Exploring Entrepreneurial Orientation’s Impact on Innovation and Academic Performance in Malang City’s Consumer Cooperatives

The objects studied and the areas studied in this research are how a business can maintain sustainability and increase its business competitiveness, in this case, cooperatives in the city of Malang, as well as to grow the community's economy through the implementation of entrepreneurship-oriented strategies, the business environment towards innovation and performance strategies cooperative. The role of cooperatives in creating jobs and improving the welfare of their members with the principle that cooperatives are run "from, by, and for their members." The business world, primarily cooperatives, and small and medium enterprises, faces various challenges and must achieve Performance that will increase competitiveness and maintain business sustainability. For this reason, cooperatives must be more creative, innovative, agile, and intelligent in implementing their strategies. This research examines and analyzes the relationship between the business environment, entrepreneurial orientation, innovation, and Performance. Business in the era of information technology requires organizations to adapt to environmental changes and business competition, which is increasingly stringent, requiring cooperatives to provide products and services that are more market-oriented in order to be able to produce innovations that are in line with technological advances and market segments, so that Performance will increase. This is an open access article under the CC BY-SA license.


INTRODUCTION
One of the business actors and drivers of the community's economy who have a significant role are cooperatives, the pillars of the Indonesian economy.A group of members usually finds cooperatives because they have the same field of work in a particular organization, aiming to encourage the fulfillment of community needs together to build strength and sustainability.Cooperative members and their management must strengthen the growth and development of cooperatives because the purpose of establishing cooperatives is for the welfare of their members.As stated in the cooperative's Articles of Association and Bylaws, a management structure must be formed whose duties and full responsibility are for achieving the Performance and sustainability of the cooperative.Cooperatives in the modern economic era are expected to be able to realize their role as a professional economic institution, namely as a driver of other business networks and as an essential basis for improving services to members and the community (Pakaya, 2017).Malang City has a population of 759 cooperative units, of which 341 units are active and have smooth business, and 51.85% are classified as healthy cooperatives (Department of Cooperatives, 2022).
The business world, primarily cooperatives, and small and medium enterprises, faces various challenges and must achieve Performance that will increase competitiveness and maintain business sustainability (Kafetzopoulus., et al., 2020).For this reason, cooperatives must be more creative, innovative, a gile, and intelligent in implementing their strategies.Cooperatives are a form of business entity that must run its business with appropriate management following the conditions of the business environment it faces; for this reason, it must be run with an entrepreneurial orientation in order to be able to improve Performance.Research results show that there is a significant influence between entrepreneurial orientation and Performance (Jian Feng et al., 2014;Innaka et al., 2020;Widjajani & Nurjaman, 2019;Yin et al., 2022;Ullah & Danish, 2020;Rofiaty., 2019;Shafique et al., 2020;Lie et al., 2011).Meanwhile, the results of research examining the influence of entrepreneurial orientation on Performance and the results that were not significant were stu died by Erny et al. (2020), and Rachmawati et al.
(2020) stated that entrepreneurial orientation was not significant on Firm Performance.Entrepreneurs are vital for the country's economy and recognize the crucial role of developing and supporting the small and medium microenterprises (SMEs) sector (Mvunabandi et al., 2022).
It shows that this research is very urgent to be carried out because of the research gap.Entrepreneurship is a process that considers the three dimensions of autonomy, risk -taking, and proactiveness (Covin & Slevin, 1991).Business success is primarily determined by a strong entrepreneurial orientation, having the principle of efforts to identify and exploit opportunities, more daring to take risks, and not just sticking to past strate gies.In the era of a dynamic environment, entrepreneurial orientation is an essential strategy for company sustain ability (Lumpkin & Dess, 2016).
Entrepreneurial orientation is essential to apply because of its role in improving Performance; cooperative business decisions and actions are expected to directly influence the direction of achieving overall performance results.Business managers' self-confidence is the intellectual capital to take bold actions, followed by measurable planning and full responsibility for business risks.
Cooperatives must continuously observe changes in the conditions of their business environment to run a business that can successfully achieve high Performance; there are research results that examine changes in the business environment that have a significantly positive effect on Performance (Parl Rikhardson et al., 2020;Kafetzopoulus, 2020;Tang et al., 2018;Ebrahimi & Mirbargkar, 2017).Meanwhile, the inconsistency of research results, a gap in this research, is that environmental conditions do not significantly affect Performance (Fernandes & Solimun., 2017;Nguyen et al., 2021).Companies such as cooperatives face environmental change challenges in their business activities, including increasingly fierce competition and changes in market behavior.Therefore, creative and efficient efforts and effectiveness are needed in running their business.The business must achieve high Performance, which is influenced by the uncertain conditions of the business environment, which in this research is measured by VUCA (volatility, uncertainty, complexity, and ambiguity), and entrepreneurial orientation, measured by proactiveness, autonomy, and risk -taking.Environmental conditions represent instability in the market and rapid changes in customer needs.Rapid environmental changes are studied in this research from a market perspective, facing situations and competitors that are rela tively difficult to anticipate.
Next, the research gap will be filled by including mediating variables that influ ence the relationship between the independent and dependent variables and which can be tested as mediation, namely innovation.The results of research (Uskurt et al., 2012;Freel, 2015;Skordoulis et al., 2022;Ullah & Dannish, 2020), which examined the influence of environmental conditions on innovation, show a significant influence.Furthermore, the influence of the business environment on Performance through innovation has a significant positive effect (Fernandes & Solimun, 2017).
Osman et al., 2020, Hua ng & Wang 2011 showed the influence of entrepreneurial orientation on innovation as a significant positive research result.Innovation can provide a competitive advantage for companies.Several empirical studies show that entrepreneurial orientation signif icantly affects innovation (Skordoulis et al., 2022;Ebrahimi & Miebargkar, 2017;Ulah & Danish, 2020).The research results examine entrepreneurial orientation's influence on Performance through innovation mediation (Yun & Lee, 2018;Zehir et al., 2015).The empirical roadmap above encourages and strengthens this research, which examines the relationship between hypothesized variables.
Innovation can create company performance and competitive advantage; innovation can also be used to allocate other resources to increase company performance (Yi et al., 2021;Rofiaty, 2019;Huang & Li, 2018).Organizational factors that can influence innovation are the knowledge base and expertise of the people within the organization or company.At the same time, some litera ture reveals that the determining factors for an organization to be innovative are the existence of a creative, future-oriented situation and culture, Ahmed 1998.To test and analyze the influence of the business environment and entrepreneurial orientation on Performance and innovation, as well as test and analyze the influence of innovation on Performance.

