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.
Aboelmaged, M., Administration, B., & Emirates, U. A. (2018). The drivers of sustainable manufacturing practices in Egyptian SMEs and their impact on competitive capabilities: A PLS-SEM model. Journal of Cleaner Production, 175, 207-221. https://doi.org/10.1016/j.jclepro.2017.12.053
Bappenas. (2016). Warta_KUMKM_2016_Vol_5_No_1.pdf.
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120. http://doi.org/10.1177/014920639101700108 Firm Resources and Sustained Competitive Advantage. Journal of Management. https://doi.org/10.1177/014920639101700108
Cadogan, J. W., & Diamantopoulos, A. (1995). Narver and Slater, Kohli and Jaworski and the market orientation construct: integration and internationalization. Journal of Strategic Marketing, 3(1), 41-60.
Camisón-haba, S., Clemente-almendros, J. A., & Gonzalez-cruz, T. (2018). How technology-based firms become also highly innovative firms? The role of knowledge, technological and managerial capabilities, and entrepreneurs’ background. Suma de Negocios. Retrieved from https://doi.org/10.1016/j.jik.2018.12.001
Chin, W. (1998). The partial least squares approach to structural equation modeling. Modern Methods for Business Research, 295(2), 295-336. https://doi.org/10.1016/j.aap.2008.12.010
Day, G. S., & Nedungadi, P. (1994). Managerial Representations of Competitive Advantage. Journal of Marketing, 58(2), 31-44. https://doi.org/10.1177/002224299405800203
Day, G. S., & Wensley, R. (1988). Assessing Advantage:A Framework for Diagnosing Competitive Superiority. Journal of Marketing, 52(2), 1. https://doi.org/10.2307/1251261
Dereli, D. D. (2015). Innovation Management in Global Competition and Competitive Advantage. Procedia -Social and Behavioral Sciences, 195, 1365-1370. https://doi.org/https://doi.org/10.1016/j.sbspro.2015.06.323
Deshpande, R., Farley, J. U., & Webster, F. E. (1993). Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis. Journal of Marketing, 57(1), 23. https://doi.org/10.2307/1252055
Dibrell, C., Craig, J., & Hansen, E. (2011). Natural Environment, Market Orientation, and Firm Innovativeness: An Organizational Life Cycle Perspective. Journal of Small Business Management, 49(3), 467-489. https://doi.org/10.1111/j.1540-627x.2011.00333.x
Distanont, A., & Khongmalai, O. (2018). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences. https://doi.org/https://doi.org/10.1016/j.kjss.2018.07.009
Elrehail, H. (2018). The relationship among leadership, innovation and knowledge sharing: A guidance for analysis. Data in Brief, 19, 128-133. https://doi.org/10.1016/j.dib.2018.04.138
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 382-388.
Giannikas, V., McFarlane, D., & Strachan, J. (2019). Towards the deployment of customer orientation: A case study in third-party logistics. Computers in Industry, 104, 75-87. https://doi.org/https://doi.org/10.1016/j.compind.2018.10.005
Grawe, S. J., Chen, H., & Daugherty, P. J. (2009). The relationship between strategic orientation, service innovation, and performance. International Journal of Physical Distribution & Logistics Management, 39(4), 282–300. https://doi.org/10.1108/09600030910962249
Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), 662–676. https://doi.org/10.1016/j.ijpe.2011.05.014
Ibrahim, S., & Heng, L. H. (2015). The Roles of Learning in Stimulating Knowledge Sharing at SMEs. Procedia -Social and Behavioral Sciences, 172, 230-237. https://doi.org/10.1016/j.sbspro.2015.01.359
Kadir, N. (2018). Analysis of entrepreneurship perception and business developmental strategy of silk in Wajo Regency, South Sulawesi, Indonesia. International Journal of Law and Management, 60(1), 102–113. https://doi.org/10.1108/IJLMA-11-2016-0114
Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market Orientation: A Meta-Analytic Review and Assessment of its Antecedents and Impact on Performance. Journal of Marketing, 69(2), 24-41. https://doi.org/10.1509/jmkg.69.2.24.60761
Lewrick, M., Omar, M., & Robert, J. (2011). Market Orientation and Innovators’Success: an Exploration of the Influence of Customer and Competitor Orientation. Journal of Technology Management & Innovation, 6(3), 48–62. https://doi.org/10.4067/s0718-27242011000300004
Lorenzo, J. R. F., Rubio, M. T. M., & Garcés, S. A. (2018). The competitive advantage in business, capabilities and strategy. What general performance factors are found in the Spanish wine industry? Wine Economics and Policy, 7(2), 94-108. https://doi.org/10.1016/j.wep.2018.04.001
Lukas, B. A., & Ferrell, O. C. (2000). The Effect of Market Orientation on Product Innovation. Journal of the Academy of Marketing Science, 28(2), 239-247. https://doi.org/10.1177/0092070300282005
Lynch, J., Mason, R. J., Beresford, A. K. C., & Found, P. A. (2012). An examination of the role for Business Orientation in an uncertain business environment. International Journal of Production Economics, 137(1), 145–156. https://doi.org/10.1016/J.IJPE.2011.11.004
Mavondo, F. T., Chimhanzi, J., & Stewart, J. (2005). Learning orientation and market orientation. European Journal of Marketing, 39(11/12), 1235-1263. https://doi.org/10.1108/03090560510623244
Narver, J. C., & Slater, S. F. (1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4), 20–35. https://doi.org/10.2307/1251757
Olavarrieta, S., & Friedmann, R. (2008). Market orientation, knowledge-related resources and firm performance. Journal of Business Research, 61(6), 623-630. https://doi.org/10.1016/j.jbusres.2007.06.037
Pike, K. M., & Dunne, P. E. (2015). The rise of eating disorders in Asia: A review. Journal of Eating Disorders, 3(1), 1–14. https://doi.org/10.1186/s40337-015-0070-2
Porter, M. E., & Van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97-118.
Powell, S. M. (2015). Journal of Brand Management – Year end review 2015. Journal of Brand Management, 22(6), 715-720. https://doi.org/10.1057/s41262-017-0078-9
Putra, A. H. P. K., Haming, M., Murdifin, I., Zulfikar Syaiful, A., & Aditya, H. P. K. P. (2019). The Application of SERVQUAL Distribution In Measuring Customer Satisfaction of Retails Company. Journal of Distribution Science, 17(2), 25. https://doi.org/10.15722/jds.17.02.201902.25
Rina Maryanti, R. C. (2014). Terkendala bahan baku benang sutera (3). Retrieved February 10, 2019, from https://peluangusaha.kontan.co.id/news/terkendala-bahanbaku-benang-sutera-3
Rivard, S., Raymond, L., & Verreault, D. (2006). Resource-based view and competitive strategy: An integrated model of the contribution of information technology to firm performance. The Journal of Strategic Information Systems, 15(1), 29-50. https://doi.org/10.1016/j.jsis.2005.06.003
Syukur, M., Dharmawan, A. H., & Satyawan Sunito, D. D. (2014). Transformasi Penenun Bugis - Wajo Menuju Era Modernitas. Paramita, 24(1), 63-77.
Verhees, F. J. H. M., & Meulenberg, M. T. G. (2004). Market Orientation, Innovativeness, Product Innovation, and Performance in Small Firms. Journal of Small Business Management, 42(2), 134-154. https://doi.org/10.1111/j.1540-627x.2004.00102.x