scholarly journals The Impact of Innovation, Competitive Advantage, and Market Orientation on Firm's Marketing Performance in the Garment Industry in Indonesia

Author(s):  
T.C. Efrata ◽  
W.E.D. Radianto ◽  
M.A.E. Marlina ◽  
S.C. Budiono
2021 ◽  
Vol 22 (2) ◽  
pp. 147-161
Author(s):  
Dorojatun Prihandono ◽  
Angga Pandu Wijaya ◽  
Aufaa Afiffah Ainii

The rapid development of global business requires MSMEs to understand what the market needs. The research deals with the impact of competitive advantage as a pertinent variable in enhancing marketing performance in Indonesian MSMEs businesses. In this study, continuous competitive advantage is a focal idea to keep up with today’s disruptive market in the digital era. This study examines how market orientation and entrepreneurial orientation influence marketing performance through competitive advantage in MSMEs businesses in Indonesia. The study uses path analysis and data collection obtained by using a sample from the MSME business community. The results show that market orientation and entrepreneurial orientation have a positive and significant effect on marketing performance, and competitive advantage can mediate it. For MSME, it is hoped that it can increase response to competitors' actions, open-mindedness, be proactive in responding to market opportunities, and differentiation strategies.


2021 ◽  
Vol 19 (2) ◽  
pp. 448-458
Author(s):  
Cindera Fatikha ◽  
◽  
Mintarti Rahayu ◽  
Sumiati Sumiati ◽  
◽  
...  

This study aims to analyze the effect of entrepreneurial orientation, market orientation, and competitive advantage on marketing performance; test the effect entrepreneurial orientation and market orientation towards marketing performance are mediated by competitive advantage. The sample in this study was 132 owners from a population of 463 SMEs owners of Tempe chips. The sampling technique in this study used purposive sampling. Data analysis techniques using Partial Least Squares (PLS). The results showed that entrepreneurial orientation had a direct positive effect on marketing performance; market orientation has a direct positive effect on marketing performance; entrepreneurial orientation has a direct positive effect on competitive advantage; market orientation has a direct positive effect on competitive advantage; competitive advantage has a direct positive effect on marketing performance; entrepreneurial orientation has a positive effect on marketing performance through competitive advantage; Market orientation has a positive effect on marketing performance through competitive advantage. Competitive advantage acts as a partial mediating variable.


2015 ◽  
Vol 18 (3) ◽  
pp. 351
Author(s):  
Ag. Sunarno Handoyo

This study deals with marketing innovation, market orientation, and social capital in affecting the competitive advantage and marketing performance in Micro, Small, and Medium Enterprises (MSMEs) of embroidery in Central Java Province. In this respect, this study tried to test and analyze the effect of marketing innovation, market orienta-tion, and social capital on competitive advantage and marketing performance in Micro, Small, and Medium Enterprises (MSMEs) of embroidery in Central Java Province. The samples are 150 respondents as the owners of the embroidery business in Central Java Province. The technical analysis used is Structure Equations Modeling with AMOS Software version 22. The results show that: (1) marketing innovation has significant effect on competitive advantage; (2) market orientation has significant effect on competi-tive advantage; (3) social capital has significant effect on competitive advantage; (4) competitive advantage has significant effect on marketing performance; (5) marketing innovation has significant effect on marketing performance; (6) market orientation has significant effect on marketing performance; (7) social capital has no significant effect on marketing performance. The implication of this study is that the MSMEs of embroidery could improve marketing performance by increasing marketing innovation, market orientation, social capital and competitive advantage. This study also shows that competitive advantage is an intervening variable on marketing performance.


