Abstract
Performance is a success or failure of an organization in performing their tasks and main functions to realize their vision, missions, goals and objectives. An organization must consider the factors that influence the performance of their organization. The aim of this research is to determine role of cost leadership strategy in mediating the influence of market orientation and entrepreneurship orientation on performance of Small and Medium Enterprises (SMEs). This research is conducted on Laundry SMEs in Denpasar City. Sample is 160 laundry SMEs, determined by using the probability sampling method. Data collection is conducted by utilizing questionnaires. The analysis technique used is the Structural Equation Modeling (SEM). Analysis result shows that market orientation and entrepreneurship orientation has a positive and significant influence on cost leadership strategy. Market orientation, entrepreneurship orientation, and cost leadership strategy has positive and significant influence on performance of SMEs. Cost leadership strategy is capable of mediating the influence of market orientation and entrepreneurship orientation on the performance of laundry SMEs in Denpasar City.
 Keywords: cost leadership strategy, market orientation, entrepreneurship orientation, SME performance
Highlights
Performance is a success or failure of an organization in performing their tasks and main functions to realize their vision, missions, goals and objectives
consider the factors that influence the performance of their organization
This research is conducted on Laundry Small and Medium Enterprises (SMEs) in Denpasar City
Summary
Hasil penelitian Mustikowati (2014) yang dilakukan pada UKM Sentra di Kab. Malang mengidentifikasi peningkatan kinerja UKM Sentra di Kab. Malang tidak terlepas dari kemampuan pengusaha dalam merumuskan strategi bisnis hal ini berarti semakin UKM Sentra memiliki strategi bisnis yang baik maka kinerja UKM Sentra akan meningkat, hal yang sama dikemukakan dalam penelitian yang dilakukan oleh Yuliansyah (2016) dalam penelitiannya mengemukakan bahwa strategi secara positif dan signifikan akan mempengaruhi kinerja sebuah perusahaan, serta penelitian yang dilakukan oleh Suci (2009) dimana dalam penelitianya mengemukakan strategi bisnis akan berimplikasi positif terhadap peningkatan kinerja sebuah perusahaan. Hasil penelitian Mustikowati (2014) yang dilakukan pada UKM Sentra di Kab. Malang mengidentifikasi peningkatan kinerja UKM tidak terlepas dari kemampuan serta peran pengusaha dalam merumuskan strategi bisnis hal ini berarti semakin UKM Sentra memiliki strategi bisnis yang baik maka kinerja UKM Sentra akan meningkat, Hal yang sama dikemukakan dalam penelitian yang dilakukan oleh Yuliansyah (2016) dimana dalam penelitianya mengemukakan bahwa Strategi Bisnis secara positif dan signifikan akan mempengaruhi kinerja perusahaan. Berdasarkan kajian teoritis dan empiris terdahulu, dapat disusun suatu kerangka konseptual penelitian yang dapat dilihat pada Gambar 1
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