How to cite:
Yanita. (2022). The Influence of Labor Recruitment,
Entrepreneurship Training, Entrepreneurial Orientation, and
Organizational Innovation on The Performance of Entrepreneurs
with Entrepreneurial Commitment as The Intervening Variable.
Journal Eduvest. Vol 2(8): 1.636-1.647
E-ISSN:
2775-3727
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Eduvest –Journal of Universal Studies
Volume 2 Number 8, August, 2022
p-ISSN 2775-3735-e-ISSN 2775-3727
THE INFLUENCE OF LABOR RECRUITMENT,
ENTREPRENEURSHIP TRAINING, ENTREPRENEURIAL
ORIENTATION, AND ORGANIZATIONAL INNOVATION ON
THE PERFORMANCE OF ENTREPRENEURS WITH
ENTREPRENEURIAL COMMITMENT AS THE INTERVENING
VARIABLE
ABSTRACT
This research examined and analyzed the performance of
embroidery entrepreneurs in Aceh in five regencies consisting
of embroidery entrepreneurs in Banda Aceh, Aceh Besar,
Bireun, Lhokseumawe, and West Aceh. The sampling method
used was Proportional Stratified Sampling, which then carried
out random sampling in each city or district and obtained 198
embroidery entrepreneurs. This research used AMOS
Structural Equation Model (SEM) as a tool for data analysis.
The results revealed that Labor Recruitment, Entrepreneurship
Training, and Entrepreneurial Orientation positively influenced
Entrepreneurial Commitment and Entrepreneur Performance.
Meanwhile, organizational innovation had no positive
influence on entrepreneurial commitment and Entrepreneur
performance. The entrepreneurial commitment acted out as
the intervening variable mediated the relationship between
labor recruitment and Entrepreneur Performance (Fully
Mediated). The entrepreneurial commitment did not act as an
intervening variable and did not mediate the relationship
between entrepreneurial training and Entrepreneur
Performance (Partially Mediated). The entrepreneurial
commitment did not act as an intervening variable and did not
Yanita
The Influence of Labor Recruitment, Entrepreneurship Training, Entrepreneurial
Orientation, and Organizational Innovation on The Performance of Entrepreneurs with
Entrepreneurial Commitment as The Intervening Variable 1.637
mediate the relationship between entrepreneurial orientation
and Entrepreneur Performance (Partially Mediated). The
entrepreneurial commitment did not act as an intervening
variable and did not mediate the relationship between
organizational innovation and Entrepreneur Performance
(Non-Mediated).
KEYWORDS
Labor Recruitment, Entrepreneurship Training,
Entrepreneurial Orientation, Organizational Innovation,
Entrepreneurial Commitment, and Entrepreneur
Performance
This work is licensed under a Creative Commons
Attribution-ShareAlike 4.0 International
INTRODUCTION
Human Resources as human capital in a country like Indonesia needs to carry out
activities related to entrepreneurship that can encourage the community's economy and the
development of an area by utilizing existing resources. Activities in Human Resource
Management are closely related to planning to become entrepreneurs starting from
recruitment and training to performance either individually or in an organization. As the
Entrepreneurship business grows, Human Resources practices need to be more formal,
complex, systematic, and methodical, and disbursement of authority to subordinates aims
to achieve effective results (Bratton & Gold, 2017; Rauch et al., 2005; Vega et al., 2011).
So, the Resource Management process plays a substantial role in carrying out
entrepreneurship activities effectively and efficiently.
The development of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia
continues to increase from year to year, and it has attracted the attention of the Government
of Indonesia to continue to support MSMEs by assisting entrepreneurs in terms of capital
and skills. The ASEAN Economic Community (MEA) or others for ASEAN Economic
Community (AEC) inevitably forces MSME actors in Indonesia to be ready and brave to
compete against foreign products entering the Indonesian market. It is inseparable from the
well-performance of Entrepreneurs in every business operating in the community.
The increase in productivity of Human Resources (HR) surely can increase the
income ratio of an area. For this reason, it is necessary to continuously develop human
resources so that their productivity can be sustainable. Human resources development in
an area can be seen and developed from various businesses that have local wisdom and
economic value.
One of the economic values of a region appears in the embroidery business, which
is a cultural heritage obtained from economic activities from generation to generation.
Small family businesses represent small-scale economic activity and the results of
entrepreneurial ambition and family involvement. It means that emotional will and
commitment go hand in hand with calculative judgment. The embroidery business is an
activity that has economic value if it can survive and develop and is also an activity
generally carried out from generation to generation.
In the production process, it requires hand-made. As a small business, the growing
business process needs more serious attention for its development. This Embroidery
business may disappear or no longer be a job if the Human Resources involved in that field
have switched from embroidery business to other activities, such as Embroidery
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Entrepreneurs who also work in the City as laborers or workers. It can happen if the
Embroidery business cannot produce proper welfare for the entrepreneurs.
The development of the creative economy in Aceh has so far been considered not
optimal, even though various products from the food industry, handicrafts, arts, and others
in the creative economy group in Aceh have existed since the Iskandar Muda Kingdom.
One of them is the Aceh Embroidery Business, which generally has passed on from
generation to generation. This Embroidery Business may disappear if more and more
people leave or no longer try in the Embroidery Business field. For this reason, researchers
consider it substantial to look at the factors that can maintain and improve the performance
of Embroidery Entrepreneurs in Aceh.
Urata in (Hani et al., 2012) emphasized that small businesses significant play roles
as the primary players in economic activities, employer opportunities providers, and
important players in local economic and community development, market creation and
innovation through its dynamic flexibility and sensitivity as well as its relationship with
several companies, and as contributors to increasing non-oil and gas exports. Those points
can be supported by the skills of entrepreneurs in improving their business performance.
Performance is the quantity or quality of works of individuals or groups in the
organization in carrying out tasks and functions based on norms, criteria for standard
operating procedures (SOPs), and predetermined or applicable measures (Lumpkin & Dess,
1996). This research considers the performance of entrepreneurs as job creators, not a job
seeker.
As businesses grow and develop, HR practices must be more formal, complex,
systematic, and methodical, and disbursement of authority to subordinates is carried out to
achieve effective results (Bratton & Gold, 2017; Rauch et al., 2005; Vega et al., 2011). Thus,
the Human Resource Management process acts as a support to carry out Entrepreneurship
activities effectively and efficiently (Covin & Slevin, 1991). Entrepreneur performance is
part of Human Resources and a term of job performance or cctual performance, which is a
work achievement that will be achieved by an entrepreneur.
(Ahmed et al., 2015) defined "performance" as the results of work functions
(activities of a person) in an organization, which are influenced by various factors to
achieve organizational goals within a certain period.
Improving the performance of embroidery entrepreneurs must be a concern of
various related parties to have a wider influence in society. This improvement needs to be
carried out continuously and comprehensively to avoid the loss of a product, which is a
local cultural product obtained from generation to generation. If it is well developed, it can
absorb a lot of labor and is an effort to improve community welfare.
The number of workers in Aceh currently reaches 2.354 million people, and the
population of Aceh who works in various Government and Private Organizations reaches
2,200 million people, with the unemployment rate in Aceh reaching 5.53%. In addition,
Aceh is one of the provinces with the highest unemployment rate, which is ranked seventh
compared to other provinces, even below West Papua Province.
This condition requires the attention of the Aceh government in overcoming the
unemployment problem by strengthening small and medium scale industries, which are
currently starting to decrease in number, especially embroidery businesses. In all districts
and cities, the development of this industry tends to be slow and decline. This industry can
absorb skilled labor generally obtained from generation to generation from the community
if it is developed well. So, it is necessary to strengthen Human Resources to strengthen the
performance of Embroidery Entrepreneurs in Aceh.
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The Influence of Labor Recruitment, Entrepreneurship Training, Entrepreneurial
Orientation, and Organizational Innovation on The Performance of Entrepreneurs with
Entrepreneurial Commitment as The Intervening Variable 1.639
RESEARCH METHOD
Location and Object
The location of this research was Aceh, and the object was Acehnese Embroidery
Entrepreneurs. The variables studied consist of Labor Recruitment, Entrepreneurship
Training, Entrepreneurial Orientation, Organizational Innovation, Entrepreneurial
Commitment, and Entrepreneur performance.
Population and Sample
The population is all elements, scores, people, sizes, and others (Kurniullah et al.,
2021). The population in this research amounted to 805 Acehnese Embroidery
Entrepreneurs, while the sample used amounted to 198 samples taken using Random
sampling. The sampling method used was Proportional random sampling.