2013 ◽  
Vol 9 (1) ◽  
Author(s):  
Oscarius Y.A Wijaya

Relationship learnings is the main essential requirement to create company’s innovation power to enhance its competitive advantage. The relationship learning of furniture compa-nies in Indonesia has been considered in low level compared to China and other Asian countries. This also has a significant effect toward marketing performance in term of bilateral trade relationship between Indonesia and China. The link phenomenon of market orientation with the awareness about relationship behavior of furnitures companies in China has much more dominant role to win the competition. The connection or network (Guan Xi - 关系) has been used to maintain business relation amongst furniture companies in China for information sharing from academicians, suppliers and even competitors. Apparently, furnitures companies Indonesia haven’t got used to it. Companies here are less paying atten-tion on this remarkable source to generate a new innovation or design, even making market surveys to support innovation capability.  The purpose of this research is to analize the followings, (1). The effect of market orientation toward relationship learnings, (2). The effect of market orientation toward competitive advantage, (3). The effect of relationship learning toward competitive advantage, (4). The effect of market orientation toward marke-ting performance, (5). The effect of relationship learning toward marketing performance, (6). The effect of competitive advantage toward marketing performance of furnitures com-panies in Java island region.The research objects are all furniture companies in Java island region which consists of Surabaya, Semarang, Bandung and Jabodetabek with total number about 830 companies, with furniture company as analysis unit. 90 companies were being taken for the samples. This research has using SEM (Structural Equation Model) as the analysis tool to estimate the reciprocal effect by involving interverning variable. The analysis’ results showing that the market orientation has a possitive effect to marke-ting performance of furnitures companies in Java island region thru relationship learning.Keyword: market orientation, relationship learnings, competitive advantage, marketing performance


2021 ◽  
Author(s):  
◽  
Valerie Anne Hooper

<p>The purpose of this research was to determine the impact of the strategic alignment between information systems (IS) and marketing on business performance. The work of Chan (1992) was used as a point of departure. She had explored the fit between IS and business strategies and had used strategic orientation as a basis for determining the fit (alignment). Although the marketing literature did not reveal any measure for alignment, measures existed for market orientation. This appeared to be the approximate marketing equivalent of strategic orientation. Given the strategic nature of market orientation, it was decided to use it in addition to strategic orientation in order to calculate alignment. It was also decided to use marketing performance as an intermediary dependent variable. A conceptual model was devised which could be applied to the assessment of alignment according to either strategic orientation or market orientation. It consisted of three constructs: alignment, marketing performance and business performance. Implicit in this model was the calculation of alignment based either on strategic orientation or on market orientation. Two versions of the model would thus be tested. A mixed methods approach was adopted for the research. First, a qualitative phase of interviews with 36 respondents (the heads of information technology (IT)/IS and the heads of marketing of 18 companies) was conducted. The purpose was to obtain a deeper understanding of perceptions of alignment between IS and marketing, and to ascertain the different measures used for marketing performance and business performance. The findings served to refine the conceptual model and inform the second phase survey. The second phase was quantitative and consisted of a mail survey of heads of IT and heads of marketing of large New Zealand companies. In total 415 responses were received, 350 of them being pairs from 175 companies.  Pairs of responses were a requirement for the calculation of alignment. A new formula was developed for the calculation. This was used to calculate alignment according to both strategic orientation and market orientation. The data collected in the second phase were used to test the model, using both factor analysis and structural equation modelling. Statistically significant evidence was provided that indicated that the alignment between IS and marketing exerts a positive impact on both business performance and marketing performance, and that marketing performance exerts a positive impact on business performance. This is so, irrespective of whether alignment is calculated according to strategic orientation or market orientation. The value of the research lies in the development of a parsimonious model which measures the alignment between IS and marketing and the impact of that on business performance. It also lies in the development of a robust formula for the calculation of alignment. It further demonstrates the value of a cross-disciplinary approach which could have significant implications for both academic research and for practitioners. The potential impact on companies consists of the breaking down of the silo mentality; an emphasis on cross-functional teamwork, cross-functional training and job rotation; and an impact on organizational structure and culture.</p>


Author(s):  
Yosef Budi Susanto

Objective – Literature suggest that companies should focus their Market Orientation (MO) on good marketing and business performance. However, previous research in this area deals mostly with large companies. The objective of this research is to study the significance of MO for small and medium enterprises (SMEs) with the specific production strategy of Make-To-Order. Methodology/Technique – The sample of this study is 111 Indonesia SMEs. The descriptive research design is supported by exploratory research. The structural model is analysed using the Structural Equation Modelling approach with LISREL 8.8 and SPSS 16.00. Findings – The result shows that MO does not have a significant impact on Marketing Performance. In the context of MTO, SMEs do not need to have a high Market Orientation to have satisfactory performance. It is more important for them to take care of the relationship with their principal companies. Government regulations, such as raw material regulations, also have an impact on SMEs performance. It is recommended that future research explore the types of capabilities of SMEs relating with the era of Industry 4.0. Other strategic orientations, such as production orientation, could be considered as factors in future research. Type of Paper: Empirical Keywords: Strategic Leadership Competence; Entrepreneurial Orientation; Market Orientation; Dynamic Marketing Capability; Business Environment; Marketing Performance; Maklun (MTO Strategy). Reference to this paper should be made as follows: Susanto, Y.B. 2019. The Impact of Market Orientation and Dynamic Marketing Capability on the Marketing Performance of ‘Make-To-Order’ SMEs, J. Mgt. Mkt. Review 4(3) 157 – 170 https://doi.org/10.35609/jmmr.2019.4.3(1) JEL Classification: M3, M30, M31.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo

PurposeThis study investigates the influence of six interrelated contextual factors, namely organisational structure, quality of information technology, business strategy in terms of deliberate strategy-formulation, market orientation, market competition and perceived environmental uncertainty (PEU), on the usage intensity of innovative management accounting techniques commonly referred to as strategic management accounting (SMA); the impact of SMA usage on competitive advantage; and the moderating influence of the contextual factors on the relationship between SMA usage and competitive advantage.Design/methodology/approachSurvey data were obtained through a structured questionnaire from publicly listed manufacturing companies on the main board of the Nigerian Stock Exchange (NSE). Ordinary least squares (OLS) regression and moderated regression were used to analyse data. Both exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to examine the validity and reliability of variables as first and second order of analysis. Structural equation modelling (SEM) (maximum likelihood estimation method) was applied to assess the robustness of result.FindingsMarket orientation and deliberate strategy-formulation emerged as significant determinants of SMA usage intensity. Although there is a significant relationship between SMA usage and competitive advantage, the strength of the relationship is moderate. Organisational structure, deliberate strategy-formulation and PEU significantly moderate the relationship between SMA usage and competitive advantage.Research limitations/implicationsThe emergence of deliberate strategy-formulation, as both a significant predictor of SMA usage intensity and as the strongest moderator of the relationship between SMA usage and competitive advantage, establish that it is organisations that take a proactive approach to strategy issues that may derive the most benefit from SMA utilisation.Practical implicationsThe result from this study brings to fore the need to involve management accountants in strategy-formulation and implementation in order to leverage their competence in deploying SMA techniques to enhance organisational competitiveness.Originality/valueThe current study is the first, to the researcher's knowledge, to specifically examine interrelated contextual factors distinctively affecting SMA usage and organisational competitiveness in a developing country. Whilst these six factors have been stressed as important determinants of the adoption of innovative management accounting techniques, the study provides empirical evidence on the extent to which they exert on SMA. The study presents empirical evidence on the relevance of market orientation—a construct which has surprisingly received little research attention in management accounting literature—as a variable which could affect the adoption of management accounting innovation.


2015 ◽  
Vol 2 (01) ◽  
Author(s):  
Navi Muda Priyatna

Abstract: Company competition surrounding today is colored with the fast changes and full of uncertainties. And, the problem faced by companies in present is the decrease of job volume, in which this matter takes place due to the impact of the decline of demands for the electric installation construction service to PT. Wisang Utama Mandiri. The job volume decline, perhaps, there any factors causing it, they are, among others, the poorly service quality, the market demands that not accommodated by the company, even the consumer satisfaction that not yet maximal, these cases, of course, so impacted on company incomes.From the result of testing on model in this research, by using random sampling, structural equation model (SEM) analysis, and the assistance of software Amos 22, on 100 respondents, that it was able to explain the Analysis of the Effects of Service Quality, Market Orientation, and Consumer Satisfaction on the Marketing Performance of PT. Wisang Utama Mandiri of Surabaya.The research result indicated that: 1) Service quality has effect on consumer satisfaction. 2) Service quality has effect marketing performace. 3) Market orientation has effect on consumer satisfaction. 4) Market orientation has effect on marketing performance. 5) Employee job satisfaction has significant effect on marketing performance.Of the three variables hypothesized as influential in this research, whose value largest is the direct relevance between market orientation and marketing performance.Key words: PT. Wisang Utama Mandiri, Service quality, Market orientation, Job satisfaction, Marketing performance


2018 ◽  
Vol 7 (4) ◽  
pp. 458-468
Author(s):  
Novi Nurhasanah ◽  
Murwatiningsih Murwatiningsih

The study is aimed at examining the effect of market orientation, learning orientation, innovation and competitive advantage on marketing performance. Populations in this research are 41 which 3, 4, and 5 star-rated hotels in Semarang City. The numbers of samples in this research are 120 respondents by using purposive sampling technique. Methods of data collection are using documentation and questionnaires. Data analysis is using Structural Equation Modeling (SEM). The result of this research show that companies which apply learning orientation, innovation and competitive advantage can improve marketing performance, but for market orientation has no effect on marketing performance.


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