Positioning Excellence – Based Model of Business Performance Supported by Market Orientation and Organization Innovation Among The Small and Medium Scale in Binong Jati Knitting Enterprices, Bandung
Abstract: To keep
sustaining in the high competition, the small and medium scale enterprises
(SME) must be able to know the customer’s needs and wants. The SME having the
market orientation will completely fulfill what the customers want considering
that market orientation is the commitment of the SME business actors to give
the additional values for the customers. It is demanded to support the
organization innovation in order that it can create the positioning excellence
of the enterprise expected to determine the business performance. The goal of
the research is to test a business performance model by taking into account the
positioning excellence supported by market orientation and organization
innovation. The method used in this research is descriptive and explanatory
method, using the craftsmen in Binong Jati Knitting Centre as the research
sample consisting of 203 craftsmen. The statistical analysis used was serqual
Equation Model with Lisrel 8,7 program. The result of the research shows that
in the operation the business actors of Binong Jati Knitting SME pay little
concern toward the market orientation in conducting their business; the
business actors in general have not owned the innovative enterprises shown by
the product innovation and the innovation in management process; the business
actors have been able to place their e-Business in the high positioning excellence.
Meanwhile, the business performance of Binong Jati Knitting SME is not proper
yet especially in the point of sales, profits, and market share achieved; the
positioning excellence is influenced significantly positive by the market orientation
and organization innovation. In the effort to improve the business performance,
SME is recommended to implement the model simultaneously.
Key words: Market Orientation,
Organization Innovation, Positioning Excellence, Business Performance
Penulis: EDDY
SOERYANTO SOEGOTO
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