The Effect of Market Orientation and Entrepreneurship on Performance in Customer Perspectives

Ch, Irwan and Andari, Titiek T and Mukmin, Mas Nur (2019) The Effect of Market Orientation and Entrepreneurship on Performance in Customer Perspectives. Yayasan Sinergi Riset dan Edukasi, Bandung. ISBN 978-602-5902-40-6

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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 and Market Orientation) 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 SEM (Stuctural Equition Model) data analysis techniques. The results showed that the Entrepreneurshi and Market Orientation significantly affected the performance, especially in the Customer Perspective of Productive Economic Business - Joint Business Groups (PEB – JBG). 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 (PEB - JBG), the better its performance. As for Market Orientation, the effect is negative, 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 (PEB – JBG) is only limited in the customer's perspective, so for other perspectives as a balance scorecard (finance, internal processes, growth and learning) it has not been studied partially or simultaneously.

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