Market Orientation, Entrepreneurship Orientation And Performances Of Micro Small And Medium Entreprise – MSMEs: Evidence From And Kuala Simpang,

Muhammad Rizal Dias Setianingsih Department of Management, Faculty of Economic, Department of Management, Faculty of Economic, Samudra University, Langsa, Indonesia Samudra University, Langsa, Indonesia e-mail: [email protected] e-mail: [email protected]

Abstract- Low business productivity occurs due to lack of Indonesia since 1998. The crisis has made economic knowledge from entrepreneurs, lack of entrepreneurial changes for laid-off employees working in various spirit, education level and no experience of the business companies. For those who have been dismissed must undertaken. But for those who want to learn and be patient immediately get a new job so that income is still obtained in running their business will gain business success and and can improve the welfare by opening a business, either ultimately can increase business scale from micro business business that produces products or that services. The effort to small business even to medium business. Then developed by the people of Indonesia in overcoming the entrepreneurs can expand their business by looking at economic conditions by developing micro, small and market orientation through entrepreneurial orientation. medium enterprises both in urban and rural areas. The purpose of this research are To know the partial Business development was undertaken by the influence and Simultaneous Orientation of Entrepreneurship community, whether micro, small and medium enterprises and Market Orientation on the Performance of Small and can improve the Indonesian economy. These improvements Medium Micro Enterprises (MSMEs) in Langsa City and in the economy include income earned, employment Kuala Simpang City intersection and To see the difference opportunities resulting in reduced unemployment and of influence of Orientation of Entrepreneurship, Market regional development through these efforts. Although Orientation and performance Small and Medium Micro micro, small and medium-sized enterprises are very large Enterprises (MSMEs) in Langsa and Kuala Simpang city. but still there are low productivity businesses, it is due to The results showed that partially and simultaneously small business capital, mistakes in running the business, there is a significant effect of entrepreneurship orientation knowledge of the owner of the business, and lack of and market orientation on the performance of Micro Small knowledge about the business being run and the share the and Medium Enterprises (SMEs) in Langsa and Kuala market faced by the resulting product or service. Simpang. Based on the Independent T-test, there is no The low productivity of the business is due to the difference in entrepreneurship and performance orientation lack of knowledge from entrepreneurs, the absence of level in Langsa City and Kuala Simpang, while market entrepreneurial spirit, the level of education and the lack of orientation variables in Langsa City and Kota Kuala experience about the business undertaken. But for those who Simpang are different. want to learn and be patient in running their business will From the analysis of coefficient of determination can gain business success and ultimately can increase business be seen that the variables of entrepreneurship orientation scale from micro business to small business even to medium and market orientation can affect the performance of SMEs business. Then entrepreneurs can expand their business by in Langsa City of 73.1%, while the remaining 26.9% looking at market orientation through entrepreneurial influenced by other factors outside the model of this study. orientation. While in Kuala Simpang city can be seen that the variation The entrepreneurial orientation is the ability to of entrepreneurship orientation and market orientation can create something new and different. Basically, the affect the performance of SMEs in the City of Kuala entrepreneurial spirit and attitudes are not only owned by Simpang of 32.3%, while the rest of 77.7% is influenced by the entrepreneur but everyone who has a creative and other factors outside the model. willing idea can be expressed as a person who has an entrepreneurial orientation and now an entrepreneurial Keyword: entrepreneur, market orientation, entrepreneur, orientation can be encountered in the business world. The MSMEs, Langsa, Kuala Simpang orientation of entrepreneurship can be run with the support of the market or see the market orientation of the business to

Introduction be run. The current national economic development has Market orientation is one part of marketing. improved after the monetary crisis that occurred in Marketing is an activity that gives direction to all business / commercial activities that include marketing mix in which

