Changes in Market Orientation of Batik SMES During the Covid-19 Pandemic

Abstract

Changes in the business environment have been experienced by SMEs during the COVID-19 pandemic, thus placing strong pressure on business sustainability. This case study aims to describe the changes in market orientation carried out by SMEs during the pandemic. The research was conducted at the Association of Written Batik Banyuripan which consists of 62 SMEs in Central Java Province, Indonesia. Data were collected using interviews with the association's administrators and focus group discussions involving all members of SMEs. Triangulation has been carried out to ensure data quality involving SME group leaders, local government as SME coaches, and distributors. The results of the study show that SMEs respond quickly to environmental changes during the pandemic by changing market orientation by expanding the target market, adjusting products according to needs during the pandemic, using online-based technology to promote products and sales transactions. SMEs still maintain the characteristics of written batik. Changes in market orientation carried out by batik SMEs are proven to be able to prevent SMEs from going bankrupt.