The Effect of Market and Entrepreneurship Orientation on SME’s Business Performance: The Role of Entrepreneurial Marketing in Indonesian Batik Industries

Abstract

Although several researchers have studied entrepreneurial Marketing (EM), comprehensive testing of the EM integrative model has not been studied by previous researchers. Previous researchers were limited to examining the effect of antecedents on EM or business performance. The study is to discuss the influence of market and entrepreneurial orientation on the performance of SMEs. Entrepreneurial Marketing (EM) is a mediator. The sample is 285 managers of Batik SMEs in the Special Province of Yogyakarta and Central Java. Data were analyzed using Structural Equation Modelling (SEM) and to analyze the measurement models using the one-congeneric approach. The results of this study explain that market orientation and entrepreneurial orientation have a positive and significant effect on EM. Market orientation has an indirect effect on the performance of SMEs through EM as a mediator. Entrepreneurial orientation directly affects the performance of SMEs. The novelty in this study shows that EM plays an essential role in mediating market orientation and SME performance. Keywords: market orientation, entrepreneurial orientation, entrepreneurial marketing, SMEs performance DOI: 10.7176/EJBM/12-5-04 Publication date: February 29 th 2020

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