The 2015 International Conference of Management Sciences ICoMS 2015, April 23,UMY,Indonesia
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Flexibility Networking Capability, Entrepreneurial Orientation On Business Performance
Ivonne Angelic Umboh
1
, Gita Sugiyarti
2
1
Doctoral Students of Diponegoro University - marketing, Indonesia
2
Doctoral Students of Diponegoro University - marketing, Indonesia gitaaris50yahoo.com
ABSTRACT
This study a theoretical concept of the results of several studies on entrepreneurial orientation to business performance. Although entrepreneurial orientation has been widely studied, but still give inconsistent result in many studies. So as to
give rise to a question that should be considered by companies in improving business performance. This study is also the scientific study of the results. The results of research on entrepreneurial orientation, market orientation and propose
a proposition about the concept of flexibility networking capabilities are contructed of entrepreneur orientation and business networking.The proposition Flexibility networking capabilities as
the company’s performance can be achieved if the joint marketing produce long-
term relationship with the company’s competitors, suppliers, customers who are flexibility based on the mutual commitment to building relationships, efforts todevelop a partnership in various
areas of potential, optimization of profits by constantly innovate sustained and focused, adhere to maintain a predetermined agreement.
Keywords : entrepreneurial orientation 1, market orientation 2, flexibility networking capabilities 3, business
performance 4
1
ICoMS
1. INTRODUCTION
The emergence of competition and rapid change, both in technology, customer requirements and shorter
product cycles in the business world is no exception small and medium enterprises, it is unavoidable. For
that each company is required to always know and understand what is happening in the market and what
the consumer desires, as well as changes in the business environment so as to compete with companies
- other companies. Therefore, companies are required to select and establish appropriate strategies to face the
competition. In order to win the competition, then the current market products manufacturers are not only
based on product quality, but also depends on the strategies used by companies that market orientation
Never
and Slater,
1990 and
entrepreneurial orientation Weerawerdena, 2003.
Entrepreneurial culture from the perspective of creating learning environments derived from the exploration
and experimentation are realized in the form of creativity and innovation Hamel and Prahalad, 1991.
Being from another point of successful learning is the knowledge of competence reflected in an optimal
performance for personnel who deal directly with the market and bound in a pattern of formal organization.
At this time, the entrepreneurial orientation into something critical and urgent for companies facing
competition and continuous market pressure Slater Narver, 1995. This is particularly relevant to the
increasingly dynamic business environment, therefore, a manager must continue to seek and continue to learn
to cope with the uncertainty that can be more competitive strategic function.
Study Frese, 2002 entrepreneurial orientation is the key to success to improve marketing performance.
Companies that have the entrepreneurial oriented leaders clear vision and courage to face the risks so as
to create a good performance. Hart, 1992 states that an organization with an entrepreneurial type is
associated with low marketing performance. His findings showed that the company managers are
entrepreneurs turned out to be much lower than the performance of the top managers not entrepreneurs.
Entrepreneurship is a key factor that determines the capabilities of enterprise development activities.
Entrepreneurial orientation of a company determine the competitive
orientation Weerawardena,
2003. Entrepreneurship is a key element to gain competitive
advantage and financial rewards greater consequences Schollhammer, 2003. Entrepreneurship in the
company generally distinguished in its ability to innovate, make changes, and quickly react to changes
in a flexible and agile Narver and Slevin, 2003.
The 2015 International Conference of Management Sciences ICoMS 2015, April 23,UMY,Indonesia
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The existence of small and medium enterprises SMEs in developing countries can be considered as the
backbone of the countrys economy. Proved the existence of SMEs have been able to move the nations
economy and reduce unemployment there. Although the SME has some limitations, but in fact they are able
to compete with other companies. At the time of deteriorating economic conditions and many large
companies are threatened with bankruptcy, the SMEs to survive. Reality shows the strength of the SMEs.
SMEs strength arises when applying entrepreneurial vision that SMEs are able to bring the company to
grow and expand and gain increased profitability. At this time the success of SMEs to enhance the
companys growth is highly dependent on the ability of entrepreneurial owners. Only the owner who has a
strong entrepreneurial orientation are able to bring improvements for the company. The inability of the
owner to maintain the strength to face the challenge it will affect the decline in performance and failure of the
company Hill and McGowan, 1999. The purpose of this study was to determine the effect
of entrepreneurial orientation, market orientation with an intervening variable capabilitiies networking
flexibility in improving business performance
.
This study also their background research gap between entrepreneurial orientation with business performance.
There are some researchers found that the relationship between entrepreneurial orientation with a significant
and positive business performance Hult, Snow Kandemir, 2003; Wiklund Shepherd, 2005, but
there are researchers who discovered the relationship between entrepreneurial orientation to performance and
do not have a significant negative correlation Lumpkin Dess, 2001; Ana Lisboa, 2010.
Based on the background, the purpose of research and risep gap the research problem: How to build a model
of flexibility networking capabilities to improve business performance?
2. STUDY LIBRARY
