ENTREPRENEURIAL ORIENTATION, SOCIAL CAPITAL, AND ORGANIZATIONAL PERFORMANCE: THE ROLE OF SUPPLY CHAIN COORDINATION CAPABILITY IN BATIK SMES

Abstract

This study examines how entrepreneurial orientation contributes to organizational performance in cultural-creative SME supply chains by positioning supply chain coordination capability as the central operations and supply chain management mechanism. The empirical context is batik SMEs in Surakarta, Indonesia, where owners coordinate materials, artisans, quality routines, delivery activities, and buyer responses through dense local relationships. Drawing on entrepreneurial orientation theory, social capital theory, and buyer-supplier coordination research, the study develops a model in which entrepreneurial orientation affects performance through supply chain coordination capability. Structural, relational, and cognitive social capital are treated as conditional relational resources that may strengthen or weaken the conversion of entrepreneurial posture into operational routines. Data from 104 batik SME owners or managers were analyzed using common method bias diagnostics, measurement-model assessment, discriminant validity testing, hierarchical regression, mediation-oriented testing, interaction analysis, and simple slope analysis with firm-level controls. The measurement model shows acceptable reliability, convergent validity, and discriminant validity. Entrepreneurial orientation has a positive effect on supply chain coordination capability, and supply chain coordination capability has a positive effect on organizational performance. The indirect effect of entrepreneurial orientation on performance through supply chain coordination capability is significant. The interaction results show negative moderating effects for structural, relational, and cognitive social capital. This pattern indicates that social capital does not automatically amplify entrepreneurial orientation. Relational resources improve performance only when they are translated into information sharing, supplier coordination, quality monitoring, delivery discipline, and demand-responsiveness routines.