Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

The Support of Market Orientation and Creation Value to Competitiveness of SMEs

Author(s): Pande Putu Buda Prasada, Erie Febrian, Rita Komaladewi, Wa Ode Zusnita

 The purpose of this study is to examine the relationship between market orientation, value creation, and competitiveness of SMEs in enhancing business sustainability. The research was conducted based on the phenomenon of problems related to business sustainability from SMEs in Jakarta, Indonesia. The resilience of SMEs in doing business has always been an important thing to study; it seems that the government's support to continue to stimulate the growth of SMEs in Indonesia. The study is to explains a business model that can support sustainable business. The research conducted using a survey method for SME entrepreneurs in Jakarta. As respondents are selected, entrepreneurs have been around for at least five years and obtained as many as 207 SMEs. The research results show that SMEs' competitiveness is determined by the support from market orientation and value creation. Besides, it said that SMEs could use competitiveness to achieve business sustainability. However, market orientation and value creation are not directly able to influence sustainable business achievements. The research findings explain the existence of a model of orientation and value creation support to increase competitiveness and indirectly support the achievement of sustainable business. The information found from this research is certainly useful for SMEs in Indonesia as a perspective in measuring the competitiveness achieved. Because competitiveness impacts sustainable business, the government, in this case as a policy provider, can use the results of research as input in supporting and stimulating the development of sustainable business. The interest of sustainable business is not only for SMEs but for companies in general; the model presented is expected to provide new insights regarding maintaining competitiveness and building a sustainable business.

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