Main Article Content
Abstract
Purpose – The principal aim of this study is to determine the impact of entrepreneurial orientation (EO) and marketing strategy on marketing performance of small and medium enterprises (SMEs). The next goal to overcome gaps research results of the entrepreneurial orientation (EO) influence on marketing performance. Design/methodology/approach – Based on theoretical considerations, a model is proposed linking the entrepreneurial orientation (EO) and marketing strategy to the marketing
performance. Data was collected from SMEs entrepreneurs who have already run their business for at least 2 years. Sample Distribution was given to 150 respondents with a purposive sampling techniques. The analysis of structural equation modeling (SEM) with AMOS software 22 was used for model and hypothesis testing. Findings –The result of empirical testing proved that marketing performance can be improved directly through the marketing strategy variable and entrepreneurial orientation (EO). Marketing strategy is beneficial to SMEs in terms of enhancing marketing performance. The findings further shown as expected, marketing strategy mediates the relationship between entrepreneurial orientation and marketing performance. Theoretical contributions from this research results supports the theoretical marketing
science throughout the role of marketing strategy in combining those research results differences between Entrepreneurial Orientation (EO) and marketing performance. Research limitations/implications – The data were collected limited to SMEs in Yogyakarta and Central Java. Practical implications – SMEs should consider marketing strategy as a facilitating management tool for improving marketing performance in relatively more dynamic environments. When entrepreneurial orientation (EO) is implemented alongside marketing strategy, better marketing performance can be achieved. Originality/value –Direct and indirect effect of each construct on marketing performance was discovered. SMEs should consider marketing strategy as having a mediating role to improve marketing performance. The finding not only provides contributions but also recommendation for future research.