Impact of Entrepreneurship Orientation, Innovation, Market Orientation and Total Quality Management on SME Performance
Keywords:
Entrepreneurship Orientation, Innovation, Market Orientation, Total Quality Management
Abstract
Small and Medium Enterprises (SMEs) have had a very good impact on economic development in Indonesia. In addition, the presence of SMEs also brings many benefits to the welfare of the community, one of which is by absorbing the workforce so that it can reduce the number of unemployment figures. To see the success or failure of a business can be seen from the measurement of performance. Measuring the performance of a business is a very important thing, because by measuring the performance of the company can find out how much reward or salary will be given to employees. This study aims to examine whether entrepreneurial orientation, innovation, market orientation and total quality management affect the performance of SMEs. This study uses primary data with questionnaires as research instruments. The population in this study was 1,599 SMEs located in Kuantan Singingi Regency. The number of samples used was 115 with a purposive sampling method. The test results show that the independent variable entrepreneurial orientation, innovation, market orientation affect the performance of SMEs, while the independent variable total quality management has no influence on the performance of SMEs. This research is expected to be a material consideration for making changes in business for business entities and organizations so that business performance can improve.
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Venter, J.M.P., Hamel, E.H. & Stiglingh, M. 2006. A student’s approach to income tax: natural person s. 2006 edition.
Durban: LexisNexis Butterworths.
Ahmad dan, M(2011). The Implementation of Total Quality Management (TQM) on the Higher Educational Sector in Jordan. Internastional Journal of Industrial Marketing,Vol.1 No.1.
Al-Dhaafri, & Hassan, S. 2016. The Impact of Total Quality Manag ement and Entrepreneurial Orientation on Organizational Performance. International Journal of Quality & Reliability Management, Vol. 33 No. 5.
Baldacchino. 2008. Entrepreneurial Creativity and Innovation, The Firstv International Confe- renceon Strategic Innovation and Future Creation, University of Malta, Malta.
Basuki, R. 2007. Korelasi antara Motivasi, Knowledge of Entreprenurship dan Indepen -densi dan The Entrepreneur’s Performance pada Kawasan Industri Kecil, Manajemen Usahawan Indonesia. LMFE-UI : Jakarta.
Becherer, R.C., Halstead, D. & Haynes, P. (2001),Marketing Orientation in SMEs: Effects of the Internal Environment. Journal of Research in Marketing and Entrepreneurship , Vol. 3 No. 1, pp. 1 – 17.
Blocher dkk. (2000). Manajemen Biaya. Jilid II . Edisi Pertama. Salemba Empat: Jakarta. BPS. 2017. Berita Resmi Statistik Provinsi Riau No. 25/05/14/Th. XVIII, 24 Mei 2017 BPS.2017. Direktori Industi Manufaktur Indonesia. Jakarta.
Buli, Bereket Mamo. 2017. ―Entrepreneurial Orientation, Market Orientation and Performance of SMEs in the Manufacturing Industry: Evidence from Ethiopian Enterprises.
Covin, J.G., & Slevin, D.P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10, 75-87. doi.org/10.1002/smj.4250100107.
Demirbag, M., Tatoglu, E., Tekinkus, M. & Zaim, S. (2006). An analysis of the relationship between TQM implementation and organizational performance evidence from Turkish SMEs. Journal of Manufacturing Technology Management,17(6), 829-847.
Herath, H.M.A. & Mahmood, R. (2014), Strategic orientations and SME performance: moderating effect of absorptive capacity of the firm. Asian Social Science, Vol. 10 No. 13, pp. 95-107. Diambil dari https://ekonomi.bisnis.com/read/20190109/12/876943/kontribusi-umkm-terhadap-pdb-2019-diproyeksi- tumbuh-5.
Jaiyeoba, O. (2010).The Impact of Market Orientation on SMMEs in Developing Economies: A Case -study of Botswana. International Journal of Business Administration, Volume 2, Number 3.
Knox, S. 2002. The Broadroom Agenda: Developing the Innovation Organization. Corporate Governance, Vol.2. No.
1 pp. 27-36.
Krajewski, L. J., Ritzman, L.P., & Malhotra M.K. 2006. Operations Management Processes And Value Chain, Edition. Upper Saddle River, NJ: Pearson Education.
Kumentas, CN. 2013. Pengaruh TQM, Sistem Pengukuran Kinerja dan Penghargaan Terhadap Kinerja Manajerial PT. Pos Indonesia. Jurnal Emba, Vol.1 No.3 Juni 2013, Hal. 796-805.
Larsen, P. & A. Lewis. 2007. How Award Winning SMEs Manage The Barriers to Innovation. Journal Creativity and Innovation Manage-ment, page: 141-151.
