Moh. Erfan Arif, Tutut Herawan
A conducive entrepreneurial ecosystem plays a crucial role in driving business performance, innovation, job creation, and economic growth. However, such conditions are often less than ideal in many regions, especially in developing countries. This study investigates the relationships between the performance of creative small and medium-sized enterprises (SMEs) and key drivers: entrepreneurial ecosystem (EE), entrepreneurial leadership (EL), and dynamic capability (DC). Using a quantitative approach, the study sampled 240 creative industry SMEs in East Java Province, Indonesia, employing a purposive nonprobability sampling technique. Data were analyzed using structural equation modeling with SmartPLS 4. The results indicate that EE, EL, and DC significantly influence SME performance in the creative industry. Furthermore, EL significantly affects DC, but DC does not moderate the relationship between EE and performance. However, DC mediates the relationship between EL and SME performance. These findings highlight the unique contextual aspects of EE, confirming that EE development depends on the actors involved and the prevailing culture in a region or country. © 2025 The Author(s). Published with license by Taylor & Francis Group, LLC.
Department of Management, Universitas Brawijaya, Indonesia; Department of Information Systems, Universiti Malaya, Malaysia
