Mediating Effects of Digital Technology on Entrepreneurial Orientation and Firm Performance: Evidence From Small and Medium-sized Enterprises (SMEs) in Indonesia

Small and Medium sized enterprises (SMEs) plays important role in Indonesia economic. It contributes to 99.9% of national economic, 97% to employment and 60.34% to Indonesia GDP. Moreover, Indonesia is known to be one of the most internet users. However, currently, there is lack of studies to understand the role of digital technology and entrepreneur orientation on influencing the performance of SME’s in Indonesia. This study aims to develop a conceptual model linking entrepreneurial orientation, digital technology capability and SME performance. This study is using Systematic literature review (SLR) method. The result of SLR was used as the based for the concept development. More than 1100 publication published from 2010 to 2019 were screened with entrepreneurial orientation, digital technology and SMEs’ performance as keywords. Finally, 34 journals were included for this review. Based on the review there were three possible relationships in the conceptual model which are (1) there is a positive relationship between entrepreneurial orientation and firm performance; (2) there is a positive relationship between entrepreneurial orientation and digital technology capability and (3) there is a positive relationship between digital technology capability and firm performance. It concludes with the need for further study to find empirical validation of the three relationships. Contribution of this study is giving the conceptual framework that both entrepreneurial orientation and digital technology capability might have important roles to SMEs’ performance in Indonesia. © 2019, Blue Eyes Intelligence Engineering and Sciences Publication. All rights reserved.