JEFMS Journal

ABSTRACT:

Objectives - This study aims to test and prove empirically about: First, does business learning have a direct effect on market orientation? Second, whether business learning and market orientation have a direct effect on business performance. Third, does business learning have an indirect effect on business performance through market orientation Design / methodology / approach - The population of this study is the population in this study are all handicraft industries in the Special Region of Yogyakarta. The research sample was 61 respondents who were taken by nonprobability sampling method using a purposive sampling technique. Data analysis in this study used PLS-SEM (Partial Least Square - Structural Equation Modeling). Findings - The results of the study show that: business learning affects market orientation. Market orientation affects business performance. Business learning has no direct effect on business performance; however, it indirectly affects business performance through market orientation.
Research limitations/implications - This study found no direct contribution of business learning to business performance. Suggestions for future researchers who will take models and concepts of small and medium business performance must pay attention to business sustainability factors in performance measurement. Meanwhile, due to research limitations, this study cannot explain other variables such as innovation. Innovation is considered to strengthen the impact of business learning on business performance.
Originality - This research empirically examines the mediating role of market orientation in the model. The findings show that SMEs must strengthen market orientation to improve business performance.

KEYWORDS:

Business learning, Market orientation, Business performance

REFERENCES:

1) Bappenas. 2014. Laporan Analisis Daya Saing UMKM Di Indonesia. Jakarta.

2) Bekraf. 2017. Data Statistik Dan Hasil Survei Ekonomi Kreatif, Kerjasama Badan Ekonomi Kreatif dan Badan Pusat Statistik. Jakarta.

3) Chien‐Huang Lin, Ching‐Huai Peng, Danny T. Kao. 2008. The Innovativeness Effect Of Market Orientation And Learning Orientation On Business Performance", International Journal Of Manpower. Vol. 29 Issue: 8, pp.752-772.

4) Creswell, J.W. 2014. Educational Research : Planning, Conducting, And Evaluating Quantitative And Qualitative Research. 2nd Edition. Person. Merrill Prentice Hall.

5) Distanont, A., & Khongmalai, O., 2018, The role of innovation in creating a competitive advantage, Kasetsart Journal of Social Sciences.

6) Dubihlela, J., Dhurup, M. 2014. Modelling The Effects Of Market Orientation Enablers On Business Performance Among Smes In A Developing Country. Mediterranean Journal Of Social Sciences.

7) Gitman, J.L. 2012. Principle Managerial Finance, Seventh Edition, Harper Collins College Publishers. New York.

8) Hair, 2014, Multivariate Data Analysis, Pearson Education Limited, Edinburgh Gate Harlow, Essex.

9) Ismail, Md Daud. 2013. Learning Orientation And Trust In Small And Medium Enterprise (SME) Export Competitive Advantage. Asian Academy Of Management Journal, Vol. 18, No. 2, 153–179.

10) Juho, Petteri Huhtala, Antti Sihvonen, Johanna Frösén, Matti Jaakkola, Henrikki Tikkanen. 2014, Market Orientation, Innovation Capability And Business Performance: Insights From The Global Financial Crisis, Baltic Journal Of Management, Vol. 9 Iss 2 pp. 134 – 152.

11) Kajalo, Sami, Arto Lindblom. 2015. Market Orientation, Entrepreneurial Orientation And Business Performance Among Small Retailers. International Journal Of Retail & Distribution Management, Vol. 43 Issue: 7, pp. 580-596

12) Lockamy III, Archie, Charles M. Carson, Franz T Lohrke. 2016. An evaluation of key determinants preventing intra=family business succession. Journal of Family Business Management. ISSN 2043-623. DOI: 10.1108/jfbm-01-2015-0002

13) Machado, Hilka Pelizza Vier. 2016. Growth of small businesses: a literature review and perspectives of studies, Gest. Prod., São Carlos, v. 23, n. 2, p. 419-432, http://dx.doi.org/10.1590/0104-530X1759-14

14) Mahmoud, M. A. C. Blankson, N.O. Frimpong, S. Nwankwo, T.P. Trang. 2016. Market Orientation, Learning Orientation And Business Performance: The Mediating Role Of Innovation. International Journal Of Bank Marketing Vol. 34 No. 5, pp. 623-648

15) Mandhachitara, Rujirutana, Siriporn Napombhejara Allapach. 2017. Small Business Performance In Thailand: Key Success Factors", Journal Of Research In Marketing And Entrepreneurship, Vol. 19 Issue: 2, Pp.161-181.

16) Narver, John C., Stanley F. Slater, 1990, The Effect Of Market Orientation On Business Performance, Journal Of Marketing.

17) Park, C., Oh, C. H., & Kasim, A. (2017). Market challenges, learning and customer orientation, and innovativeness in IJVs. International Marketing Review, 34(6), 945–967. https://doi.org/10.1108/IMR-07-2014-0238

18) Sangmi, Choi. 2014. Learning Orientation and Market Orientation as Catalysts for Innovation in Nonprofit Organizations, Nonprofit and Voluntary Sector Quarterly, Vol. 43(2) 393 –413

19) Sumi Jha, S.S. Bhattacharyya. 2013. Learning Orientation and Performance Orientation: Scale Development And Its Relationship With Performance. Global Business Review, 14(1) 43–54.

20) Tina Gruber, Muecke Katharina, Maria Hofer. 2015. Market Orientation, Entrepreneurial Orientation And Performance In Emerging Markets, International Journal Of Emerging Markets, Vol. 10 Issue 3 pp.560 – 571

21) Wencang Zhou Huajing Hu Xuli Shi , (2015),"Does organizational learning lead to higher firm performance?", The Learning Organization, Vol. 22 Iss 5 pp. 271 – 288

22) Van Horne, James C. Wachowicz, John M.Jr. 2009. Fundamental of Financial Management. Thirteenth edition. Pearson Education Limited. Harlow. United Kingdom.