Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)

Abstract

The Effect of Market Orientation, Innovation, Organizational Learning and Entrepreneurship on Firm Performance

Author(s): Ismail, I Made Narsa, Basuki

This study aimed to analyze the effect of market orientation, innovation, organizational learning and entrepreneurship on the firm performance. Information that was to be obtained was about the clarity of the occurrence of variable relationships constructed on an equation model based on relevant concepts, so that this study can be classified as explanatory research. This study used a survey method that was gathering information from a sufficient number of populations. This study was conducted with a quantitative approach. The analysis unit aimed at this study was the large manufacturing companies in South Sulawesi, Indonesia; as many as 63 manufacturing companies were taken as sample in this study. The analysis method used to test the effect between variables was Partial Least Square (PLS) analysis. The results of the analysis showed that organizational learning has an effect on firm performance and entrepreneurship has an effect on firm performance. However, the results of this study did not prove the effect of market orientation and innovation on firm performance. Results of this study have implications in building a model of the relationship of market orientation, entrepreneurship, organizational learning and entrepreneurship to firm performance. Organizational learning strategies and entrepreneurship have an important role in encouraging companies to improve firm performance. The more optimal organizational learning and entrepreneurship, then the performance of the company will increase.