METHOD
This research is a type of explanatory research using a quantitative approach.This research analyzes and explains the relationship between entrepreneurial orientation, knowledge management, and innovation in improving organizational Performance.This research uses the Structural Equation Model (SEM) analysis method with the Variance Based SEM approach, known as Partial Least Square (SEM -PLS).

General Description of Research Objects
Cooperatives are business entities whose members are individuals or cooperative legal entities that base their activities on cooperative principles and people's economic movements based on the principle of kinship.This definition was obtained based on the explanation of Law Number 25 of 1992.The Ministry of Cooperatives and Small and Medium Enterprises divides cooperatives into five types: consumer cooperatives, savings and loan cooperatives, service cooperatives, producer cooperatives, and marketing cooperatives.
There are 452 cooperatives in Malang City registered with the Ministry of Cooperatives and Small and Medium Enterprises of various types.The number of consumer cooperatives recorded is 298 cooperatives.Consumer cooperatives have businesses and activities for members to fulfill the provision of goods or services needed.Cooperative members have two roles, both as owners and as customers.

Respondent Characteristics
Forty-nine cooperatives filled out the questionnaire.Table 1 shows that men and women show equal numbers, with 26 people (57%) men and 23 (43%) women.The majority of respondents were aged 36-50 years, with a total of 31 people (63%), the remainder aged 20-35 years, as many as 13 people (27%), and over 50 years, as many as five people (10%).Based on education level, it was found that the majority had a bachelor's degree, 23 people (47%), the others were high school graduates, 18 people (39%), four people with a diploma (8%) and three people with a master's degree (6 %).
The length of service for the majority of decision-makers is in the range of more than five years for as many as 24 people (49%), the remaining 3 to 5 years for as many as 14 people (29%), and less than three years as many as 11 people (22%).There were 26 respondents (53%) who were cooperative administrators and 23 people (47%) who held the manager position.The majority of cooperatives have been established for more than 20 years, namely 37 cooperatives (76%); others have been established for 10 -20 years, totaling six cooperatives (12%); 4 cooperatives have been established for 5-10 years (8%), and under five years as many as two cooperatives (4%).

