Corporate entrepreneurship as a strategic pathway of competitive advantage: Evidence from Indonesian MSMEs

This study examines how organizational capabilities and environmental conditions shape corporate entrepreneurship (CE) and, in turn, drive competitive advantage among Indonesian micro-, small, and medium-sized enterprises (MSMEs) in the tertiary sector. Drawing on survey data from 258 MSMEs located in the Riau Islands and Jakarta, the model tests the effects of top management team (TMT) behavioral integration, resource orchestration, and environmental dynamism on CE using partial least squares structural equation modeling. The results show that resource orchestration and environmental dynamism significantly enhance CE, whereas TMT behavioral integration does not. CE has a strong positive effect on competitive advantage and mediates the impact of resource orchestration and environmental dynamism on competitive advantage, but not the effect of TMT behavioral integration. These findings highlight CE as a strategic pathway through which emerging-market MSMEs adapt to dynamic environments, leverage scarce resources, and build competitive advantage, offering implications for managers and policy makers.