Data Collection Method
This research used primary data obtained by distributing questionnaires to
respondents. Also, it used secondary data from documentation taken from institutions, such
as the Central Bureau of Statistics, the Industry and Trade Office of Aceh Province,
textbooks, and articles related to research variables.
Data Analysis Techniques
There were two stages of data analysis in this research. First, analyzing the data for
instrument testing, with validity and reliability consisting of Bivariate Correlation and
Reliability Analysis, and second, testing the data to answer the hypothesis using descriptive
analysis and verification. The descriptive analysis consisted of descriptive analysis and t-
tests. Meanwhile, the tool used for the verification analysis technique was the Structural
Equation Model (SEM).
Validity and Reliability Test Design
Validity and reliability testing is the accuracy test of the data collection tool or
questionnaire used. The validity test of this instrument was carried out using SPSS
(Software Statistical Package for Social Science) software version 20. The reliability test
used in this study was the Cronbach Alpha Coefficient. A construct or variable is said to
be reliable if the value of Cronbach Alpha (α) > 0.60 (Ghozali, 2018)
Hypothesis Test Design
This research used two hypothesis testing. The first test was descriptive hypothesis
tests, and the second was verification hypothesis tests (to answer Hypotheses 2 to 9). This
research used the Structural Equation Model (SEM). The first step for developing the SEM
model was the development of a theoretical model, and the second step, the theoretical
model built in the first step, was described in a path diagram (including the operation of
the AMOS 21 program and earlier versions), as shown in the figure below:
Figure 2.2 Path Diagram (Full Model)
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Converting Path Diagram into Equation
After the theoretical model was developed and described in a flowchart, the researcher
converted the model specifications into equations consisting of:
First, structural equations to express causality between various constructs was built
with the following guidelines:
KW=b1OW+b2IK+b3RW+b4PK+z1… (1)
KI=b1OW+b2IK+b3RW+b4PK+b5KW+b6KWU +z2… (2)
Explanation:
KWU = Entrepreneur performance
KW = Entrepreneurial Commitment
RW = Labor Recruitment
PK = Entrepreneurship Training
OW = Entrepreneurial Orientation
IK = Organizational Innovation
b1-b5 = Coefficient Estimation
z1-z2 = Error Term (residual)
The second was a measurement model to determine which variable measures which
construct, and determine a series of matrices showing the hypothesized correlation between
constructs or variables.
RESULT AND DISCUSSION
Results
1. Validity and Reliability Tests
Validity Test
In SEM, validity testing is carried out by analyzing the Average Variance Extract
value where the acceptable Average Variance Extract value is at least 0.5 (Walter et al.,
2006). Based on the above calculation, the Average Variance Extract (AVE) value for all
latent constructs was > 0.5. So, it concluded that there was good convergent validity for all
latent constructs.
Reliability Test
The concept of reliability in SEM is known as the value of Construct Reliability
(CR). The minimum reliability value of the dimensions/indicators forming the latent
variable to be accepted is 0.70 to determine the value of Construct Reliability (CR)
(Ghozali, 2008). Based on the above calculation, the value of Construct Reliability (CR)
for all latent constructs was > 0.7. So, it concluded that all latent constructs were reliable
or met the reliability test.
1. Structural Equation Modeling (SEM)
Sample Size
The SEM model contains six forms, and each form has more than three items
(observable variables). If the commonality of each resulting item is > 0.6, it can be
estimated with a sufficient sample of 200-500 samples. The samples used in this research
were 198. So, it concluded that the model met the sample size assumption.
Data Normality
Normality can be tested by looking at the histogram image of the data or can be
tested by statistical methods. In this study, evaluation of normality was carried out using
the criteria of critical ratio skewness and Curtusis value of ± 2.58 at the significance level
of 0.01. The data can be concluded to have a normal distribution if the value of the critical
ratio for Skewness and Kurtosis has an absolute value between -2.58 to +2.58. Based on
the calculations, it showed that the Critical Kurtosis Ratio had an absolute value between
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The Influence of Labor Recruitment, Entrepreneurship Training, Entrepreneurial
Orientation, and Organizational Innovation on The Performance of Entrepreneurs with
Entrepreneurial Commitment as The Intervening Variable 1.641
less than – 2.58 to +2.58, both Univariate and multivariate. Thus, it concluded that the data
used was normally distributed.
Outlier
Extreme numbers (outliers) are observations that appear with univariate or
multivariate extreme values because of their unique combination of characteristics.