158 product either goods or services, as well as marketed ideas II. LITERATURE REVIEW is a manifestation of the concept of experiencing the process of development and production addressed to the end user. Entrepreneurship The market orientation in every micro, small and medium The ability of a person in optimizing resources enterprises related to business performance. The business owned such as material, time and creativity to innovate in performance of each entrepreneur for micro, small and producing products and services that have usability and earn medium enterprises is still very minimal which is indicated income can be called entrepreneurship. According to by its limitations. The performance of the Micro, Small and Entrepreneur or entrepreneur comes from the word: Wira: Medium Enterprises (MSMEs) sector in the economy has a main, dashing, brave, noble; self: self; sta: standing; effort: good contribution because it can increase people's income productive activities. From the origin of the word, and reduce unemployment. entrepreneurs are initially aimed at people who can stand on MSMEs for trading types in Langsa City and Kuala their own. Entrepreneurs are people who have their own Simpang consist of food and beverage traders, clothing, business or entrepreneurs. Entrepreneurs are people who shoes and sandals. Type of business among others there are dare to open independent productive activities. According to survive and develop and there are also just survive and even Hendro (2011: 27), entrepreneurship is more than close his business. SMEs trading is constrained by the organizing because it can consist of creators (creators), ability of an entrepreneur in running a business, in this case, investors (investors), and actors (innovator). While Hisrich is the ability to manage businesses such as how to obtain (2004: 6) states that entrepreneurship is the process of merchandise, has not been able to compete with similar creating something new at the value of using the time and businesses. Then another obstacle is the source of capital is effort required, taking on the financial, physical and social too minimal and difficult to obtain the source of capital in risks that accompany, receive the resulting monetary business development. For that orientation Entrepreneurs rewards, and personal satisfaction and freedom. need an increase in human resources is the ability to manage According to Sumiati (2015: 3) entrepreneurship is businesses that can pay attention to the market orientation of defined as a new entry that can be done by entering a fixed products traded by Entrepreneurs. The interesting market or a new market with existing or new products or fundamental difference of these two cities is the services or launch a new company. characteristics of the city, where Langsa city tends to Heterogeneous (, , Melayu, Gayo) while Kota Entrepreneurial Orientation Kuala Simpang tends to dominate by the Malay (80%). The orientation of entrepreneurship is the tendency Several previous studies and in line with this research of top management to take calculated, innovative and concerning UMKM entrepreneurs who have been studied in proactive risks (Morris and Paul in Fayolle 2007: 129). the city Langsa, one such research conducted by Rizal According to Avlontis & Salavou (2007), the (2016) who saw about the factors that affect women Entrepreneurship orientation is an organizational entrepreneurship in the city of Langsa, the factors observed phenomenon that reflects their managerial skills, as is the variable of capital, independence, emotional, and companies begin to take initiative and change their education. competitive actions so as to benefit their business. The formulation of the problem as follows: Furthermore, Frishammar and Horte (2007), entrepreneurial 1. How is the effect of Entrepreneurship Orientation on the orientation creates complex, intangible, unspeakable skills Performance of Micro Small and Medium Enterprises that enable companies to generate new ideas for new, (MSMEs) in Langsa City and Kuala Simpang. innovative, and risk-averse products. 2. How is the effect of Market Orientation on the Entrepreneurship orientation is the organizational performance of Micro Small and Medium Enterprises capability contributes to the creation of unique (MSMEs) in Langsa City and Kuala Simpang. organizational resources, positional advantages that affect 3. How is the influence of Orientation of Entrepreneurship performance (Muchtolifah 2005: 21). Furthermore, Suryana and Market Orientation simultaneously to the (2008: 38) states that the entrepreneurial orientation of performance of Micro Small and Medium Enterprises creative and innovative capabilities are used as the basis, (MSMEs) in Langsa City and Kuala Simpang. tips and resources to seek opportunities for success. The 4. How is the difference of Orientation of core of entrepreneurship is the ability to create something Entrepreneurship, Market Orientation and Performance new and different. of Micro Small and Medium Enterprises (MSMEs) in Langsa City and Kuala Simpang. Dimension of Entrepreneurial Orientation Entrepreneurship orientation is divided into five dimensions (Lumkin and Dess in Soegoto 2009: 53), as follows: 1. Innovative

