The Role of Entrepreneurship Orientation and Service Innovation Capability in Improving Market Performance Through Service Positional Advantage

Sudirmansyah Sudirmansyah, Alifah Ratnawati

Abstract


This study aims to identify and examine the factors influencing entrepreneurship orientation toward service positional advantage, service innovation capability toward service positional advantage, entrepreneurship orientation toward market performance, service innovation capability toward market performance, and service positional advantage toward market performance. Respondents in this study were coffee shop owners in West Kotawaringin, Central Kalimantan. The research method used was explanatory research through a quantitative approach, using a questionnaire as a tool to uncover data on entrepreneurship orientation, service innovation capability toward market performance, and service positional advantage as an intervening factor. The sample size for this study was 120 coffee shop owners in West Kotawaringin, Central Kalimantan. The analysis technique used in this study was data analysis using Smart PLS software. Three data collection methods were used: offline questionnaires and online Google Forms, which were then analyzed using static analysis techniques. The results of this study indicate that entrepreneurship orientation and service innovation capability have a positive effect on service positional advantage. Entrepreneurship orientation has a positive effect on market performance, and service innovation capability has a positive effect on market performance. Service positional advantage is able to mediate the relationship between entrepreneurship orientation and service innovation capability on market performance.

References


Nuryakin. (2018). Competitive advantage and product innovation: Key success of Batik SMEs marketing performance in Indonesia. Academy of Strategic Management Journal, 17(2), 1–17.

Kiyabo, K., & Isaga, N. (2020). Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures. Journal of Innovation and Entrepreneurship, 9(1). https://doi.org/10.1186/s13731-020-00123-7

Lechner, C., & Gudmundsson, S. V. (2014). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), 36–60. https://doi.org/10.1177/0266242612455034

Lehrer, C., Wieneke, A., vom Brocke, J., Jung, R., & Seidel, S. (2018). How Big Data Analytics Enables Service Innovation: Materiality, Affordance, and the Individualization of Service. Journal of Management Information Systems, 35(2), 424–460. https://doi.org/10.1080/07421222.2018.1451953

Lin, Y. H., & Chen, Y. S. (2017). Determinants of green competitive advantage: the roles of green knowledge sharing, green dynamic capabilities, and green service innovation. Quality and Quantity, 51(4), 1663–1685. https://doi.org/10.1007/s11135-016-0358-6

Liu, F. H., & Huang, T. L. (2018). The influence of collaborative competence and service innovation on manufacturers’ competitive advantage. Journal of Business and Industrial Marketing, 33(4), 466–477. https://doi.org/10.1108/JBIM-12-2016-0294

Mc Daniel, B. A. (2002). Entrepreneurship and Innovation: An Economic Approach An Economic Approach. Routledge.

Morgan, N. A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), 102–119. https://doi.org/10.1007/s11747-011-0279-9

Nojavan, M., Heidari, A., & Mohammaditabar, D. (2021). A fuzzy service quality based approach for performance evaluation of educational units. Socio- Economic Planning Sciences, 73(August 2019), 100816. https://doi.org/10.1016/j.seps.2020.100816

Omar, N. A., Kassim, A. S., Nazri, M. A., & Juhdi, N. H. (2020). The Effect of Retailer’s Perceived Service Innovation and Value Co-Creation Behavior on SME’s Brand Equity. Journal of Environmental Treatment Techniques, 9(1), 65–71. https://doi.org/10.47277/jett/9(1)71

Pribadi, R. T., Saufi, A., & Herman, L. E. (2022). Effect of Service Innovation on Consumer Satisfaction with Quality of Service and Perceived Value as Intervening Variables. International Journal of Social Science Research and Review, 5(3), 199–211. https://doi.org/10.47814/ijssrr.v5i3.171

Afriyie, S., Duo, J., & Musah, A.-A. I. (2018). The Nexus between Innovation Types and Marketing Performance of SMEs in an Emerging Economy: The Mediating Role of Knowledge Sharing. Journal of Economics, Management and Trade, 21(10), 1–22. https://doi.org/10.9734/jemt/2018/44223

Anning-Dorson, T. (2016). ORGANISATIONAL CULTURE and LEADERSHIP AS MEDIATORS of SERVICE INNOVATION and FIRM COMPETITIVENESS: A STUDY of AN EMERGING ECONOMY.

International Journal of Innovation Management, 20(7), 1–29. https://doi.org/10.1142/S136391961650064X

Asemokha, A., Musona, J., Torkkeli, L., & Saarenketo, S. (2019). Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance. Journal of International Entrepreneurship, 17(3), 425–453. https://doi.org/10.1007/s10843-019-00254-3

Blommerde, T. (2022). Service Innovation and Performance in Micro, Small, and Medium-Sized Organizations. European Journal of Business and Management Research, 7(4), 46–54. https://doi.org/10.24018/ejbmr.2022.7.4.1510

Cacciolatti, L., & Hee Lee, S. (2015). Entrepreneurial marketing for SMEs. In Entrepreneurial Marketing for SMEs (Issue January 2015). https://doi.org/10.1007/978-1-137-53258-9

Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power. Journal of Business Research, 69(12), 5597–5610. https://doi.org/10.1016/j.jbusres.2016.03.067

Carson, S. J., Madhok, A., Varman, R., & John, G. (2003). Information processing moderators of the effectiveness of trust-based governance in interfirm R and D collaboration. Organization Science, 14(1), 45–56. https://doi.org/10.1287/orsc.14.1.45.12811

Cho, Y. H., & Lee, J.-H. (2018). Entrepreneurial orientation, entrepreneurial education and performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2), 124–134. https://doi.org/10.1108/apjie-05-2018-

Dhewanto, W., & Bendatu, M. (2014). Manajemen inovasi : peluang sukses menghadapi perubahan.

Emami-Langroodi, F. (2018). SchumpeterrS Theory of Economic Development: A Study of the Creative Destruction and Entrepreneurship Effects on the Economic Growth. SSRN Electronic Journal, June 2017. https://doi.org/10.2139/ssrn.3153744

Fan, S. S., Chen, Y. C., & Miao, L. (2018). Discussing the effect of service innovation on customer satisfaction based on statistics education - A case on

Qianjiangyue Leisure Farm. Eurasia Journal of Mathematics, Science and Technology Education, 14(6), 2467–2474. https://doi.org/10.29333/ejmste/89530

Feng, C., Ma, R., & Jiang, L. (2020). The impact of service innovation on firm performance: a meta-analysis. Journal of Service Management, 32(3), 289–

https://doi.org/10.1108/JOSM-03-2019-0089

Giese, J. L., & Cote, J. A. (2014). Defining Consumer Satisfaction. January 2000.

Hartono, H., Herman, R. T., & Lasmy. (2019). A Study on Competitiveness of ICT Adoption and Entrepreneurship Orientation on SMEs in Indonesia. Proceedings of 2019 International Conference on Information Management and Technology, ICIMTech 2019, 1(August), 53–57. https://doi.org/10.1109/ICIMTech.2019.8843738

Haseeb, M., Hussain, H. I., Kot, S., Androniceanu, A., & Jermsittiparsert, K. (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability (Switzerland), 11(14). https://doi.org/10.3390/su11143811

Hendar, H., Ferdinand, A. T., & Nurhayati, T. (2017). Introducing the religio-centric positional advantage to Indonesian small businesses. Management and Marketing, 12(1), 78–102. https://doi.org/10.1515/mmcks-2017-0006

Hendar, Mutamimaha, & Kartikab, I. (2019). Product Positional Advantage on Muslim fashion business performance in Indonesia. International Journal of Innovation, Creativity and Change, 4(4), 115–144.

Herman, H., Hady, H., & Arafah, W. (2018). The Influence of Market Orientation and Product Innovation on the Competitive Advantage and Its Implication toward Small and Medium Enterprises (Ukm) Performance. International Journal of Science and Engineering Invention, 4(08), 8–21. https://doi.org/10.23958/ijsei/vol04-i08/02

Hills, G. E., Hultman, C. M., & Miles, M. P. (2008). The Evolution and Development of EM. Journal OfSmall Business Management, 46(1), 99–112.

Hunt, S. D., & Morgan, R. M. (1995). The Comparative Advantage Theory of Competition. Journal of Marketing, 59(2), 1. https://doi.org/10.2307/1252069

Kanwal, R., & Yousaf, S. (2019). Impact of Service Innovation on Customer Satisfaction: An Evidence from Pakistani Banking Industry. Emerging Economy Studies, 5(2), 125–140. https://doi.org/10.1177/0976747919870876

Karami, M., & Tang, J. (2019). Entrepreneurial orientation and SME international performance: The mediating role of networking capability and experiential learning. International Small Business Journal: Researching Entrepreneurship, 37(2), 105–124. https://doi.org/10.1177/0266242618807275

Khan, B. A., & Naeem, H. (2018). Measuring the impact of soft and hard quality practices on service innovation and organisational performance. Total Quality

Management and Business Excellence, 29(11–12), 1402–1426. https://doi.org/10.1080/14783363.2016.1263543

Rahma, Susilowati, & Purwanti. (2017). Minat Wisatawan terhadap Makanan Lokal Kota Semarang Tourists’ Interest to Local Food in Semarang. Jurnal Ekonomi Dan Pembangunan Indonesia, 18(1), 53–76.

Rahmawati, F., & Novani, S. (2021). The Effect of Product Innovation, Value Co- Creation on Marketing Performance of a SMEs in Covid-19 Pandemic Era. Jurnal Sains Pemasaran Indonesia (Indonesian Journal of Marketing Science), 20(2), 110–124. https://doi.org/10.14710/jspi.v20i2.110-124

Rofiaty, Chong, D., Nusron, A., Yulianti, N. A., & Sunaryo. (2022). COVID-19’s Damages on International Stock Markets. Journal of Economics, Business, & Accountancy Ventura, 25(1), 31. https://doi.org/10.14414/jebav.v25i1.2999

Rua, O., França, A., & Fernández Ortiz, R. (2018). Key drivers of SMEs export performance: the mediating effect of competitive advantage. Journal of Knowledge Management, 22(2), 257–279. https://doi.org/10.1108/JKM-07-

-0267

Salunke, S., Weerawardena, J., & McColl-Kennedy, J. R. (2019). The central role of knowledge integration capability in service innovation-based competitive strategy. Industrial Marketing Management, 76(August 2018), 144–156. https://doi.org/10.1016/j.indmarman.2018.07.004

Shah, S. Z. A., & Ahmad, M. (2019). Entrepreneurial orientation and performance of small and medium-sized enterprises: Mediating effects of differentiation strategy. Competitiveness Review, 29(5), 551–572. https://doi.org/10.1108/CR-06-2018-0038

Solano Acosta, A., Herrero Crespo, Á., & Collado Agudo, J. (2018). Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs). International Business Review, 27(6), 1128–1140. https://doi.org/10.1016/j.ibusrev.2018.04.004

Wijetunge, D. S. (2016). Service quality, competitive advantage and business performance in service providing SMEs in Sri Lanka. International Journal of Scientific and Research Publications, 6(August), 720.

Yıldız, S., & Karakaş, A. (2012). Defining Methods and Criteria for Measuring Business Performance: A Comparative Research Between the Literature in Turkey and Foreign. Procedia - Social and Behavioral Sciences, 58, 1091– 1102. https://doi.org/10.1016/j.sbspro.2012.09.1090


Refbacks

  • There are currently no refbacks.


License URL: https://creativecommons.org/licenses/by/4.0/deed.en


Jurnal SAMaJ Indexed by :

google_scholar onesearch garuda crosref onesearch  sinta scopus