Abnormal Data is much different from other observations. In this study, the outlier data
test used the univariate Mahalanobis Distance test by comparing the values of p1 and p2.
Multivariate outliers test can be done with the Mahalanobis Distance (d2) statistic, which
has a chi-square (x2) distribution with degrees (df) of observation variables (p).
Mahalanobis Distance (d2) value of observation data was higher than chi-square (x2) with
a degree of freedom (df) of observation variable p and a significance level of <0.001. So,
the data was a multivariate outlier.
a. Univariate Outliers
Testing for the presence or absence of univariate outliers is conducted by analyzing
the standardized value (Z-score) and the research data used. If Z-score value is in the range
≥ ± 3, it will be categorized as Univariate outliers. The results of the univariate outlier test
showed that the Mahalonabis values for P2 were all above 0.5, which indicated that the
data were free from outliers. Furthermore, in the multivariate test, the highest Mahalanobis
d-squared value was 47.721, and the lowest was 24.284 or below 52.619. Thus, it concluded
that the data were free from outliers, both univariate and multivariate.
b. Multicollinearity and Singularity Tests
The model can be theoretically identified but cannot be solved because of empiric
problems, such as high multicollinearity in each model or path estimates approaching 0 in
non-recursive models. The multicollinearity assumption requires no perfect or significant
correlation between the independent variables. Because all SEM model variables have been
assigned a metric of 1, then all standardized regression weights must be within the range
of plus or minus 1. In this study, the value of the Determinant of the sample covariance
matrix was used to see multicollinearity and found that the value of the Determinant of the
sample covariance matrix was far away from 0.000. So, it indicated that there was no
multicollinearity between variables. The calculation results showed that the value of the
Determinant of the sample covariance matrix was 35,415, which was far from 0.000. It
concluded no symptom of data multicollinearity in this model or free from data
multicollinearity.
2. Conformity and Statistical Tests
The model suitability indices used are the same as in the confirmatory factor
analysis. SEM model testing is intended to see the suitability of the model. Based on the
results, the Chi-Square value was 275.794, and the probability was 0.239. It indicated that
the null hypothesis could not be rejected. So, it revealed no difference between the sample
covariance matrix and the estimated population covariance matrix. In addition, the other
feasibility indices were also within the expected value range. So, this model can be
accepted.
2. Hypothesis tests
If the probability (P) is < 0.05, the model will be accepted (there is an influence
between variables), and Vice-versa.
a. The Influence of Labor Recruitment, Entrepreneurial Training, Entrepreneur
Orientation, and Organizational Innovation on Embroidery Entrepreneurial Commitment
in Aceh.
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Volume 2 Number 8 , August 2022
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The results of the first stage of Hypothesis Tests were listed below:
H1: Labor recruitment positively influenced entrepreneurial commitment
The testing results of the estimation parameters on the effect of labor recruitment
on organizational innovation showed a CR value of 2.640 with a probability of 0.008. The
probability value was < 0.05 and accepted the model. Based on the results of testing the
estimation parameters on the effect of labor recruitment on entrepreneurial commitment,
the first hypothesis (H1) was accepted. The standardized coefficient value was 0.228,
indicating that labor recruitment positively influenced entrepreneurial commitment by
0.228. Therefore, labor recruitment positively and significantly influenced entrepreneurial
commitment, and in line with the research of (Ekwoaba et al., 2015).
H2: Entrepreneurship training positively influenced entrepreneurial commitment
The estimation parameters test results for the effect of entrepreneurship training on
entrepreneurial commitment showed a CR value of 2622 with a probability of 0.009. The
probability value was < 0.05, and the model was accepted. The estimation parameters
results for the effect of entrepreneurship training on entrepreneurial commitment revealed
that the second hypothesis (H2) was accepted. The standardized coefficient value obtained
was 0.182, which indicated a positive influence of entrepreneurship training on
entrepreneurial commitment by 0.182. Therefore, entrepreneurship training positively and
significantly influenced entrepreneurial commitment, and this result was in line with
research by (Mahmood et al., 2016a)
H3: Entrepreneurial Orientation Positively Influenced Entrepreneurial Commitment
The test results of the parameter estimation of the influence of entrepreneurial
orientation on entrepreneurial commitment show a CR value of 2.101 with a probability of
0.036. The probability value shows < 0.05. So, the model is accepted. Based on the test
results of the parameter estimation of the influence of entrepreneurial orientation on
entrepreneurial commitment, the third hypothesis (H3) was accepted with a standardized
coefficient value of 0.221 and indicated that entrepreneurial orientation positively and
significantly influenced entrepreneurial commitment, such as research conducted by
(Mayuran, 2016)
H4: Organizational Innovation positively influenced Entrepreneurial Commitment.