Description of Research Variables Business Environmental Variables
The business environment consists of the internal and external environment, which consists of the industrial competitive environment, a general condition of competition that affects all businesses that provide similar products or services and is known as the "Porters Five Forces M odel".This research measures the business environment using VUCA, namely Volatility, Uncertainty, Complexity, and Ambiguity.Below are presented the results of data recapitulation of respondents' answers for the entrepreneurial orientation variable, measu red using nine items with four indicators: volatility, uncertainty, complexity, and ambiguity.The details are presented in Table 2.The results of respondents' answers in Table 2 show that the average value of answers to the Business Environment variable is 4.12.This figure is in the high category, so the business environment owned by decisionmakers at the cooperative is good.The indicator with the highest average value is the volatility of 4.20, with the highest question item being a high desire to continue improving knowledge with a score of 4.32.It shows that decision-makers in cooperatives have a high desire to continue to improve and increase knowledge for the progress of cooperatives.
The indicator with the lowest value is complexity of 4.00, with the lowest question item being speed in innovation, with a score of 3.89.It shows that the speed of innovation among decision -makers in cooperatives needs to be increased.The conclusion of descriptive statistics on the Business Environment variable is that volatility is an indicator with a very high influence on the Business Environment variable.At the same time, complexity is an indicator with the lowest value, so there is a need to develop this indicator.

Entrepreneurial Orientation Variable
Entrepreneurial orientation is a condition where individuals tend to have a proactive attitude, freedom in decision-making, and courage in taking risks for opportunities.Below are prese nted the results of data recapitulation of respondents' answers to the entrepreneurial orientation variable, measured using six items with three indicators: proactiveness, autonomy, and risk-taking.The details are presented in Table 3.The results of respondents' answers in Table 3 show that the average value of answers to the Entrepreneurial Orientation variable is 4.14.This figure is in the high category, so it can be concluded that the entrepreneurial orientation of decision-makers in cooperatives is good.Overall, the indicator with the highest average value is risk-taking at 4.25, with the highest question item being intensive exploration with a score of 4.33.It shows that decision-makers in cooperatives always desire to find out new things related to the progress of cooperatives.
The indicator with the lowest score is autonomy at 4.02, with the lowest question item being the ability to take action independently, which has a score of 3.94.This figure is still in the sufficient category; this shows that cooperative decision-makers cannot take action independently due to several internal rules or organizational conditions.The descriptive statistics on the Entrepreneurial Orientation variable conclude that risk -taking is the indicator with the highest influence.At the same time, autonomy has the lowest value, so this indicator is still relevant for improvement.

Innovation Variable
Innovation is a new idea or idea containing breakthroughs regarding something capable of creating new production resources or processing existing resources to increase the potential v alue for creating new capital.Below are presented the results of data recapitulation of respondents' answers for the innovation variable, which was measured using four items with six indicators: process innovation, market innovation, creativity, and payment administration system.The details are presented in Table 4.The results of respondents' answers in Table 4 show that the average answer value for the Innovation variable is 4.00.This figure is still in the high category, so it can be concluded that the innovation possessed by decision-makers at the cooperative is good.The indicator with the highest average value is market innovation at 4.18, with the highest question item being the placement and layout of products according to customer needs, with a score of 4.20.It shows that decision-makers in the cooperative constantly analyze customer needs and arrange product layouts to make it easier for customers to visit and make purchasing transactions.
The indicator with the lowest value is the payment administration system at 4.00, with the question item creating a payment administration system according to customer wishes.It shows that decision -makers in the cooperative have innovated the payment administration system quite well.However, it needs to be improved to update and add payment systems using electronic transaction systems such as e -money, transfers, and others according to customer wishes.The conclusion of the descriptive statistics on the Innovation variable is that market innovation is an indicator that has a powerful influence on the Innovation variable.At the same time, the payment administration system is the indicator with the lowest value, so developing this indicator is necessary.