Lee D Y & Tsang E W K. 2001. The Effect of Entrepreneurial Personality, Background and Network Activities on Venture Growth. Journal of Management Studies, 38-4 pp 583-602.
Li, Yuan.,Yongbin Zhao., Justin Tan., Yi Liu. 2008. Moderating Effects of Entrepreneurial Orientation on Market Orientation Performance Linkage: Evidence from Chenese Small Firms. Journal of Small Business, 46(1):113- 133.
Lumpkin, G.T. & Dess, G.G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, Vol. 21 No. 1, pp. 135-72.
Mahmmod, R. & N. Hanafi. 2013. Entrepreneurial Orientation and Business Performance of Women -Owened Small and Medium Enterprises in Malaysia: Competitive Adavantage as A Media - tor. International Journal of Business and Social Science, 4(1): 82-90.
Naeem, H., Saif, M. & Khalil, Wajeeha (2008). Emotional intelligence andit simpacton service quality empirical evidence from the Pakistani Banking sector. International Business & Economics Research Journal,7, 55-62. 1 Desember 2017.
Narsa I M dan Yuniawati R. D. 2003. Pengaruh Interaksi Antara Total Quality Management d engan Sistem Pengukuran Kinerja dan Sistem Penghargaan Terhadap Kinerja Manajerial (Studi Empiris pada PT. Telkom Divre V Surabaya). Jurnal Akuntansi dan Keuangan, Vol. 6. No. 1, Mei 2003: 18-34.
Nasution, H.N., Mavondo, F.T., Matanda, M.J. and Ndubisi, N.O. (2011). Entrepreneurship: its relationship with market orientation and learning orientation and as antecedents to innovation and customer value. Industrial Marketing Management, Vol. 40 No. 3, pp. 336-45.
Ndubisi, Nelson Oly dan Khurram Iftikhar. (2012). Relationship between entrepreneurship, innovation and performance. Journal of Research in Marketing and Entrepreneurship, Vol. 14, pp. 214-236.
OECD, (2005). Oslo Manual: Proposed Guidelines for Collecting and Interpreting Technological Innovation Data.
Paris.
Pelham, Alfred, 1997. Mediating Influences on The Relationship Between Market Orientation and Profitability in Small Industry Firms. Journal of Marketing Theory and Practice, Summer, 55-75.
Protcko, E & Dornberger, U. (2014). The Impact Of Market Orientation On Business Performance –the Case of Tatarstan knowledge-Intensive Companies (Russia).Volume 12, Issue 4.
Purnama, C & Suyanto, (2010). Motivasi dan Kemampuan Usaha Dalam Meningkatkan Keberhasilan Usaha Industri Kecil. Jurnal Manajemen dan Kewirausahaan, Volume 12 No 2.
Rauch, A., Wiklund, J., Lumpkin, G. T., and Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship theory and practice, 33(3), 761-787.
Sahoo, Saumyaranjan, and Yadav, Sudhir. 2017. Entrepreneurial orientation of SMES, total quality management and firm performance. Journal of Manufacturing Technology Management
Sari, Indra Yanti. (2016). Pengaruh Orientasi Kewirausahaan dan Inovasi Produk terhadap Kinerja UKM Kota Makasar. Skripsi. Makassar: Repository UIN Alauddin Makasar
Sari, D. M. (2009). Pengaruh Total Quality Managementterhadap Kinerja Manajerial pada PT Super Andalas Steel. Skripsi. Medan: Program Reguler S-1 Departemen Akuntansi Fakultas Ekonomi Universitas Sumatera Utara
Small Business Development Agency (SEDA). 2005. Brain business newsletter. Seda Summit 2005, Special edition.
Soehadi. W.A. 2012. A Value Creation Approach. Prasetya Mulya Publishing. Jakarta Selatan.
Terziovski, Mile. 2010. Innovation Practice and its Performance Implications in Small and Medium Enterprises (SMEs) in the Manufacturing Sector: A Resource-Based View. Strategic Management Journal, 31 (8): pp. 892-902, doi.org/10.1002/smj.841
Undang-Undang No 20 Tahun 2008 tentang Usaha Mikro, Kecil, dan Menengah .
Venter, J.M.P., Hamel, E.H. & Stiglingh, M. 2006. A student’s approach to income tax: natural person s. 2006 edition.
Durban: LexisNexis Butterworths.
Published
2022-08-24
How to Cite
Surya, R. A. S., Afifah, U., Khoiriyah, M., & Oktari, V. (2022). Impact of Entrepreneurship Orientation, Innovation, Market Orientation and Total Quality Management on SME Performance. International Journal of Organizational Behavior and Policy, 1(1), 37-50. https://doi.org/10.9744/ijobp.1.1.37-50
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Articles
Copyright (c) 2022 Raja Adri Satriawan Surya, Ulfa Afifah, Mayla Khoiriyah, Vera Oktari
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