How Entrepreneurial Teams' Heterogeneity and Learning Experiences Affect Business Performance through Self-Efficacy

Abstract

Abstract Background: The existence of entrepreneurship has a quite large potential in improving a country's economy. Entrepreneurship can help society to create new opportunities and reduce decline rates with the emergence of MSMEs as independent and profitable business activities carried out by individuals or business entities in the economic sector along with the growth of the entrepreneurial landscape in society. Purpose: This study aims to ascertain how entrepreneurial learning experiences and entrepreneurial team heterogeneity affect self-efficacy and, consequently, company performance. Design/methodology/approach: Members of the Jakpreneur community from the East and North Jakarta metropolitan areas were surveyed to create the study's demographic. Accidental sampling was the method employed, with 237 respondents who volunteered to complete the author's questionnaire. Using SmartPLS software, a structural equation model was used for data analysis. Findings/Results: The research results show (1) Entrepreneurial team heterogeneity and learning experiences influence self-efficacy (2) Entrepreneurial heterogeneity and entrepreneurial learning experiences influence business performance (3) Entrepreneurial team heterogeneity and entrepreneurial learning experiences influence business performance through self-efficacy (4) Lastly, self-efficacy has a significant influence on business performance. Conclusion: The findings of the study demonstrate a direct relationship between selfefficacy and company performance. Subsequently, self-efficacy can serve as a moderator to demonstrate the indirect impact of entrepreneurial team heterogeneity and entrepreneurial learning experience on business performance. Learning experiences and diversity in the team both boost self-confidence, which in turn creates a positive feedback loop between motivation and company performance. Originality/value: This research contributes to the implementation of learning experiences and diversity in teams and increases self-confidence, which in turn creates a positive feedback loop between motivation and company performance. Keywords: entrepreneurial learning experience, entrepreneurial heterogeneity, self-efficacy, business performance, entrepreneurship