Organizational Performance Variables
Organizational Performance describes the results of an organization's work achieving predetermined goals through its resources in a particular time unit.Below are presented the results of data recapitulation of respondents' answers for organizational performance variables, measured using 11 items with five indicators: quality, effectiveness, efficiency, financial perspective, and customer perspective.The respondents' answers in Table 5 show the average value of answers to the Organizational Performance variable of 4.11.This figure is in the high category, so it can be concluded that the Organizational Performance of the Cooperative is good.The indica tor with the highest average value is customer perspective at 4.22, with the highest question item, namely handling member and customer complaints according to procedures, with a score of 4.39.It shows that decision-makers in the cooperative always mainta in good relationships with members and customers by handling complaints according to procedures.
The indicator with the lowest score is the financial perspective of 3.91, with 3 question items with close scores, namely increasing transactions, income, and the remaining results of the cooperative's business.It shows that the Performance of cooperatives from a financial perspective cannot be good, especially in increasing transactions, income, and residual business results.The conclusion of descriptive stat istics on the Organizational Performance variable is that the customer perspective is an indicator that has a powerful influence on the Innovation variable.In contrast, the financial perspective is the indicator with the lowest value, so there is a need to develop this indicator.

Evaluation of Measurement Models
Evaluation of the measurement model is carried out to test the research instrument so that the analysis results are tested for validity and reliability and to test the model fit so that further analysis can be carried out.

Convergent Validity
The parameters used to test convergent validity using the Average Variance Extracted (AVE) value.The general rule used is an AVE value > 0.5.The results of convergent validity testing are in Table 6.All items in the Business Environment, Entrepreneurial Orientation, Innovation, and Organizational Performance variables have an AVE value greater than 0.5.So, all items are valid and able to measure variables.

Discriminant Validity
Discriminant validity testing is carried out to ensure that the items used as measurement instruments for a latent variable can predict the size of that variable better than other latent variables in the model.This criterion can be seen from the results of the loading value of the items on the construct being formed, which must be greater than the cross-loading value on other constructs Sholihin and Ratmono (2020).The following are the results of the discriminant validity test in Table 7. Table 7 shows that each item has the highest value compared to the values of other variables, so it can be concluded that the cross-loading test has been successful, and the items are said to be valid.

Internal Consistency Reliability Testing (Cronbach Alpha and Composite Reliability)
The construct measuring instrument is declared reliable if the Cronbach alpha and composite reliabilit y values are between 0.7 and 0.9 (Hair et al., 2017;Sholihin & Ratmono, 2020).Table 8 shows the results of reliability testing in this study.The Cronbach alpha and composite reliability values of all latent variables in this study are above 0.7, so the measurement instruments for all these variables are reliable.

Structural Model Evaluation VIF Test
The VIF value must be less than five because if it is more, it indicates the collinearity of the construct.The VIF test results in this study can be seen in Table 9.All items obtained a VIF value below 5, so it can be concluded that they are free from collinearity problems.

Path Coefficient Test
The path coefficient test was conducted to see the relationship between exogenous and endogenous latent variables.The basis for decision-making for the path coefficient test is that if the t-statistic value is >1.96, then the exogenous latent variable is declared to have a relationship with the endogenous latent variable.Meanwhile, the p-value must be <0.05 for a significance level of 5%.The path coefficient test results can be seen in Table 10.Based on the table above, it can be concluded that the seven existing pathways have a positive and significant relationship.

Explanatory Power Test (R-Square)
The basis for making decisions to measure the model's strength is to look at the R -Square value.If the R-Square value is 0.25-0.50,then the research model is declared weak, whereas if the R-Square value is 0.50-0.75,then the model is declared quite good.Meanwhile, if the R-Square value is >0.75, the model is declared Very good.The R-Square test results can be seen in Table 11.Table 11 shows that the R-Square value of the innovation variable is 0.535, which means that the innovation variable can be explained by the business environment and entrepreneurial orientation variables, with the model's predictive power being 0.535, or 53.5%.In comparison, other variables explain the remaining 46.5%.Outside the research model.Furthermore, the R-Square value of the organizational performance variable can be influenced by independent variables in the form of business environment, entrepreneurial orientation, and innovation with a predictive power of the model of 0.836 or 83.6%.Then, the remaining 16.4% is explained by other variables outside the research model.

