Strategic orientation and the performance of SMEs in Indonesia: The mediating role of access to finance

Abstract

This paper gives insight about the association between market orientation, entrepreneur orientation, learning orientation, technological orientation and access to finance, and SME's performance in Indonesia. The study provides a clear understanding about the relationships among SME's performance in Indonesia and market orientation, entrepreneur orientation, learning orientation, technological orientation, and what mediating role financial access plays in this relationship. The study broached that it is apparently essential to identify the strategic variables which may reflect the aforementioned management activities or processes, such as marketing, innovativeness, risk taking, technology and learning culture, which SMEs use and that probably influence their performance. The study is among the pioneering studies on the issues related to the market orientation, entrepreneur orientation, learning orientation, technological orientation, and access to finance in Indonesia. The study uses SEM-PLS as statistical tool to answer the research questions raised in this study and research objectives envisaged in the current study. The findings of the current study have provided support to with the hypothesized results. The study has argued that to deal with the current external opportunities and menaces, new knowledge and skills for improving their existing and future performances must be provided for the organizations. The study will be helpful for policymakers and researchers in examining the link between market orientation, entrepreneur orientation, learning orientation, technological orientation, and access to finance in Indonesia performance of SMEs in Indonesia.

Mediating Role of Interaction Orientation on the Relationship between Strategic Orientation and Small Medium Enterprises Performance in North-East Nigeria

“…The result of EO-SMEs performance studies seems to be somehow consistent in Asia as Mahmood and Hanafi, (2013), Hosseini, Dadfar, and Brege (2014) in Iran, and Nur et al, (2014) in Indonesia all found that EO has a significant effect on SMEs performance. Also recently, Affendy et al (2015) and AbuBakar et al, (2015), in Malaysia, Zhai et al, (2018) in China, and Gupta (2019) in India and Retnawati and Retnaningsih (2019), Syahdana et al, (2020), Arifin and Dewi (2020), Heng and Afifah (2020), Widokarti and Ginting, (2020) Dionysus and Arifin (2020) and Yasa et al, (2020) in Indonesia and Habib et al, (2021) in Bangladesh confirmed the significant positive relationship between EO and SMEs performance in Asia. So also Sajjad et al, (2020) and Asad et al, (2020) in Pakistan.…”

“…In somehow developed economies, Martínez and Martínez (2016) in Mexico, Real et al, (2012) in Spain, Keskin (2006) in Turkey, and Pett et al, (2019) in the USA all found a significant positive relationship between LO and SMEs performance. Like in Asian countries, Amin (2015) and AbuBakar et al, (2016) in Malaysia, Lestari et al, (2018), Haryanto et al, (2017), Syahdana et al, (2020) and Widokarti and Ginting, (2020) in Indonesia, Hussain et al, (2018) in Iran, Daryani and Karimi (2017) and Sawaeana and Ali (2020) in Kuwait and Kittikunchotiwut (2020) in Thailand all established a significant positive association between LO and SMEs performance. Yet, Sarker and Palit (2015) in Bangladesh and Phorncharoen (2020) in Thailand found an insignificant positive relationship between LO and SMEs' performance.…”

“…Within the Malaysian economy, OM relates positively and significantly to SMEs' performance in the studies by Mokhtar, Yusoff, and Ahmad (2014) and Nasir et al, (2017), Nasir et al, (2017) revealed insignificant relationships between MO and SMEs performance. Likewise within Indonesia, MO has a significant effect on SME performance in the studies of Mardiyono (2018), Zulfikar (2019) and Syahdana et al, (2020), Duwalang and Santika (2020), Dewantia et al, (2020), but Haryanto et al, (2017), Ismail et al, (2019 and Dionysus and Arifin (2020) all found that MO has no significant effect on SMEs performance in Indonesia. The same was the case in Iran where Darabi (2007) reported that MO has a significant positive effect on SMEs' performance but Alizadeh et al, (2013) MO has no significant relationship with SMEs' performance.…”

https://jusst.org/the-effect-of-strategic-management-on-organizational-performance-the-mediating-role-of-knowledge-sharingin-private-universities-in-kuwait/

“…Moreover, knowledge management positively affects the acquisition, storage, restructuring, and utilization of collected knowledge, thus helping to achieve organizational goals. Syahdan, Djaelani and Mahdi (2020) examined the relationship between strategic orientation (market orientation, entrepreneurial orientation, learning orientation, and technological orientation) and the performance of SMEs in Indonesia through the mediating role of financial access. Data were collected through a questionnaire distributed to small and medium-sized enterprises in Indonesia.…”

Poverty and SMEs: A New Pradigm of SDGs Development

“…The latest research topic is also how micro and small businesses access Optimum Vol 11. No.2 September 2021 p. 224-231 10.12928/optimum.v11i2.3943 financial institutions, such as studies conducted by Syahdan et al (2020) and Rosavina et al (2019). However, the effect of poverty on micro and small enterprises has not been widely observed in Indonesia.…”