Effect of Market Orientation on Competitive Strategy to Integrated Agro Industry in Indonesia.

Author(s)

Doddy Rahadi , Sucherly , Ernie Sule Tisnawati ,

Download Full PDF Pages: 47-58 | Views: 344 | Downloads: 93 | DOI: 0.5281/zenodo.3463816

Volume 5 - January 2016 (01)

Abstract

Demand for agro-products tends to increase every year. However, agro-industry products in Indonesia does not have a good competitiveness. This is because of not optimal competitive strategy mapping indicated by unfavorable market orientation. Companies that have made the market orientation as the culture of the organization will focus on the external market needs, desires and market demand as a basis for preparing a strategy to compete for their respective business units within the organization and determine the success of the company. Competitive strategy should be designed to achieve continuous competitive advantage, enabling companies to dominate the market, old and new markets. Based on the above, the study aims to analyze the influence of market orientation in improving competitive strategy on Integrated Agro Industry in Indonesia. This research uses explanatory survey method, as it will explain the relationship between the variables studied. Collecting data in the study conducted by distributing questionnaires. While the method of data analysis used in this research is Structural Equation Modeling (SEM). Based on the survey results revealed that the market orientation of the positive and significant effect in improving the competitive strategy on Integrated Agro Industry in Indonesia. Meaning that the higher market orientation, the better competitive strategy applied by the company, so it will increase the competitiveness of industry which have an impact on better performance. Market orientation is an organizational culture that leads to the market. The starting point of a market orientation is market intelligence. Market orientation focused on understanding customer wants and needs of current and future