Predictive Power Test (Q-Square)
The Q-Square value is used to measure the level of predictive relevance in the research model.If the Q-Square value is <0, then the model is declared to have no predictive relevance, but if it is >0, it is declared to have predictive relevance.The results of the predictive power test can be seen in Table 12.

Hypothesis Testing Direct Effect Test
Direct hypothesis testing is carried out to determine the effect of each independent variable on the dependent variable.The partial least squares structural equation modeling data analysis technique is suitable for using models with small samples and without using normality assumption tests such as in multiple regression testing or path analysis.When rejecting or accepting a research hypothesis, the t-statistic value is used as a reference compared to the t-table value.If the t-statistic value is greater than the t-table value (1.96), then the relationship between a variable is said to have a significant effect, or the hypothesis is accepted.The results of d irect testing using the bootstrapping technique on the SmartPLS 4.0 software can be seen in Table 13.13, research hypotheses related to entrepreneurial orientation, knowledge management, innovation, and organizational performance were tested.Seven hypotheses were tested using the structural model that showed how the latent variables were related.There were five direct effects and two indirect effects.The following are the results of testing the direct influence hypothesis in this research: Hypothesis 1: The stronger the business environment, the higher the Performance.
Based on path coefficient analysis, it is known that the t-statistical value for the Business Environment variable (X1) on Organizational Performance (Y) is 2,775 > 1.96 at the 5% level.The t-statistic value obtained shows a positive and significant influence between the Business Environment variable (X1) and Organizational Performance (Y).These results show that hypothesis 1, namely, the Business Environment (X1) has a positive and significant effect on Organizational Performance (Y), is accepted.
Hypothesis 2: The stronger the entrepreneurial orientation, the higher the Performance.
Based on path coefficient analysis, it is known that the t-statistic value for the Entrepreneurial Orientation variable (X2) on Organizational Performance (Y) is 3,296 > 1.96 at the 5% level.The t-statistic value obtained shows a positive and significant influence between the Entrepreneurial Orientation variable (X2) on Organizational Performance (Y).These results show that hypothesis 2, namely Entrepreneurial Orientation (X2), has a positive and significant effect on Organizational Performance (Y) and is accepted.
Hypothesis 3: The stronger the business environment, the more it will encourage innovation.
Based on path coefficient analysis, it is known that the t-statistical value for the Business Environment variable (X1) on Innovation (Z) is 2,976 > 1.96 at the 5% level.The t-statistic value obtained shows a significant influence between the Business Environment variable (X1) on Innovation (Z).These results can be said that hypothesis 3, namely the Business Environment (X1) has a positive and significant effect on Innovation (Z) is accepted.
Hypothesis 4: The stronger the entrepreneurial orientation, the more likely it will encourage innovation.
Based on path coefficient analysis, it is known that the t-statistic value for the Entrepreneurial Orientation (X2) to Innovation (Z) variable is 2,255 > 1.96 at the 5% level.The t-statistic value obtained shows that there is a positive and significant influence between the Entrepreneurial Orientation variable (X2) on Innovation (Z).These results show that hypothesis 4, namely Entrepreneurial Orientation (X2), has a positive and significant effect on Innovation (Z) and is accepted.
Hypothesis 5: The stronger the innovation, the higher the Performance.
Based on path coefficient analysis, it is known that the t-statistic value for the Innovation variable (Z) on Organizational Performance (Y) is 4,779 > 1.96 at the 5% level.The t-statistic value obtained shows that there is a positive and significant influence between the Innovation variable (Z) on Organizational Performance (Y).These results show that hypothesis 5, namely Innovation (Z), has a positive and significant effect on Organizational Performance (Y) is accepted.

Mediation Test
Mediation test results use SmartPLS version 4.0 output values with the bootstrapping technique.The complete results of the mediation test are presented in Table 14.Based on path coefficient analysis, it is known that the t-statistical value for the Business Environment variable (X1) on Organizational Performance (Y) through (Z) is 2,568 > 1.96 at the 5% level.The t-statistic value obtained shows that the Innovation variable (Z) can mediate the influence of the Business Environment variable (X1) on Organizational Performance (Y).These results show that hypothesis 6, namely Innovation (Z), can mediate the Business Environment (X1) on Organizational Performance (Y) is accepted.Therefore, it can be concluded that Innovation (Z) can mediate the influence of the Business Environment (X1) on Organizational Performance (Y) with a complementary mediation effect because the direct and indirect influences have a positive and significant effect.

