Abstract
Changes in the business environment have been experienced by SMEs during the COVID-19 pandemic, thus placing strong pressure on business sustainability. This case study aims to describe the changes in market orientation carried out by SMEs during the pandemic. The research was conducted at the Association of Written Batik Banyuripan which consists of 62 SMEs in Central Java Province, Indonesia. Data were collected using interviews with the association's administrators and focus group discussions involving all members of SMEs. Triangulation has been carried out to ensure data quality involving SME group leaders, local government as SME coaches, and distributors. The results of the study show that SMEs respond quickly to environmental changes during the pandemic by changing market orientation by expanding the target market, adjusting products according to needs during the pandemic, using online-based technology to promote products and sales transactions. SMEs still maintain the characteristics of written batik. Changes in market orientation carried out by batik SMEs are proven to be able to prevent SMEs from going bankrupt.
Highlights
The global COVID-19 pandemic has had an impact on changes in the external and internal environment of small and mediumsized businesses
This study examines the perception of written batik SMEs on changes in the business environment during the pandemic
The results show that business viability and superior performance can be achieved through the application of an effective market orientation and using technology to expand market coverage
Summary
The global COVID-19 pandemic has had an impact on changes in the external and internal environment of small and mediumsized businesses. This environment affects the organization, mainly because of the large-scale flow of information, changing internal aspects, the way of doing business and the market as a whole (Ferraresi, Santos, Frega and Pereira, 2012). The use of digital technology such as the use of the internet in the world of marketing will bring new changes to the business model and marketing mix. The existence of technology provides a solution for the business world to maintain its business during the pandemic because consumers cannot freely buy products directly from producers. Technology is one of the drivers of future marketing trends, innovations, and characteristics of marketing strategies
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