The Impact of Market Orientation to SMEs Performance with Mediation of Creation Value

Abstract

SMEs or Small Medium Enterprises are businesses that keep growing in Indonesia. The resilience of SMEs to economic shock makes a lot of people choose this type of business. This study aims to review the correlation between market orientation, value creation and entrepreneur’s commitment to improving SMEs performance. The study conducted through a mediation model of value creation and commitment as the power of the entrepreneur. Respondents of this study are 133 entrepreneurs of creative industry SMEs in Bandung City. Data collection is carried out through questionnaires and processed by path analysis using Lisrel software. The research findings show that market orientation correlates with the improvement of SMEs performance directly and through the mediation of value creation. It is different from entrepreneurs’ commitment that cannot mediate the correlation to SMEs performance. The research results strengthen the control of market orientation on the improvement of SMEs performance with support of value creation