Role of Entrepreneurial Orientation and Market Orientation on Competitive Advantage Through Marketing Performance: The Study at Marine-Based Food Processing Industry in Central Java

Abstract

Entrepreneurial orientation refers to the processes, practices, and making of decision to encourage new outcomes that have a specific entrepreneurial aspect. The action of an entrepreneurial refers to behaviors in decision on conditions of uncertainty, with swift actions seeing the opportunities to obtain maximum results. The capability of entrepreneurial actions is important for business players in developing ne products, new processes, new organizational managing through modification or reconfiguration of resources, and also in overcoming the speed of market change. Whereas, market orientation is the most effective organizational culture in creating the behaviors required to create superior value for buyers and produce superior performance for the organization. These two variables become strong capital in strengthening competitive advantage and towards achieving marketing performance. The phenomenon business of marine and fisheries business in Central Java is potential. As for the small and medium business centers of marine products are scattered in several cities in Central Java. Demak Regency, Semarang City, and Pekalongan Regency as the centers of marine-based food processing business were chosen for this study. This empirical study is expected to contribute theoretically and be useful in the managerial practice and can be used as material of consideration and policy for the government and the business players. Test of empirical analysis shows that entrepreneurial orientation and market orientation have a positive significant impact on competitive advantage, whereas competitive advantage gives a positive significant impact on marketing performance. The business players in marine-based food processing industry affirm that there is full awareness of the importance of dynamic movement in the entrepreneurial orientation and market orientation in order to maintain the sustainability of the existing business. The ability to look at the market conditions is an effort to keep the business sustains and develops, which greatly impacts on marketing performance as measured by sales volume and the increasing number of customers. Some weaknesses of this study are also discussed as a note for future research.

Competitive Advantage Model of Culinary MSMEs In West Java

“…The results of subsequent studies can agree and support the opinion that market orientation and entrepreneurship orientation have a positive and significant effect on competitive advantage in locus characteristics that tend to be similar (Retnawati & Retnaningsih, 2020); (Cindera Fatikha, Mintarti Rahayu, 2021). Mpointed out that in general, the market orientation of MSME players in the culinary sector in Ciayumajakuning is currently still focused on empowering internal capabilities, but has not studied further on a wider external scope, especially on competitor orientation.…”

“…TheMSME actors in Ciayumajakuning are based on their sub-sectors or business fields with the business category dominating compared to other business categories (opendata.jabarprov.go.id, 2021). Culinary businesses are widely chosen by MSMEs on the grounds that culinary businesses are resistant to crisis conditions (Retnawati & Retnaningsih, 2020) because food and beverages are primary needs that must be met by everyone. Currently, the culinary business is growing because the market wants food that is practical in making, serving, and how to consume it.…”

“…Entrepreneurial orientation and market orientation have a positive and significant influence on competitive advantage (Retnawati & Retnaningsih, 2020). Entrepreneurial orientation and market orientation both have an influential relationship, both directly and indirectly on their contribution to forming a competitive advantage (Cindera Fatikha, Mintarti Rahayu, 2021).…”

The role of brand and market orientation on competitive advantage in the food sector: business strategy’s moderator role

“…Despite their limited resources and experience, young people quickly expanded into foreign markets almost from the start. Retnawati and Retnaningsih (2019) discussed that the role of business orientation and market orientation in the food processing industry's competitive advantage was critical because processes, procedures and decision-making are all examples of business orientation that encourage new business-specific outcomes. The actions of an entrepreneur refer to decisive behaviors in the face of uncertainty, with quick actions that see opportunities for maximum results.…”

“…The connection could be controlled or conditioned owing to various indicators (Morgan et al, 2019). According to Retnawati and Retnaningsih (2019), the role of business orientation is critical for the food processing industry's competitive advantage, especially for small and medium enterprises (Puspaningrum, 2020).…”