The Mediating Effect of Islamic Marketing Capabilities in The Relationship Between Entrepreneurial Orientation And Firm Performance at Handicraft SMEs In West Java
DOI:
https://doi.org/10.29313/amwaluna.v8i2.3391Keywords:
Entrepreneurial Orientation, Marketing Capabilities, SMEs Performance, Handicraft, West JavaAbstract
The purpose of this study is to determine the influence of entrepreneurial orientation and market orientation on Islamic marketing capabilities and their impact on the performance of SMEs in the handicraft sector in West Java. The population in this study is the managers of leather craft SMEs with a sample of 160 respondents using the purposive sampling method. Data analysis using the help of SmartPLS program. The results showed that entrepreneurial orientation had a significant positive effect on Islamic marketing ability, Islamic marketing ability had a significant positive effect on SME performance, and Islamic marketing ability mediated the influence of entrepreneurial orientation on the performance of SMEs in the leather handicraft sector in West Java. The results of this study recommend to SMEs in the handicraft sector in West Java to continue to improve entrepreneurial orientation to support the improvement of the ability to market their products, so that overall business performance continues to grow.
References
Abbas, A., Nisar, Q. A., Mahmood, M. A. H., Chenini, A., & Zubair, A. (2020). The role of Islamic marketing ethics towards customer satisfaction. Journal of Islamic Marketing, 11(4), 1001–1018. https://doi.org/10.1108/JIMA-11-2017-0123
Alfi, C. F. (2019). Tiga Dimensi Utama Dalam Islamic Marketing. Islamicmarketing.Xyz, November. https://doi.org/10.13140/RG.2.2.32684.39047
Aliyu, M. S., Rogo, H. B., & Mahmood, R. (2015). Knowledge management, entrepreneurial orientation and firm performance: The role of organizational culture. Asian Social Science, 11(23), 140–152. https://doi.org/10.5539/ass.v11n23p140
Alom, M. M., & Haque, M. S. (2011). World Journal of Social Sciences Marketing : An Islamic Perspective. World Journal of Social Sciences, 1(3), 71–81.
Alvarez-Torres, F. J., Lopez-Torres, G. C., & Schiuma, G. (2019). Linking entrepreneurial orientation to SMEs’ performance: Implications for entrepreneurship universities. Management Decision, 57(12), 3364–3386. https://doi.org/10.1108/MD-11-2018-1234
Atuahene-Gima, K., Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive market orientations for new product program performance. Journal of Product Innovation Management, 22(6), 464–482. https://doi.org/10.1111/j.1540-5885.2005.00144.x
Camra-Fierro, J., Centeno, E., Pérez-Cabañero, C., González-Cruz, T., & Cruz-Ros, S. (2012). Do family SME managers value marketing capabilities’ contribution to firm performance? Marketing Intelligence & Planning, 30(2), 116–142. https://doi.org/10.1108/02634501211211948
Cavusgil, S. T., & Zou, S. (1994). Marketing Strategy-Performance Relationship: An Investigation of the Empirical Link in Export Market Ventures. Journal of Marketing, 58(1), 1. https://doi.org/10.2307/1252247
Covin, J. G., & Lumpkin, G. T. (2011). Entrepreneurial orientation theory and research: Reflections on a needed construct. Entrepreneurship: Theory and Practice, 35(5), 855–872. https://doi.org/10.1111/j.1540-6520.2011.00482.x
Day, G. S. (1994). The Capabilities of Market-Drive Capabilities Organizations. Journal of Marketing, 58(4), 37–52.
