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This study explores the critical role of dynamic capabilities in enhancing business performance among small and medium-sized enterprises (SMEs) in the café sector of Malang City, Indonesia. Specifically, it examines how dynamic capabilities influence both explorative and exploitative innovations and how these innovations, in turn, affect business performance. Using a quantitative approach, data were collected from 110 café owners through structured questionnaires. The results indicate that dynamic capabilities significantly impact both explorative and exploitative innovations. Explorative innovation, which involves the development of new products and the exploration of new markets, was found to have a substantial positive effect on business performance. Conversely, exploitative innovation, which focuses on refining and improving existing products and processes, showed a positive but less pronounced impact. The findings underscore the importance of dynamic capabilities in fostering innovation and improving business performance in a competitive environment. This study offers practical insights for café owners and entrepreneurs in the food and beverage sector, highlighting the need for continuous development of dynamic capabilities and a balanced approach to innovation. Future research is encouraged to expand on these findings by exploring additional factors and utilizing longitudinal data to capture the evolving nature of these relationships.

In 1997, Indonesia had a severe economic crisis, which prompted the Indonesian government to face significant pressure to promptly initiate governmental reform. There is a prevailing desire among the general public for enhancements in governance, with one aspect of this being the implicit need for improvements in government performance. This study investigates the role of service innovation as a mediator in the relationship between entrepreneurial orientation, organizational learning capability, and organizational performance. The study was conducted at the Directorate General of State Assets Management (DGSAM) in Indonesia. The questionnaires were collected from a total of 226 head offices, specifically from the heads of sections under the vertical agency of DGSAM, which is the State Assets and Auction Service Office (Kantor Pelayanan Kekayaan Negara dan Lelang/KPKNL). A quantitative approach was employed in order to elucidate, substantiate, and exemplify the hypothesis posited in the investigation pertaining to the observed events. The statistical technique employed for data processing was Partial Least Squares Structural Equation Modeling (PLS-SEM). This study demonstrates a significant and positive correlation between entrepreneurial approach and organizational learning capability, and both service innovation and organizational success. However, it is determined that service innovation does not act as a mediator in the relationship between entrepreneurial attitude and organizational learning capability in terms of organizational performance. The anticipated outcomes of this study are expected to make significant contributions to the field of science and its associated stakeholders.

This study aims to examine the effect of entrepreneurial orientation, knowledge management, and innovation on organizational performance. This study uses explanatory research with a quantitative approach. The population in this study was made up of Malang City consumer cooperatives. The study employed the purposive sampling technique. The sample in the study was 60 consumer cooperatives. Data was collected through surveys, documentation, and the use of Likert scales to test instruments. The data was analyzed using Structural Equation Model Partial Least Squares (SEM-PLS) modeling. The results of this study indicate that entrepreneurial orientation and knowledge management can directly improve organizational performance. However, unlike knowledge management, entrepreneurial orientation cannot increase innovation. Organizational performance can be directly improved by innovation. Innovation is unable to mediate between entrepreneurial orientation and organizational performance. However, innovation is able to mediate the relationship between knowledge management and organizational performance. The findings of this study suggest that consumer cooperatives in Malang City can improve organizational performance by optimizing entrepreneurial organizations and knowledge management.

This study aims to examine and analyze the influence of market orientation on corporate performance with exploration innovation and exploitative innovation as mediation in SMEs. 85 respondents were used as samples from food and beverage sector SMEs at Sentra Siola Surabaya. Purposive sampling was used as the sampling method. Data analysis in this study used Structural Equation Modeling - Partial Least Square (SEM PLS). The result indicates that market orientation has a significant effect on exploration innovation, exploitative innovation, and corporate performance. Exploration innovation has a significant effect on corporate performance; therefore, exploration innovation partially mediates the effect of market orientation on corporate performance. However exploitative innovation was found to have no effect on corporate performance. Changes in external factors, primarily due to the COVID-19 pandemic, are seen as being able to cause a paradigm shift on the importance of a long-term orientation compared to a short-term orientation.