Business Performance of Small and Medium Industries In Bojonegoro Indonesia

Abstract

The purpose of this research is to find out the influence of entrepreneurial orientation toward market orientation and business performance of SMIs in Bojonegoro, and the indirect influence of entrepreneurial orientation towards business performance through the market orientation as the mediator. This research uses descriptive and quantitative analytical research design. The population is Small Medium Industries (SMIs) in Bojonegoro Indonesia, the sample collection technique has been carried out by using non probability sampling technique in which the sample is determined based on certain criteria which is compatible with the purpose of the research. The numbers of samples which are compatible with the research criteria are 100 respondents. The data collection technique has been conducted by issuing questionnaires and performing interviews. The obtained data has been analyzed by using Partial Least Square (PLS) which is a model of Structural Equation Modeling (SEM) which is component based or variant. The result of the research shows that, entrepreneurial orientation gives influence toward market orientation, entrepreneurial orientation gives influence and business performance, Market Orientation gives influence toward Business Performance of SMIs. The entrepreneurial orientation gives indirect influence toward business performance through mediation of market orientation, is not accepted