Hierarchical Relationship between Entrepreneurial Orientation and Marketing Strategy Knowledge on Organizational Performance: A Study on Coastal Batik SMEs in Indonesia

An adaptive culture encourages employees to embrace change, dare to try new ideas, and learn from failure, allowing organizations to adapt quickly to environmental changes and remain competitive without compromising local cultural wisdom. This study analyses the hierarchical influence of entrepreneurial orientation and marketing strategy knowledge in determining organizational performance. The demand for batik is increasing along with the improvement of national economic conditions, which demands organizational performance. Realizing the importance of organizational performance, this study seeks to investigate more deeply the relationship between adaptive culture-based innovation and organizational performance. This study uses a quantitative approach with a descriptive survey design by utilizing data from 140 Batik pesisiran (Coastal Batik) SMEs in Indonesia. The results of the study indicate that there is a tiered influence of entrepreneurial orientation and marketing strategy knowledge on the development of new products based on local culture and low-cost creative processes based on local culture on organizational performance.