The results of testing the estimation parameters on the influence of organizational
innovation on entrepreneurial commitment showed a CR value of -0.306 with a probability
of 0.759. Because the probability value was > 0.05, the model was rejected. Based on the
testing results, the estimation parameters on the effect of organizational innovation on
entrepreneurial commitment, the fourth hypothesis (H4) was rejected with a standardized
coefficient value of -0.024 and indicated that organizational innovation did not influence
entrepreneurial commitment. The results of this study strengthened the research by
(Mahmood et al., 2016b)
H5: Labor recruitment positively influenced Entrepreneur performance.
The test results of the estimation parameters on the effect of labor recruitment on
Entrepreneur performance showed a CR value of 0.2471 with a probability of 0.013. The
probability value was < 0.05, and then the model was accepted. So, the Fifth Hypothesis
(H5) was accepted with the standardized coefficient value of 0.217. It revealed that labor
recruitment positively and significantly influenced Entrepreneur performance, and this
supported the research by (Sarinah et al., 2016)
H6: Entrepreneurship Training positively influenced Entrepreneur performance
The results of estimation parameters tests on the effect of Entrepreneurship training
on Entrepreneur performance showed a CR value of 2.318 with a probability of 0.020. The
probability value was < 0.05, and the model was accepted. Based on the results, the sixth
hypothesis (H6) was accepted with a standardized coefficient value of 0.225. It indicated
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The Influence of Labor Recruitment, Entrepreneurship Training, Entrepreneurial
Orientation, and Organizational Innovation on The Performance of Entrepreneurs with
Entrepreneurial Commitment as The Intervening Variable 1.643
that entrepreneurial training positively influenced Entrepreneur performance with the
significance of 0.225, and supported by the research of (Yiing & Ahmad, 2009)
H7: Entrepreneurial Orientation Positively Influenced Entrepreneur performance
The test results of the parameter estimation of the influence of entrepreneurial
orientation on Entrepreneur performance showed a CR value of 2.534 with a probability of
0.011 <0.05. So, the model was accepted, and the seventh hypothesis (H7) was accepted
with a standardized coefficient value of 0.196. It indicated that Entrepreneurial Orientation
positively and significantly influenced Entrepreneur performance and supported by the
research of (Gordon & DiTomaso, 1992a)
H8: Organizational Innovation Positively Influenced Entrepreneur performance
The test results of the parameter estimation for the influence of organizational
innovation on Entrepreneur performance showed a CR value of -1.019 with a probability
of 0.308. The probability value was > 0.05, and the model was rejected. The estimation
parameters results for the effect of organizational innovation on Entrepreneur performance
showed that the eighth hypothesis (H8) was rejected. The standardized coefficient value
was -0.080, indicating a positive influence of organizational innovation on Entrepreneur
performance by -0.080. Therefore, organizational innovation had no positive and
significant effect on Entrepreneur performance, and in line with(Gordon & DiTomaso,
1992b; Miller & Friesen, 1982)
H9: Entreprenerial Commitment positively influenced Entrepreneur performance
The results of the estimation parameters test on the effect of entrepreneurial
commitment on Entrepreneur performance showed a CR value of 1.972 with a probability
of 0.049 <0.05, then the model was accepted, and the ninth hypothesis (H9) was accepted
with a standardized coefficient value of 0.179. It indicated that entrepreneurial commitment
positively and significantly influenced Entrepreneur performance and supported the
research conducted by (Mostafa et al., 2005)
H10: Labor recruitment affected Entrepreneur performance through entrepreneurial
commitment
The results indicated that labor recruitment directly influenced Entrepreneur
performance with a standardized coefficient value of 0.217. Meanwhile, the indirect effect
was 0.041. So, the total effect was 0.258. Because the total effect was higher than the direct
effect, it concluded that entrepreneurial commitment had a significant role in mediating the
influence of labor recruitment on the performance of Embroidery Entrepreneurs in Aceh.
Furthermore, it concluded that labor recruitment positively influenced Entrepreneur
performance through the mediation of entrepreneurial commitment with a significant level
of influence of 0.041.
