The Effect of Market Orientation and Entrepreneurial Orientation toward Learning Orientation, Innovation, Competitive Advantages and Marketing Performance

Abstract

The purpose of this study is to examine and explain the effect of a) market orientation towards learning orientation, innovation and marketing performance, b) learning orientation towards innovation, competitive advantages, and marketing performance, c) entrepreneurial orientation towards learning orientation, competitive advantage, and marketing performance, d) innovation to competitive advantages, and marketing performance, and e) competitive advantages to marketing performance. This type of study is explanatory research and data collection is done through direct survey guided by the enumerators. During the survey, questionnaires are distributed randomly to 97 owners and managers of SMEs batik in Central Java, Indonesia as the respondents of the study. Furthermore, the data were analyzed by variance-based SEM analysis employing the GSCA software.The results of this study indicate that a) market orientation does not significantly affect to marketing performance, b) market orientation significantly affects learning orientation, c) market orientation significantly affects innovation, d) learning orientation significantly affects innovation, e) learning orientation significantly affects competitive advantages, f) learning orientation does not significantly affect marketing performance, g) entrepreneurial orientation significantly affects learning orientation, h) entrepreneurial orientation towards competitive advantage, i) entrepreneurial orientation does not significantly affect marketing performance, j) innovation significantly affects competitive advantages, k) marketing performance significantly affects innovation, and l) competitive advantage significantly affects marketing performance. In addition, some mediation effects are also found a) innovation mediates market orientation and marketing performance, and mediates market orientation and competitive advantages, b) learning orientation mediates market orientation and marketing performance, and mediates market orientation and innovation, c) learning orientation mediates entrepreneurial orientation and marketing performance, and mediates entrepreneurial orientation and competitive advantages, and d) competitive advantages mediate entrepreneurial orientation and marketing performance.

Keywords: market orientation, entrepreneurial orientation, learning orientation, innovation, competitive advantages, marketing performance, SMEs Batik