El-Menouar, Y. (2014). The Five Dimensions of Muslim Religiosity . Results of an Empirical Study. Method, Data, Analyses, 8(1), 53–78. https://doi.org/10.12758/mda.2014.003
Faeni, D. P. (2023). SERVQUAL measures: Indonesian government healthcare (BPJS) from a human resource perspective. Journal of Infrastructure, Policy and Development, 8(2), 1–21. https://doi.org/10.24294/jipd.v8i2.2271
Faeni, D. P., Faeni, R. P., Riyadh, H. A., & Yuliansyah, Y. (2023). The COVID-19 pandemic impact on the global tourism industry SMEs: a human capital development perspective. Review of International Business and Strategy, 33(2), 317–327. https://doi.org/https://doi.org/10.1108/RIBS-08-2021-0116
Faerrosa, Lady, Athar, H. S., & Widiana, H. (2022). Market Orientation and Product Innovation As an Msme Marketing Strategy. Amwaluna: Jurnal Ekonomi Dan Keuangan Syariah, 6(2), 362–378. https://doi.org/10.29313/amwaluna.v6i2.10044
Freeman, S., & Cavusgil, S. T. (2007). Toward a typology of commitment states among managers of born-global firms: A study of accelerated internationalization. Journal of International Marketing, 15(4), 1–40. https://doi.org/10.1509/jimk.15.4.1
Gatignon, H., & Xuereb, J. M. (1997). Strategic Orientation of the Firm and New Product Performance. Journal of Marketing Research, 34(1), 77–90. https://doi.org/10.1177/002224379703400107
Gupta, V. K., & Batra, S. (2016). Entrepreneurial orientation and firm performance in Indian SMEs: Universal and contingency perspectives. International Small Business Journal: Researching Entrepreneurship, 34(5), 660–682. https://doi.org/10.1177/0266242615577708
H Gin Chong. (2008). Measuring performance of small-and-medium sized enterprises: the grounded theory approach. Journal of Business Affairs, 2(1), 1–11.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance. Long Range Planning, 46(1–2), 1–12. https://doi.org/10.1016/j.lrp.2013.01.001
Hendayana, Y., Suryana, Ahman, E., & Mulyadi, H. (2019). The Effect of Innovation on Business Competitiveness of Small and Medium Enterprise in Indonesia. Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019), 100(Icoi), 116–120. https://doi.org/10.2991/icoi-19.2019.21
Herlinawati, E., Suryana, Ahman, E., & Machmud, A. (2019). The effect of entrepreneurial orientation on smes business performance in Indonesia. Journal of Entrepreneurship Education, 22(5), 1–15.
Jin, B., Jung, S., & Jeong, S. W. (2017). Dimensional effects of Korean SME’s entrepreneurial orientation on internationalization and performance: the mediating role of marketing capability. International Entrepreneurship and Management Journal, 14(1), 195–215. https://doi.org/10.1007/s11365-017-0457-4
Kaplan, R. S., & Norton, D. P. (1996). Focusing your organization on strategy—with the Balanced Scorecard, 2nd Edition. Harvard Business Review, January-February, 35–61.
Kuratko, D. F., & Howard Frederick, A. O. (2016). Entrepreneurship, Theory/Process/Practice, 4th Edition, Cencage Learning, Australia.
Lekmat, L., & Selvarajah, C. (2018). Relationship between Market Orientation , Entrepreneurial Orientation , and Firm Performance in Thai SMEs : The Mediating Role of Marketing Capabilities. 17(3), 213–237.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172. https://doi.org/10.5465/AMR.1996.9602161568
Man, T. W. Y., Lau, T., & Chan, K. F. (2002). The competitiveness of small and medium enterprises A conceptualization with focus on entrepreneurial competencies. 17(June 1998), 123–142.
Mason, M. C., Floreani, J., Miani, S., Beltrame, F., & Cappelletto, R. (2015). Understanding the Impact of Entrepreneurial Orientation on Smes’ Performance. the Role of the Financing Structure. Procedia Economics and Finance, 23(October 2014), 1649–1661. https://doi.org/10.1016/s2212-5671(15)00470-0
Merrilees, B., Rundle-Thiele, S., & Lye, A. (2011). Marketing capabilities: Antecedents and implications for B2B SME performance. Industrial Marketing Management, 40(3), 368–375. https://doi.org/10.1016/j.indmarman.2010.08.005
Morgan, N. A., Vorhies, D. W., & Mason, C. H. (2009). Market Orientation, Marketing Capabilities, And Firm Performance. Strategic Management Journal. https://doi.org/10.1002/smj
Muhayatsyah, A. (2020). Islamic Business Ethics in Al-Ghazali’S Perspective. Jurnal Penelitian Keuangan Dan Perbankan Syariah, 2(2), 84–104.
