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: 935 | Downloads: 197 | DOI: 10.5281/zenodo.4030644

Volume 9 - August 2020 (08)

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

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