The influence of entrepreneurial orientation and market orientation on SME business performance
Keywords:
Business performance; entrepreneurial orientation; market orientation
Abstract
This study aims to examine the impact of entrepreneurial orientation and market orientation on the business performance of small and medium-sized enterprises (SMEs) in Padang. The population of this study consists solely of Padang-based SMBs. While the number of samples in this study was 97 individuals, 100 samples of SMEs in Padang City were collected. Using a standardized questionnaire, respondents will be asked to rate their entrepreneurial orientation and market orientation in an effort to enhance the success of the firm they are now operating. The data were then analysed using SPSS version 21 and multiple regression analysis. (1) Entrepreneurial orientation has a significant positive influence on business performance variables, and (2) Market orientation has a strong positive influence on company performance variables.
Downloads
Download data is not yet available.
References
Abbas, D. (2018). The Influence of Business Capital, Market Orientation, and Entrepreneurial Orientation on the Performance of SMEs in Makassar City. Journal of Minds: Management of Ideas and Inspiration , 5 (1), 95-112.
Ahmatang, A., and Sari, N. (2022). The Effect of Entrepreneurial Orientation and Market Orientation on Business Performance Mediated by Competitive Advantage in MSMEs on Sebatik Island. INNOVATION , 18 (3), 492-500.
Al-Dhaafri, HS, Al-Swidi, AK, and Yusoff, RZB (2016). The Mediating Role of Total Quality Management Between The Entrepreneurial Orientation And The Organizational Performance. The TQM Journal , 28 (1), 89-111.
Al Mamun, A., and Fazal, SA (2018). Effect Of Entrepreneurial Orientation on Competency and Micro-Enterprise Performance. Asia Pacific Journal of Innovation and Entrepreneurship .
Alvarez-Torres, FJ, Lopez-Torres, GC, and Schiuma, G. (2019). Linking Entrepreneurial Orientation to Smes' Performance: Implications for Entrepreneurship Universities. Management Decisions .
Suharsini Arikunto, S. (2013). Research Procedures A Practice Approach.
Campos, HM, la Parra, JPND, and Parellada, FS (2012). The Entrepreneurial Orientation-Dominant Logic-Performance Relationship In New Ventures: An Exploratory Quantitative Study. BAR-Brazilian Administration Review , 9 , 60-77.
Cho, YH, and Lee, JH (2018). Entrepreneurial Orientation, Entrepreneurial Education and Performance. Asia Pacific Journal of Innovation and Entrepreneurship .
Feranita, NV, and Setiawan, HA (2019). The Role of Competitive Advantage in Mediating the Impact of Market Orientation and Entrepreneurial Orientation on MSME Performance. Dian Ilmu Scientific Magazine , 18 (1), 54-70.
Fernandes, CI, Ferreira, JJ, Lobo, CA, and Raposo, M. (2020). The Impact Of Market Orientation on The Internationalization of Smes. Review Of International Business And Strategy .
Ghozali, I. (2011). Multiple Regression Analysis Techniques. In Applications Multivariate Analysis with Program IBM Spss 19. Semarang .
Bamfo, BA, and Kraa, JJ (2019). Market Orientation and Performance Of Small and Medium Enterprises In Ghana: The Mediating Role Of Innovation. Cogent Business and Management , 6 (1), 1605703.
Hindarwati, E., Rahayu, A., and Wibowo, LA (2021). Entrepreneurial Orientation in MSME Performance in Jember. Journal of Management and Entrepreneurship , 9 (1), 54.
Hooley, GJ, Greenley, GE, Cadogan, JW, and Fahy, J. (2005). The Performance Impact of Marketing Resources. Journal Of Business Research 18-27.
Jannah, M., Irawati, A., and Purnomo, H. (2019). The Influence of Entrepreneurial Orientation and Product Innovation on the Performance of MSMEs in Tuban Gedog Typical Batik. Eco-Entrepreneur , 5 (1), 33-48.
Keh, HT, Nguyen, TTM, and Ng, HP (2007). The Effects Entrepreneurial Orientation and Marketing Information on The Performance of Smes. Journal Of Business Venturing, 22(4), 592–611
Kiyabo, K., and Isaga, N. (2020). Entrepreneurial Orientation, Competitive Advantage, and Smes' Performance: Application of Firm Growth and Personal Wealth Measures. Journal of Innovation And Entrepreneurship , 9 (1), 1-15.
