Volume 30 Number 4, 2025

Configurations of Entrepreneurial Orientation, Institutional Pressure, and Dynamic Capabilities for High and Low SME Performance: An fsQCA Study of Manufacturing SMEs

Darwin Raja Unggul Saragih ^{a, *}, Wahyuningsih Santosa ^b, Bahtiar Usman ^{c
a, b, c} Doctoral Program, Faculty of Economics and Business, Universitas Trisakti, Jakarta Barat, Indonesia 
a drumunthe@gmail.com 
b wahyuningsih@trisakti.ac.id
c bachtiar.usman@trisakti.ac.id
 

ABSTRACT

This study examines how entrepreneurial orientation, institutional pressure, and dynamic capabilities combine to produce high and low SME performance among manufacturing SMEs in DKI Jakarta. Drawing on dynamic capability theory and adopting a configurational perspective, the study addresses the fragmentation of prior research, which has largely examined these domains separately and through net-effect logic. Data were collected from 450 owner-managers of registered manufacturing SMEs using a structured questionnaire. The analysis employed fuzzy-set Qualitative Comparative Analysis (fsQCA) to identify equifinal and asymmetrical pathways to performance. The findings reveal three sufficient configurations for positive SME performance and three for negative SME performance. Positive performance is associated with broad alignment across entrepreneurial orientation, institutional pressure, and adaptive capabilities, while negative performance emerges from both widespread condition absence and misaligned combinations of otherwise favorable conditions. The results also show that all nine first-order conditions are necessary for positive performance, whereas none is individually necessary for negative performance. These findings confirm equifinality and causal asymmetry, demonstrating that SME performance is not generated by isolated factors but by coherent causal recipes.

JEL Classifications: L-26

Keywords: fsQCA, entrepreneurial orientation, institutional pressure, dynamic capabilities, firm performance

Cite this article: 

Saragih, D. R. U., Santosa, W., & Usman, B., 2025, Configurations of Entrepreneurial Orientation, Institutional Pressure, and Dynamic Capabilities for High and Low SME Performance: An fsQCA Study of Manufacturing SMEs, International Journal of Business, 30(4), 003. https://doi.org/10.55802/IJB.030(4).003