Determinant of Market Orientation on SME Performance: RBV and SCP Perspective

NURHILALIA,, N. , RAHMAN, K. A. , MAHLIA,, M. , JUSNI,, J. , & ADITYA,, H. P. K. P. (2019). Determinant of Market Orientation on SME Performance: RBV and SCP Perspective. The Journal of Distribution Science, 17(9), 35-45, https://doi.org/https://doi.org/10.15722/jds.17.9.201909.35

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Abstract

Purpose - This study analyzes the relationship between inter-function coordination variables, competitor, customer and innovation orientation that has been developed by Narver & Slater (1990), also known as Market Orientation Strategy on SME Sutera's marketing performance, through direct and indirect effect relationships. Research design, data, and methodology - This study uses a sample of 168 respondents who are silk SME entrepreneurs in eleven Silk Craftsman sub-districts in Wajo Regency - South Sulawesi Province, Indonesia. Data collection using a questionnaire with a period between January - June 2019. Data analysis use PLS. The stages of testing the results of analysis go through several stages: the first stage, analysis of variable descriptions, the goodness of fit model (AVE, CR, Cronbach Alpha, R<sup>2</sup>) and hypothesis test. Results and Findings - From the fifteen hypothesis by direct and indirect effect state six hypothesis are rejected and eleven hypothesis are accepted. Overall, the concepts of Resource Based View theory (RBV) and Structure-Conduct- Performance theory (SCP) also provide a strategic picture for businessmen related to product innovation and service innovation and the urgency of regeneration in order to maintain the continuity of superior products in the future.

keywords: Market Orientation, Market Performance, SMEs

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Article Contents

Vol.17 No.9

Determinant of Market Orientation on SME Performance: RBV and SCP Perspective

Abstract

Reference

The Journal of Distribution Science