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Innovative reflects an entrepreneur's tendency to come up MSMEs Performance with and realize new ideas, try new ways that are different According to Ruhimat, Nana and Kosim (2006: 12), the from existing ones and enthusiasm for adopting new ideas company is a technical unit (unit of economy) that combines or new methods for their business, then implementing those natural resources (land and its elements), human resources, innovations in their business operations. capital and skills (entrepreneurship) to produce certain 2. Proactive goods and services. Understanding Prakosa (2005), Proactive attitude of an entrepreneur reflects the process of company performance is a measure of the success of a looking for new opportunities that arise by developing, company that is measured at any given time. This result can introducing, and making improvements to products or be said as the value of each activity that has been developed services that are marketed. Proactive attitude also concerns and implemented to identify whether the strategy is made the importance of initiatives in the entrepreneurial process. and its implementation is right or vice versa. Furthermore, 3. Risk Taking Barker and Sinkkula in Prakoso (2005: 18) stated that Risk Taking or risk-taking is an act of an entrepreneur who market orientation influences organizational performance has the willingness or willingness to utilize the resources which can be seen from indicators of market share growth, owned to be able to run a job although without any certainty success of new products and overall performance. of the results to be obtained. Sudjana (2011: 98), the company's performances measured 4. Competitive Aggressiveness (Competitive through the concept of balanced scorecard are: Aggressiveness) 1. Financial perspective, wherein this perspective the Competitive aggressiveness is the expectations of the company is required to increase market share, increase company to challenge and outperform competitors and is the recipient through the sale of the company's products. characterized by an attitude or response or aggressive In addition, the increase of cost-effectiveness and asset response to the actions of competitors in an effort to utility can increase the productivity of the company. penetrate the market and improve the market position. 2. Customer perspective: where the company must identify 5. Autonomy (Autonomy) customer needs and market segments. The exact Autonomy is an independent (individual) or team activity in identification of customer needs greatly helps the outlining ideas or visions, making decisions and taking company how to provide services to customers. actions aimed at advancing the business concept and 3. Internal business process perspective: where the bringing it to completion. In general, autonomy means the company must identify critical processes to achieve the ability to take the initiative to exploit opportunities. goal of increasing value for customers and the purpose of increasing financial value. Market Orientation 4. Growth and lesson perspectives: where the objectives set According to Prakosa (2005: 40), that market in the financial, customer, and internal business process orientation is a process of generating and providing perspectives identify where firms must excel to achieve information for the purpose of creating superior value for performance breakthroughs, while the goal in this the console. Meanwhile, according to Narver and Slater in perspective is to provide the infrastructure that enables Prakosa (2005: 40), market orientation is an orientation the goals from when the previous perspective can be concept that focuses on the creation of high values for achieved. consumers. Furthermore, Tjiptono (2008: 53) that market orientation is a business culture that effectively and Performance Indicators efficiently creates employee behavior in such a way as to According to Augusty (2000: 116), in general support the effort of creating superior value for customers. performance is measured through sales value such as return Tjiptono (2008: 53) explained the dimensions of market on investment or return on assets. But the measure is seen as orientation consist of: a measure produced through the accounting and finance 1. Customer Orientation is an adequate understanding of process. According to Bakti and Harun (2011: 6), the target buyers in order to be able to create superior company's performance is measured by sales indicator that value for them on an ongoing basis. is the number of sales and sales growth in a company. 2. Competitor Orientation includes that companies should Furthermore, according to Umar (2014: 118) company understand the short-term advantages and performance is measured by indicators: disadvantages as well as the long-term capabilities and 1. Sales growth, the average growth of company sales in strategies of today's major competitors and potential the last three years. competitors. 2. Profit growth, which is the average growth of corporate 3. Coordination between functions includes the use of profits. corporate resources in a coordinated manner in order to Asset growth, defined by the average growth of the create superior value for the target customers. company's assets.

