Strategic orientation's dilemma of batik retailers in Jakarta

Abstract

Ambidexterity orientation that can simultaneously combine and align existing and new competitive advantage sources for small and medium enterprises can be used to determine and implement their market orientation and entrepreneurial orientation. This study explores strategic orientations that are reflected both in market orientation and entrepreneurial orientation to examine the ambidexterity of batik retailers in Jakarta, Indonesia. Research variables consist of environmental dynamics, market orientation, entrepreneurial mindset, entrepreneurial orientation, and business performance. Data analysis was performed using Structural Equation Modeling with Lisrel 10.20 and Smart PLS 3 software. Data analysis in this study was performed on survey results of 200 respondents that were sampled using snowball sampling method. At the 0.05 significance level, results showed that while batik retailers were able to develop both their market orientation and entrepreneurial orientation, only market orientation had impact on improving their business performance. Although entrepreneurial orientation that was based on innovativeness and proactiveness positively affects business performance, it has not been proven to be able to play a significant role affects business performance. Batik retailers were more oriented to the current market and competed in customer acquisition. They tended to be more passive and less proactive in dealing with future market changes.