The Effect of Market Orientation on Firm Performance in F&B Business Sector: The Role of Supply Chain Integration and Firm Innovativeness
Downloads
Objective: The purpose of this study is to investigate the impact of market orientation on firm performance, as well as the roles of supply chain integration and firm innovativeness in mediating the relationship in the food and beverage sector, micro, small-medium enterprises (MSMEs) in Bekasi Regency Indonesia.
Design/Methods/Approach: This study conducts the analyses based on 150 samples that were obtained through questionnaires. To analyze the data, this study employs Partial Least Square Structural Equation Modeling (PLS-SEM) using SmartPLS 3.
Findings: The results of this study indicate that market orientation and firm innovativeness have a positive and significant effect on firm performance. Supply chain integration has a positive and insignificant effect on firm performance. Firm innovativeness has a positive and significant effect on firm performance. Supply chain integration is not significant in mediating the relationship between market orientation and firm performance. Firm innovativeness is significant in mediating the relationship between market orientation and firm performance.
Originality: This study Contributes to enriching research of firm innovativeness and supply chain integration on MSMEs in Indonesia
Aday, S., & Aday, M. S. (2020). Impact of COVID-19 on the food supply chain. Food Quality and Safety, 4(4), 167–180. https://doi.org/10.1093/fqsafe/fyaa024
Alsadi, A. K., & Aloulou, W. J. (2021). Impact of strategic orientations on Saudi firm performance: is supply chain integration a missing link? The International Journal of Logistics Management, 32(4), 1264–1289. https://doi.org/10.1108/IJLM-02-2020-0080
Anton, S. A., Isa, M., Muhammad, W. F., Syamsudin, & Nugroho Permono, S. (2015). An Assessment of SME Competitiveness in Indonesia. Journal of Competitiveness, 7(2), 60–74. https://doi.org/10.7441/joc.2015.02.04
Aydin, H. (2021). Market orientation and product innovation: the mediating role of technological capability. 24(4), 1233–1267. https://doi.org/10.1108/EJIM-10-2019-0274
Bamfo, B. A., & Kraa, J. J. (2019). Market orientation and performance of small and medium enterprises in Ghana: The mediating role of innovation. Cogent Business and Management, 6(1), 1–16. https://doi.org/10.1080/23311975.2019.1605703
Ben Hassen, T., El Bilali, H., & Allahyari, M. S. (2020). Impact of covid-19 on food behavior and consumption in qatar. Sustainability (Switzerland), 12(17), 1–18. https://doi.org/10.3390/su12176973
Bodlaj, M., Coenders, G., & Zabkar, V. (2012). Responsive and proactive market orientation and innovation success under market and technological turbulence. Journal of Business Economics and Management, 13, 666–687.
BPS Kabupaten Bekasi. (2021). Kabupaten Bekasi Dalam Angka 2021.
Chowdhury, M. T., Sarkar, A., Paul, S. K., & Moktadir, M. A. (2020). A case study on strategies to deal with the impacts of COVID-19 pandemic in the food and beverage industry. Operations Management Research. https://doi.org/10.1007/s12063-020-00166-9
Dadfar, H., Brege, S., & Sarah Ebadzadeh Semnani, S. (2013). Customer involvement in service production, delivery and quality: the challenges and opportunities. International Journal of Quality and Service Sciences, 5(1), 46–65. https://doi.org/10.1108/17566691311316248
Didonet, S. R., José Roberto, F., Ana Maria, T., & Diaz, G. (2014). The role of supply chain integration in the relationship between market orientation and performance in SMEs. International Journal of Business Science & Applied Management (IJBSAM), 9(2), 16–29.
Fitrianto, A. Y., Sudaryanto, B., & Manajemen, J. (2016). "Pengaruh Supply Chain Management Terhadap Kinerja Operasional Outlet” (Studi Pada Counter Handphone yang terdaftar di PT. Multikom Indonesia Cabang Semarang). Diponegoro Journal of Management, 5(2), 1–11.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71.
Ghozali, I. (2014). Structural Equation Modeling, Metode Alternatif dengan Partial Least Square (PLS). Universitas Dipenogoro.
Ghozali, Imam, & Latan, H. (2015). Partial Least Square: Konsep, Teknik dan Aplikasi menggunakan program SmartPLS 3.0. Univeristas Diponegoro.
Hair, J. ., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106–121.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (Vol. 51, Issue 1). CA:Sage.
Hakim, R. M. A., Maulina, E., & Purnomo, M. (2018). Supply Chain Integration in Small Medium Enterprises: a Systematic Literature Review. Russian Journal of Agricultural and Socio-Economic Sciences, 73(1), 131–140. https://doi.org/10.18551/rjoas.2018-01.17
Hastuti, R. T. (2018). Faktor Yang Mempengaruhi Firm Performance Pada Perusahaan Manufaktur Yang Terdaftar Di Bei. Jurnal Muara Ilmu Ekonomi dan Bisnis, 2(1), 181. https://doi.org/10.24912/jmieb.v2i1.1741
Hendijani, R., & Saeidi Saei, R. (2020). Supply chain integration and firm performance: the moderating role of demand uncertainty. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1760477
Huo, B., Qi, Y., Wang, Z., & Zhao, X. (2014). The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management, 19(4), 369–384. https://doi.org/10.1108/SCM-03-2013-0096
Ichsan, R. N., & Yusuf, M. (2021). Strategi Bisnis Umkm Selama Pandemi Covid-19. 6(2).