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Hypothesis Information: Based on the background and research question, the K = Performance hypothesis in this study are: a = Constants 1. Entrepreneurial Orientation significantly influences to OK = Entrepreneurial Orientation Performance of Micro, Small and Medium Micro OP = Market Orientation Enterprise (MSME) in Langsa City and Kuala Simpang. b1, b2 = Regression coefficients 2. Market Orientation significantly influences the performance of Micro Small and Medium Enterprises Hypothesis testing in this research is as follows (Atmaja, (MSMEs) in Langsa City and Kuala Simpang. 2009: 88): 3. Entrepreneurial Orientation and Market Orientation 1. t-test (partial test) simultaneously significantly influence the performance The criterion of decision making: of Micro Small and Medium Enterprises (MSMEs) in a. H0 accepted or Ha rejected, if t arithmetic < t table Langsa City and Kuala Simpang. on α = 5% 4. There are differences in Orientation of Entrepreneurship, b. H0 rejected or Ha accepted, if t arithmetic > t table Market Orientation and performance of Micro Small and at α = 5% Medium Enterprises (MSMEs) in Langsa City and Kuala 2. F test (simultaneous test) Simpang. Simultaneous test (F test) is used to test the effect of jointly there is influence between independent variable to III. RESEARCH METHODS dependent variable. This research was conducted in Langsa City and The criterion of decision making: Kuala Simpang, Aceh Province with concentrated scope on a. H0 received or Ha rejected if F arithmetic Ftable The types of data obtained from the field research are at α = 5% divided into two, namely: Qualitative data is data that is not 3. Coefficient of Determination (R2) a number such as opinions or theories as well as the general The coefficient of determination (R2) is used to explain the state of Langsa Mobile store. Quantitative data is the data in proportion of dependent (free) market orientation, the form of numbers, where the data is derived from the entrepreneurial orientation variables capable of explaining questionnaire distributed to respondents. the variation of independent variables (bound) MSMEs The population is a generalization region Performance. consisting of objects/subjects that have certain qualities and characteristics set by the researcher to be studied and then Independent-Sample t-Test drawn conclusions While the sample is part of the number Different test Independent-Sample t-Test is a statistical test and Character owned by the population (Sugiyono, 2009). to determine whether there are mean differences between The population in this study are the owners/entrepreneurs of two independent or unrelated data groups. SMEs in Langsa city and Kota Kuala Simpang. The The independent t-test basically compares the mean of the technique of determining the sample by using purposive two unrelated groups with the intention of seeing how the sampling is the technique of determining the sample with two groups have the same average or not. certain considerations and which makes consideration is the IV. RESULT AND DISCUSSION owner/entrepreneur of SMEs in the city of Langsa and Kota Kuala Simpang. In determining the size of the sample using Before collected data through questionnaires, the the formula proposed by Sarwono (2013). Respondents in writer first tested the validity and reliability of the data to this research for Langsa city counted 100 businessmen and ensure that the questionnaire could be used and fulfilled the Kuala Simpang city counted 100 Businessmen. requirements as a good measure. Tests conducted in this study using the classical assumption test consisting of normality test, Table 1 heterokedastisity test, and multicollinearity test. Then to Validity and Reliability test analyze the influence of entrepreneurship orientation and Cronbach's market orientation on MSME performance in Langsa City Alpha Based using Double Linear Regression equation. The formula is Correlations r Table on Kesimpulan modified according to research needs in Langsa city to be: Standardized K = a + b1OK+b2OP Items whereas the regression equation for Kuala Simpang city : X11 1 0.1975 Valid K = a + b1OK+b2OP X12 ,781** 0.1975 0,862 Valid

