ENTREPRENEURIAL ORIENTATION, MARKET ORIENTATION AND FINANCIAL ORIENTATION IN SUPPORTING THE PERFORMANCE OF KARAWO SMEs IN GORONTALO CITY

Eka Zahra Solikahan, Ali Mohammad

Abstract


This study aims to examine the influence of Entrepreneurial Orientation (EO), Market Orientation (MO), and Financial Orientation (FO) on the Performance of Karawo SMEs. The research design used was quantitative analysis by using multiple regression analysis tools. It was found that entrepreneurial orientation did not affect the performance of Karawo SMEs, market orientation did not affect the performance of Karawo SMEs. However, the finding regarding financial orientation was different. It found that market orientation influenced the performance of Karawo SMEs in Gorontalo City. Therefore, based on research findings obtained, to improve the performance of SMEs, further research can develop the existing models by adding two variables, namely customer value and strategy orientation, in improving SME performance. Also, SME performance should be classified into two parts, namely financial performance, and non-financial performance.

Keywords


Entrepreneurial Orientation; Market Orientation; Financial Orientation; SMEs; Performance

Full Text:

PDF

References


Abebe, M. 2014. Electronic commerce adoption, entrepreneurial orientation and small- and mediumsized enterprise (SME) performance. Journal of Small Business and Enterprise Development, 21(1), pp. 100–116. doi: 10.1108/JSBED-10-2013-0145.

Alvarez-Torres, F. J., Lopez-Torres, G. C. and Schiuma, G. 2019. Linking entrepreneurial orientation to SMEs’ performance: Implications for entrepreneurship universities. Management Decision. doi: 10.1108/ MD-11-2018-1234.

Amin, M. et al. 2016. The effect of market orientation as a mediating variable in the relationship between entrepreneurial orientation and SMEs performance. Nankai Business Review International. Emerald Group Publishing Ltd., 7(1), pp. 39–59. doi: 10.1108/NBRI-08-2015-0019.

Barnes, C. 1999. An assessment of the impact of Zambuko’s microenterprise program in Zimbabwe/ : baseline findings. Washington D.C.: AIMS.

Boso, N. et al. 2016. Entrepreneurial and Market-Oriented Activities, Financial Capital, Environment Turbulence, and Export Performance in an Emerging Economy.

Broccardo, L. 2014 Management Accounting System in Italian SMEs: Some Evidences and Implications 1, Advances in Management & Applied Economics. Scienpress Ltd. Available at: http://hdl.handle.net/ 2318/148540since2016-09-23T11:15:00Z (Accessed: 18 October 2019).

Buli, B. M. 2017. Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry. Management Research Review, 40(3), pp. 292–309. doi: 10.1108/MRR-07-2016-0173.

Chen-Ho Chao, M. and Spillan, J. E. 2010. The journey from market orientation to firm performance: A comparative study of US and Taiwanese SMEs. Management Research Review, 33(5), pp. 472–483. doi: 10.1108/01409171011041901.

Covin, J. G. and Slevin, D. P. 1991. A Conceptual Model of Entrepreneurship as Firm Behavior. Entrepreneurship Theory and Practice, 16(1), pp. 7–26. doi: 10.1177/104225879101600102.

Dalrymple, J. F. 2004. Performance Measurement for SME Growth - A Business Profile Benchmarking Approach Second. Comparison of Tqm and Iso 9000 Effects in Company Performance: an Empirical Study in Spanish Companies, pp. 1–11.

Fadda, N. 2018. The effects of entrepreneurial orientation dimensions on performance in the tourism sector. New England Journal of Entrepreneurship, 21(1), pp. 22–44. doi: 10.1108/neje-03-2018-0004.

Fritz, W. 1996. Market orientation and corporate success: findings from Germany. European Journal of Marketing. MCB UP Ltd, 30(8), pp. 59–74. doi: 10.1108/03090569610130106.

Gbandi, E. C. and Amissah, G. 2014. Financing options for small and medium firms (SMEs) in Nigeria. European Scientific Journal, 10(1), pp. 327–340.

Hair, J. f et al. 2014. Multivariate Data Analysis. Pearson New International Edition. doi: 10.1007/978-3-31901517-0_3.

Kantur, D. 2016. Strategic entrepreneurship: mediating the entrepreneurial orientation-performance link. Management Decision. Emerald Group Publishing Ltd., 54(1), pp. 24–43. doi: 10.1108/MD-11-2014-0660.

Kara, A., Spillan, J. E. and Deshields, O. W. 2005. The Effect of a Market Orientation on Business Performance/ : A Study of Small-Sized Service Retailers Using MARKOR Scale. 43(2), pp. 105–118.

Laitinen, E. K. 2002. A dynamic performance measurement system: evidence from small Finnish technology companies. Scandinavian Journal of Management. Pergamon, 18(1), pp. 65–99. doi: 10.1016/S09565221(00)00021-X.

Länsiluoto, A. et al. 2018. Market Orientation and Performance Measurement System Adoption Impact on Performance in SMEs. Journal of Small Business Management, 57(3), pp. 1027–1043. doi: 10.1111/jsbm.12393.

Laukkanen, T. et al. 2013. The effect of strategic orientations on business performance in SMEs. International Marketing Review. Emerald Group Publishing Limited, 30(6), pp. 510–535. doi: 10.1108/IMR09-2011-0230.

Lee, Y. K. et al. 2015. Market orientation and business performance: Evidence from franchising industry. International Journal of Hospitality Management. Elsevier Ltd, 44, pp. 28–37. doi: 10.1016/ j.ijhm.2014.09.008.

