The Influence of Market Orientation on Business Performance of Micro, Small, and Medium Enterprises Through Innovativeness
DOI:
https://doi.org/10.14738/assrj.108.15238Keywords:
Market orientation, business performance, innovation, MSMEsAbstract
The new era affects the world of industry and business, including small and medium companies such as Micro, Small, and Medium Enterprises (MSMEs). MSMEs have a strategic and significant role in the economy and then contributed to increasing foreign exchanges through export-import activities. However, MSMEs in Indonesia are facing various problems such as limited modality, low-quality human resources, mastery of science and technology, and the dependence of the domestic industry on imported raw materials. They reduce the purchasing power and slow industrial growth in Indonesia. Therefore, this study conducts to find out the influence orientation market on the performance of MSMEs in Payakumbuh. This study used quantitative methods and data collection by distributing questionnaires. The unit of analysis in this study is traditional crackers (Kerupuk) from Indonesia MSMEs while the observation unit is the owner or manager. The population of the study was 285 MSMEs owners or managers. The results of this research found that the orientation market has a significant effect on business performance and innovation Kerupuk MSMEs in Payakumbuh. Innovation also has a significant effect on MSME's Performance. However, innovation has shown no effect between the orientation market and business.
References
Agha, S., Alrubaiee, L., & Jamhour, M. 2012. Effect of Core Competence on Competitive Advantage and Organizational Performance. International Journal of Business & Management, 7(1), 192-204.
Al-Henzab, J., Tarhini, A., & Obeidat, BY 2018. The associations among market orientation, technology orientation, entrepreneurial orientation and organizational performance. Benchmarking: An International Journal.
Anwar, M. (2018). Business model innovation and SMEs performance—Does competitive advantage mediate? International Journal of Innovation Management, 22(07), 1850057.
Armstrong, M. 2006. A Handbook of Human Resource Management. Practice Edition. London: Kogan Page. August Ferdinand.
Statistics Center. 2015
Barney, J. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Christa, UR, and V. Kristinae. 2021. The effect of product innovation on business performance during the COVID-19 pandemic. Uncertain Supply Chain Management. 9: 151–158.
Curado, C., Muñoz-Pascual, L., & Galende, J. 2018. Antecedents to innovation performance in SMEs: A mixed methods approach. Journal of Business Research, 89, 206-215.
Falahat, M., Ramayah, T., Soto-Acosta, P., & Lee, YY 2020. SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs' international performance. Technological Forecasting and Social Change, 152, 119908.
Ghozali, Imam. (2014). Multivariate Analysis Application with the Seventh Edition SPSS Program. Semarang.
Gozali, Imam and Nugraha, CH. Asta. (2015). Analysis of Marketing Performance to Achieve Competitive Advantage (Study at Batik Clothing Industry Center in Pekalongan). National Seminar Proceedings & Call for Papers. Hair, et al. 2010
Jeong, SW, Chung, JE, & Roh, JS 2019. Impact of external knowledge inflow on product and process innovation of Korean SMEs: Absorptive Capacity as a Mediator. Clothing and Textiles Research Journal, 37(4), 219-234.
Johnson, Aaron. J, Dibrell, Clay. C and Hansen, Eric. (2009). Market Orientation, Innovativeness, and Performance of Food Companies. Journal of Agribusiness.
Kaur, Gurjeet and Mantok, Stanzin. (2015). Role Of Market Orientation and Competitive Advantage in Firm's Performance. IJABER, Vol. 13, No. 3.
Ministry of Industry, 2016
Ketchen, Jr., DJ, GTM Hult and SF Slater. 2007. "Toward a greater understanding of market orientation and the resource-based view," Strategic Management Journal, 28, 961-964.
Kocak, A., Carsrud, A., & Oflazoglu, S. 2017. Market, entrepreneurial, and technology orientations: impact on innovation and firm performance. Management Decision, 55(2), 248-270
Indonesia Economic Report, 2016
Leal-Rodriguez, Antonio L, Ortega-Guttirez, Jaime and Roldan, Jose.L. (2016). Linking Market Orientation, Innovation, Unlearning, and Performance: A Multiple Mediation Model.
Li, Y., Ye, F., Sheu, C., & Yang, Q. 2018. Linking green market orientation and performance: Antecedents and processes. Journal of Cleaner Production, 192, 924-931.
Montiel-Campos, H. 2018. Entrepreneurial orientation and market orientation. Journal of Research in Marketing and Entrepreneurship, 20(2), 292-322
Morgan, NA 2012. Marketing and business performance. J. of the Acad. mark. sci. 40:102–119
Pracosa, Bagas. 2005. The Effect of Market Orientation, Innovation and Learning Orientation on Company Performance to Achieve Competitive Advantage (Empirical Study of the Manufacturing Industry in Semarang). Journal of Management & Organization Studies, Vol. 2 No.1
Salman, Abbas. S. 2015. The Effect of Market Orientation on Product Innovation. Journal of Business and Management (IOSR-JBM)
Now, Uma. 2015. Research Methods for Business; Research Methodology for Business. Book 2, Edition 4. Salemba Empat. Jakarta Setyawati, Harini Abrilia. 2013. The Effect of Entrepreneurial Orientation and Market Orientation on Company Performance Through Competitive Advantage and Perceptions of Environmental Uncertainty as Predictions of Moderating Variables (Survey of Trade MSMEs in Kebumen District).
Sulliyanto and Rahab. 2012. The Role of Market Orientation and Learning Orientation in Improving Innovativeness and Performance Udriyah, U., Tham, J., & Azam, S. 2019. The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419-1428.
Wicaksono, Gumirlang and Nuvriasari, Audita. 2012. Improving the Performance of Creative Industry SMEs through Entrepreneurship Development and Market Orientation: Study on the Participation of Women Entrepreneurs in Moyudan District, Sleman Regency; DIY Province. Journal of Socio Humanities Vol. 3 No. 4.
Widihastuti, Hardani and Santoso Aprih. 2012. Development Model of UKM Performance Based on Creative Industry (Development Model of UKM Performance Based on Creative Industry). Projection Development Model of UKM Performance Based Of Creative Industry, Vol. 7 (2)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Rasidah Nasrah, Nor Azilah Husin, Noor Akma Mohd Salleh
This work is licensed under a Creative Commons Attribution 4.0 International License.
