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The Mediating Effect of Islamic Marketing Capabilities in The Relationship Between Entrepreneurial Orientation And Firm Performance at Handicraft SMEs In West Java

Authors

  • Yayan Hendayana Universitas Bhayangkara Jakarta Raya
  • Dewi Puspaningtyas Faeni Universitas Bhayangkara Jakarta Raya
  • Siham El-Kafafi Arrows Research Consultancy Limited

DOI:

https://doi.org/10.29313/amwaluna.v8i2.3391

Keywords:

Entrepreneurial Orientation, Marketing Capabilities, SMEs Performance, Handicraft, West Java

Abstract

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.

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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

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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.

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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

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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

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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

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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

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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

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2024-07-31

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