Financial Performance of Coffee Cafes in the Perspective of Entrepreneurial Orientation, Knowledge, and Task Environment

Abstract

Population growth, changes in people's lifestyles and research findings that state coffee as a healthy drink has placed coffee as the most preferred beverage for the community. This fact was captured by the owners of capital as a profitable business opportunity which was later realized by establishing coffee cafes in various regions. As a result, competition is very intense which in turn causes financial performance of coffee cafes to be disrupted. The purpose of the study was to analyze the influence of the task environment and knowledge on entrepreneurial orientation, and the role of entrepreneurial orientation in mediating the indirect influence of task environment and knowledge on financial performance. The location of the study was coffee cafes in Banyuwangi Regency and Situbondo, East Java Province, Indonesia. The number of respondents is 50 units. Data analysis using multiple regressions. The research findings show that knowledge has a significant positive effect on entrepreneurial orientation while the task environment is not. Entrepreneurial orientation mediates the indirect influence of task environment and knowledge of financial performance.