Kusmulyono, MS, Fiorentina, A., Hartanta, CA, Katerina, K., Wilianggi, L., Listiyani, M.C., ... and Sirad, DA (2020). Efforts to Increase the UMK Network in Cugenang District Through the Establishment of the Cugenang Entrepreneurs Association. STRONG: General Finance And Applied Accounting , 2 (2), 77-86.
Lantu, DC, Triady, MS, Utami, AF, and Ghazali, A. (2016). Model Development for Increasing SME Competitiveness in Indonesia: Quantitative Model Validation. The Asian Journal of Technology Management, 15 (1), 77.
Laukkanen, T., Nagy, G., Hirvonen, S., Reijonen, H., and Pasanen, M. (2013). The Effect of Strategic Orientations on Business Performance in Smes . International Marketing Review, 30(6), 510–535
Laura Hardilawati, W. (2020). SME Survival Strategy in the Midst of the Covid-19 Pandemic. Journal of Accounting and Economics , 10 (1), 89-98.
Morgan, NA, and Piercy, NF (1998). Interactions Between Marketing and Quality At The SBU Level: Influences and Outcomes. Journal of The Academy Of Marketing Science , 26 (3), 190-208.
Mustari, M., Arisah, N., Thaief, I., Fatmawati, F., and Hasan, M. (2021, July). The Effect of Entrepreneurial Orientation and Market Orientation on MSME Performance in Makassar City. National Seminar on Educational Technology (Vol. 1, No. 1, Pp. 165-177).
Nuvriasari, A., Wicaksono, G., and Sumiyarsih, S. (2015). The Role of Market Orientation, Entrepreneurial Orientation and Competitive Strategy to Improve SME Performance. EQUITY (Journal of Economics and Finance) , 19 (2), 241-259.
Palls, A. (2020). The Effect of Organizational Culture on Apparatus Performance in the Civil Service Agency and Human Resources Development in Ciamis Regency. Decision: Journal of Public Administration , 2 (1), 1-12.
Pratiwi, DS, and Haryanto, B. (2018). Internal Marketing Mix on the Performance of Eleven March University Education Personnel. BISE: Journal of Business and Economic Education , 4 (1).
Rahaman, MA, Luna, KF, Mite, S., Islam, M., and Wafik, H. (2021). The Effect of Entrepreneurial Orientation, Market Orientation and Gender on Business Performance: An Empirical Study of Smes In Bangladesh. The Journal of Asian Finance, Economics And Business , 8 (6), 741-746.
Ramadhan, BM, and Ryandono, MNH (2015) Islamic Work Ethics on Business Performance of Muslim Traders in Pasar Besar City of Madiun. Journal of Theory and Applied Sharia Economics, 2(4), 274-287.
Satwika, NKP, and Dewi, NMWK (2018). The Influence of Market Orientation and Innovation on Competitive Advantage and Business Performance (Doctoral Dissertation, Udayana University).
Septrizola, Whyosy. (2021, June). Strategic Orientation and Business Performance in West Sumatra. in Sixth Padang International Conference on Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020) (Pp. 416-418). AtlantisPress.
Sulaeman, M. (2018). The Influence of Entrepreneurial Orientation, Market Orientation, and Product Innovation on Marketing Performance (Study of the Tofu Industry in the Tofu Industry Center in Banjar City). Scientific Journal of Business Administration and Innovation , 2 (1), 154-166.
Sugiyono, (2012). Understanding Qualitative Research. Bandung: Alphabet.
Udriyah, U., Tham, J., and 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.
Wardoyo, P., Rusdianti, E., and Purwantini, S. (2015). The Effect of Entrepreneurial Orientation on Business Strategy and Business Performance of SMEs in Ujung-Ujung Village, Kec. Pabelan, Semarang Regency. Sustainable Competitive Advantage (SCA) , 5 (1).
Widjadja, YR, Alamsyah, DP, Rohaeni, H., and Sukanjie, B. (2018). The Role of SME HR Competency in Improving the Performance of SMEs in Cilayung Village, Jatinangor District, Sumedang. Journal of Abdimas Bsi : Journal of Community Service , 1 (3).