Alfi, C. F. (2019). Tiga Dimensi Utama Dalam Islamic Marketing. Islamicmarketing.Xyz, November. https://doi.org/10.13140/RG.2.2.32684.39047
Aliyu, M. S., Rogo, H. B., & Mahmood, R. (2015). Knowledge management, entrepreneurial orientation and firm performance: The role of organizational culture. Asian Social Science, 11(23), 140–152. https://doi.org/10.5539/ass.v11n23p140
Alom, M. M., & Haque, M. S. (2011). World Journal of Social Sciences Marketing : An Islamic Perspective. World Journal of Social Sciences, 1(3), 71–81.
Alvarez-Torres, F. J., Lopez-Torres, G. C., & Schiuma, G. (2019). Linking entrepreneurial orientation to SMEs’ performance: Implications for entrepreneurship universities. Management Decision, 57(12), 3364–3386. https://doi.org/10.1108/MD-11-2018-1234
Atuahene-Gima, K., Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive market orientations for new product program performance. Journal of Product Innovation Management, 22(6), 464–482. https://doi.org/10.1111/j.1540-5885.2005.00144.x
Camra-Fierro, J., Centeno, E., Pérez-Cabañero, C., González-Cruz, T., & Cruz-Ros, S. (2012). Do family SME managers value marketing capabilities’ contribution to firm performance? Marketing Intelligence & Planning, 30(2), 116–142. https://doi.org/10.1108/02634501211211948
Cavusgil, S. T., & Zou, S. (1994). Marketing Strategy-Performance Relationship: An Investigation of the Empirical Link in Export Market Ventures. Journal of Marketing, 58(1), 1. https://doi.org/10.2307/1252247
Covin, J. G., & Lumpkin, G. T. (2011). Entrepreneurial orientation theory and research: Reflections on a needed construct. Entrepreneurship: Theory and Practice, 35(5), 855–872. https://doi.org/10.1111/j.1540-6520.2011.00482.x
Day, G. S. (1994). The Capabilities of Market-Drive Capabilities Organizations. Journal of Marketing, 58(4), 37–52.
El-Menouar, Y. (2014). The Five Dimensions of Muslim Religiosity . Results of an Empirical Study. Method, Data, Analyses, 8(1), 53–78. https://doi.org/10.12758/mda.2014.003
Faeni, D. P. (2023). SERVQUAL measures: Indonesian government healthcare (BPJS) from a human resource perspective. Journal of Infrastructure, Policy and Development, 8(2), 1–21. https://doi.org/10.24294/jipd.v8i2.2271
Faeni, D. P., Faeni, R. P., Riyadh, H. A., & Yuliansyah, Y. (2023). The COVID-19 pandemic impact on the global tourism industry SMEs: a human capital development perspective. Review of International Business and Strategy, 33(2), 317–327. https://doi.org/https://doi.org/10.1108/RIBS-08-2021-0116
Faerrosa, Lady, Athar, H. S., & Widiana, H. (2022). Market Orientation and Product Innovation As an Msme Marketing Strategy. Amwaluna: Jurnal Ekonomi Dan Keuangan Syariah, 6(2), 362–378. https://doi.org/10.29313/amwaluna.v6i2.10044
Freeman, S., & Cavusgil, S. T. (2007). Toward a typology of commitment states among managers of born-global firms: A study of accelerated internationalization. Journal of International Marketing, 15(4), 1–40. https://doi.org/10.1509/jimk.15.4.1
Gatignon, H., & Xuereb, J. M. (1997). Strategic Orientation of the Firm and New Product Performance. Journal of Marketing Research, 34(1), 77–90. https://doi.org/10.1177/002224379703400107
Gupta, V. K., & Batra, S. (2016). Entrepreneurial orientation and firm performance in Indian SMEs: Universal and contingency perspectives. International Small Business Journal: Researching Entrepreneurship, 34(5), 660–682. https://doi.org/10.1177/0266242615577708
H Gin Chong. (2008). Measuring performance of small-and-medium sized enterprises: the grounded theory approach. Journal of Business Affairs, 2(1), 1–11.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance. Long Range Planning, 46(1–2), 1–12. https://doi.org/10.1016/j.lrp.2013.01.001
Hendayana, Y., Suryana, Ahman, E., & Mulyadi, H. (2019). The Effect of Innovation on Business Competitiveness of Small and Medium Enterprise in Indonesia. Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019), 100(Icoi), 116–120. https://doi.org/10.2991/icoi-19.2019.21
Herlinawati, E., Suryana, Ahman, E., & Machmud, A. (2019). The effect of entrepreneurial orientation on smes business performance in Indonesia. Journal of Entrepreneurship Education, 22(5), 1–15.
