THE MEDIATING ROLE OF ENTREPRENEURIAL MOTIVATION AND RESILIENCE ON THE RELATIONSHIP BETWEEN INDIVIDUAL ENTREPRENEURIAL ORIENTATION, SELF-EFFICACY, AND ENTREPRENEURIAL SUCCESS: A STUDY OF SMES IN MEDAN CITY

Abstract

This study aims to test a dual mediation model by investigating the role of Entrepreneurial Motivation and Entrepreneurial Resilience in the relationship between Individual Entrepreneurial Orientation (IEO), Self-Efficacy, and Entrepreneurial Success in MSMEs in Medan City. This quantitative study used a cross-sectional survey design. A total of 150 active MSMEs with at least two years of business experience were selected as respondents through a purposive sampling technique. Data were collected using a structured questionnaire with a Likert scale of 1-5. Data analysis was carried out using Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 3.0 to test the validity, reliability, and hypothesized relationships in the model. The results of the study revealed that: (1) Self-efficacy has a positive and significant effect on both Entrepreneurial Motivation and Entrepreneurial Success (2) Entrepreneurial Motivation has a significant effect on Entrepreneurial Success and acts as a partial mediator between self-efficacy and success; (3) Entrepreneurial Resilience has a strong direct influence on success and serves as a key mediator between self-efficacy and success (4) IEO does not show a significant influence either directly or indirectly on motivation and success. This study concludes that in the context of MSMEs in Medan City, psychological factors of self-efficacy and entrepreneurial resilience are more determinants of business success than entrepreneurial orientation characteristics alone. Motivation plays an important role as a translation mechanism. The practical implications of this study emphasize the need for MSME development programs that shift their focus from purely technical training to developing psychological capital, particularly through training to build self-confidence and mental resilience in facing business uncertainty.