EXPLORING ENTREPRENEURSHIP ORIENTATION, MARKET ORIENTATION AND TQM ON BUSINESS PERFORMANCE

Wahyuni, Ni Made and Sara, I Made and Sri Meitri, Ida Ayu and Darma, Ketut (2021) EXPLORING ENTREPRENEURSHIP ORIENTATION, MARKET ORIENTATION AND TQM ON BUSINESS PERFORMANCE. International Journal of Advanced Engineering and Management Research, 6 (6). ISSN 2456-3676

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Abstract

In today's competitive business environment, the company's ability to develop internal resources is important to survive. Entrepreneurial orientation (EO) and market orientation (MO) are interesting topics to survive. This study aims to develop a better understanding of the relationship between entrepreneurial orientation and market orientation on business performance. This study not only serves to clarify the relationship between entrepreneurial orientation and market orientation to business performance, but the conceptual model also clarifies the role of TQM as a mediator entrepreneurial orientation and market orientation-business performance link which is still largely ignored in research. The research conceptual model was developed based on a literature review EO, MO, TQM and BP. This study adopted a quantitative research method to test the research model. Data were collected from 35 respondents of fisheries SME managers in Bali, Indonesia. For research purposes, the questionnaire survey was conducted online and sent via their respective email addresses. The instrument was evaluated for validity and reliability. The structural equation model was designed to assess the significance of the theoretical relationships and test the relationships using PLS 3.0. The results support the research hypothesis. The findings show that entrepreneurial orientation and market orientation have a significant positive effect on business performance. Entrepreneurial orientation and market orientation are positively related to TQM. The findings also reveal the mediating effect of TQM in the relationship between entrepreneurial orientation and market orientation on business performance. Current research contributes to the literature on TQM using a resource-based view by exploring how the relationship between firm capabilities (e.g. TQM) and business performance. Applying a resource-based view provides a better understanding of TQM.

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