Loong Lee, W., Chong, A. L. and Ramayah, T. 2019. The effects of entrepreneurial orientation on the performance of the Malaysian manufacturing sector. Asia-Pacific Journal of Business Administration, 11(1), pp. 30–45. doi: 10.1108/APJBA-06-2018-0099.

Lumpkin, G. T. and Dess, G. G. 1996. Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. Academy of Management Review, 21(1), pp. 135–172. doi: 10.5465/amr.1996.9602161568.

Mamun, A. Al et al. 2018. Effect of entrepreneurial and market orientation on consumer engagement and performance of manufacturing SMEs. Management Research Review, 41(1), pp. 133–147. doi: 10.1108/ MRR-04-2017-0102.

Mandhachitara, R. and Allapach, S. (NaPombhejara). 2017. Small business performance in Thailand: key success factors. Journal of Research in Marketing and Entrepreneurship. Emerald, 19(2), pp. 161–181. doi: 10.1108/jrme-06-2016-0018.

Mason, M. C. et al. 2015. Understanding the Impact of Entrepreneurial Orientation on Smes’ Performance. The Role of the Financing Structure. Procedia Economics and Finance. Elsevier B.V., 23(October 2014), pp. 1649–1661. doi: 10.1016/s22125671(15)00470-0.

Murni, T. 2017. The Effect of Entrepreneurial Orientation to Low Cost Strategy, Differentiation Strategy, Sustainable Innovation and Performance of Small and Medium Enterprises (Studies at Batik Small and Medium Enterprises in East Java Province, Indonesia). 9(20), pp. 8–16.

Oktavio, A., Kaihatu, T. S. and Kartika, E. W. 2019. Learning Orientation, Entrepreneurial Orientation, Innovation and Their Impacts on New Hotel Performance: Evidence from Surabaya. Jurnal Aplikasi Manajemen, 17(1), pp. 8–19. doi: 10.21776/ ub.jam.2019.017.01.02.

Perrea, T. et al. 2017. Much too new to eat it? Customer value and its impact on consumer-product relationship in the context of novel food products. Journal of Product and Brand Management. Emerald Group Publishing Ltd., 26(6), pp. 616–630. doi: 10.1108/JPBM-09-2015-0984.

Priatna, W. B. et al. 2017. Pengaruh Orientasi Kewirausahaan Terhadap Kinerja Usaha Pada Industri UMKM Abon Ikan Di Kota Makassar the Effect of Entrepreneurship Orientation toward Business Performance in Fish Abon SME Industry in Makassar City. 1(2), pp. 71–77.

Rezaei, J. and Ortt, R. 2018. Entrepreneurial orientation and firm performance: the mediating role of functional performances. Management Research Review, 41(7), pp. 878–900. doi: 10.1108/MRR-03-20170092.

Sahoo, S. and Yadav, S. 2017. Entrepreneurial orientation of SMEs, total quality management and firm performance. Journal of Manufacturing Technology Management, 28(7), pp. 892–912. doi: 10.1108/ JMTM-04-2017-0064.

Sharon, E. 1988. An Exploratory Study of Organizational Values with a Focus.

Song, J., Wei, Y. S. and Wang, R. 2015. Market orientation and innovation performance: The moderating roles of firm ownership structures. International Journal of Research in Marketing. Elsevier B.V., 32(3), pp. 319–331. doi: 10.1016/j.ijresmar.2015.03.005.

Sukirman. 2012. Analisis Pengaruh Kinerja Karyawan Terhadap Pengembangan Kewirausahaan Usaha kecil Jenang Kudus di Kabupaten Kudus. pp. 87– 106.

Tajeddini, K. 2016. Financial Orientation, Product Innovation and Firm Performance - An Empirical Study in the Japanese SMEs. International Journal of Innovation and Technology Management, 13(3), pp. 1–30. doi: 10.1142/S0219877016400058.

Tumwine, S. et al. 2015. A borrowing cost model for effective performance of SMEs in Uganda. World Journal of Entrepreneurship, Management and Sustainable Development, 11(2), pp. 74–89. doi: 10.1108/ wjemsd-03-2014-0009.

Turner, M. J. and Coote, L. V. 2018. Incentives and monitoring: impact on the financial and non-financial orientation of capital budgeting. Meditari Accountancy Research, 26(1), pp. 122–144. doi: 10.1108/ MEDAR-02-2017-0117.

Wahyu, D. and Ranto, P. 2016. Pengaruh Orientasi Kewirausahaan. Jurnal Bisnis, Manajemen, dan Akuntansi, III(2), pp. 1–11.

Wales, W., Monsen, E. and Mckelvie, A. 2011. The organizational pervasiveness of entrepreneurial orientation. Entrepreneurship: Theory and Practice, 35(5), pp. 895–923. doi: 10.1111/j.1540-6520.2011.00451.x.

Westover, J. 2008. The Record of finance: The effectiveness/Ineffectiveness of Microfinance Programs as a Means of alleviating Poverty. Electronic Journal of Sociology, 1(12), pp. 1–8. doi: 10.1021/ja003690f.

Wulandary, A. 2017. Pengaruh Orientasi Kewirausahaan Terhadap Kinerja Usaha Pada Industri UMKM Abon Ikan Di Kota Makassar the Effect of Entrepreneurship Orientation toward Business Performance in Fish Abon SME Industry in Makassar City. Journal of Food System & Agribusiness, 1(2), pp. 71–77. doi: 10.25181/jofsa.v1i2.768.

Yadav, S. K., Tripathi, V. and Goel, G. 2019. Mediating effect of innovation with market orientation and performance relationship. Management Research. doi: 10.1108/MRJIAM-03-2018-0827.




DOI: http://dx.doi.org/10.21776/ub.jam.2019.017.04.17

Refbacks

  • There are currently no refbacks.