The linkages between entrepreneurial orientation, market orientation toward MSMEs performances

Abstract

This paper examines the effect of entrepreneurial orientation on the performance of companies, with market orientation that consists of competitor orientation and customer orientation as the mediating variable. This research uses 100 samples of MSMEs in Sukoharjo Regency, Central Java Indonesia. The hypothesis testing is carried out using Structural Equation Modeling. The result shows that entrepreneurial orientation has a positive effect toward company’s performance and market orientation, which consists of competitor orientation and customer orientation. However, market orientation, both of competitor orientation and customer orientation has no effect on company’s performance. This result indicated that market orientation, either competitor orientation and customer orientation do not mediate the effect of the entrepreneurial orientation toward company’s performance.