Marketing Dynamics of Muslim MSMEs In Bengkulu Province: Product Innovation, Competitive Advantage, and Market Orientation in Improving Marketing Performance
Abstract
Purpose:
The purpose of this study is to explore the impact of business strategy development, mainly focusing on product innovation, competitive advantage, and market orientation, on the marketing performance of micro, small, and medium enterprises (MSMEs) in Bengkulu Province. The research emphasizes the importance of optimizing marketing performance to boost economic outcomes, not only for large enterprises but also for MSMEs, which play a significant role in local economies.
Design/Methodology:
This research utilizes a descriptive quantitative methodology to investigate the proposed relationships. A non-probability sampling technique, precisely the judgmental (purposive) method, was employed to select a sample of 500 owners or managers of MSMEs across various districts of Bengkulu Province, including Kaur, Seluma, Lebong, Kepahiang, and Central Bengkulu. The data were subjected to reliability and validity tests based on pre-test results, and multiple linear regression was applied to analyze the main hypotheses.
Findings:
The findings reveal that product innovation, competitive advantage, and market orientation all have a positive and significant influence on the marketing performance of MSMEs in Bengkulu Province. The results highlight the critical role these factors play in enhancing the marketing effectiveness of MSMEs, demonstrating that improvements in these strategic areas can lead to substantial gains in overall marketing performance.
Practical Implications:
The practical implications of this research suggest that MSME owners and managers should focus on strengthening their product innovation capabilities, leveraging competitive advantages, and adopting a more market-oriented approach to improve marketing performance. These strategies could drive economic growth and sustainability for MSMEs in Bengkulu Province, contributing to broader regional economic development.
Originality/Value:
This study offers valuable insights into the marketing performance of MSMEs in a developing region, specifically Bengkulu Province. By focusing on the combined impact of product innovation, competitive advantage, and market orientation, the research provides a comprehensive understanding of how these strategic elements influence MSME marketing outcomes. The originality lies in its application to a relatively under-researched context, offering practical recommendations for MSME development.
Keywords
Full Text:
PDFReferences
Adams, P., Freitas, I. M. B., & Fontana, R. (2019). Strategic orientation, innovation performance and the moderating influence of marketing management. Journal of Business Research, 97, 129–140.
Allameh, S. M., Khazaei Pool, J., Jaberi, A., Salehzadeh, R., & Asadi, H. (2015). Factors influencing sport tourists’ revisit intentions. Asia Pacific Journal of Marketing and Logistics, 27(2), 191–207. https://doi.org/10.1108/apjml-12-2013-0159
Alrubaiee, L. (2013). An investigation on the Relationship between New Service Development , Market Orientation and Marketing Performance. European Journal of Business and Management, 5(5), 1–27.
Annarelli, A., Battistella, C., & Nonino, F. (2020). Competitive advantage implication of different Product Service System business models: Consequences of ‘not-replicable’capabilities. Journal of Cleaner Production, 247, 119121. https://doi.org/https://doi.org/10.1016/j.jclepro.2019.119121
Augusto, M., & Coelho, F. (2009). Market orientation and new-to-the-world products: Exploring the moderating effects of innovativeness, competitive strength, and environmental forces. Industrial Marketing Management, 38(1), 94–108.
Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635.
Baker, W. E., & Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of Small Business Management, 47(4), 443–464. https://doi.org/10.1111/j.1540-627X.2009.00278.x
Baldauf, A., Cravens, D. W., & Piercy, N. F. (2001). Examining business strategy, sales management, and salesperson antecedents of sales organization effectiveness. Journal of Personal Selling and Sales Management, 21(2), 109–122. https://doi.org/10.1080/08853134.2001.10754262
Becherer, R. C., & Maurer, J. G. (1997). The moderating effect of environmental variables on the entrepreneurial and marketing orientation of entrepreneur-led firms. Entrepreneurship Theory and Practice, 22(1), 47–58. https://doi.org/https://doi.org/10.1177/104225879702200103
Best, R. J. (2009). Market-based management: strategies for growing customer value and profitability. 515.
Bhattarai, C. R., Kwong, C. C. Y., & Tasavori, M. (2019). Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom. Journal of Business Research, 96, 47–60.
Bigliardi, B. (2019). OBigliardi, Barbara. 2019. “Open Innovation and Traditional Food.” In Innovations in Traditional Foods, 85–99. Elsevier.pen innovation and traditional food. In Innovations in traditional foods (pp. 85–99). Elsevier.
Black, J. A., & Champion, D. J. (1999). Metode dan Masalah Penelitian Sosial (R. A. Koeswara E, Salam D (ed.)). PT. Refika Aditama.
Cooper, R. G. (2019). The drivers of success in new-product development. Industrial Marketing Management, 76, 36–47.
Crick, J. M. (2021). The dimensionality of the market orientation construct. Journal of Strategic Marketing, 29(4), 281–300.
Darmanto, D., Wardaya, S., Sulistyani, L., & Rahayu, B. S. (2020). A Model of Mixed Strategic Orientations Based on Environment in Achieving a Tough Performance of MSMEs. Ijtim{=a} Iyya Journal of Muslim Society Research, 5(1), 19–36.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly: Management Information Systems, 13(3), 319–339. https://doi.org/10.2307/249008
Day, G. S. (1994). Continuous learning about markets. California Management Review, 36(4), 9–31. https://doi.org/https://doi.org/10.2307/41165764
Diebner, R., Silliman, E., Ungerman, K., & Vancauwenberghe, M. (2020). Adapting customer experience in the time of coronavirus. McKinsey & Company, 2.
Fader, P. (2020). Customer centricity: Focus on the right customers for strategic advantage. University of Pennsylvania Press.
Faizah, N., & Oktarina, A. (2023). Analisis Strategi BAZNAS Provinsi Bengkulu Dalam Upaya Mempertahankan Eksistensi UMKM Dengan Pendekatan Maqashid Syariah. Al-Intaj : Jurnal Ekonomi Dan Perbankan Syariah, 9(1), 45. https://doi.org/10.29300/aij.v9i1.9751
Falahat, M., Ramayah, T., Soto-Acosta, P., & Lee, Y.-Y. (2020). SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs’ international performance. Technological Forecasting and Social Change, 152, 119908.
Fatmawati, E., & HAYATI, B. (2022). Analisis Pengaruh Literasi Keuangan, Inklusi Keuangan, Dan Brand Image Terhadap Penggunaan Layanan Digital Perbankan Syariah …. Jurnal Ilmiah Ekonomi Islam (JIEI), 9(01), 1023–1033.
Ferdinand, A. (2002). Marketing Strategy Making: Proses & Agenda Penelitian. Indonesian Journal of Marketing Science, 1(1), 1–22.
Ferreira, J., Cardim, S., & Coelho, A. (2021). Dynamic capabilities and mediating effects of innovation on the competitive advantage and firm’s performance: The moderating role of organizational learning capability. Journal of the Knowledge Economy, 12, 620–644. https://doi.org/https://doi.org/10.1007/s13132-020-00655-z
Ferreira, J., & Coelho, A. (2020). Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME’s performance in Portugal: the moderating effects of entrepreneurial orientation. International Journal of Innovation Science, 12(3), 255–286.
Firmansyah, M. A., & others. (2023). Pemasaran Produk dan Merek: Planning & Strategy. Penerbit Qiara Media.
Gao, Y., Ge, B., Lang, X., & Xu, X. (2018). Impacts of proactive orientation and entrepreneurial strategy on entrepreneurial performance: An empirical research. Technological Forecasting and Social Change, 135, 178–187.
Grau, S. L. (2021). Using Design Thinking to Drive Human-centred Innovation in MarketingGrau, Stacy Landreth, ‘Using Design Thinking to Drive Human-Centred Innovation in Marketing’, in Creativity and Marketing: The Fuel for Success (Emerald Publishing Limited, 2021), pp. 85–. In Creativity and Marketing: The Fuel for Success (pp. 85–99). Emerald Publishing Limited.
Green, K. W., Inman, R. A., Brown, G., & Willis, T. H. (2005). Market orientation: Relation to structure and performance. Journal of Business and Industrial Marketing, 20(6), 276–284. https://doi.org/10.1108/08858620510618110
Guerrero, L., Claret, A., Verbeke, W., Sulmont-Rossé, C., & Hersleth, M. (2022). Innovation in traditional food products: Does it make sense? In Innovation Strategies in the Food Industry (pp. 87–95). Elsevier.
Hair, F. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis. Pearson Prentice Hall.
Harjadi, D., Fatmasari, D., & Nurhasanah, A. S. (2020). Market Orientation And Product Innovation To Increase Competitive Advantages And Its Impact On Marketing Performance. Al-Amwal : Jurnal Ekonomi Dan Perbankan Syari’ah, 12(1), 12. https://doi.org/10.24235/amwal.v1i1.5457
Harvie, C. (2019). Micro-, small-and medium-sized enterprises (MSMEs): challenges, opportunities and sustainability in East Asia. Trade Logistics in Landlocked and Resource Cursed Asian Countries, 155–174.
Heany, D. F. (1983). Degrees of product innovation. Journal of Business Strategy, 3(4), 3–14.
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
Hock-Doepgen, M., Clauss, T., Kraus, S., & Cheng, C.-F. (2021). Knowledge management capabilities and organizational risk-taking for business model innovation in SMEs. Journal of Business Research, 130, 683–697.
Hult, G. T. M., & Ketchen Jr, D. J. (2001). Does market orientation matter?: A test of the relationship between positional advantage and performance. Strategic Management Journal, 22(9), 899–906. https://doi.org/https://doi.org/10.1002/smj.197
Jaworski, B. J., & Kohli, A. K. (1993). Market Orientation: Antrcendent and Consequances. Journal of Marketing, 57(1), 53–70.
Kahn, K. B., & Mohan, M. (2020). Innovation and new product planning. Routledge.
Keiningham, T., Aksoy, L., Bruce, H. L., Cadet, F., Clennell, N., Hodgkinson, I. R., & Kearney, T. (2020). Customer experience driven business model innovation. Journal of Business Research, 116, 431–440.
Kim, H. W., Gupta, S., & Koh, J. (2011). Investigating the intention to purchase digital items in social networking communities: A customer value perspective. Information and Management. https://doi.org/10.1016/j.im.2011.05.004
King, B. (2018). Bank 4.0: Banking everywhere, never at a bank. John Wiley & Sons.
Kmieciak, R., & Michna, A. (2018). Knowledge management orientation, innovativeness, and competitive intensity: evidence from Polish SMEs. Knowledge Management Research & Practice, 16(4), 559–572.
Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson Education.
Latifah, L., Setiawan, D., Aryani, Y. A., & Rahmawati, R. (2021). Business strategy--MSMEs’ performance relationship: innovation and accounting information system as mediators. Journal of Small Business and Enterprise Development, 28(1), 1–21.
Lestari, W., Fauji, R., Manajemen Keuangan, P., Ekonomi Dan Bisnis, F., Buana Perjuangan Karawang, U., & Karawang, K. (2023). Pengaruh Literasi Keuangan, Persepsi Risiko, Dan Kemudahan Penggunaan Terhadap Menggunakan Bank Digital (Seabank) (Studi Pada Masyarakat Karawang Timur). Jurnal Manajemen Terapan Dan Keuangan (Mankeu, 12(04), 1140–1154.
Lisnawati. (2023). TANTANGAN UMKM DI TAHUN 2024. DPR RI.
Low, D. R., Chapman, R. L., & Sloan, T. R. (2007). Inter-relationships between innovation and market orientation in SMEs. Management Research News, 30(12), 878–891. https://doi.org/https://doi.org/10.1108/01409170710833321
Lukas, B. A., & Ferrell, O. C. (2000). The effect of market orientation on product innovation. Journal of the Academy of Marketing Science, 28(2), 239–247.
Maksum, I. R., Rahayu, A. Y. S., & Kusumawardhani, D. (2020). A social enterprise approach to empowering micro, small and medium enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 50.
Martinez, A., Cegarra-Navarro, J.-G., Garcia-Perez, A., & Wensley, A. (2019). Knowledge agents as drivers of environmental sustainability and business performance in the hospitality sector. Tourism Management, 70, 381–389.
McLean, S., & Charles, D. (2020). A preliminary review of policy responses to enhance SME access to trade financing in the Caribbean.
Na, Y. K., Kang, S., & Jeong, H. Y. (2019). The effect of market orientation on performance of sharing economy business: Focusing on marketing innovation and sustainable competitive advantage. Sustainability, 11(3), 729.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicologia, 48(1), 30–41. https://doi.org/10.1016/j.rlp.2015.09.009
Novrianda, H., Shar, A., & Arisandi, D. (2021). Pengembangan Orientasi Pasar Dan Orientasi Kewirausahaan Terhadap Kinerja Pemasaran Usaha Kecil Dan Menengah (UKM) Di Provinsi Bengkulu. Al-Intaj: Jurnal Ekonomi Dan Perbankan Syariah, 7(1), 47–59.
Novrianda, H., Shar, A., & Arisandi, D. (2021). Pengembangan Orientasi Pasar Dan Orientasi Kewirausahaan Terhadap Kinerja Pemasaran Usaha Kecil Dan Menengah (Ukm) Di Provinsi Bengkulu. Al-Intaj J. Ekon. Dan Perbank. Syariah, 7(1).
Nursini, N. (2020). Micro, small, and medium enterprises (MSMEs) and poverty reduction: empirical evidence from Indonesia. Development Studies Research, 7(1), 153–166.
Olavarrieta, S., & Friedmann, R. (2008). Market orientation, knowledge-related resources and firm performance. Journal of Business Research, 61(6), 623–630. https://doi.org/https://doi.org/10.1016/j.jbusres.2007.06.037
Osei, A., Yunfei, S., Appienti, W., & Forkuoh, S. (2016). Product Innovation and SMEs Performance in the Manufacturing Sector of Ghana. British Journal of Economics, Management & Trade, 15(3), 1–14. https://doi.org/10.9734/bjemt/2016/29906
Penh, P. (2023). Critical! Compared to its neighbors, RI is really poor in this matter. CNBC Indonesia.
Poernomo, D. (2015). Manajemen Strategis Smart city. Seminar Nasional Riset Terapan (SENASSET).
Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance. simon and schuster.
Prayoga, A. D. (2023). Analisis Pengaruh Keamanan dan Risiko Terhadap Keputusan Penggunaan Cardless Withdrawal BSI. In AT-TAWASSUTH: Jurnal Ekonomi Islam: Vol. VIII (Issue I).
Qiu, L., Jie, X., Wang, Y., & Zhao, M. (2020). Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises. Corporate Social Responsibility and Environmental Management, 27(1), 146–165. https://doi.org/https://doi.org/10.1002/csr.1780
Ramadani, V., Hisrich, R. D., Abazi-Alili, H., Dana, L.-P., Panthi, L., & Abazi-Bexheti, L. (2019). Product innovation and firm performance in transition economies: A multi-stage estimation approach. Technological Forecasting and Social Change, 140, 271–280.
Robbins, S. P. (2016). Dan Coulter, Mary. 2010. Manajemen Edisi Kesepuluh. Jakarta: Penerbit Erlangga.
Saunila, M. (2020). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation and Knowledge, 5(4), 260–265. https://doi.org/10.1016/j.jik.2019.11.002
Singh, S. K., Chen, J., Del Giudice, M., & El-Kassar, A.-N. (2019). Environmental ethics, environmental performance, and competitive advantage: Role of environmental training. Technological Forecasting and Social Change, 146, 203–211.
Sipayung, R. S. G. S. (2024). Dynamics of Indonesia’s Economic Growth in 2023 and Projected Challenges for 2024. Sekretariat Kabinet Republik Indonesia Read More: Https://Setkab.Go.Id/Dinamika-Pertumbuhan-Ekonomi-Indonesia-2023-Dan-Proyeksi-Tantangan-2024/.
Slater, S. F., & Narver, J. C. (2000). The positive effect of a market orientation on business profitability: A balanced replication. Journal of Business Research, 48(1), 69–73. https://doi.org/https://doi.org/10.1016/S0148-2963(98)00077-0
Snihur, Y., & Wiklund, J. (2019). Searching for innovation: Product, process, and business model innovations and search behavior in established firms. Long Range Planning, 52(3), 305–325.
Tambunan, T. (2021). Micro, small and medium enterprises in times of crisis: Evidence from Indonesia. Journal of the International Council for Small Business, 2(4), 278–302.
Tanaka, M., Bloom, N., David, J. M., & Koga, M. (2020). Firm performance and macro forecast accuracy. Journal of Monetary Economics, 114, 26–41.
Taques, F. H., López, M. G., Basso, L. F., & Areal, N. (2021). Indicators used to measure service innovation and manufacturing innovation. Journal of Innovation and Knowledge, 6(1), 11–26. https://doi.org/10.1016/j.jik.2019.12.001
Tarmidi, D., & Alghifary, M. A. (2022). The Influence of Product Innovation and Social Media Marketing on Miraclemates Brand Purchase Decisions. Jurnal Ekonomi, 11(03), 1792–1796.
Tegar, M. (2024). Pengaruh Literasi Keuangan Syariah Kemudahan Penggunaan dan Faktor Media Sosial Terhadap Keputusan Penggunaan Fitur Mobile Banking Cardless Withdrawal (Tarik Tunai Tanpa Kartu) Pada Generasi Z (Studi Pada Mahasiswa di Bandar Lampung). Revenue, 5(1), 117–144. https://doi.org/10.24042/revenue.v5i1.19776
Tjahjadi, B., Soewarno, N., Nadyaningrum, V., & Aminy, A. (2022). Human capital readiness and global market orientation in Indonesian Micro-, Small-and-Medium-sized Enterprises business performance. International Journal of Productivity and Performance Management, 71(1), 79–99.
Vorhies, D. W., & Harker, M. (2000). 2 The Capabilities and Perfor Mance Advantages of Market‐Driven Firms: An Empirical Investigation. Australian Journal of Management, 25(2), 145–171. https://doi.org/10.1177/031289620002500203
Vorhies, D. W., Harker, M., & Rao, C. P. (1999). The capabilities and performance advantages of market‐driven firms. European Journal of Marketing, 33(11/12), 1171–1202. https://doi.org/10.1108/03090569910292339
Voss, G. B., & Voss, Z. G. (2000). Strategic orientation and firm performance in an artistic environment. Journal of Marketing, 64(1), 67–83. https://doi.org/10.1509/jmkg.64.1.67.17993
Walker, R. H., Slater, R., Callaghan, B., Smyrnios, K., & Johnson, L. W. (2004). Measuring marketing performance against the backdrop of intra-organisational change. Marketing Intelligence & Planning, 22(1), 59–65. https://doi.org/10.1108/02634500410516913
Xie, X., Huo, J., & Zou, H. (2019). Green process innovation, green product innovation, and corporate financial performance: A content analysis method. Journal of Business Research, 101, 697–706. https://doi.org/https://doi.org/10.1016/j.jbusres.2019.01.010
DOI: http://dx.doi.org/10.29300/aij.v11i1.6188
DOI (PDF): http://dx.doi.org/10.29300/aij.v11i1.6188.g4809
Refbacks
- There are currently no refbacks.
Copyright (c) 2025 Herry Novrianda, Aan Shar
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Abstracting and Indexing by:
