advantage (Nashiruddin, 2.
The Influence of Strategic Orientation on Competitive Advantage Strategic orientation has been shown to significantly influence business performance, with a tstatistic of 3.
236 and a p-value of 0.
This indicates that a well-targeted, consistent, and focused strategy will positively impact business performance.
Developing a strategy relevant to market conditions helps entrepreneurs set priorities and objectives.
A strong strategy creates focus in running a business and encourages resource efficiency.
WDA informants stated that with strategic business skills, entrepreneurs will more easily achieve a strong competitive advantage.
"Thank God.
I've matured quite a bit in those four areas.
While I initially received a lot of help from my family.
I decided to take business courses, particularly those focusing on F&B management.
Now I'm more focused on budgeting, evaluating team performance, and understanding the ROI patterns of marketing strategies.
All of these significantly impact business growth.
" (WDA, 2.
This research aligns with research conducted by Haiban .
, which provides a more appropriate conceptual understanding and modeling of a company's strategic orientation .
Management Department.
Faculty of Economics and Business.
Universitas Bung Hatta
Jurnal
Manajemen
Universitas Bung Hatta
ISSN
: 2615-537
Vol.
No.
July 2025 ISSN : 1907-6576 .
ISSN : 2615-5370 .
competitive, and technologica.
Such strategic orientation in the context of product innovation development provides evidence for best practices.
Therefore, it can be concluded that strategic orientation influences the design of product innovations to be issued by each company, which aims to increase the company's competitive advantage.
Strategic orientation also leads to technological improvements because it is used to build and develop company products that are different from those of its competitors.
From this description, strategic orientation influences product innovation.
The Influence of Competitive Advantage on Business Performance Competitive advantage significantly impacts business performance, with a t-statistic of 2.
736 and a p-value of 0.
This indicates that businesses with specific advantages over competitors tend to achieve better performance.
These advantages can include product quality, service, location, or attractive promotional strategies.
When these advantages are perceived by consumers, loyalty and satisfaction increase, resulting in improved performance.
LAP informants stated that competitive advantage stems not only from product quality but also from the comfort of the venue and the service provided.
This demonstrates that even small added value can be a powerful differentiator amidst fierce competition among coffee shops.
"I think customers don't come just for the coffee, but also because of the comfortable atmosphere.
Many order just a basic coffee, but they linger because the place is cool, clean, and the service is fast.
That's what keeps them coming back, and that's what's slowly increasing our turnover.
" (LAP, 2.
These findings reinforce the understanding that competitive advantage is a crucial element in building a sustainable business.
When businesses can offer value that is difficult for competitors to imitate, it fosters customer loyalty, enhances reputation, and ultimately leads to stable business growth.
Therefore, investing in building competitive advantage through innovation, excellent service, or product differentiation is a strategic step towards achieving superior business performance amidst increasingly fierce competition.
The Influence of Entrepreneurial Orientation on Business Performance through Competitive Advantage The results of the quantitative analysis indicate that competitive advantage does not significantly mediate the effect of entrepreneurial orientation on business performance, with a t-statistic value of 521 .
ess than 1.
and a p-value of 0.
reater than 0.
This indicates that in the context of this study, entrepreneurial orientation has not been effectively translated into competitive advantage to improve business performance statistically.
However, qualitative interview results provide a more in-depth picture of the dynamics of entrepreneurial orientation in the field.
A WDA informant stated:
"Because in business, stagnation is a greater risk than change.
I realize that I started with the privilege of capital, but success cannot be inherited.
I had to be brave in trying new things, including when I decided to open my first branch with a quite different concept.
Risk is not an enemy, but a partner that needs to be understood and managed.
" (WDA, 2.
This statement shows that although statistically the influence of entrepreneurial orientation through competitive advantage is not significant, business actors still show an active entrepreneurial attitude in taking risks and innovation which has the potential to support practical and long-term improvements in business performance.
This research differs from Munawar's .
findings, which state that a high entrepreneurial orientation can increase environmental adaptability and support competitive advantage, leading to Management Department.
Faculty of Economics and Business.
Universitas Bung Hatta
Jurnal
Manajemen
Universitas Bung Hatta
ISSN
: 2615-537
Vol.
No.
July 2025 ISSN : 1907-6576 .
ISSN : 2615-5370 .
improved business performance.
This difference implies that, under the specific conditions and context of this study, other external or internal factors may be more dominant in influencing business Therefore, the mediation of competitive advantage by entrepreneurial orientation requires more careful consideration.
Therefore, for business actors, the courage to take risks and innovation must be maintained, but it needs to be combined with strengthening other factors such as operational management, marketing, and more targeted strategies so that business performance can be accelerated more significantly.
The Influence of Environmental Adaptability on Business Performance through Competitive Advantage Competitive advantage also mediates the effect of environmental adaptability on business performance, with a t-statistic of 2.
110 and a p-value of 0.
This indicates that a business's ability to adapt to environmental conditions will be more effective if supported by the creation of competitive Adaptation allows businesses to respond to change more quickly, but competitive advantage amplifies its impact on performance.
Thus, competitive advantage is an important pathway in magnifying the positive effects of adaptability.
This indirect effect is significant and provides added value to business strategy.
Informant A stated that with adaptability, entrepreneurs will find it easier to achieve high business performance.
I listen to my customers, but I also educate the market.
One of our brand values is delivering a quality coffee experience, not just satisfying a fleeting taste.
We create trends with consistency and a unique customer experience.
(A, 2.
