The Role of Competitive Advantage in Mediating the Influence of Market Orientation on Internationalization (A Study on Small and Medium Wood Craft Enterprises in Gianyar Regency)
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 5
Abstract
This study aims to examine the influence of market orientation on competitive advantage, the influence of market orientation and competitive advantage on internationalization, and the role of competitive advantage in mediating the influence of market orientation on internationalization of small and medium enterprises (SME) in the woodcraft industry sector. There is a total of 110 respondents in this research in which they are the owners or the managers of the woodcraft SMEs in Gianyar Regency. The data collection method is through interview for the open-ended questions and questionnaires for the closed questions. The analysis technique in this research is the path analysis and the Sobel test. The results of this research show that all the hypothesis are accepted. Market orientation has a positive and significant influence on competitive advantage, competitive advantage has a positive and significant influence on internationalization, market orientation has a positive and significant influence on internationalization, and competitive advantage is significantly capable of mediating the influence of market orientation on internationalization. The implication of this research is providing recommendations to owners or managers of the woodcraft SMEs in Gianyar to always develop a market orientation culture in order to improve their competitive advantages which has an impact on internationalization.
Authors and Affiliations
Wicitra Wira S, Ni Nyoman Kerti Yasa
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