Performance of Productive Economic Business-Joint Business Group in Bukittinggi City, West Sumatera Province, Indonesia
Author(s)
Irwan Ch , Titiek Tjahja Andari , Mas Nur Mukmin ,
Download Full PDF Pages: 37-44 | Views: 953 | Downloads: 205 | DOI: 10.5281/zenodo.4030644
Abstract
Micro, Small, and Medium Enterprises make contributions a very massive to the Indonesian economy, both in terms of the number of business units, employment, and contribution to Gross Domestic Product, one of which is the Productive Economic Business - Joint Business Group. The purpose of this study is to analyze and understand the effect of Entrepreneurial Marketing (Entrepreneurship Orientation, Market Orientation, and Innovation) on performance, especially in the Customer Perspective. Entrepreneurship Orientation consists of the ability to innovate, proactive, the ability to take risks, while the market orientation consists of customer orientation, competitors, and coordination between functions. The research sample was 110 respondents of Productive Economy Business Actors - Joint Business Group in Bukittinggi City, West Sumatra Province. The sampling method is non-probability sampling, which is based on the researchers' judgment of the population that was deliberately chosen. The analysis conducted in this study uses descriptive and verification analysis using S.E.M. (Structural Equation Model) data analysis techniques. The results showed that the Entrepreneurship, Market, and Innovation Orientation significantly affected the performance, especially in the Customer Perspective of Productive Economic Business - Joint Business Groups (P.E.B.–J.B.G.). The Effect of Entrepreneurial Orientation on Productive Economic Business - Joint Business Groups (PEB-JBG), especially in the Customer Perspective, is positive, this condition shows that the better Entrepreneurial Orientation carried out by Productive Economic Business - Joint Business Groups (P.E.B. - J.B.G.), the better its performance. The Effect of Innovation on Productive Economic Business - Joint Business Groups (PEB-JBG), especially in the Customer Perspective, is positive. This condition shows that the better the product innovations carried out by the Productive Economic Business - Joint Business Groups (PEB-JBG), the better their performance. As for Market Orientation, the effect is negative, and these conditions can explain that the stronger the drive to penetrate the Market Orientation (focusing on competitors and customers, but not good at coordination between functions), the effect is less good (negative) on performance. In this study, the performance of the Productive Economic Business - Joint Business Group (P.E.B. – J.B.G.) is only limited in the customer's Perspective, so for other perspectives as a balanced scorecard (finance, internal processes, growth and learning), it has not been studied partially or simultaneously.
Keywords
Money Performance of Micro Small and Medium Enterprises, Customer Perspectives, Entrepreneurship Orientation, Market Orientation, Innovation
References
i. Aronson., A., Wilson, T.D., Akert, R.M., 2005. Social Psychology. 5th. New York: Prentice-Hall, Inc.
ii. Aykol, S and Gurbuz, G. 2009. "Entrepreneurial Management, Entrepreneurial Orientation, and Turkish Small Firm Growth." Management Research News, 32 (4).
iii. Chow, I. 2006. "The Relationship Between Entrepreneurial Orientation and Firm Performance in China." S.A.M. Advanced Management Journal 71 (3).
iv. Ferdinand, Augusty. 2002. Structural Equition Modeling dalam Penelitian Manajemen. 2. Bandung: Badan Penerbit, Universitas Diponegoro.
v. Ginsberg, A., 2011. "Measuring Changes in Entrepreneurial Orientation Following Industry Deregulation: The Development of a Diagnostic Instrument." Proceedings of International Council of Small Business.
vi. Greenley, G.E and Lings, I.N. 2009. "The Impact of Internal and External Market Orientations on Firm Performance." Journal of Strategic Management (Taylor & Francis Online) 17 (1). Accessed June 29, 2019. doi:https://doi.org/10.1080/09652540802619251.
vii. Greenly, G.E and Lings, I.N. 2009. "The Impact of Internal and External Market Orientations of Firm Performance." Journal of Strategic Management 17 (1).
viii. Hanafi, N., and Mahmood, R., 2013. "Entrepreneurial Orientation and Business Performance of Women-Owned Small and Medium Enterprises in Malaysia: Competitive Advantage as a Mediator." International Journal of Business and Social Science 4 (1).
ix. Hoor, R., Brantjes, A., Frese, M., 2002. "Psychological Succes Factors of Small Scale Business in Namibia: The Roles of Strategy Process, Entrepreneurial Orientation, and the Environment." Journal of Development Entrepreneurship 7 (3).
x. Idar, R, and Mahmood. 2011. "Entrepreneurial and Marketing Orientation Relationship to Performance: The S.M.E. Perspective." Interdisciplinary Review of Economics and Management.
xi. Kelson, A.K., 2002. "A Quantitative Study of Market Orientation and Organizational Performance of Listed Companies: Evidence Form Grana." Journal of Management and Marketing Research 5 (7).
xii. Ketchen, D.J, and Hult, G.T.M., 2001. "Does Market Orientation Matter? : A Test of the Relationship Between Positional Advantage and Performance." Strategic Management Journal 22 (9).
xiii. Killa, Marlon Felipe. 2014. "Effect of Entrepreneurial Innovativeness Orientation, Product Innovation, and Value co-Creation on Marketing Performance." Journal of Research in Marketing (TechMind Research Society) 2 (3). Accessed June 28, 2019.
xiv. Krohmer, H., Workman, J.P, Homburg, C., 2003. "A Strategy Implementation Perspective of Market Orientation." Journal of Business Research.
xv. Kumara, P.A.P.S., Wijesekara, W.A.D.S., and Gunawardana, T.S.L.W. 2014. "Impact of Market Orientation and Entrepreneurial Orientation on Performance: A Study of Small and Medium Scale Garment Manufacturers in Sri Lanka." The 3rd International Conference on Management and Economics. 373 - 386.