** X13 ,708 0.1975 Valid

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X14 ,321** 0.1975 Valid as much as 1 person (1.0%) in Kuala Simpang city while in Langsa City amounted to 2 People (2%). X15 ,797** 0.1975 Valid From the tabulation of data can be explained that X16 ,783** 0.1975 Valid the respondents who have business with the target market X17 ,791** 0.1975 Valid within the district/city of Kuala Simpang counted 94 people (94%), the rest has a target market outside the district/city. X19 ,767** 0.1975 Valid For Langsa city, respondents who have a business with a X10 ,817** 0.1975 Valid target market in the city of Langsa as many as 70 people X21 ,484** 0.1975 Valid (70%), the rest have a target market outside the city Langsa it's about 30 people (30%). X22 ,313** 0.1975 Valid The classical assumption test in this research is X23 ,779** 0.1975 Valid used to produce good regression equation, consist of: X24 ,775** 0.1975 Valid Normality test is a test about the normal distribution of data. The use of the normality test because of the parametric X25 ,823** 0.1975 Valid statistical analysis, the assumption that must be possessed X26 ,484** 0.1975 Valid by the data is that the data must be normally distributed. The Y1 ,733** 0.1975 Valid purpose of normally distributed data is that the data will follow the normal distribution form (Santosa & Ashari, Y2 ,680** 0.1975 Valid 2005: 231). In Normal P-P Plots, the principle of normality Y3 ,700** 0.1975 Valid can be detected by looking at the spread of data (dots) on Y4 ,472** 0.1975 Valid the diagonal axis of the graph or by looking at the histogram ** of the residual. Y5 ,485 0.1975 Valid Figure 1 Source: primary data, processed (2017) Normal P-P Plot graph for Langsa Validity and Reliability Test done with 2 stages, the first stage there is 1 item of invalid statement that is statement X18 so we remove it. After the x18 statement is removed then we do re-tested Validity and Reliability. Based on the table 1 can be concluded that all items statement has value above r table 0.197 so that all items statement in the questionnaire is valid. The Reliability Test is done by comparing Cronbach's Alpha with Cronbach's Alpha minimum value of 0.6 (sugiyono, 2011). Based on the calculation shows that the value of Cronbach's Alpha 0.862 is higher than the minimum value, it can be concluded that this questionnaire is quite reliable. Source: SPSS processing results (2017) In this study, Based on the age group of respondents is very varied, in Kuala Simpang city, age group <30 years are 46 people or 46% whereas in the Figure 2 Langsa city amounted to 46 people or 46%, and at the age Normal P-P Plot graph for Kuala Simpang of 31-40 years as many as 20 people or 20% , while in the Langsa city amounted to 31 people or 31% and aged 41-50 years as many as 16 people or 16% in Kuala Simpang city while in the Langsa city amounted to 18 people or 18%. Then UMKM entrepreneurs aged over 50 years as many as 18 people or 18% in Kuala Simpang city while in Langsa city amounted to only 5 people or 5%. In general, respondents in this study are still in productive age. Based on the number of employees, the majority have the number of employees <3 people as 97 people (97.0%) in Kuala Simpang city, while in Langsa City 93 people (93%). Respondents who have employed 3-5 people as many as 2 people (2.0%) in Kuala Simpang city while in Source: SPSS processing results (2017) the Langsa city amounted to 5 People (5%). Furthermore, respondents who have the number of employees> 8 people

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Normal P-P plot graph shows data pattern spread around the Table 2 diagonal line and follows diagonal line direction or Multicollinearity test for histogram graph shows normal distribution pattern. Kuala Simpang Heteroscedasticity test is done to know the Coefficients existence of Heteroscedasticity in a data, happened Model Collinearity Statistics Heteroscedasticity when scatterplot dots have pattern which Tolerance VIF widened, wavy and narrowed and did not happen (Constant) Heteroscedasticity if scatterplot dots there is no clear pattern and spreading point between zero points. 1 OK ,885 1,130 OP ,885 1,130 Source: SPSS processing results (2017) Figure 3 Scatterplot Graph for Langsa city Table 3 Multicollinearity test for Kota Langsa Coefficients Model Collinearity Statistics Tolerance VIF

(Constant)

1 OK ,206 4,864 OP ,206 4,864 Source: SPSS processing results (2017)

Source: SPSS processing results (2017) Based on the tables 2 and 3 it can be seen that the tolerance value> 0.10 and the VIF value <10.00 and can be Figure 4 declared no multicollinearity data in both cities. Scatterplot Graph for Kuala Simpang Table 4 Regression Equation for Kota Langsa

Coefficientsa Model Unstandardized Standardized t Sig. Coefficients Coefficients

B Std. Beta Error (Constant) ,553 ,194 2,857 ,005 Source: SPSS processing results (2017) 1 OK ,342 ,108 ,362 3,151 ,002 OP ,496 ,110 ,519 4,516 ,000

Figures 3 and 4 showed that scatterplots have spots Source: SPSS processing results (2017) that spread between zero points so it can be stated that data does not occur heterokedastisitas for both cities. Table 5 Multicollinearity test is done to test the regression Regression Equation for Kota Kuala Simpang model found the correlation between independent and bound variable. A good regression model should not occur Coefficientsa correlation between independent variables. Testing using Model Unstandardized Standardized t Sig. tolerance value, does not occur multicollinearity if tolerance Coefficients Coefficients value> 0,10 and vice versa. Then looking at the VIF value, B Std. Beta there is no multicollinearity when the VIF value <10.00. Error

(Constant) 1,027 ,483 2,126 ,036 1 OK ,282 ,122 ,203 2,314 ,023 OP ,488 ,089 ,479 5,451 ,000