Hypothesis 7: Innovation can mediate the effect of entrepreneurial orientation on Performance.
Based on path coefficient analysis, it is known that the t-statistic value for the Entrepreneurial Orientation variable (X2) on Organizational Performance (Y) through Innovation (Z) is 2,048 > 1.96 at the 5% level.The tstatistic value obtained shows that the Innovation variable (Z) can mediate the influence of the Entrepreneurial Orientation variable (X2) on Organizational Performance (Y).These results show that hypothesis 7, namely Innovation (Z), can mediate Entrepreneurial Orientation (X2) on Organizational Performance (Y) is accepted.Therefore, it can be concluded that Innovation (Z) can mediate the in fluence between Entrepreneurial Orientation (X2) on Organizational Performance (Y) with a complementary mediation effect because the direct and indirect influences have a positive and significant effect.

The Influence of the Business Environment on Organizational Performance
Cooperatives must continuously observe changes in the conditions of their business environment (Kafetzopoulus, 2020) to run a business that can successfully achieve high Performance.This research found t hat the business environment can improve performance as measured by volatility, uncertainty, complexity, and ambiguity.Based on the frequency distribution of respondents' answers, it was found that all items from the business environment variables had high or good values for supporting performance improvement.
Cooperatives in their business activities face environmental challenges, including increasingly fierce competition and changes in market behavior, so creative and efficient efforts and effectiveness are needed in running their business.Environmental changes that continue to occur prove that the business world is a whole of challenges, uncertainty, and complexity, and it is true that nothing remains constant in this world; only change itself remains constant.An environment that is changing rapidly and will continue in the future must be responded to and faced by seeking stability that underlies changes in the business environment.Based on the distribution of respondents' answers, it was also found that the item asking about the desire to continue to increase knowledge had the highest score; this item is essential in facing turbulent environmental changes.
This stability lies in knowledge, manifested in core capabilities in its business strategy (Muluk, 2003).It is supported by steps already owned and implemented by the cooperative.Annual member meetings and various meeting forums with members provide a forum for exchanging and gathering information to anticipate environmental changes.Communication with the cooperative department is also well established through mentoring and counseling programs routinely carried out.Complexity indicators can and need to be improved, especially regarding speed in innovation.
The ability to deal with environmental changes can ultimately influence organizational Performance in cooperatives.The results of this research also align with and support research conducted by Kafetzopoulus (2020) that business environment variables have a direct, positive, and significant effect on performance variables.

The Influence of Entrepreneurial Orientation on Organizational Performance
Entrepreneurial orientation is a strategic orientation that reflects innovation, proactiveness, and courage in taking risks, which are very important for institutional growth and Performance (Fairoz, 2010).This research has findings that strengthen the idea that strategic decision -makers in an organization with a proactive attitude, autonomy, and courage in taking risks have a crucial role in influencing organizational Performance.Based on the frequency distribution test results, the entrepreneurial orientation variable has the highest indicator of courage in taking risks.Strategic decision-makers in cooperatives tend to dare to take risks for progress and explore intensely.It aligns with the findings of (Alvarez-Torres et al., 2019) research, which found that courage in taking risks is a critical dimension vital in explaining the influence of entrepreneurial orientation on Performance.
Lumpkin and Dess ( 2001) stated that autonomy is one of the factors forming entrepreneurial orientation, namely the ability or authority to take action independently.In fact, in this research, the autonomy indicator has the lowest score compared to other indicators, meaning that cooperative decision -makers are still given less freedom and authority to take action independently.This factor can occur because cooperative management has supervisors and administrators, so it requires coordination in making decisions.However, all question items from the entrepreneurial orientation variable in this study have a high or good average value for supporting increased organizational Performance in cooperatives.
The results of this research support the research conducted by Yanti (2019) that the entrepreneurial orientation variable has a positive and significant influence on the Performance of cooperatives in Surabaya.Likewise, research by Jannah et al. (2019) found a positive and significant influence of entrepreneurial orientation variables on organizational performance variables.It means that increasing entrepreneurial orientation can improve organizational Performance.

