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This study aims to examine and explain the effect of entrepreneurial orientation on the ability of management and continuous innovation in SMEs batik in East Java province of Indonesia. The findings of the study noted that Entrepreneurial orientation have a significant effect on the management capability but no significant effect on sustainable innovation. Management capabilities have a significant effect on continuous innovation. The study's findings also confirmed that entrepeneurial orientation will affect the sustainable innovation that has the support of management capabilities. In order to perform sustainable innovation, batik SMEs have the opportunity to develop a differentiation strategy. Innovation comes from creativity which is a collection of ideas, knowledge, skills and human experience. Innovation is also required to identify customer needs and develop new solutions to meet customer needs in the future. In order to perform sustainable innovation , batik SMEs have the opportunity to develop a differentiation strategy. Innovation comes from creativity which is a collection of ideas, knowledge, skills and human experience . Innovation is also required to identify customer needs and develop new solutions to meet customer needs in the future.

iosr journal of business and management

The Effect of Entrepreneurial Orientation on the Management Capability and Sustainable Innovation (Study on Batik Small and Medium Enterprises in East Java Indonesia