Yuliana, R., and Pujiastuti, Y. (2018). Entrepreneurial Orientation, Market Orientation, and Business Strategy on Business Performance (Case Study on MSMEs in Semarang). Tirtayasa Economics , 13 (2), 320-329.
Ahmatang, A., and Sari, N. (2022). The Effect of Entrepreneurial Orientation and Market Orientation on Business Performance Mediated by Competitive Advantage in MSMEs on Sebatik Island. INNOVATION , 18 (3), 492-500.
Al-Dhaafri, HS, Al-Swidi, AK, and Yusoff, RZB (2016). The Mediating Role of Total Quality Management Between The Entrepreneurial Orientation And The Organizational Performance. The TQM Journal , 28 (1), 89-111.
Al Mamun, A., and Fazal, SA (2018). Effect Of Entrepreneurial Orientation on Competency and Micro-Enterprise Performance. Asia Pacific Journal of Innovation and Entrepreneurship .
Alvarez-Torres, FJ, Lopez-Torres, GC, and Schiuma, G. (2019). Linking Entrepreneurial Orientation to Smes' Performance: Implications for Entrepreneurship Universities. Management Decisions .
Suharsini Arikunto, S. (2013). Research Procedures A Practice Approach.
Campos, HM, la Parra, JPND, and Parellada, FS (2012). The Entrepreneurial Orientation-Dominant Logic-Performance Relationship In New Ventures: An Exploratory Quantitative Study. BAR-Brazilian Administration Review , 9 , 60-77.
Cho, YH, and Lee, JH (2018). Entrepreneurial Orientation, Entrepreneurial Education and Performance. Asia Pacific Journal of Innovation and Entrepreneurship .
Feranita, NV, and Setiawan, HA (2019). The Role of Competitive Advantage in Mediating the Impact of Market Orientation and Entrepreneurial Orientation on MSME Performance. Dian Ilmu Scientific Magazine , 18 (1), 54-70.
Fernandes, CI, Ferreira, JJ, Lobo, CA, and Raposo, M. (2020). The Impact Of Market Orientation on The Internationalization of Smes. Review Of International Business And Strategy .
Ghozali, I. (2011). Multiple Regression Analysis Techniques. In Applications Multivariate Analysis with Program IBM Spss 19. Semarang .
Bamfo, BA, and Kraa, JJ (2019). Market Orientation and Performance Of Small and Medium Enterprises In Ghana: The Mediating Role Of Innovation. Cogent Business and Management , 6 (1), 1605703.
Hindarwati, E., Rahayu, A., and Wibowo, LA (2021). Entrepreneurial Orientation in MSME Performance in Jember. Journal of Management and Entrepreneurship , 9 (1), 54.
Hooley, GJ, Greenley, GE, Cadogan, JW, and Fahy, J. (2005). The Performance Impact of Marketing Resources. Journal Of Business Research 18-27.
Jannah, M., Irawati, A., and Purnomo, H. (2019). The Influence of Entrepreneurial Orientation and Product Innovation on the Performance of MSMEs in Tuban Gedog Typical Batik. Eco-Entrepreneur , 5 (1), 33-48.
Keh, HT, Nguyen, TTM, and Ng, HP (2007). The Effects Entrepreneurial Orientation and Marketing Information on The Performance of Smes. Journal Of Business Venturing, 22(4), 592–611
Kiyabo, K., and Isaga, N. (2020). Entrepreneurial Orientation, Competitive Advantage, and Smes' Performance: Application of Firm Growth and Personal Wealth Measures. Journal of Innovation And Entrepreneurship , 9 (1), 1-15.
Kusmulyono, MS, Fiorentina, A., Hartanta, CA, Katerina, K., Wilianggi, L., Listiyani, M.C., ... and Sirad, DA (2020). Efforts to Increase the UMK Network in Cugenang District Through the Establishment of the Cugenang Entrepreneurs Association. STRONG: General Finance And Applied Accounting , 2 (2), 77-86.
