Abstract
Although several researchers have studied entrepreneurial Marketing (EM), comprehensive testing of the EM integrative model has not been studied by previous researchers. Previous researchers were limited to examining the effect of antecedents on EM or business performance. The study is to discuss the influence of market and entrepreneurial orientation on the performance of SMEs. Entrepreneurial Marketing (EM) is a mediator. The sample is 285 managers of Batik SMEs in the Special Province of Yogyakarta and Central Java. Data were analyzed using Structural Equation Modelling (SEM) and to analyze the measurement models using the one-congeneric approach. The results of this study explain that market orientation and entrepreneurial orientation have a positive and significant effect on EM. Market orientation has an indirect effect on the performance of SMEs through EM as a mediator. Entrepreneurial orientation directly affects the performance of SMEs. The novelty in this study shows that EM plays an essential role in mediating market orientation and SME performance. Keywords: market orientation, entrepreneurial orientation, entrepreneurial marketing, SMEs performance DOI: 10.7176/EJBM/12-5-04 Publication date: February 29 th 2020
Highlights
The era of globalization has pushed companies in developing countries to face increasingly fierce competition at different levels of competition
Business performance is central to strategic management, which has an essential role in measuring organizational effectiveness and as a tool to test the implementation of business strategies, which can be a basis for recommending performance improvement
Performance measurement is crucial for all companies because it helps in knowing the level of success or failure of all company activities (Trkman, 2010)
Summary
The era of globalization has pushed companies in developing countries to face increasingly fierce competition at different levels of competition. The study of company performance has been carried out by some researchers involving various variables as antecedents, one of which is market orientation. The dimension of entrepreneurial orientation in the form of risk-taking in marketing defined as a willingness to use new methods that are considered unconventional without the guarantee that these actions will contribute positively to the company. Companies with higher levels of risk-taking have a significant influence on entrepreneurial marketing, especially on growth orientation and opportunity orientation. In his research, explained that the dimensions of entrepreneurial marketing in the form of a proactive attitude, the level of innovation, customer intensity, and resource utilization significantly influence innovation performance. While the dimensions of entrepreneurial marketing in the form of a focus on opportunities, risk-taking, and value creation do not affect innovation performance. CFA will confirm a significant relationship between constructs and indicators based on the theory developed
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