Effect of Entrepreneurial Orientation and Market Orientation on the Performance of Small Medium Enterprise in Automotive Industry
Mohamad Zaki Azizi , Dr Lily Sudhartio
University of Indonesia - PPIM S2 UI
Abstract
1006/5000 Small and medium businesses in Indonesia, especially in the automotive industry, have different characteristics from other countries. This study aims to analyze the influence between market orientation and business performance of small and medium-sized businesses (SMEs) in the Indonesian Automotive Industry The entrepreneurial orientation variable is used as an antecedent of the market orientation and SME business performance as a consequence of the variable. The study design used a sample survey and focus group discussions with SME owners as respondents. This research was conducted in Karawang, West Java, as one of the Automotive Industrial Estates in Indonesia. By using structural equation modeling analysis, it is found that entrepreneurial orientation directly influences business performance, but market orientation does not have a significant effect on business performance.
Keywords: Entrepreneurial Orientation, Market Orientation , SME Performance , Automotive Industry
Topic: Strategic Management