Track: Entrepreneurship

Abstract

The MSME sector is a very important sector in the Indonesian economy and society, around 99 percent of businesses in Indonesia are classified as MSMEs and the MSME sector covers various labor-intensive activities, so that this sector is able to involve a large number of available workers. In other words, the MSME sector is an important sector for the economic resources of the Indonesian people. The purpose of this study is to empirically examine the effect of entrepreneurial marketing which consists of seven dimensions, innovation-focused, proactiveness, opportunity, calculated risk-taking, customer intensity, resource leveraging, and value creation on business performance mediated by competitive advantage. The research method used in this research is a quantitative approach method. Respondents in this study were MSME business actors or owners of MSMEs who were selected using a non-probability sampling method with a purposive sampling technique. The number of samples collected in this study was 421 MSMEs. Data were analyzed using Structural Equation Modeling with Partial Least Square (SEM PLS) approach. Based on the results obtained proactiveness, opportunity, and customer intensity have a direct effect on business performance, while the other four variables, namely innovation-focused, calculated risk-taking, resource leveraging, and value creation, have no significant effect on business performance. Customer intensity and calculated risk-taking have no significant effect on competitive advantage. Competitive advantage is able to mediate the relationship between opportunity, resource leveraging, and value creation.