This research is in line with research conducted by Munawar, .
which explained that company owners who are creative, proactive, innovative, and dare to take measured risks will be better able to face competition in the industry.
A resilient entrepreneur is required to be able to overcome environmental changes that continue to occur.
The higher the ability to adapt to changes in science, technology and the competitive environment, the greater their ability to innovate in producing new products that can be valuable to consumers.
Companies that have a high entrepreneurial orientation use their active, proactive and innovative abilities so they can adapt to the ever-changing competitive environment (Munawar, 2.
, and ultimately are able to survive in the long term and have a sustainable competitive advantage (Nashiruddin, 2.
The Influence of Strategic Orientation on Business Performance through Competitive Advantage Competitive advantage has been shown to mediate the influence of strategic orientation on business performance, with a t-statistic of 2.
163 and a p-value of 0.
This means that the strategy implemented will have a greater impact on improving business performance if it is able to produce advantages that differentiate the business from competitors.
Without these advantages, the implemented strategy will not produce maximum results.
Competitive advantage acts as a bridge connecting strategic orientation with business performance achievement.
This demonstrates the importance of implementing strategies that focus on differentiation and added value.
WDA informants stated that with strategic capabilities in business, entrepreneurs will find it easier to achieve high business performance.
"We offer a "slow bar" concept where customers can watch the manual brewing process live while chatting with the barista.
This creates a more personal relationship.
Furthermore, we also have a "Coffee for Teachers" program where a portion of the profits are donated to support local education.
Innovation isn't just about products, but also about values.
" (WDA, 2.
Management Department.
Faculty of Economics and Business.
Universitas Bung Hatta
Jurnal
Manajemen
Universitas Bung Hatta
ISSN
: 2615-537
Vol.
No.
July 2025 ISSN : 1907-6576 .
ISSN : 2615-5370 .
This research is in line with research conducted by Munawar, .
which explained that company owners who are creative, proactive, innovative, and dare to take measured risks will be better able to face competition in the industry.
A resilient entrepreneur is required to be able to overcome environmental changes that continue to occur.
The higher the ability to adapt to changes in science, technology and the competitive environment, the greater their ability to innovate in producing new products that can be valuable to consumers.
Companies that have a high entrepreneurial orientation use their active, proactive and innovative abilities so they can adapt to the ever-changing competitive environment (Munawar, 2.
, and ultimately are able to survive in the long term and have a sustainable competitive advantage (Nashiruddin, 2.
Conclusion Based on the analysis, it can be concluded that entrepreneurial orientation plays a crucial role in driving competitive advantage and improving business performance.
Through a spirit of innovation, courage to take risks, and a proactive attitude, companies are able to create added value that differentiates them from competitors and significantly increases their competitiveness.
Furthermore, adaptability to the business environment has also proven to be a key factor positively influencing business performance.
A company's ability to quickly adapt to changes in technology, consumer preferences, and market dynamics allows it to withstand competitive pressures while optimizing its Strategic orientation provides a strong foundation for the overall direction of a company's development, from products to operational processes.
A well-planned and targeted strategy not only maintains a company's market position but also serves as a catalyst for creating sustainable competitive In this context, competitive advantage acts as a mediating variable, bridging the influence of entrepreneurial orientation, environmental adaptability, and strategic orientation on business This advantage is realized through innovation, operational efficiency, service quality, and product and service differentiation.
Thus, these three key variables directly and indirectly improve business performance by creating and strengthening a company's competitive advantage in the market.
Research Implementation The implications of this research are ultimately divided into two: theoretical, practical, and policy Theoretically, this study provides insights into the influence of entrepreneurial orientation, strategic orientation, and entrepreneurial adaptability on business performance, mediated by competitive advantage.
This research provides knowledge that coffee shop business performance in Tegal Regency is objectively influenced by various aspects possessed by a business owner.
Therefore, this research can serve as a basis for further research with different approaches.
Practically, this research can serve as a reference for those starting or intending to start a business to achieve good business performance.
This research has been scientifically and objectively proven, making its accuracy measurable and applicable in real-life situations for business owners.
Furthermore, this research reveals several policies that business owners can consider to achieve good business performance, such as improving their ability to follow trends, compete with competitors, and even create opportunities for themselves.
Research Limitations This research is a preliminary study examining the influence of entrepreneurial orientation, business environment adaptability, and strategic orientation through the mediation of competitive Management Department.
Faculty of Economics and Business.
Universitas Bung Hatta
Jurnal
Manajemen
Universitas Bung Hatta
ISSN
: 2615-537
Vol.
No.
July 2025 ISSN : 1907-6576 .
ISSN : 2615-5370 .
advantage on business performance.
Therefore, it certainly has several limitations, such as the limited prior literature that combines these five variables for study with a coffee shop in a suburban area as the research object.
This makes this research quite deserving of further attention, given that basic research is still limited in many aspects, such as data, access, and the availability of a wider range of research Future Research Agenda Given the various limitations of this study, it is hoped that further in-depth research will be conducted on the influence of entrepreneurial orientation, business environment adaptability, and strategic orientation through the mediation of competitive advantage on business performance.
This is recommended for future researchers, given that topics related to business performance are timeless and will always be important for every businessperson.
Therefore, humans will always need these knowledges with scientific evidence.
Furthermore, despite these potential limitations, future research could examine similar topics with different dependent variables, hoping to discover other variables that significantly influence business performance.
This research could thus provide broader benefits.
Finally, one recommendation for similar research is to utilize a qualitatively driven mixed methods design.
This approach could potentially provide a new perspective, completely different from this study, and enrich the field of business management studies.
References