Business performance concept development apparel industry MSMEs in Bali

The apparel industry is one of the business sectors included in Micro, Small and Medium Enterprises (MSMEs) in Bali Province. These apparel industry MSMEs contribute to employment and economic growth in Bali, so their business sustainability must be maintained. Measuring the business performance of MSMEs in the apparel industry needs to be carried out on an ongoing basis to ensure that these MSMEs can survive in increasingly fierce competition. The objectives of this study are: first, to explain the role of innovation strategy in mediating the effect of entrepreneurial orientation on MSME business performance, and second, to explain the role of technological resources in moderating the effect of entrepreneurial orientation on MSME business performance. The research was conducted on apparel MSMEs in Bali with 220 respondents taken randomly. Data were analyzed using the Structural Equation Modeling-Partial Least Square (SEMPLS) technique. The analysis results show that entrepreneurial orientation has a significant positive effect on the performance of MSMEs. Entrepreneurial orientation has a significant positive effect on innovation strategy, and then innovation strategy has a significant positive effect on MSME business performance. Technological resources strengthen the influence of entrepreneurial orientation on MSME business performance.