The Effect of Market Orientation, Entrepreneurship Orientation and Organizational Culture on SMEs Business Performance
Andreas1, Enni Savitri2, M. Imam Baihaqie Alnaza3, Nik Herda Nik Abdullah4

1,2,3Faculty of Economics and Business, Universitas Riau, Indonesia
4Taylor^s Business School, Taylor^s University, Subang Jaya

Abstract

Indonesia^s economic development cannot be separated from the existence of SMEs. Most regions in Indonesia are economically assisted SMEs who believe in people^s economic methods and people^s business. MSME performance is one of the important factors to determine the success of SMEs. This study aims to analyze the effect of market orientation, entrepreneurial orientation, and organizational culture on SMEs business performance. The population in this study 104,698 SMEs in Pekanbaru city, Riau Province. The sample of this study 123 SMEs. The sample criteria are SMEs that have assets of Rp. 50 million-Rp. 10 billion. The maximum annual assets of SMEs is IDR 50 billion. The sampling technique used was purposive sampling. Data analysis using Structure Equetion Model (SEM). The results of this study shows that market orientation affects on SMEs business performance, entrepreneurial orientation affects on SMEs business performance, and organizational culture affects on SMEs business performance. SMEs provide good service for customer satisfaction and encourage the development of innovative marketing strategies.

Keywords: Market Orientation, Entrepreneurship Orientation, Organizational Culture and Business Performance

Topic: Financial