Author(s): Henni Zainal, W. Kristina Parinsi, Muhammad Hasan, Farid Said, Haedar Akib
The article results of this study explain the effect of strategic assets and market orientation on the performance of the family business. The population is a family business entity of 1,455 units with a sample of 150 obtained by purposive proportional random. The analysis technique used is Structural Equation Modeling (SEM) with LISREL software. The results show that strategic assets and market orientation have a direct and significant effect on the performance of the family business in the city of Makassar. This finding reinforces the views of experts and the results of research that human resources, knowledge management, organizational capabilities, and experience of business actors are organizational strategic assets. Likewise, market information and its dissemination and organizational response to the market are dimensions of market orientation. Therefore, it is necessary to improve the performance of the family business through sharpening internal focus (organizational assets) and the organization's external focus (market orientation). The performance of family businesses is a populist economic actor who contributes to strengthening the local, regional and national economy.