xvi. Madsen, E.L., 2005. The Significance of Sustained Entrepreneurial Orientation on Performance of Firms- a Longitudinal Analysis. Working Paper, Bodo Graduate School of Business.
xvii. Mahmood, R, and Shehu, A.M. 2014. "The Relationship Between Market Orientation and Business Performance of Nigerian S.M.E.s: The Role of Organizational Culture." International Journal of Business and Social Science 5 (9).
xviii. Malhorta. 2005. Riset Pemasaran. 4. Vol. 1. Jakarta: Indeks Kelompok Gramedia.
xix. Messaghen, K. 2003. "Strategic Entrepreneurship and Managerial Activities in S.M.E.s." International Small Business Journal 21 (2).
xx. Morris, H., and Paul, G.W., 2007. "The Relationship Between Entrepreneurship and Marketing in Established Firms." Journal of Business Venturing.
xxi. Nguyen, T.T.M., Keh, H.T. and Ng, H.P. 2007. "The Effects of Entrepreneurial Orientation and Marketing Information on the Performance of S.M.E.s." Journal of Business Venturing 22.
xxii. Pandanyi, P, and Grainer, B., 2005. "The Relationship Between Market-Oriented Activities and Market-Oriented Culture: Implications for the Development of Market Orientation in Nonprofit Service Organizations." Journal of Business Research 58.
xxiii. Pardi, Suharyono, Suyadi Imam dan Arifin Zainul. 2014. "The Effect of Market Orientation and Entrepreneurial Orientation toward Learning Orientation, Innovation, Competitive Advantages, and Marketing Performance." European Journal of Business and Management 6 (21). Accessed July 19, 2019. https://www.iiste.org/Journals/ index.php/EJBM/article/view/14437.
xxiv. Rauch, A. et al., 2009. "Entrepreneurial Orientation and Business Performance an Assessment and Past Research and Suggestions for the Future." Journal of Small Business Management 33.
xxv. Richard, C.B, Beverly, K.B., and Michael, A.J., 2012. "Customer Orientation and Performance in Small Firms: Examining the Influence of Risk-Taking, Innovativeness and Opportunity Focus." Journal of Small Business Management 50 (3).
xxvi. Silviasih, Slamet, Franky dan Iskandar, Denny. 2016. "Pengaruh Orientasi Pasar dan Orientasi Kewirausahaan terhadap Kinerja Usaha pada Pemilik UKM Sektor Manufaktur Gramen di Tanah Abang Jakarta Pusat." Jurnal Ilmiah Manajemen Bisnis (Fakultas Ekonomi- Universitas Kristen Krida Wacana). Accessed Mart 14, 2019. https://media.neliti.com/media/publications/ 98664-ID-pengaruh-orientasi-pasar-dan-orientasi-k.pdf.
xxvii. Slater, S.F., and Narver, J.C., 2000. "The Positive Effect of a Market Orientation on Business Profitability: a Balanced Replication." Journal of Business Research 48 (1).
xxviii. Tung, J. 2012. "A Study of Product Innovation on Firm Performance." The International Journal of Organizational Innovation 4 (3). Accessed July 20, 2019. https://web.a. ebscohost.com/ abstract?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=19431813&AN=89082705&h=IMAXl%2b3YpKj9HDjYTDdhvAjq8NwCvVJF9S%2btnehFTPsz0658fK8B9qBiIj0OLE4WdIU75yUcNs15fyrbmSL9SQ%3d%3d&crl=c&resultNs=AdminWebAuth&resultLocal.
xxix. Utamaningsih, Adijati. 2016. "Pengaruh Orientasi Pasar, Inovasi dan Kreativitas Strategi Pemsaran terhadap Kinerja Pemasaran pada UKM Kerajinan Rotan di Desa Teluk Wetan, Welahan, Jepara." Media Ekonomi dan Manajemen 13 (2). Accessed July 23, 2019. doi:http://dx.doi.org/10.24856/mem.v31i2.411.
xxx. Vorhies, D.W., Morgan, R.E., and Autry, C.W. n.d. "Product-Market Strategy and the Marketing Capabilities of the Firm: Impact on Market Effectiveness and Cash Flow." Strategic Management Journal 30 (12).
xxxi. Widarti, Dyah Tri. 2011. "Pengaruh Orientasi Pasar dan Inovasi Produk terhadap Kinerja (Studi Kasus pada Sentra Industri Pembuatan Tahu Kecamatan Sragen Kabupaten Sragen." Skripsi (Universitas Negeri Semarang). Accessed July 19, 2019. https://lib. unnes.ac.id/232/1/7026.pdf.
xxxii. Wijesekara and Kumara, Gunawardana,. 2014. "Impact of Market Orientation and Entrepreneurial Orientation on Performance: a Study of Smal and Medium Scale Garment Manufactures in Si Lanka." Proceedings of the 3rd International Conference on Management and Economics.
xxxiii. Yasa, Ni Nyoman Kerti dan Narastika, A.A.Rai. 2017. "Peran Inovasi Produk dan Keunggulan Bersaing Memediasi Pengaruh Orientasi Pasar terhadap Kinerja Pemasaran." Jurnal Il;mu Manajemen 7 (1). Accessed June 15, 2019. http://jurnal.unmas.ac.id/ index.php/ JUIMA/article/view/639.
xxxiv. Zahra, S., and Covin, J., 1995. "Contextual Influences on the Corporate Entrepreneurship - Performance Relationship: a Longitudinal Analysis,." Journal of Business Venturing.
Cite this Article: