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Abstract
Coconut sugar have a huge potential to be developed in Indonesia, unfortunately the welfare of the producers is still lack due to the inability of the products to be marketized on modern and international markets. The products could not meet the needs and wants of those markets. This study aims to investigate the influence of market orientation on marketing performances in MSMEs. The samples are 100 coconut sugar producers, in Banyumas, Central Java, Indonesia. The tool used to analyze this study is structural equation modelling by AMOS program. The study result shows that customer orientation have a positive influence on product and process innovations, competitor orientation have a positive influence on product innovation but have no influence on process innovation, and product and process innovations have positive influences on marketing performances.
Keywords: market orientation; marketing performance; micro, small and medium-sized coconut sugar enterprises; innovation.
1. Introduction
Some previous researches have already investigated the reltionship between market orientation and marketing performances (Al-Ansari, 2013; Raju, 2011; Tutar, 2015; Sok, 2013). MSMEs play an important role in Indonesian economy for several reasons; they could survive through the monetary crisis during 1998, the huge amounts compared to big companies, and the amount of labors hired. Small-scale industries in Indonesia provide more than 65% of total manufacturing employment (Burger et al., 2011). One of important MSMEs for Indonesian economy is micro, small and medium-sized coconut sugar enterprises regarding their annual production amount bringing Indonesia as the largest coconut producer in the world, which is up to 120,000 tons (Mustaufik, 2010). Micro, small and medium-sized coconut sugar enterprises are very potential to be developed in Indonesia; because a) they have a big market potential, b) Indonesia has the largest coconut plantation in the world, and c) coconut sugar industry is an industry which does not need a sophisticated technology and advanced skills, so it can hire huge amount of labours (Suliyanto, 2013).
Even though Indonesia is the largest coconut sugar producer in the world, the welfare of the producers is still lack. Kameo (1999) state that characteristic of of coconut sugar in Indonesia is marginal activity that is carried out by poor households that lack access to better opportunities and the profit is indeed low. The poor welfare of...