Lantu, DC, Triady, MS, Utami, AF, and Ghazali, A. (2016). Model Development for Increasing SME Competitiveness in Indonesia: Quantitative Model Validation. The Asian Journal of Technology Management, 15 (1), 77.
Laukkanen, T., Nagy, G., Hirvonen, S., Reijonen, H., and Pasanen, M. (2013). The Effect of Strategic Orientations on Business Performance in Smes . International Marketing Review, 30(6), 510–535
Laura Hardilawati, W. (2020). SME Survival Strategy in the Midst of the Covid-19 Pandemic. Journal of Accounting and Economics , 10 (1), 89-98.
Morgan, NA, and Piercy, NF (1998). Interactions Between Marketing and Quality At The SBU Level: Influences and Outcomes. Journal of The Academy Of Marketing Science , 26 (3), 190-208.
Mustari, M., Arisah, N., Thaief, I., Fatmawati, F., and Hasan, M. (2021, July). The Effect of Entrepreneurial Orientation and Market Orientation on MSME Performance in Makassar City. National Seminar on Educational Technology (Vol. 1, No. 1, Pp. 165-177).
Nuvriasari, A., Wicaksono, G., and Sumiyarsih, S. (2015). The Role of Market Orientation, Entrepreneurial Orientation and Competitive Strategy to Improve SME Performance. EQUITY (Journal of Economics and Finance) , 19 (2), 241-259.
Palls, A. (2020). The Effect of Organizational Culture on Apparatus Performance in the Civil Service Agency and Human Resources Development in Ciamis Regency. Decision: Journal of Public Administration , 2 (1), 1-12.
Pratiwi, DS, and Haryanto, B. (2018). Internal Marketing Mix on the Performance of Eleven March University Education Personnel. BISE: Journal of Business and Economic Education , 4 (1).
Rahaman, MA, Luna, KF, Mite, S., Islam, M., and Wafik, H. (2021). The Effect of Entrepreneurial Orientation, Market Orientation and Gender on Business Performance: An Empirical Study of Smes In Bangladesh. The Journal of Asian Finance, Economics And Business , 8 (6), 741-746.
Ramadhan, BM, and Ryandono, MNH (2015) Islamic Work Ethics on Business Performance of Muslim Traders in Pasar Besar City of Madiun. Journal of Theory and Applied Sharia Economics, 2(4), 274-287.
Satwika, NKP, and Dewi, NMWK (2018). The Influence of Market Orientation and Innovation on Competitive Advantage and Business Performance (Doctoral Dissertation, Udayana University).
Septrizola, Whyosy. (2021, June). Strategic Orientation and Business Performance in West Sumatra. in Sixth Padang International Conference on Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020) (Pp. 416-418). AtlantisPress.
Sulaeman, M. (2018). The Influence of Entrepreneurial Orientation, Market Orientation, and Product Innovation on Marketing Performance (Study of the Tofu Industry in the Tofu Industry Center in Banjar City). Scientific Journal of Business Administration and Innovation , 2 (1), 154-166.
Sugiyono, (2012). Understanding Qualitative Research. Bandung: Alphabet.
Udriyah, U., Tham, J., and 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.
Wardoyo, P., Rusdianti, E., and Purwantini, S. (2015). The Effect of Entrepreneurial Orientation on Business Strategy and Business Performance of SMEs in Ujung-Ujung Village, Kec. Pabelan, Semarang Regency. Sustainable Competitive Advantage (SCA) , 5 (1).
Widjadja, YR, Alamsyah, DP, Rohaeni, H., and Sukanjie, B. (2018). The Role of SME HR Competency in Improving the Performance of SMEs in Cilayung Village, Jatinangor District, Sumedang. Journal of Abdimas Bsi : Journal of Community Service , 1 (3).
Yuliana, R., and Pujiastuti, Y. (2018). Entrepreneurial Orientation, Market Orientation, and Business Strategy on Business Performance (Case Study on MSMEs in Semarang). Tirtayasa Economics , 13 (2), 320-329.
Published
2023-03-31
How to Cite
Abshar, D., & Septrizola, W. (2023). The influence of entrepreneurial orientation and market orientation on SME business performance. Marketing Management Studies, 3(1), 90-99. https://doi.org/10.24036/mms.v3i1.348
Section
Articles
