scholarly journals Moderation Effect of Education to the Effect of Market Orientation and Technology Orientation on Entrepreneurship Orientation at Small-and-Medium Enterprises (SMEs) in East Java, Indonesia

Author(s):  
Salim Al Idrus

The research was aimed to uncover the effect of market orientation and technology orientation on entrepreneurship orientation with education as a moderator variable. This research used the quantitative approach and the causal relationship between variables was investigated through Structural Equation Modeling-Partial Least Squares (SEM-PLS). The research population included Small-and-Medium Enterprises (SMEs) in East Java, Indonesia, and 168 SMEs were selected as the sample. The findings of the research revealed that education attainment levels could reduce the effect of market orientation on entrepreneurship orientation and could increase the effect of technology orientation on entrepreneurship orientation. Based on the findings, it is recommended that SMEs in East Java must improve their entrepreneurship orientation by intensifying the variation of the market’s supply and demand, upgrading technology, and hiring workers who have the required educational background, and then training them on the latest technology

Author(s):  
Vincent Didiek Wiet Aryanto

This study aims at investigating the effect of market orientation on local wisdom-based e-eco-innovation as mediating variable to the Small and Medium Enterprises' marketing performance. Model and hypotheses testing were undertaken by means of SEM (Structural Equation Modeling) Amos version 23. A total of 250 questionnaires were distributed among the three industrial clusters, however, 189 was valid to be further followed up. The findings were market orientation has significant effect on local wisdom-based e-eco-innovation, market orientation has significant effect on firm's marketing performance and local wisdom-based e-eco-innovation has significant effect on firm's marketing performance. The study has provided some empirical evidence that the development of local wisdom-based e-eco-innovation particularly in developing countries, enhance the SMEs marketing performance.


2020 ◽  
Vol 23 (1) ◽  
pp. 19
Author(s):  
Astrid Puspaningrum

This study aims to analyze competitive advantage as a variable that mediates the effect of market orientation on marketing performance. This research population is 113,000 SMEs (Small And Medium Enterprises) located in Malang City, which are engaged in food processing, handicrafts, and clothing business units with an observation sample of 100 SMEs. The data analysis technique used in this study is Structural Equation Modeling. The results of this study indicate that SMEs' performance will increase if they can carry out processes and activities related to creating and satisfying customer needs. Besides, market-oriented SMEs contribute to competitive advantage by creating product uniqueness, product quality, and competitive prices, ultimately affecting the performance of SMEs. In order to improve SMEs' performance, efforts must be made to develop marketing strategies, such as paying attention to market orientation, focusing on customer orientation, competitor orientation, and inter-functional coordination, and developing or innovating new products.


2020 ◽  
pp. 909-925
Author(s):  
Vincent Didiek Wiet Aryanto

This study aims at investigating the effect of market orientation on local wisdom-based e-eco-innovation as mediating variable to the Small and Medium Enterprises' marketing performance. Model and hypotheses testing were undertaken by means of SEM (Structural Equation Modeling) Amos version 23. A total of 250 questionnaires were distributed among the three industrial clusters, however, 189 was valid to be further followed up. The findings were market orientation has significant effect on local wisdom-based e-eco-innovation, market orientation has significant effect on firm's marketing performance and local wisdom-based e-eco-innovation has significant effect on firm's marketing performance. The study has provided some empirical evidence that the development of local wisdom-based e-eco-innovation particularly in developing countries, enhance the SMEs marketing performance.


2018 ◽  
Vol 7 (2) ◽  
Author(s):  
Hendi Eka Sumarga ◽  
Dudung Hadiwijaya

The Small and Medium Enterprises (SMEs) sector has proven resilient, when the economic crisis in 1998, only the SME sector survived the collapse of the economy, while the larger sector fell by the crisis. The Role of Small and Medium Enterprises (SMEs) as an economic movement, its existence is the engine of growth for the growth and development of new entrepreneurs and the increasing performance of SMEs. However, SMEs still face obstacles in terms of technical expertise, competence, entrepreneurship and management as well. Furthermore, the problem faced is limited access to productive resources such as raw materials, capital, technology, market facilities and information. The purpose of this study was to analyze the influence of entrepreneurial attitudes and market orientation on learning in improving business performance of SMEs themselves. This research model consists of three hypotheses with four variables namely entrepreneurial attitude, market orientation and organizational learning on business performance. The data used is 82 SMEs in Tangerang City using the Structural Equation Modeling analysis tool in the Smart PLS program. The results of data analysis prove that all proposed hypotheses can be accepted. So it can be concluded that business performance is influenced by three factors, both directly and indirectly, namely organizational orientation, market orientation and entrepreneurial attitudes.


Author(s):  
Francisco Alejandro Pérez Gilabert ◽  
Jorge Luis Pena Acevedo

The objective of this study is to develop and test a framework for the role that supply chain strategy (SCS) and supply chain integration have in a firm’s financial performance and to increase the understanding of the role that these factors play in supply chain design. Structural equation modeling was used to test these relationships based on data obtained from small and medium exporting enterprises in Peru. This study responds to a gap in understanding the role of supply chains in small and medium enterprises (SMEs) and how firms in Latin America, especially in Peru, apply supply chain concepts. Findings indicate that companies should prioritize their integration efforts depending on the type of supply chain strategy. Likewise, results show that customer integration is directly related to a firm’s financial performance. This study responds to the need to understand the development of supply chain strategies and the generation of competitive advantage in Peruvian export-manufacturing SMEs.