H11: Entrepreneurship training influenced Entrepreneur performance through
Entrepreneurial Commitment
The results showed that entrepreneurship training directly influenced entrepreneur
performance with a standardized coefficient value of 0.225, while the indirect effect was
0.033. So, the total effect was 0.258 or higher than the direct effect, which indicated that
entrepreneurial commitment had a significant role in mediating the effect of entrepreneurial
training on the performance of Embroidery Entrepreneurs in Aceh. Furthermore, it also
showed a positive influence of entrepreneurship training on entrepreneur performance
through the mediation of entrepreneurial commitment with the influence strength of 0.033.
Thus, H11 was accepted.
H12: Entrepreneurial Orientation affected Entrepreneur performance through
Entrepreneurial Commitment
Figure 4.7 indicated that Entrepreneur performance was directly affected by
entrepreneurial orientation with a standardized coefficient value of 0.196. Meanwhile, the
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indirect effect was 0.040. So, the total effect was 0.236 or higher than the direct effect,
which revealed that entrepreneurial commitment had a significant role in mediating the
influence of entrepreneurial orientation on the performance of embroidery entrepreneurs in
Aceh. Furthermore, there was a positive influence of entrepreneurial orientation on
Entrepreneur performance through the mediation of entrepreneurial commitment with an
influence level of 0.040. Thus, H12 was accepted.
H13: Organizational innovation influenced Entrepreneur performance through entrepre-
neurial commitment
Organizational innovation directly Entrepreneur performance with a standardized
coefficient value of -0.080, while the indirect effect was -0.004, and the total effect was -
0.084 or lower than the direct effect. It revealed that entrepreneurial commitment did not
significantly role in mediating the effect of organizational innovation on embroidery
entrepreneurs' performance in Aceh. Furthermore, organizational innovation did not
positively influence Entrepreneur performance through the mediation of entrepreneurial
commitment with the influence level of -0.004. Thus, H12 was rejected.
Discussions
Based on research conducted on the Embroidery Business in Aceh, the results
revealed that:
1. Labor recruitment, Entrepreneurship Training, Entrepreneurial Orientation, and
Organizational innovation positively influenced Entrepreneurial commitment. Labor
recruitment used indicators consisting of reliability, ease of application, important role,
reducing risk, recruitment according to needs, the usefulness of recruitment, increasing
profits, and economic benefits in the embroidery business in Aceh. Based on the average
value of the labor recruitment variable of 3.09, the labor recruitment was in the category of
disagreeing.
2. The results showed that labor recruitment positively and significantly influenced
organizational innovation with the P-value of 0.008 <0.05. (Brown et al., 2011) claimed
that labor recruitment significantly influenced the success of any organization and
functions as the heart of employee commitment that indirectly affects organizational
performance. The recruitment process provides an opportunity for the organization to gain
in-depth insight into the skills and competencies of any employee who is part of the
organizational culture. Besides, it also offers the same opportunity for evaluation to
newcomers. In this way, a synergistic relationship has been developed and will increase the
commitment of employees and the organization.
3. Entrepreneurship training used several indicators, consisting of customer service,
marketing, business record keeping/bookkeeping, quality maintenance, financial
management, and personal management. The mean value of entrepreneurship training was
3.52 and indicated less agree.
The results showed that entrepreneurship training positively and significantly
influenced organizational innovation with the P-value of 0.009 <0.05. Ahmed and Bakar
(2003) supported that training plays a significant role in increasing organizational
commitment. Also, training is the way to develop employee skills and consequently
contribute to commitment as an influencing factor in the workplace (Bilisbekov et al.,
2021). In summary, it is axiomatic that many studies support that training positively
influences employee commitment.
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4. The entrepreneurial orientation studied in this study used taking risks, innovating, being
proactive, competitive, and aggressive, and autonomy in the embroidery business in Aceh
as indicators. Based on this, the mean value of the entrepreneurial orientation had an
average value of 3.13. It can explain that the entrepreneurial orientation was in the category
of disagreeing. The results showed that entrepreneurial training positively and significantly
influenced organizational innovation with P-value: 0.036 < 0.05.
