Philippine E-Journals

Creating Market Orientation and Business Culture to Increase SMEs Performance in Aceh, Indonesia

Muhammad Adam | Hendra Syahputra

 

Abstract:

Market orientation is a business culture in which all employees are committed to continue the creation of superior value for customers, though only little attention is given to this issue. The purposes of the study is to investigate several contextual factors such as: market orientation, business culture, business commitment, and business performance in case of SMEs practices in Aceh Province of Indonesia. This research used quantitative method with 200 questionnaires that was spread to 200 managers as respondents, which represent a wide variety of SMEs (53% products, 47% service sectors) and the data was analyzed using Structural Equation Modeling (SEM). Concerning the market orientation consequences, the result showed that market orientation has a positive correlation with business commitment and business performance, and business culture also has a significant influence on business performance. However, business culture insignificantly influences business commitment, and business commitment insignificantly influences business performance as well for the case of SMEs in Aceh Province of Indonesia.