Source: SPSS processing results (2017)

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Regression equation for Langsa city Based on Table Table 7 3 it can be arranged as follows: K = 0,553 + 0,342 OK + Coefficient Determinant Kuala Simpang 0,496 OP. Model Summary The regression equation can be interpreted as follows: The constant of 0.553 means that if the Model R R Adjusted Std. Error Durbin- Entrepreneurial Orientation (OK) variables, Market Square R Square of the Watson Orientation (OP is zero), the performance of MSMEs in Langsa City is 0,553 units. the regression coefficient of Estimate

Entrepreneurial Orientation of 0.342 means that if variable a the Entrepreneurial Orientation increases by one unit then 1 ,581 ,337 ,323 ,41467 1,484

the performance of MSMEs in the Langsa City will rise by Sumber : hasil pengolahan SPSS (2017) 0.342 units, assuming other variables do not change (fixed). The regression coefficient of market orientation variables of Adjusted R Square value for Kuala Simpang city is 0.496 means that if market orientation variables increase by equal to 0.323 or 32.3%. The value indicates that the one unit then the performance of MSMEs in Langsa city variables of entrepreneurial orientation and market will increase by 0.496 units, assuming other variables are orientation can influence the performance of MSMEs in unchanged (fixed). Kota Kuala Simpang of 32.3%, while the rest of 77.7% is Based on Table 4, we can compile the following influenced by other factors outside the model of this study. regression equation: K = 1.027 + 0.282 OK + 0.488 OP. The Effect Of Entrepreneurship Orientation and Market The above regression equation can be interpreted as Orientation follows: The constant of 1.027 means that if the To know the effect of entrepreneurial orientation Entrepreneurial Orientation (OK) variables, Market variables and market orientation partially to the performance Orientation (OP) is zero, the performance of MSMEs in of MSMEs used partial test (t-test). The t-test results can be Kota Simpang is 1.027 units. Regression Coefficient of seen in Table 8 below. Entrepreneurial orientation variables of 0.282 means that if the entrepreneurial orientation variables increase by one unit Table 8 then the performance of MSMEs in Kota Kuala Simpang T-test for Langsa city will rise by 0.282 units, assuming other variables are Coefficients unchanged (fixed). The regression coefficient of market orientation variables of 0.488 means that if market Model Unstandardized Standardized t Sig. orientation variables increase by one unit then the Coefficients Coefficients performance of SMEs in the city of Kuala Simpang will B Std. Beta increase by 0.488 units, assuming other variables do not Error change (fixed). (Constant) ,553 ,194 2,857 ,005 Table 6 1 OK ,342 ,108 ,362 3,151 ,002 Coefficient Determinant Langsa city OP ,496 ,110 ,519 4,516 ,000 Model Summary Sumber : hasil pengolahan SPSS (2017)

Model R R Adjusted Std. Durbin- From table 7 can be explained that Square R Error of Watson entrepreneurship orientation variables have a significance Square the level of 0.002 smaller than 0.05 it can be concluded that the Estimate entrepreneurial orientation has a significant impact on the 1 ,858a ,736 ,731 ,45253 1,955

performance of SMEs in Langsa City. Sumber : hasil pengolahan SPSS (2017) Market orientation variables have a significance of 0.00 is smaller than 0.05 it can be concluded that market Table 6 shows that the value of Adjusted R Square is orientation has a significant effect on significant to the 0.731 or 73.1%. The value indicates that the variables of performance of SMEs in Langsa City. entrepreneurial orientation and market orientation can affect As for the city of Kuala intersection can be seen in the table the performance of MSMEs in Langsa City is 73.1%, while below. the remaining 26.9% is influenced by other factors outside the model of this study.

