The Strategic Entrepreneurship Impact of Performance on Indonesian E-Commerce Rian Ristyanti 1 and Anton Wachidin Widjaja 2 Universitas Indonesia, Indonesia 1,2 rianristyanti@gmail.com 1 , antonwachidinwidjaja@hotmail.co 2 Abstract. This study aims to empirically examine the effect of strategic entrepreneurship in relation to dynamic capabilities and innovation in the achievement of performance in the E-Commerce sector. The results of the study have been proved that strategic entrepreneurship in relation to dynamic capabilities and innovation can impact performance. This research includes survey research using Structural Equation Modelling (SEM) analysis with Partial Least Square (PLS) method to test the research hypothesis. Keywords: Strategic Entrepreneurship; Dynamic Capabilities; Innovation; E- commerce Performance. 1. Introduction E-commerce is integral parts of today’s modern society. The rapid development of technology allows online shopping to become faster and easier. The [1] revealed that Indonesia has one of the fastest growing online markets in Asia. In 2020, Indonesian e- commerce projections at $130 billion (number 3 after China and India). Google projected by 2025, Indonesia will dominate 52 percent of all e-commerce activity in Southeast Asia [2]. With a population of over 250 million and rapidly growing internet adoption, Indonesia could offer a booming market for online shopping [3]. Indonesian Ecommerce Association projected to triple between 2014 and 2016 to reach $20.8 billion (MENA Report, 2016). With those huge business prospect, Indonesian government altered regulations to allow 100-percent foreign ownership for investments in e-commerce company in the country [3]. To keep in mind, e-commerce companies in Indonesia also have high intensity in terms of competitions in dynamic environment. Dynamic environment reflect uncertainty in the business environment [4]. According to [5], the survival of e-commerce is becoming increasingly uncertain in dynamic environments. This happened because the digital revolution had changed the ways business fundamentals became digital [6]. Changes in business concepts will make every e-commerce enter a tight competition that causes the product life cycle and business model to be shorter. So that requires e-commerce to quickly adapt to the dynamics of the business environment such as trying new strategic approaches, finding new opportunities [7]and revising routines that form the foundation of a new resource base [8] and compete in environmental turbulence [9]. In environmental turbulence, external pressure will damage the value of company resources resulting in short-term competitive advantage [10]. Strategic entrepreneurship is needed for companies to adapt to the dynamics of the environment. The concept of strategic SU-AFBE 2018, December 06, Jakarta, Indonesia Copyright © 2019 EAI DOI 10.4108/eai.6-12-2018.2286289