PENGARUH ORIENTASI KEWIRAUSAHAAN TERHADAP PROFITABILITAS UKM DENGAN ORIENTASI PASAR SEBAGAI VARIABEL PEMEDIASI

Abstract

ABSTRACT

This study examined the effect of  entrepreneurial orientation on profitability in small business mediated by market orientation. Entrepreneurial orientation reflects the degree to which firms’ growth objectives are driven by the identification and exploitation of untapped market opportunities. Market orientation reflects the degree to which firms’ strategic market planning is driven by customer and competitor intelligence. Data was processed with Structural Equation Modeling using AMOS  program. The results showed that Entre-preneurial orientation has an direct effect on market orientation and  indirect effect on profitability mediated by market orientation. The results suggest, at least in small firms, entrepreneurial orientation complements market orientation by instilling an opportunistic culture that impacts the firm’s profitability.

Keywords:  market orientation, entrepreneurial orientation, and  profitability.