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Table 9 Table 11 T-test for Kuala Simpang city F test for Kuala Simpang Coefficients ANOVAa Model Unstandardized Standardized t Sig. Model Sum of df Mean F Sig. Coefficients Coefficients Squares Square B Std. Beta Regression 8,480 2 4,240 24,659 ,000b Error 1 Residual 16,680 97 ,172 (Constant) 1,027 ,483 2,126 ,036 Total 25,160 99 1 OK ,282 ,122 ,203 2,314 ,023 Sumber : hasil pengolahan SPSS (2017) OP ,488 ,089 ,479 5,451 ,000 Sumber : hasil pengolahan SPSS (2017) Kota Kuala Simpang shows a significance value of 0.000 smaller than 0.05 it can be stated that the From table 9 can be explained that entrepreneurial entrepreneurial orientation and market orientation orientation variables have a significance level of 0.023 simultaneously have a significant effect on the performance smaller than 0.05 it can be concluded that the of MSMEs in Kota Kuala Simpang. entrepreneurial orientation has a significant impact on the Independent T-Test is a comparative or different performance of SMEs in the City of Kuala Simpang. test to determine the mean or average difference between 2 Market orientation variables have a significance of free groups of scaled interval/ratio data. The two free groups 0.00 is smaller than 0.05 it can be concluded that market referred to here are two unpaired groups, meaning the orientation has a positive and significant effect on source data comes from a different subject. In this research, significant to the performance of MSMEs in Kota Kuala the following results are obtained: Simpang. This is in line with the research conducted by Sumiati (2015) and Purwasari and Suprapto (2012) Which Table 12 proves that the orientation of entrepreneurship and market Independent Sample Test orientation partially significant effect on the performance of Levene's Test t-test for for Equality of Equality of entrepreneurs MSMEs. Variances Means F test is conducted with the aim to know the Variable F Sig. t Sig. significant influence of entrepreneurial orientation variables (2- tailed) and market orientation on the performance of MSMEs in Langsa City and Kuala Simpang. Test results as in the OK Equal variances assumed 181,825 0 1,681 0,094 following table. Equal variances not 1,681 0,095 assumed OP Equal variances assumed 89,961 0 4,537 0 Table 10 Equal variances not 4,537 0 F test for Langsa assumed K Equal variances assumed 42,837 0 5,042 0 ANOVA Equal variances not 5,042 0 Model Sum of df Mean F Sig. assumed Squares Square Sumber : hasil pengolahan SPSS (2017) Regression 55,474 2 27,737 135,445 ,000b 1 Residual 19,864 97 ,205 The results of the Independent T-test show that: In Total 75,338 99 the entrepreneurial orientation variable, there is a Sig value. Sumber : hasil pengolahan SPSS (2017) (2-tailed) of 0.095 indicates that there is no difference in the level of entrepreneurship orientation in Langsa City and Table 10 shows that the significance value of 0.000 Kota Kuala Simpang. This shows that innovation, proactive is less than 0.05 it can be stated that entrepreneurial and risk-taking ability in Langsa and Aceh Tamiang are no orientation and market orientation simultaneously have a different. significant effect on MSME performance in Langsa City. Market Orientation variables there is a Sig value. For the city of Kuala Simpang simultaneous influence test (2-tailed) of 0.00 this indicates that there is a difference in can be seen in the following table: the level of entrepreneurship orientation in Langsa City and Kota Kuala Simpang. This condition shows that the ability of entrepreneurs in looking at market conditions, market demand have differences in the city of Langsa and the city of Kuala Simpang.