Kafetzopoulos, D., Psomas, E., & Skalkos, D. (2020). Innovation dimensions and business performance under environmental uncertainty. European Journal of Innovation Management, 23(5), 856–876. https://doi.org/10.1108/EJIM-07-2019-0197
Kalam, F. A., Kusmantini, T., & Ediningsih, S. I. (2019). Pengaruh berbagi informasi terhadap kualitas produk yang dimediasi oleh keselarasan kualitas: Studi pada Kedai Kopi di Kabupaten Sleman, D. I. Yogyakarta. Journal of Business and Information Systems (e-ISSN: 2685-2543), 1(2), 115–127. https://doi.org/10.36067/jbis.v1i2.30
Kusmantini, T., Prayogi, D. S., Wahyuningsih, T., & Pratiwi, K. W. (2020). Effect Of Information Sharing On Supply Chain Performance Mediated By Company Relationship (Study at Batik SMEs in Yogyakarta City). Jurnal Wawasan Manajemen, 8(1), 57–73.
Kusumawardhany, P. A. (2018). Pengaruh kapasitas absorptif and situsjejaring sosialterhadap kinerja inovasi UMKM di Indonesia. Jurnal Manajemen Teori dan Terapan | Journal of Theory and Applied Management, 11(1), 71–88.
Lee, D. H., Choi, S. B., & Kwak, W. J. (2014). The Effects of Four Dimensions of Strategic Orientation on Firm Innovativeness and Performance in Emerging Market Small- and Medium-Size Enterprises. Emerging Markets Finance & Trade, 50(5), 78–96. https://doi.org/10.2753/REE1540-496X500505
Liu, H., Ke, W., Wei, K. K., & Hua, Z. (2013). Effects of supply chain integration and market orientation on firm performance: Evidence from China. International Journal of Operations and Production Management, 33(3), 322–346. https://doi.org/10.1108/01443571311300809
Lupiyoadi, R. (2013). Manajemen Pemasaran. Salemba Empat.
M Saleh, M. H., Azmin, A. A., & Saraih, U. N. (2021). Effect of Marketing Ethics As a Moderate on the Relationship Between Market Orientation and Sme Performance: Evidence From Saudi Arabia. International Journal of Entrepreneurship and Management Practices, 4(14), 13–39. https://doi.org/10.35631/ijemp.414002
Mahmud, P., Paul, S. K., Azeem, A., & Chowdhury, P. (2021). Evaluating supply chain collaboration barriers in small and medium-sized enterprises. Sustainability (Switzerland), 13(13), 1–28. https://doi.org/10.3390/su13137449
Mandal, S., & Saravanan, D. (2019). Exploring the Influence of Strategic Orientations on Tourism Supply Chain Agility and Resilience: An Empirical Investigation. Tourism Planning and Development, 16(6), 612–636. https://doi.org/10.1080/21568316.2018.1561506
Manutur, A.R., Mangindaan, J.V., Mukuan, D. D. S. (2021). Dampak Pandemi Covid-19 bagi Usaha Rumah Makan Selera Laut. Ejournal.Unsrat.Ac.Id, 2(4), 304–308.
Mu'Ah, Suyanto, U. Y., Syaputro, K. D., Musarofah, S., & Qomariah, N. (2020). Increasing customers loyalty MSME of focused e-marketing and quality of service. International Journal of Engineering Research and Technology., 13(10), 2729–2735.
Nassiuma, B., Masasabi, J. ., Snelder, D., & Nangulu, A. (2018). Entrepreneurs experience and firm innovativeness: multiple mediation of attitudinal and behavioral competencies. Journal of Economics and Business, 1, 57–70.
Nggili, R. A., & Katayane, R. R. (2017). Supply Chains Management Batu Mulia Khas Nusantara di Kotamadya Salatiga. Jurnal Manajemen Teori dan Terapan | Journal of Theory and Applied Management, 10(2), 169. https://doi.org/10.20473/jmtt.v10i2.3813
Nguyen, V., Nguyen, T., Nguyen, V., & DO, D. (2021). Internal Factors Affecting Firm Performance: A Case Study in Vietnam. The Journal of Asian Finance, Economics and Business, 8(5), 303–314. https://doi.org/10.13106/jafeb.2021.vol8.no5.0303
Octavia, A., & Ali, H. (2017). The Model of Market Orientation , Entrepreneurial Orientation and Business Performance of Small and Medium Enterprises. 7(3), 331–337.
Praharjo, A., & Parwati, K. Y. (2021). The Role of Customer Knowledge Management On The SMEs Business performance. Jurnal Manajemen Teori dan Terapan | Journal of Theory and Applied Management, 14(1), 34–49.
