The Divergent Effects of Market Orientation: Uncovering the Links to Entrepreneurial Orientation in Indonesian SMEs

Abstract

This study explores the complex relationship of market orientation and its impact on marketing performance, product quality, and entrepreneurial orientation within Indonesian MSMEs. While market orientation is traditionally perceived as a critical driver of marketing success, our findings reveal a more nuanced picture. Through an analysis of 111 MSMEs in, Indonesia, this research uncovers that market orientation does not affect to marketing performance or product quality. However, it plays a crucial role in enhancing entrepreneurial orientation, suggesting that a strong market focus may foster a more innovative and proactive business approach. These results challenge conventional assumptions and highlight the need for MSMEs to reconsider how market orientation is integrated into their strategic frameworks. By emphasizing the divergent effects of market orientation, this study provides valuable insights for practitioners and scholars seeking to understand the pathways through which market knowledge influences business outcomes in emerging economies.

Keywords: Market Orientation; Marketing Performance; Entrepreneurial Orientation; Product Quality; Small and Medium Enterprise.