Business environment as an intervening variable of market orientation and business performance of Batik Jambi SMEs

Authors

  • Ade Octavia Faculty of Economics and Business, University of Jambi

DOI:

https://doi.org/10.22437/ppd.v5i3.4605

Abstract

Batik Jambi is a unique product of Jambi Province, but the performance of batik Jambi SMEs business is still low. The purpose of the research is to analyze the role of the business environment on the relationship of market orientation, entrepreneurship orientation, and business performance. The research method used is qualitative and quantitative with interview approach, observation, documentation and sample survey. The sample of this research is Batik Jambi SMEs. Sampling used judgment sampling method. The analysis tools used are FGD and PLS (partial least square). The results show that the business environment is a variable between the relationship of market orientation and business performance, but not the intermediate variables on the relationship of entrepreneurial orientation and business performance.

Downloads

Download data is not yet available.

References

Ali, K ; John E; DeShiels, Oscar w, Jr ( 2005 ) . The Effect of a Market Orientation on Business Performance: A Study of Small-Sized Service Retailers Using MARKOR Scale. Journal of Small Business Management. Vol.43 , No.2 .

Asgar, A ; Alipour, Hossein and Hasanzadeh, Mohammad ( 2013 ) . Market Orientation and Business Performance Among SMES Based in Ardabil Industrial City-Iran. Kuwait Chapter of the Arabian Journal of Business and Management Review. Vol.2 , No.7.p.38 -47.

Aziz, N.A and Yassin, Norjaya Mohd (2010). How Will Market Orientation and Exsternational Environment Influence the Performance Among SMEs in The Agro-Food Sector In Malaysia ?. international Business Research.Vol.3 .No.3.p.154-164.

Baker, W.E and Sinkula, James M (2009). The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Businesses. Journal of Small Business Management. 47 (7) .PP.443-464.rvice Firm. Academy of Marketing Studies Journal. Vol.18.No.1.

Bhuian, S, N and Gader-Abdul Abdullah . ( 1997 ) . Market Orientation In The Hospital Industries. Marketing Health Service ; 37-44 .

Cadogan and Dimantopaulus ( 1995 ) . Market Orientation Construct Integration and Internationazation. Journal of Strategic . 3 : 41-60 .

Despandhe, R and Gerald Zaltmsn ( 1993 ) . Factors Aecting The Use of Market Research Information A Path Analysis. Journal of Marketing Research . 19 : 14-31

Felguiera, T and Ricardo Gouveia Rondrigues ( 2012 ) . Entrepreneurial Orientation, Market Orientation and Performance of Teachers and Researchers in Public Higher Education Institutions. Public Policy and Administration. Vol.11 , No.4.p.703 -718.

Ginta, G ( 2014 ) . Proposed Conceptual Model Internationalization of Small Medium Industries (SMIs) in Indonesia: The Relationship between Entrepreneurial Orientation, Network Capital, Degree of Internationalization and Business Performance. Asian Social Science. Vol.10 , No.19.p.220 -229 .

Hafeez, S, Rashid Mehmood Chaudhry, Zafar Ullah Siddiqui and Khasif Ur Rehman ( 2011) . The Effects of Market and Entrepreneurial Orientation on Firm Performance. Information Management and Business Review. Vol.3 , No.6.p.389 -395.

Han, J.K; Nanwoon Kun and Rajendran K Srivasta ( 1998 ) . Market Orientation and Organizational Performance. Is Inovation a missing Link ?. Journal of Marketing. 62: 40-45.

Hermann, F; Kessler, Alexander and Fink, Matthias ( 2010 ) . Entrepreneuriak Orientation and Business Performance-A Replication Study. Schmalenbach Business Review. p.175-198.

Ibrahim, D.I; Nimran, Umar and Sudiro, Achmad ( 2013 ) . Business Strategy Role as Mediaton of Management Capability and Orientation of Entrepreneurshio on Business Performance (A Study on Micro and Small Scale Business in Takalar Seaweed District, South Sulawesi Province. Journal of Management Research. P.112-127.

Kreiser, P.M and Davis, Justin ( 2010 ) . Entrepreneurial Orientation and Firm Performance The Unique Impact of Innovativeness, Proactivenee and Risk Taking. Journal of Small Business and Entrepreneurship . Vol.23 , No.1 .

Kohli, K.A and Jaworski.J.Bernand ( 1990 ) . Market Orientation: The Construct.Research Proposition and Managerial Implication, Journal of Marketing , 54 : 1-18.

Lee, Tien-Shang and Tsai, Hsu-Ju (2005). The Effects of Business Operation Mode on Market Orientation, Learning Orientation and Innovativeness. Industry management & Data Systems, 105.3 / 4.P.325-347.

Matanda, M.J and Ndubisi, Nelson Oly ( 2009 ) .Market Orientation, Supplier Perceived Value and Business Performance of SMEs in a Sub-Saharan African Nation. Journal of Enterprise Information Management . Vol 22 , No.4.p.384 -407.

Matsuno, K: Mentzer, Jhon T and Ozsomer, Aysegul ( 2002 ) . The Effect of Entrepreneurial Proclivity and Market Orientation on Business Performance. Journal of Marketing . 66 (3): 18-32.

Milovanovic, B.M and Wittine, Zoran (2014). Analysis of External Environment Moderating Role on The Entrepreneurial Orientation and Business Performance Relationship Among Italian Small Enterprises. International Journal of Trade, Economics and Finance. Vol.5. No.3.

Moghaddam , A.Gi; Imani, Yeganeh Afshar; Erteza, Nazanin and Setayeshi, Leila (2013). Mediating Role of Innovation & Market-Orientation in the Relationship Between Knowledge Management & Financial Performance: A Case Study of Small & Entrepreneurial Business. Interdisciplinary Journal of Contemporary Research in Business. Vol.5 , No.3.p.688 -697.

Octavia.A (2006) . Analysis of Antecedents and Consequences of Hospital Market Orientation in Jambi Province , Dissertation, Universitas Brawijaya, Malang.

Octavia, A; Haryadi; Yulmardi and Rahayu, Sri (2010) . Evaluation of Micro Small and Medium Enterprises Beneficiaries of Government Assistance and Strategies for Improving Business Competitiveness concerned in order to Encourage the Economy of Jambi Province . DP2M /

Teck, P.E . (2012) . Entrepreneurial Market Orientation Relationship to Performance Malaysian SME's perspective. Journal of Asia Entrepreneurship and Sustainability. Vol.VIII.

Westerberg, M and Wincent, Joakim, (2008). Entrepreneur Characteristics and Management Control: Contingency Influences on Business Performance. Journal of Business and Entrepreneurship. Vol. 20 (1).

Wheelen, T.L; Huper, J David; Hoffan, Alan N and Banford, Charles E. (2015) Strategic Management and Business Policy. Prentice Hall.

Downloads

Published

2018-03-04 — Updated on 2018-03-04

How to Cite

Octavia, A. (2018). Business environment as an intervening variable of market orientation and business performance of Batik Jambi SMEs. Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 5(3), 141 - 148. https://doi.org/10.22437/ppd.v5i3.4605