Putri, P. I. P. P., Yasa, N. N. K., & Rahyuda, I. K. (2016). the Role of Innovation in Mediating Market Orientation To. Jurnal Dinamika Manajemen, 7(36), 105–116.
Qomariah, N. (2016). Marketing Adactive Strategy. Cahaya Ilmu.
Quayle, M. (2003). A study of supply chain management practice in UK industrial SMEs. Supply Chain Manag. Int. J., 8, 79–86.
Rahadi, R. . (2016). No Opportunities and Challenges for Micro-Small and Medium Business in Indonesia Facing ASEAN Economic Community. Jurnal Manajemen dan Kewirausahaan, 18(1), 45–53.
Rahman, S. (2021). The Negative Effect of Market Orientation on SMEs' Marketing Performance in The Creative Economy Sector , and How Innovation Mediating it. 2(2), 327–340.
Ramayah, T., Samat, N., & Lo, M. . (2011). Market orientation, service quality and organizational performance in service organizations in Malaysia. Asia-Pacific Journal of Business Administration, 3, 8–27.
Raya, A. B., Andiani, R., Siregar, A. P., Prasada, I. Y., Indana, F., Simbolon, T. G. Y., Kinasih, A. T., & Nugroho, A. D. (2021). Challenges, open innovation, and engagement theory at craft smes: Evidence from Indonesian batik. Journal of Open Innovation: Technology, Market, and Complexity, 7(2). https://doi.org/10.3390/joitmc7020121
Ruslim, H., Turangan, J. A., & Wijaya, A. (2022). The Impact Of Supply Chain Management On Food Quality In Culinary Msmes In Jakarta. SEIKO : Journal of Management & Business, 5(1), 250–260. https://doi.org/10.37531/sejaman.v5i1.1613
Sahibzada Jawad, S. U. R., Naushad, S., Yousaf, S., & Yousaf, Z. (2020). Exploring performance of software houses: Market orientation and mediating role of firm innovativeness. World Journal of Entrepreneurship, Management and Sustainable Development, 16(1), 1–11. https://doi.org/10.1108/WJEMSD-05-2019-0033
Sarfiah, S. N., Atmaja, H. E., & Verawati, D. M. (2019). UMKM Sebagai Pilar Membangun Ekonomi Bangsa. Jurnal REP (Riset Ekonomi Pembangunan), 4(2), 1–189. https://doi.org/10.31002/rep.v4i2.1952
Sasaki, I., Nummela, N., & Ravasi, D. (2021). Managing Cultural Specificity and Cultural Embeddedness when Internationalizing: Cultural Strategies of Japanese Craft Firms. J. Int. Bus. Stud., 52, 245–281.
Sekaran, U., & Bougie, R. (2013). Research Method for Business. John Wiley & Sons Ltd.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
Sugiyono. (2016). Desain penelitian: Metode penelitian kuantitatif, kualitatif dan R&D. Alfabeta.
Sulistiyo, H., & Putra, R. A. K. (2020). Strategi Pengembangan Usaha Kecil Menengah Sektor Indusri Pengolahan Kabupaten Bekasi. Jurnal Ekonomi dan Bisnis, 7(2), 15–22.
Suryanto, T., & Mukhsin, M. (2020). Mediation of supply chain integration on the relationship between market orientation with company performance. Uncertain Supply Chain Management, 8(4), 739–744. https://doi.org/10.5267/j.uscm.2020.7.006
Sutapa, S., Mulyana, M., & Wasitowati, W. (2017). The Role of Market Orientation, Creativity and Innovation in Creating Competitive Advantages and Creative Industry Performance. Jurnal Dinamika Manajemen, 8(2), 152–166. https://doi.org/10.15294/jdm.v1i1.12756
Wahyuni, N. M., & Sara, I. M. (2020). The effect of entrepreneurial orientation variables on business performance in the SME industry context. Journal of Workplace Learning, 32(1), 35–62. https://doi.org/10.1108/JWL-03-2019-0033
Wei, Y. S., Samiee, S., & Lee, R. P. (2014). The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market. Journal of the Academy of Marketing Science, 42(1), 49–70.
Yadav, S. K., & Tripathi, V. (2014). Market Orientation and SMEs Performance. Journal of Entrepreneurship and Management., 3(3), 27–34.
Yakin, A. H., & Suhaeni, T. (2020). Peranan Orientasi Pasar dalam Meningkatkan Keunggulan Bersaing pada UMKM Lampu Gentur Cianjur. Jurnal Riset Bisnis dan Investasi, 6(1), 15–22.
Zulu-chisanga, S., Boso, N., Adeola, O., & Oghazi, P. (2016). Investigating The Path From Firm Innovativeness To Financial Performancae : The Role Of New Product Succes, Market Responsiveness, and Environment Turbulance. Journal of Small Business Strategy, 1(26), 51–67.
Copyright (c) 2022 Putri Meisya, Dadang Surjasa
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. The author(s) hold the copyright of the article without restrictions.
2. The author(s) retain publishing rights without restrictions
3. The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution (CC BY).