Jin, B., Jung, S., & Jeong, S. W. (2017). Dimensional effects of Korean SME’s entrepreneurial orientation on internationalization and performance: the mediating role of marketing capability. International Entrepreneurship and Management Journal, 14(1), 195–215. https://doi.org/10.1007/s11365-017-0457-4
Kaplan, R. S., & Norton, D. P. (1996). Focusing your organization on strategy—with the Balanced Scorecard, 2nd Edition. Harvard Business Review, January-February, 35–61.
Kuratko, D. F., & Howard Frederick, A. O. (2016). Entrepreneurship, Theory/Process/Practice, 4th Edition, Cencage Learning, Australia.
Lekmat, L., & Selvarajah, C. (2018). Relationship between Market Orientation , Entrepreneurial Orientation , and Firm Performance in Thai SMEs : The Mediating Role of Marketing Capabilities. 17(3), 213–237.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172. https://doi.org/10.5465/AMR.1996.9602161568
Man, T. W. Y., Lau, T., & Chan, K. F. (2002). The competitiveness of small and medium enterprises A conceptualization with focus on entrepreneurial competencies. 17(June 1998), 123–142.
Mason, M. C., Floreani, J., Miani, S., Beltrame, F., & Cappelletto, R. (2015). Understanding the Impact of Entrepreneurial Orientation on Smes’ Performance. the Role of the Financing Structure. Procedia Economics and Finance, 23(October 2014), 1649–1661. https://doi.org/10.1016/s2212-5671(15)00470-0
Merrilees, B., Rundle-Thiele, S., & Lye, A. (2011). Marketing capabilities: Antecedents and implications for B2B SME performance. Industrial Marketing Management, 40(3), 368–375. https://doi.org/10.1016/j.indmarman.2010.08.005
Morgan, N. A., Vorhies, D. W., & Mason, C. H. (2009). Market Orientation, Marketing Capabilities, And Firm Performance. Strategic Management Journal. https://doi.org/10.1002/smj
Muhayatsyah, A. (2020). Islamic Business Ethics in Al-Ghazali’S Perspective. Jurnal Penelitian Keuangan Dan Perbankan Syariah, 2(2), 84–104.
Okoli, I. E. N., Nwosu, K. C., & Okechukwu, M. E. (2021). Entrepreneurial Orientation and Performance of Selected SMEs in Southeast, Nigeria. European Journal of Business and Management Research, 6(4), 108–115. https://doi.org/10.24018/ejbmr.2021.6.4.946
Pascal, V. J., & Shin, S. (2015). The Role of Marketing Capabilities and Entrepreneurial Orientation on SME Performance. Journal of International Marketing Strategy, 3(1), 37–54.
Pratono, A. H., & Mahmood, R. (2015). Mediating effect of marketing capability and reward philosophy in the relationship between entrepreneurial orientation and firm performance. Journal of Global Entrepreneurship Research, 5(1). https://doi.org/10.1186/s40497-015-0023-x
Pulka, B. M., Ramli, A., & Mohamad, A. (2021). Entrepreneurial competencies, entrepreneurial orientation, entrepreneurial network, government business support and SMEs performance. The moderating role of the external environment. Journal of Small Business and Enterprise Development, 28(4), 586–618. https://doi.org/10.1108/JSBED-12-2018-0390
Rezaei, R., Mangeli, N., & Safa, L. (2017). Mediation Effect of Entrepreneurial Marketing in the Relationship between Entrepreneurial Orientation and Performance of Greenhouse Businesses in Jiroft County. Iran Agricultural Extension and Education Journal, 13(1), 195–208. https://www.cabdirect.org/cabdirect/abstract/20193131729