2019 ◽  
Vol 16 (1) ◽  
pp. 91-122 ◽  
Author(s):  
Surjit Kumar Gandhi ◽  
Anish Sachdeva ◽  
Ajay Gupta

PurposeThe purpose of this paper is to investigate the role played by service quality (SQ) in manufacturer–distributor working partnerships in the context of Indian small and medium enterprises (SMEs), and present two models which propose and validate that contributions toward SQ, made by both the manufacturing unit and distribution firm lead to satisfaction which consequently results in business-to-business (B2B) loyalty.Design/methodology/approachThe research design for this study includes a combination of literature review, exploratory interviews with a focus group and a questionnaire survey conducted through interview schedule from 101 information rich and willing respondents working in SMEs of northern India.FindingsThe paper brings out scales foe measuring organizational (internal) and distributor (external) SQ. Further, two models using structural equation modeling are developed. Model-I examines the effect of organizational SQ on distributor SQ. Model-II examines the impact of distributor SQ on satisfaction and loyalty and also tests a set of four propositions related to their working relationship. The models are empirically tested and are found to be fit.Research limitations/implicationsFuture researchers may validate these scales, and empirically test the proposed models in alternate settings. Insights derived from this study may be transferred to other partnerships, which may exist in a manufacturing supply chain including suppliers, employees, retailers and end consumers.Practical implicationsThis study would be of interest to SME practitioners interested in improving SQ with their distributors. The study also finds support for strengthening collaborative relationships with B2B partners to achieve a win-win situation.Originality/valueThere are very few empirical studies that measure SQ w.r.t. distribution function in SMEs and the concept is in nascent stage, especially in Indian setting.


Author(s):  
Alireza Jalali ◽  
Mastura Jaafar ◽  
T. Ramayah

Purpose This study aims to explore the direct and indirect effects of organizational stakeholder’s relationship on performance through innovativeness and risk-taking among small and medium enterprises (SMEs). Design/methodology/approach This study used the cluster sampling method to select the study sample and the questionnaire survey approach to 580 SMEs established in Tehran. A total of 150 completed questionnaires were returned. Partial least squares-structural equation modeling was administered to analyze data via the SmartPLS 3.0 software. Findings The survey outcomes revealed that organization-stakeholder relationship had an indirect effect on performance through innovativeness and risk-taking. The results indicated positive links for organization-stakeholder relationship and innovativeness, as well as the organization-stakeholder relationship to risk-taking. Practical implications This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders and to consider the significance of the correlations established, in this study, through innovativeness and risk-taking. Originality/value This research is one of the few attempts that have addressed the importance of innovativeness and risk-taking as the key mechanisms to transform the advantages of organization-stakeholder relationships to enhance performance.


2020 ◽  
Vol 26 (6) ◽  
pp. 1307-1327 ◽  
Author(s):  
Irwan Usman ◽  
Haris Maupa ◽  
Muhammad Idrus ◽  
Siti Haerani ◽  
Nurjanna Nurjanna

PurposeThis paper examines how market orientation and competence of knowledge reinforce the innovation and in turn improve the business performance.Design/methodology/approachThis research applied research design with quantitative approach based on positivism philosophy, that is, research aimed to test the theory and data which is general to produce findings that are special through hypothesis test. This study was supplemented by field studies as a necessary source of data in the form of trends, attitudes, opinions, perceptions of owners, managers or senior employees of SMEs in the textile industry in Bali, related to the variables used in this study.Findings(1) Market orientation influences business performance, (2) competence of knowledge moderates the influence of market orientation on business performance, (3) innovation moderates the influence of market orientation on business performance.Originality/value(1) Novelty of this research is developing the concept of competence of knowledge associated with business performance in which this relationship has not yet been expressed. (2) Building the concept of innovation development of small-scale industry based on the market orientation. (3) Developing the concept of innovative development of small and medium enterprises of textile industry based on competence of knowledge. (4) Investigating the concept of market orientation and competence of knowledge in an integrated and holistic way to strengthen the innovation and business performance of SMEs of the textile industry in Bali.


2018 ◽  
Vol 13 (6) ◽  
pp. 255 ◽  
Author(s):  
Peter K. Turyakira

Businesses are increasingly required to address the demands of key stakeholders, in addition to those of shareholders. There is an increasing role of corporate social responsibility (CSR) to large businesses and small and medium enterprises (SMEs) alike. However, research to support the degree of the application of CSR activities to SMEs with respect to customer loyalty is limited. The purpose of this study was to examine the selected CSR activities that impact the customer loyalty of SMEs. A self-administered questionnaire was distributed to selected SMEs in Kampala District, while Structural Equation Modeling was utilised to determine the influence of independent variables on the dependent variable. The study findings revealed that the selected CSR activities (Society-oriented CSR activities, Market-oriented CSR activities and Environmental-oriented CSR activities) positively influence the Customer loyalty of SMEs.


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