5. The indicators used to examine organizational innovation were product development,
new services, new or integrated production, distribution or delivery methods, work
procedures, policies, and new organizational forms. Based on the average value of 3.11,
the organizational innovation variable was in disagreeing category. The results showed that
organizational innovation had no positive and significant effect on the performance of
customer entrepreneurs with the P-value of 0.759 < 0.05. Marques (2014) asserted that it
is hard to use open resources because the essence of open innovation is to share
information, but it can be associated with knowledge sensitivity, which leads to
commercialization and technological difficulties. Furthermore, Arigo (2012) argues that
innovation is open to the use of knowledge inflows and outflows among multiple partners
to accelerate innovation.
In short, open innovation emphasizes the importance of harnessing knowledge
from the external environment and transforming it into innovative processes, products, and
services. Ebert (2007) also states that open-source drives innovation. Recent empirical
studies by several experts Reed and Barness (2012), Martinez et al. (2014), Baldwin and
Hippel (2010) showed that open innovation supports the creation of competition. Profits
can be generated through investment in innovative designs to maintain performance.
6. To examine entrepreneurial commitment, the indicators used were loyalty to the
organization, concern for the organization, pride in being part of the organization, accepting
work, and inspiring organizations. When viewed from the mean value of the entrepreneurial
commitment variable, the entrepreneurial commitment has an average value of 3.21. So, it
can explain that the entrepreneurial commitment variable was in the category of
disagreeing. The results showed that entrepreneurial commitment positively and
significantly influenced the Entrepreneur performance of embroidery in Aceh, customers
P-value: 0.049 < 0.05. This research supports the research by Kamarul Zaman Bin Ahmad
(2009) that affective commitment is the primary commitment component affecting
Entrepreneur performance and passion in pursuing goals, inherited and positive values.
Also, possession of an exceptional personality was found to positively influence the
aspirations of successful entrepreneurs to face unpredictable challenges and failures. It
shows how important it is to understand the mindset of successful entrepreneurs, especially
on the factors that contribute to high levels of commitment.
7. Labor recruitment affected Entrepreneur performance through entrepreneurial
commitment. Mahmood et al. (2016) found that the recruitment process significantly
influenced employee commitment and affected the relationship between the type of
employee commitment and the company supply chain performance. The recruitment
process is at the heart of employee commitment that indirectly affects their performance.
(Ekwoaba et al., 2015) found that a significant correlation between effective recruitment
and selection is the key to organizational commitment, while well-planned recruitment and
selection contribute to good performance. Conversely, poor recruitment and selection can
lead to a poor selection process of applicants.
8. Entrepreneurial training affected Entrepreneur performance through entrepreneurial
commitment. It is in line with Mayuran's research (2016) which explains that
entrepreneurship training is designed to develop skills, knowledge, and a firm attitude to
its establishment that allows entrepreneurs to start new businesses or expand existing
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businesses. Besides, it is also a determinant of the growth of a company. Entrepreneur
performance depends on some factors, including internal and external factors.
Entrepreneurship training is an internal factor that influences Entrepreneur performance.
9. Entrepreneurial orientation influenced Entrepreneur performance through
entrepreneurial commitment. (Simon et al., 2011) claimed that the relationship between
Entrepreneurial Orientation (EO) and performance was moderated by various factors, such
as commitment. In particular, experts have called for research examining whether
commitment can increase the effectiveness of entrepreneurial orientation and can help
companies overcome barriers associated with Entrepreneurial Orientation. Entrepreneurial
commitment fully mediated the relationship between entrepreneurial orientation and
Entrepreneur performance.
10. Organizational innovation did not influence Entrepreneur performance through
entrepreneurial commitment. It is in line with the research of (Barrère, 2013) that to
encourage employees to demonstrate innovative work behavior, high commitment to HR
practices is an interesting thing. If employees perceive the organization to be committed
and supportive, they will have better performance.
CONCLUSION
This research has concluded several conclusions as follows: Labor recruitment,
Entrepreneurship training, Entrepreneurial Orientation positively influenced
Entrepreneurial commitment. Organizational innovation did not positively influence
entrepreneurial commitment and performance. Labor recruitment had a positive effect on the
performance of embroidery entrepreneurs in Aceh through entrepreneurial commitment.
Entrepreneurship training positively influenced the performance of embroidery
entrepreneurs in Aceh through entrepreneurial commitment. Entrepreneurial orientation
positively influenced the performance of embroidery entrepreneurs in Aceh through
entrepreneurship commitment. Organizational innovation did not positively influence the
performance of embroidery entrepreneurs in Aceh through entrepreneurial commitment.
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