The role of proactive market orientation and management commitment to internal resource on export performance of handicraft industry

Abstract

This study aims to analyze and provide empirical evidences on the effects of proactive market orientation (PMO) and management commitment to internal resource (MCIR) on export performance. The sample of this study includes the owners or leaders of handicraft exporter industry consisting of 72 respondents with a purposive random sampling in West Java, Indonesia. Data collection techniques are arranged by distributing questionnaires, interviewing, and recording documentation from the respondents. The data analysis uses the Structural Equation Model (SEM) based on Partial Least Square (PLS) with the tools of SPSS and SmartPLS statistical programs. The results show that the effect of proactive market orientation (PMO) on export performance (EP) was positive and significant. The effect of management commitment to internal resource (MCIR) on export performance was also positive and significant. MCIR has also a more considerable influence than PMO on export performance. This research has implications for policy makers and creative industries in improving the export performance, especially handicraft industries in developing countries. Furthermore, it is hoped that handicraft industries will consider the research findings in making business decisions and to improve their business success.