The Influence of the Business Environment on Innovation
The business world, primarily cooperatives and small and medium enterprises faces various challenges and must achieve Performance that will increase competitiveness and maintain business sustainability (Kafetzopoulus et al., 2020).For this reason, cooperatives must have more innovation power in implementing their strategies.It means that organizations that can adapt to the business environment have higher success in finding innovation than organizations that cannot adapt to environmental changes.Based on the results of data analysis, decision-makers in cooperatives regarding business environmental indicators can increase innovation through adjustments to the volatility, uncertainty, complexity, and ambiguity that exist in cooperatives.
Based on data from respondents' answers, it was found that the item with the lowest score was the speed in carrying out innovation; this indicates that although there are new ideas in the cooperative, the process takes quite a long time.One of the causes of the need for rapid innovat ion in cooperatives is the somewhat formal and standard organizational structure with the existence of a supervisory board and management board.It is also proven by the second-lowest score, namely the question item, which states that speed in making the right decisions, speed in making decisions is a note that needs to be improved by cooperatives so that they can adapt to changes in the business environment, which can also occur quickly and in a short time.
The results of this research align with Afqarina and Dihan (2019), who also examined 60 respondents using SEM analysis tools and found that knowledge management affected innovation.

The Influence of Entrepreneurial Orientation on Innovation
Entrepreneurial orientation results from changing old business p ractices and building something new (innovative), patterned on the courage to bear risks as economic behavior (Matekenya & Moyo, 2022).Increasing entrepreneurial orientation can increase innovation.This research found that the entrepreneurial orientation variable positively and significantly influences the innovation variable.Based on the results of data analysis, decision-makers in cooperatives based on indicators of the entrepreneurial orientation variable can increase innovation.It is supported by a proactive attitude and the courage to take risks, improving process innovation, market innovation, creativity, and payment administration systems.However, the ability to take action independently of decision-makers in cooperatives is still limited.
This research aligns with what was researched by Rofiaty (2019), who found that the entrepreneurial orientation variable had a positive and significant influence on increasing innovation.Likewise, research by Prima Lita et al. ( 2020), which examined 183 SMEs that trade customer products, proves that the entrepreneurial orientation variable significantly influences innovation.

The Effect of Innovation on Organizational Performance
Innovation can produce better performance and competitive advantage (Philipson, 2016).Based on the results of data analysis, decision-makers in cooperatives regarding innovation variable indicators can improve organizational Performance.Through process innovation, transaction processes can be made faster and product distribution more economical.The research results also show that the process innovation indicator has the highest score.The product layout is also good, although promotion via the Internet is still limited.The resources available in the cooperative are also allocated quite well, as shown by the number of personnel and efficient operational time in achieving the cooperative's targets and goals.The payment administration system still needs to be improved to suit customer desires.
By increasing operational efficiency, cooperatives can identify and implement new ways to increase efficiency in various operational aspects to improve organizational Performance.This research is in line with research by Beltramino et al. (2020), which shows that there is a significant positive relationship between innovation capacity in the process and Performance.Alrowwad et al. (2020) research also found that innovation affects organizational Performance.

The Influence of the Business Environment on Performance Through Innovation
Based on the results of the mediation test, it was found that innovation could mediate the influence of the business environment on Performance.It shows that the increasing business environment can improve organizational Performance through innovation.Based on the resu lts of statistical tests, it is stated that the business environment has a positive and significant effect on Performance through partial mediation of innovation, meaning that changes in the value of innovation can mediate changes in the influence of the b usiness environment on Performance.
It means that if the innovation variable has a high value, it will impact the level of influence of the business environment on Performance.The highest question indicator on the innovation variable is process innovation.These results show that if process innovation is improved, it will help cooperatives adapt to a business environment of volatility, uncertainty, complexity, and ambiguity, which, in the end, can improve organizational Performance.Innovation can help cooperatives overcome environmental changes that occur.Volatility, uncertainty, complexity, and ambiguity will be increasingly better anticipated if new methods are encouraged that can adapt to changes related to cooperatives.So, in the end, the interconnected role of innovation in influencing the level of the business environment in a cooperative will improve the Performance of consumer cooperatives.The results of this research align with research by Lyn Chan and Muthuyeloo (2019), which shows that increasingly vital agility strategies can improve organizational Performance, which is considered an essential dynamic capability for organizations to cope with change.

