Dimensions of Entrepreneurial Orientation and Marketing Performance: The Moderating Effect of Market Turbulence

Abstract

Purpose: This study is to understand how the marketing performance of used car showroom SMEs is related to the entrepreneurial orientation of used car showroom SME owners or managers as well as the moderating influence of market turbulence. Theoretical Framework: The key points and emphasizing the importance of understanding the dynamic relationship between entrepreneurial orientation, marketing performance, and market turbulence in the context of used car showroom SMEs. Methods: This study used quantitative research methods through surveys. The used car showroom SMEs analyzed are in the DKI Jakarta, Bogor, Depok, Tangerang and Bekasi Indonesia areas. Data was collected through questionnaires that had been compiled in a structured manner. Of the 290 questionnaires distributed, 289 returned questionnaires were used in data analysis. Analysis is carried out through exploratory factor analysis (EFA) and structural equation modeling (SEM). Results and Conclusion: Research findings show that innovativennes, proactive have an influence on product marketing performance (p < 0.05). Meanwhile, risk taking did not have a significant effect on marketing performance (p > 0.05). In addition, market turbulence moderates negatively the relationship between innovation and marketing performance, but market turbulence is unable to moderate the relationship between proactive and risk taking on marketing performance. The results of this study provide a new understanding for used car SMEs in Indonesia, especially in JABODETABEK. Research implications: The practical implication of this research is that in the used car showroom business, it is important for companies to develop dynamic capabilities that include innovation, proactivity, and readiness in take risks. Originality/value: The ability to understand the entrepreneurial orientation of SMEs will help them deal with uncertain market turmoil be it in competition, technological advancements, ever-changing customer preferences.