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In the variable of performance of MSMEs there is Pemasaran: Sebuah Pendekatan Sig value. (2-tailed) of 0.00 this indicates that there are Strategi,Research Paper serie. No. 01, Universitas differences in the performance of MSMEs in Langsa City Diponegoro. and Kota Kuala Simpang. [3]. Avlontis, GJ dan Salavou, 2007, Entrepreneurial Orientation of SMEs. Journal Of Business, Vol V. Conclusion 60. No. 5, Hal 56-75. Based on the results and discussion conducted then [4]. Bakti, Sukma dan Harniza Harun, 2011, Pengaruh it can be concluded as follows: 1) entrepreneurial Orientasi Pasar dan Nilai Pelanggan terhadap orientation has a significant impact on MSME Performance Kinerja Pemasaran Maskapai Penerbangan Lion in Langsa City. 2) Market Orientation has significant impact Air, Jurnal Manajemen Pemasaran Modern, Vol on MSME performance in Langsa City. 3) entrepreneurial 3, No. 1 Hal 1-15. orientation has a significant impact on the performance of [5]. Fayolle, 2007, Entrepreneurship Education, MSMEs in Kota Kuala Simpang. 4) Market Orientation has Jakarta: Publishing. a significant impact on the performance of MSMEs in Kota [6]. Frishammar dan Horte, 2007, Teknologi Ananlisis Kuala Simpang. 4) entrepreneurial orientation and market dan Strategi Manajemen. orientation has a positive and significant impact on MSMEs [7]. Ghozali, Imam. 2007. Analisis Multivariate performance in Langsa City. 5) entrepreneurial orientation Dengan Program SPSS. Semarang: Universitas and market orientation has a positive and significant impact diponegoro. on the performance of MSMEs in Kota Kuala Simpang. 6) [8]. Hasan, Ali, 2009, Marketing, Jakarta: Media Independent T-test result shows that there is no difference of Pressindo. entrepreneurial orientation level in Langsa City and Kota [9]. Hendro dan Chandra. W.W, 2006, Be a Smart and Simpang City. 7) The results of the Independent T-test show Good Enterpreneur, Jakarta: Erlangga. that there is a difference in market orientation level in [10]. ______, 2011, Dasar-dasar Kewirausahaan, Langsa City and Kota Kuala Simpang. 8) The results of the Jakarta: Erlangga Independent T-test show that there are differences in [11]. Hisrich, 2004, Filsafat, Yogyakarta: BPFE. Performance Level in Langsa City and Kota Kuala [12]. Lestari, 2007, Pengaruh Orientasi Wirausaha Simpang. 9) From the analysis of coefficient of terhadap Kinerja UMKM Eksportir Kerajinan determination can be seen that the variables of Keramik di Plered, Kabupaten Purwakarta, Jawa entrepreneurial orientation and market orientation can affect Barat, Jurnal Publication. the performance of MSMEs in Langsa City of 73.1%, while www.gunadarma.ac.id/bitstream. the rest of 26.9% influenced by other factors outside the [13]. Mucktolifah, 2005, Orientasi Kewirausahaan, model of this study. While in Kota Kuala Simpang can be Jakarta: Ghalia Indonesia. seen that the variation of entrepreneurial orientation and [14]. Montasser, 2007, Strategi Manajemen, Jakarta: market orientation can affect the performance of MSMEs in Publishing. the City of Kuala Simpang of 32.3%, while the rest of [15]. Purwasari, Maria Mahadewi Niken Purwasari dan 77.7% is influenced by other factors outside the model. Budi Suprapto, 2012, Pengaruh Orientasi Pasar terhadap Kinerja Cae di Yogyakarta, Jurnal

Manajemen, Vol 8, No. 1 Hal 1-15. Suggestion [16]. Rizal, Setyaningsih, Chandra, 2016, Faktor-faktor The suggestions that can be submitted in this yang mempengaruhi wanita berwirausaha di Kota research are: 1) Need to improve empowerment Langsa, Jurnal Manajemen & Keuangan, Vol. 5, entrepreneurial orientation and Market Orientation through No. 2 Hal 525-534. improving the ability of self entrepreneurs through training [17]. Ruhimat, Nana Supriatna dan Kosim, 2006, activities and seminars. 2) The role of Government, Private Menciptakan Wirasusaha Tangguh, Jakarta: and universities to be able to improve entrepreneurs Grafindo Media Pratama. capability both in entrepreneurial orientation and market [18]. Sarwono, Jonathan. 2013. Strategi Melakukan orientation through the utilization of CSR fund and Riset Kuantitatif, Kualitatif dan Gabungan. Community Service of Higher Education (PKM). 3) Yogyakarta: Andi. Establishment of Business Incubator to form prospective [19]. Setiawan, Budi, 2013, Menganalisa Statistik Bisns entrepreneur/entrepreneur with good ability. dan Ekonomi dengan SPSS 21, Yogyakarta: Andi. [20]. Situmorang, Syafrizal Helmi dan Paham Ginting, REFERENCES 2011, Filsafat Ilmu dan Metode Riset, Medan: USU Press. [1]. Atmadja, Lukas Setiadi, 2009, Metode Penelitian [21]. Sinarasri, Andwiani, 2008, Analisis Pengaruh Bisnis, Yogyakarta: Andi Orientasi Kewirausahaan terhadap Strategi dalam [2]. Augusty, Ferdinand, 2000, Manajemen Meningkatkan Kinerja Perusahaan. Jurnal

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