The Influence of Entrepreneurial Orientation on Performance through Innovation
Performance is believed to be improved through entrepreneurial orientation, reflected in an attitude of innovation, proactiveness, and the courage to take risks (Weerawardena, 2003).This research found that the entrepreneurial orientation variable positively and significantly influenced Performance through innovation mediation.Based on the results of statistical tests, it was found that the entrepreneurial orientation variable had a positive and significant influence on Performance through complete mediation of innovation, meaning that changes in innovation values could mediate changes in the influence of entrepreneurial orientation on Performance.With a proactive attitude, autonomy, and high risk -taking, it will be better if it is supported by good innovation through product promotion via the Internet efforts to carry out renewal processes in the administration system by paying according to customer wishes.
However, the ability of decision-makers in cooperatives to take action independently is still not good enough, thus becoming an obstacle and barrier to innovation.Several cooperatives have complex organizational structures with standard bureaucratic communication patterns that require various permits and approvals from superiors, especially cooperatives under the Indonesian National Army (TNI) and the Police.
The results of this research are also in line with research by Rofiaty (2019), which found that entrepreneurial orientation has a significant positive effect on organizational performance variables and innovation affects Performance.

CONCLUSION
Based on findings from studies and discussions about how entrepreneurial spirit and the business environment affect an organization's ability to innovate and perform.Thus, it may be said that an atmosphere that is favorable for business might enhance orga nizational performance.VUCA (volatility, uncertainty, complexity, and ambiguity) is a component of a favorable business environment as assessed from the outside.It is thought to be able to enhance organizational performance in terms of quality, effective ness, efficiency, and financial and customer perspectives.Performance within an organization can be enhanced by a greater entrepreneurial attitude.Proactiveness, independence, and risk-taking are characteristics of an entrepreneurial approach, which is t hought to enhance organizational success.Innovation can rise in a business environment that is becoming more favorable.Being able to adapt to shifting external conditions over an extended period of time is a sign of mature business management.In addition, through process innovation, market innovation, creativity, and upgrades to payment administration systems, entrepreneurial orientation can boost innovation.Additionally, effective innovation can raise organizational performance.A contributing factor is the positive evaluation of market innovation provided by cooperative decision-makers.As a result, cooperative decision-makers constantly adjust product layout and promotions based on member and customer needs.The impact of the business environment and an entrepreneurial orientation on the success of an organization can be somewhat mitigated by innovation.Because cooperatives manage their resources well, innovation can act as a mediator between the business environment and organizational performance.This allows innovation to weigh the influence of the business environment on performance.The second way that innovation mediates the impact of entrepreneurial orientation on organizational performance is because it can maximize the creative aspect.This allows innovation to act as a mediator between the two forces.

Figure 1 .
Figure 1.The Results Of The Direct Effect Test Based on Table13, research hypotheses related to entrepreneurial orientation, knowledge management, innovation, and organizational performance were tested.Seven hypotheses were tested using the structural model that showed how the latent variables were related.There were five direct effects and two indirect effects.The following are the results of testing the direct influence hypothesis in this research:

Table 2 .
Description Of Business Environment Variables

Table 3 .
Description Of Entrepreneurial Orientation Variables

Table 4 .
Description Of Innovation Variables

Table 5 .
Description Of Organizational Performance Variables

Table 6 .
The Results Of The Convergent Validity Test

Table 7 .
The Results Of The Discriminant Validity Test

Table 8 .
The Results Of The Reliability Test

Table 9 .
The Results Of The VIF Test

Table 10 .
The Results Of The Path Coefficient Test

Table 11 .
The Results Of The R-Square Test

Table 12 .
The Results Of The Q-Square Test Square calculation results, the values obtained are 0.561 and 0.892, where the proposed model has a predictive relevance value because the Q-Square value is greater than 0.

Table 13 .
The Results Of The Direct Effect Test

Table 14 .
The Results Of The Mediation Test