Keywords

Market Orientation, Competitive Strategy, SEM

References

  1. Barney, J. B., & Hesterly, W. S. 2010. Strategic Management and Competitive Advantage. New Jersey: Prentice Hall.
  2. Ellis, Paul D. 2006. “Market Orientation and Performance: A Meta-Analysis and Cross National Comparisons”, Journal of Management Studies, 43:5, July.
  3. Eris, Engin Deniz dan Omur Neczan Timurcanday Ozmen. 2012. “The Effect of Market Orientation, Learning Orientation and Innovativeness on Firm Performance: A Research from Turkish Logistics Sector”. International Journal of Economic Sciences and Applied Research, Vol. 5, No. 1, pp. 77- 108.
  4. Ferdinand, Augusty. 2002. Structural Equation Modelling dalam Penelitian. Manajemen. Semarang:FE UNDIP.
  5. Gyampah A, K. dan Acquaah, M. 2008. Manufacturing Strategy, Competitive Strategy and Firm Performance: An Empirical Study in A Developing Economy Environment. International Journal Production Economics 111: 575–592.
  6. Hair, J.F, et al. 1995. Multivariate Data Analysis with Readings 4th Edition. New York: Mcmillan Publishing Co.
  7. Harris L.C., Ogbonna E. 2001. Leadership Style and Market Orientation: An. Empirical Study, European Journal of Marketing, 35,5/6.
  8. Homburg, Christian and Pflesser, Christian. 2004. “A Multiple Layer Model of Market Oriented Organizational Culture: Maesurement Issues andPerformance Outcomes”, Journal of Marketing Research, Vol 38, November.
  9. Hooley, Graham; Fahy, John. 2009. “Market Orientation in the Service Sector of the transition Economies of Central Europe”, European Journal of Marketing, Maret, vol.62, pp.42-54.
  10. Hou, Jia-Jeng. 2008. “Toward A Research Model Of Market Orientation And Dynamic Capabilities”. Social Behavior and Personality, Vol. 36, No. 9, pp. 1251-1268.
  11. Ireland RD, Hitt MA, Sirmon DG. 2011. “A model of strategic entrepreneurship: the construct and its dimensions”. Journal of Management. Vol. 29, pp. 963–989.
  12. Jaworski, Bernard. J and Kohli, Ajay. K. 2003. “Market Orientation: Antecedents and Consequences”, Journal of Marketing, Vol 57, July
  13. Johnson, Jean L. 2009. “Strategic Integration in Industrial Distribution Channels: Managing the interfirm Relationship as a Strategic Asset” Journal of the Academy of Marketing Science, Vol 27, No 1 (Inter), p.18
  14. Kamya, Moses Tahate, Joseph M. Ntayi dan Augustine Ahiauzu. 2010. “Knowledge management and competitive advantage: The interaction effect of market orientation”. African Journal of Business Management,Vol. 4, No.14, pp. 2971-2980.
  15. Kotler dan Keller. 2012. Marketing Management Edisi 14, Global Edition.Pearson Prentice. Hall.
  16. Langerak, Fred, Erik Jan Hultink, dan Henry S. J. Robben. 2004. “The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance”. The Jurnal of Product Innovation Management , Vol. 21, pp. 74-94.
  17. Matsuno, Ken; Mentzer, John T; Ozmoser, Aysegul. 2004. "The Effects of Entrepreneurial Proclivity and Market Orientation on Business Performance". Journal of Marketing, vol 66, issue 3, p. 18-32.
  18. Mokhtar , P; Gupta, Y. P. dan Somers, T. M. 2009. Business Strategy, Manufacturing Flexibility, and Organizational Performance Relationships: A Path Analysis Approach. Production and Operations Management, 5(3): 204-233.
  19. Momrak, R.I And Mahmood, R. 2012. Marketing Orientation As Mediator To Entrepreneurial Orientation and Performance Relationship: Evidence From Falaysian SMES. "Rising to the Global Challenge: Entrepreneurship and SMEs development in Asia".
  20. Morgan, Osman, Ghulam,Hussain. 2009. Assimilating entrepreneurial orientation and market orientation dimensions in the context of women-owned small and medium sized businesses, African Journal of Business Management Vol. 5(14), pp. 5974-5983, 18 July, 2011, ISSN 1993-8233 ©2011 Academic Journals
  21. Nemati, Ali Raza et al. 2010. Impact of Inovation on Customer Satifactioin and Brand Loyalty : A study of mobile Phone User in Pakistan. European Journal of Social Sciens, Vol. 12, No. 2, 299-306.
  22. Oyedijo, A. 2012. Strategic Agility and Competitive Performance in the Nigerian Telecommunication Industry: An Empirical Investigation. American International Journal of Contemporary Research, 2(3), 227-237.
  23. Porter, M. E. 2006. Competitive Advantage; Creating and Sustaining Superior Performance. New York: The Free Press.
  24. Porter, Michel E., 2008. Competitive Advantage. USA: Collier Macmillan Publisers
  25. Santoso, Singgih. 2007. Structural Equation Modelling Konsep dan Aplikasi dengan AMOS. Jakarta: PT Elex Media Komputindo.
  26. Schalk, Adrianus Philip. 2008. “Effects of Market Orientation on Business Performance: Empirical Evidence from Iceland”. Marketing and International Business, 1-129.
  27. Sekaran, Uma. 2003. Research Metods for Business: a Skill Building Approach. New York: John Willey & Sons.
  28. Shu-Hsien, Liao; Ta-Chien Hu. 2012.Knowledge Transfer and Competitive Advantage on Environmental uncertainty : An Empirical Study of The Taiwan Semiconductor Industry.Technovation. Vol.27. Issues 6 -7 : 402 -411.
  29. Slater, Stanley F dan John C. Narver. 2000. “The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication”. Journal of Business Research, Vol. 48, pp. 69-73.
  30. Thompson, Arthur A. ; A.J. Strickland, and Gamble, J. 2003. Crafting and Executing Strategy, 18thE: McGrawHill.
  31. Tomaskova, Eva. 2008. 2008. “The Current Models Of Market Orientation”. Annals of the University “Constantin Brâncuşi” of Tg-Jiu, Vol.4, No.1, pp. 9-16.
  32. United Nations Industrial Development Organization (UNIDO), 2011. Industrial Development Report.
  33. Vazquez, R. Santos, M. L. dan Ignacioalvarez, L. 2001. Market Orientation, Innovation and Competitive Strategies in Industry Firms.” Journal of Strategic Marketing, 9, 69-90.

Cite this Article: