The purpose and benefit Research

2. The purpose and benefit Research

The aim of this research in general is to build a structural model of causality to explore and examine the processes and characteristics of learning development partnership marketing orientation in finance companies in Indonesia. In addition, this study is expected to be able to explain the differences of research results theoretically in improving company performance through partnership marketing orientation. In detail these objectives stated as follows: The Dynamics-dynamics in the strategic partnership between the finance company with suppliers or customers is potentially multifaceted and full of complexities and contradictions. Therefore, the purpose of this study to examine and exploit the dynamics in the multi-company strategic partnership with suppliers and with customers; Build a marketing partnership model of causality orientation, quality of service and collaboration to improve corporate performance by using a tiered structure of the equation; Describing the application of marketing orientation profile partnership in the sector of finance companies in Indonesia; Analyze and exploit the causal relationship between the orientation of marketing partnerships, quality service, collaboration, quality of partnership, cooperation, trust, communication and performance of the company as well as to analyze the influence of marketing orientation in the formation of partnerships and collaboration as well as improved quality of service to obtain improved performance finance companies in Indonesia While the benefits to be gained from this study are: To provide the motivation to perform routine learning partnership marketing orientation in finance company and motivation to minimize marketing myopia (silting understanding of marketing) in partnership marketing practices; With the expected use of the following research partnership strategies in general practice, the model partnership among practitioners and their clients from a marketing standpoint, could potentially lead to higher quality services, more efficient use of resources and improving the performance of the company; Contribute to the development of science and knowledge to decipher the source of disagreement about the role of partnership marketing orientation in improving company performance and can be used as consideration in building a partnership in marketing and the establishment of learning to improve company performance.

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ANALYSIS OF LITERATURE AND THEORETICAL FRAMEWORK FOR THINKING State of the Art

Collaboration is the level where the partners were able to work together to achieve the objectives in question (Frazier, 1993), and has emerged as an important construct in the supply chain partnerships. Managers are also increasingly encouraging and sponsoring collaborative activities across organizational boundaries (Spekman et al., 1998; Womack et al. 1990). Simchi-Levi and colleagues (1999) discusses the tension that exists between the cooperation / integration of the supply chain with anxiety for opportunism. That contribute to this tension is the fact that the levels of different supply chain does not function the same goal; For example,

the disintermediation. Collaborative behaviors that are based on trust and relationship commitment contributes to achievement of common goals as well as partners perceived compatibility (Anderson and Narus, 1990). Strong and significant influence of collaboration on performance indicators of effectiveness relationship of partnership supports the idea that managers will find that the supply chain partnerships to be productive and valuable (Bucklin and Sengupta, 1993). In general, the partnership includes a commitment by both organizations to work together to achieve shared business goals (Bennett and Jayes, 1995). Term partnerships and alliances are often used together, although alliances may be more often used to refer to a partnership in the project (Green, 1995). Strategic orientation is often conceived as a key antecedent for superior performance / superior (Day, 1994; Kohli and Jaworski, 1990; Narver and Slater, 1990). The researchers also said the direct influence between strategic orientation and performance, therefore, imply that the market-oriented fisolofi is key to the intent / desire of companies to deal with and react to events in the market environment. The company's approach directly affects its ability to generate profits and compete successfully (Harrison-Walker, 2001; Pelham and Wilson, 1996; Slater and Narver, 2000). Dimensions of customers and competitors of the strategic orientation represents a substantial part of the company's strategy and drive performance. It is said that customer orientation has a positive impact on performance due to several reasons. First, the increased performance of the natural extension of the marketing concept, which emphasizes attention to customer needs, therefore it is said that the company-customer-oriented company has superior performance. Second, customer orientation positively affect performance for the customer orientation of the company is a major determinant of whether his actions were completely satisfy the customer or not (Harrison-Walker, 2001). Competitor orientation of manufacturing companies have a similar effect on performance. Competitor orientation of a company focused on the competitors. By gathering information related to the competition, manufacturing companies can react appropriately to competitor movements and make steps, for example using the procedures and flexible operation, to ward off competitors' offerings (Harrison-Walker, 2001). In this way, the manufacturer also emphasizes internal efficiencies through resource management more competent. In a model of conception, strategic orientation positively affect collaboration. This hypothesis relationship reflects a recognition that the manufacturing company its strategic approach for achieving performance goals require the coordination of effort when working with third-party logistics providers. Collaboration, in this study, was defined as the capability associated with coordination, combining operational processes and procedures, as well as sharing information with partners. Using the collaborative capabilities of manufacturing enterprise reflects the recognition that coordination and joint efforts contribute to the achievement of individual goals and objectives of each other (Cannon and Perreault, 1999; Siguaw et al., 1998). In fact, the use of collaborative capabilities by manufacturing companies to help create a solid foundation for improving customer orientation and competitors through a third-party logistics. Expertise in third party logistics providers as well as proximity to customers to help provide information and different perspectives about the needs of customers as well as competitors step. The need to understand the market dynamics increase the tendency toward collaboration. Therefore, it is said that the collaboration is an extension of the strategic orientation. Spekman et al. 2001; Zaheer et al. 1998; Zaheer and Venkatraman, 1995 found that trust is a major determinant of the success of the collaboration. Systems of control and trust are important antecedents of successful collaboration. Furthermore, the effects may not be independent. Past research has shown that the control systems could have unintended negative consequences in terms of trust and cooperation. In particular, a number of researchers say that the control systems show signs of distrust and therefore reduce cooperation. This opinion is important because of the trust as a determinant of the success of the collaborative (Das and Teng, 1998; Jarvenpaa et al. 1998; Kale et al. 2000; Kramer and Tyler, 1996; Landry, 1998; McAllister, 1995; Spagnolo, 1999; Coletti et al . 2004, p. 7). Customer orientation is placed between the components of the most important of the concept of market orientation (Atuahene-Gima, 1995; Atuahene-Gima and Ko, 2001; Jaworski and Kohli, 1993; Kohli and Jaworski, 1990; Narver and Slater, 1990; Ruekert, 1992; Shapiro, 1988). Thus, customer orientation is considered as an important cause of product innovation, customer orientation pose for behavior-behavior that focus on understanding customer needs (Atuahene-Gima and Ko, 2001). The first viewpoint states that firms are careful to listen to its

levels of

the

supply

chain

also

worried

about

International Conference on Business, Economics, Socio-Culture & Tourism 2016 (ICBEST2016)

customers who prefer less innovative products demanded by markets that already exist to ignore the more innovative products. In this regard, because the market orientation aims to satisfy customers and reduce risk in the innovation process, then this produces a new product that is more suited to their needs, and may cause

a degree of novelty lower product for them. Viewing angles are both states that companies oriented market is in a good position to anticipate the evolving needs of customers and responded by adding products more innovative, which may be beyond the experience of their current consumption (Salavou, 2005, p. 312 ). Based on the above, it seems that the view of the investigators are not uniform regarding the direct effect of market orientation as a construct aggregate against keinovatifan in the form of an update (newness) products for its customers. Research (Lukas and Ferrell, 2000) following the latest advice to decipher market orientation into its core components separately and examine its effects on product innovation. In particular, research Salavou, (2005) to isolate and use customer centralized component of market orientation to empirically examine its effects on the novelty of products for customers and generate conclusions about where a valid viewpoint. Slater and Narver, (1995) stated that customer orientation encourages and facilitates organizational learning, which in turn produces a superior ability to tailor product offerings to the market demand. Together with the customer-based approach, companies must develop the ability to learn if the company wants to introduce innovations in different (and Sinkula Baker, 1999). Mengidentifikaikan customer orientation customer needs (Berthon et al. 1999) while learning orientation needs to deliver superior value to them (Slater and Narver, 1995). In this regard, both the orientation reflects the organizational capabilities that are synergistic (Baker and Sinkula, 2002). This synergistic relationship formed an important determinant of the uniqueness of the new product. Although some researchers consider customer orientation as important as focusing on competitors and coordination antarfungsional (Narver and Slater, 1990), other researchers consider it as the most fundamental aspect of corporate culture (Deshpande et al. 1993; Lawton and Parasuraman, 1980). The reason behind the high customer focus is the marketing concept, which emphasizes the interests of customers. Customer orientation and continuous proactive support the trend to meet the needs of customers. Therefore, a focus on total customer satisfaction foster continuous innovation (Peters, 1984). Research is important in a customer-oriented sales come from two main areas, namely: definitional, conceptualization and measurement issues; and antecedents, consequences, and the correlation of customer-oriented sales (Schwepker, 2003). When a customer-oriented sales increase, so does the need for managers to use more time to promote extra-role behavior of customer-oriented (Podsakoff and MacKenzie, 1997). According to Bettencourt and Brown (2003), in such behaviors include external representation (eg, generate goodwill for the organization), and prosocial service behaviors (eg, follow-up customers on time). Ingram et al. has identified a number of key research areas are related to the increased focus on customer collaboration, among others, re-specification of the potential of the skills required by the sales manager, the impact of increased customer collaboration on organizational commitment salespeople, and how the sales manager to do some control while empowering salespeople, To engage in customer-oriented sales and build sustainable customer relationships, sales reps need more training in the service failure recovery and conflict resolution. Studies evaluating the suitability of failure analysis and recovery efforts in the customer-oriented sales are urgently needed (Menon and Dube, 2004; Widmier and Jackson, 2002). In particular, research is needed to identify the variables that indicate the level of moderation where a company are involved in the training of service recovery. For example, sales strategy (based relationship vs. transaction-based), the type of product (predominantly dominant tangible vs. intangible), and the competitive environment (emerging markets vs a saturated market) may indicate where the recovery effort needed services. Inside unify conflict resolution into the sales process, research is needed to discuss the approaches differ (eg, avoidance, accommodation, confrontation, compromise, and collaboration) (Thomas, 1990) and when those approaches are

Bradford, 1999). Deshpande et al. (1993) showed a positive correlation between customer orientation with innovative companies, but does not distinguish whether these companies innovative in administrative or technical aspects. However, an organization committed to superior customer value, known to innovate throughout the business system and not solely to innovate in products or services (Parsons, 1991). Although reengineering business systems, which is one form of innovation administration, less frequent than the innovation of products and / or services, which is a form of technical innovation, Parsons stated that the innovation of administrative just as important as technical innovation (and perhaps even more important for companies in the service industry) in providing superior value to customers. According to Felton, the idea of a customer- focused culture that facilitates organizational keinovatifan in technical and administrative fields are in accordance with the opinion of the long-term orientation proposed by the marketing concept. Since the concept of marketing to encourage business enterprises to forward-looking, customer-oriented business then more likely to be interested in a long-term business outlook than short-term profit. In other words, these two types of innovation (technical and administrative) shows the long-term investment for an organization; so, companies are more likely to be innovative in a customer-focused culture than the culture that is less focused

most effective

(Bradford

et

al

Weitz

and

2016 International Conference on Business, Economics, Socio-culture and Tourism

on the customer (eg, the company with the purpose of seeking short-term profits). Kitchell, (1995) found that in general companies that oriented the future is more innovative. Han et al. (1998) showed that keinovatifan mediate the relationship between customer orientation and performance, but not between competitor orientation or antarfungsional coordination with the performance. Kennedy et al. (2002) states that the development of customer orientation should be the leitmotif for the entire organization. This opinion is supported by many studies that justify a significant relationship between the customer orientation of a company's financial performance and its market (Doyle and Wong, 1998; Ambler, 1999; Day, 2000). However, despite the views on the results of customer orientation has been widely studied (LaBarabra and Mazursky, 1993; Srivastava et al., 1998; Steinman et al. 2000), the causes for the culture of customer- oriented is relatively unexplored and often expressed need further investigation (Kelley, 1992; Deshpande et al. 1993). The term "customer" should be understood in a broader sense that includes all parties and individuals will affect the character, scope and nature of the products or services to be provided businesses (Dulaimi, 2005). Study of the relevant literature in business management has identified that research Narver and Slater (1990, 1994) as well as Jaworksi and Kohli (1990, 1993) was very influential in shaping current thinking on customer orientation. Narver and Slater (1990) states that "market orientation is an organizational culture that is most effective and efficient to create behaviors necessary for the creation of superior value for buyers, and therefore, it is very important for business performance". The use of the term "market orientation" by giving them a signal that the attempt to deliver superior value to customers should not be limited to the marketing department but also the entire organization must participate actively in the market- oriented behavior (Canning, 1988; Masiello, 1988). The use of the term market orientation is helpful to explain that customer orientation is more than just determination of the needs and expectations of customers through the process of briefing and reciprocal but included "all powers" that may affect the identification and fulfillment effectively to the needs and expectations of such (Dulaimi, 2004 p. 5). Although few who do not agree on the importance of the organization to focus on customers who want to serve, but the way to achieve this is still debated (Kohli and Jaworksi, 1990). Research Dulaimi, (2005) has been interpreted as the market orientation pemperolehan market intelligence, this intelligence deployment in departments, and power the organization's response to it. This definition, and the measures associated with it, has been accepted and widely used (Matsuno et al. 2000). Siguaw et al. (1998) reported a study, using the same approach as above, the effects of market orientation of the supplier's market orientation distributors. Since the marketing concept was first emphasized in the early 1950s, practitioners and theoreticians have supported the development and maintenance of customer-oriented enterprise (Webster, 1981; Du Gay and Salaman, 1992; Brady and Cronin, 2001). Research Wright et al. (1995) and Hult et al. (2001) defines customer orientation in the shape of the objectives of the organization's bottom-line competitive and stated that the ultimate goal of all companies is to achieve customer satisfaction, a perspective that is reflected in the literature of marketing strategy. This conclusion is supported by penenlitian Day (1994) that customer orientation is a concept that transform marketing into a competitive weapon potential, transfer values, beliefs, assumptions and premises oganisasional toward two-way relationship

and the company. Customer-oriented culture show that companies concentrate on providing products and services that meet customer needs (Day and Wensley, 1983; Dean and Bowen, 1994; Noble et al. 2002). To develop a customer-oriented culture, it is often said that the organization should gather information from customers about their needs and desires as well as the use of information provided by a customer to design and provide products (Schneider and Bowen, 1993). Kohli and Jaworski (1990) defines customer orientation in the context of market orientation. This view holds customer orientation as the organization's focus on pemperolehan and deployment of customer and market information. Strong and Harris (2004, hal.184) defines customer orientation as aspects of the culture and the behavior of market orientation, and thus is a strategic element as important as competitor orientation and inter-group communication. Customer-oriented culture includes privileges in customer interaction, market and customer familiarity with the emphasis on cooperation (Deshpande et al.1993; Noble et al. 2002) and achieve high market performance (Bitner et al. 1990; Ambler, 1999). Deshpande and Webster (1989) states that the culture of an organization can lead to the values and beliefs are the same that encourage individuals to understand and accept the objectives, organizational policies and norms of behavior in the organization. Further outlook also obtained through research results Strong and Harris (2004, p. 199) that in the multivariate analysis, each tactical approach is significantly related to customer orientation. Evidence was found that various tactics and the tactics have contributed to the overall level of customer orientation. Tactics - tactics that is measured, a role for sixty percent of the variation in the company's customer orientation. In this regard, it appears that the use of various tactics are very effective. Implications also arise from the results of tactics - tactics relational. Strong research and Harris (2004, hal.199) got strong evidence for a significant association between relational tactics with the level of customer-centric organization. In particular, research Strong and Harris (2004, hal.199) indicates the centrality of the relationship for effective exchange as well as the importance of

between

the customer

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managing these relationships in a structured manner and consideration. Strong research results and Harris (2004, p. 199) in accordance with the conclusions of a number of leading researchers stated that in order for the relationship develops, the dynamics between buyers and sellers require careful monitoring and continuous. Disclosure of a significant relationship between tactics-oriented relational internally and externally with the customer orientation reinforces this view. That is, the positive and significant correlation was found between customer orientation by inter-group communication management as well as external customer satisfaction ratings. In this sense, strong support emerged for a variety of studies have supported the use of a balanced approach to the changes that centralized customer-oriented factors into account intra and extra-organizational. These results reinforce the opinion that shows the need to consider relational factors in the design and implementation of customer-oriented changes. Strong research and Harris (2004, hal.199) also provides insights about the relationship between the tactics of human resources with customer orientation. These results have implications not only for marketing, but also the strategic management, general management and human resource management. In particular, the tactics of human resource management discussed in the research Strong and Harris (2004, p. 199) appears as a tactic very significant in the implementation and management of customer orientation beyond the boundaries of traditional responsibilities and narrower for the marketing function. Research Hartline and Ferrell (1996) emphasized the impact that can be owned by a customer-focused evaluation procedures in a structured and well-publicized against those who provide these services. Strong research and Harris (2004) provides empirical evidence on the effectiveness of the tactics in controlling (manipulating) the behavior of the customer contact staff. The necessity of controlling such behavior is also demonstrated by studies that support the relationship between empowerment and customer orientation. In essence, these results support the provision of management services through cultural and behavioral control (Harris, 1998). Strong research and Harris (2004, p. 200) provides a clear illustration that the development of fundamentally important orientation (eg customer orientation) can not happen effectively without attention to the wide range of variables and factors that are beyond the limits of marketing functions. The results of research Strong and Harris (2004, p. 200) donated a lot of views on procedural tactics of customer-focused strategies and customer orientation. An important issue faced by high-tech organisasai today is how to create and continue the strategic competitive advantage in the business environment are volatile and complex, in the face of the future is unpredictable and unstable. Strong research and Harris (2004, p. 200) gives results which indicate that a particular focus on strategies for customer-oriented, customer care, and tactics visiting customers are the key drivers of customer orientation. Competitive advantage by providing superior value to customers is emphasized in the forum of academics and professionals (Doyle and Wong, 1998). Customer focused strategy and customer care strategy provides efficient mechanisms of response to customers, and demonstrate a high level of commitment to customers, provide customer-supplier communication means constant. Procedural tactics superior produce powerful customer interaction and greater profitability for the organization. Visiting customers is the point of interaction in which representatives of the organization met with the customer, and therefore provides a medium in which the relationship can be created and maintained, ultimately leading to customer retention in the long term. The results of research Strong and Harris (2004, p. 200) to support and develop the evidence recorded in the literature that shows that the tactics procedural cause the organization to get the level of customer orientation consistently high (Narver and Slater, 1990). Tactics - tactics that observed in Strong research and Harris (2004, p. 200) provides a framework to think of potential managers to build and develop successful customer orientation. Indicated that the development of customer orientation is not simple. Instead, he showed that, as a strategy difficult to implement, there are a wide variety of tactics that can be designed on a contingency-contingency of the company's contextual. Success in customer orientation depends on limiting conflicts between departments, exploiting the dissemination of information on the functions, decentralized structures of governance, and respect for management based on factors eg customer satisfaction (Bentum and Stone, 2005, p. 30), Customer orientation is the kind of organizational culture is an essential foundation of a learning organization. This is not just a series of processes and activities (Narver et al. 1999). If culture is "the pattern of shared values and beliefs that help individuals understand organizational functioning and therefore provides norms for behavior within the organization" (Deshpande and Webster, 1989), then the customer orientation should be implicit assumptions organizations providing norms norms for the behavior of each individual in the organization. Her advice Deshpande and Webster (1989) to analyze keinovatifan or related activities-team is associated with socialization and solidarity dimensions of the model Goffee and Jones (1996, 2003). These values explain some of the core elements of cultural values, that is how humans relate to one another. This includes trust in each other, flexibility in the use of new behaviors, tolerance for risk-taking and proactive behavior, empowering individuals and opposition to bureaucracy. The important aspect of the interpretation of organizational culture is through the articulation of customer perception of the brand value of the organization. Rust et al. (2000) describes the brand value as the customer's perception of "brand ethics". Schein (1984) only explain things (artifacts) that is visible but not

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the values underlying it. This is dangerous as long as it does not adequately reflect the values that guide behavior. So, given the brand experience should be developed from the values learned together and shared conviction of everyone in the organization. Interpretation Bartlett and Ghoshal (1995) could be confirmed in an organization with a very high customer orientation. Thinking horizontally in the form of sharing knowledge by communicating through the process and the system is not given a high priority. With regard to the formulation of management strategies customer partnerships, Payne et al. (2001) showed the need to include the entire group of stakeholders in the value creation process; namely, the formulation of the strategy is only valuable if there is a clear customer focus. This is partly achieved through communication but also through the involvement of senior management in customer activity daily. The survey found that the contracts with senior management as one of the contributors to the process of value creation is rated no more than average even in the organization which is very customer oriented. Likewise, it is known that the management activities of their customers is directly correlated to the level at which they are valued by these activities. In the terminology of Treacy and Wiersema (1993) can be expected that in organizations with a score very high customer partnership management, the discipline of customer intimacy will score high, but that is found is the more traditional view, namely: operational kindness given a high rank. This contrasts with the results of his research and Shefter Reichheld (2000) and Crawford and Hauguel (2002). Sustainable relationships with the best customers of the organization is rarely felt. It has an impact on how the organization or its brand perceived in the marketplace. Dimensions solidarity in terms Goffee and Jones (1996, 2003 in Bentum and Stone, 2005, p. 48) is associated directly, which means the greater the solidarity aspect, the higher the customer orientation. On the other hand, tissue culture is a good foundation for customer orientation, that cultural learning is well supported in these environments. This study also proves that learning is most excellent in tissue culture. Innovation is also an important function of management for innovation related to business performance, as has been shown by many studies (Damanpour and Evan, 1984; Damanpour et al., 1989; Khan and Manopichetwattana, 1989; Zahra et al., 1988). The results of the study showed a strong correlation, ie positive and direct relationship between innovation and performance. Innovation is becoming increasingly important as a way to survivalitas, not just growth, in the form of increasing competition and the uncertainty of the environment (Gronhaug and Kaufmann, 1988). The latter relationship in the chain (ie, innovation-performance relationship) has been investigated by many research in the field of organizational innovation, and many have found evidence of a positive and strong. For example, the strong relationship innovation performance has been demonstrated in a wide variety of different contexts, including manufacturing enterprises in industrial and consumer (Zahra et al. 1988), the organizations services (Subramanian and Nilakanta, 1996), and even institutions public (Damanpour and Evan, 1984). Noble et al. (2002) found in his research that only pesainglah orientation that significantly affect business performance. The manager may choose to not focus on profit maximization future, because profits difficult to predict or because of the focus on earnings may lead to short-term orientation at the expense of long-term considerations. Because it is difficult to determine how closely a company with "maximum profit," the manager may be concerned that the use of such size could make them or their organizations to achieve unprecedented

1996, p. 188). The market share is often used as a relative measure of performance, and may be representative of the real interests of size, ie long-term profits. The market share is often used as a relative measure of performance, and may be representative of the real interests of size, ie long-term profits. Because the market share is not directly assess what is of interest, then there is potential for other factors to influence, causing its market share to less accurate representation of the effects on profits. Moreover, basing decisions to achieve market share could have a detrimental effect, such a price war (Armstrong and Collopy, 1996, p. 191). Szymanski et al. (1993) conducted a meta-analysis of studies linking market share with profitability. Research-cross-sectional study showed a positive correlation between market share and profitability. The results of the study (Armstrong and Collopy, 1996, p. 197) show that use of a competitor-oriented objectives is to inhibit profitability. Because the pattern of this evidence, companies should ignore their competitors when creating goals, and should focus directly on profit maximization. Because the evidence to date, (Armstrong and Collopy, 1996, p. 198) believe that microeconomic theory, with its emphasis on profit maximization, is the most reasonable action for the company; that is, managers should focus directly on profit. Customer focus may play an important part in the strategy to create superior customer value, but an effective strategy requires more than just methods centered on the customer. Dependence entirely on customer orientation often lead to imperfections in the business strategy, which is an organization vulnerable to the action of reactive, rather than proactive, in the face of competitor strategies (Day and Wensley, 1988). However, an unbalanced focus on competitors is also undesirable because of the attention exclusively on the competitors could lead to neglect of the interests of the customers (Deshpande et al. 1993). Therefore, Day and Wensley (1988) stated that the mix of customer orientation and competitor

performance

mediocrity

(Armstrong

and

Collopy,

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balanced is a prerequisite for maintaining a competitive advantage in the marketplace, which is consistent with the opinion of Narver and Slater (1990) to give equal weight to the core components of the orientation market. Competitors by using the target as a reference frame, enterprise-oriented competitors try to identify strengths and weaknesses. Although the approach is so often produce a view that helped the relative position them in the market, the assessments done by the managers usually show a bias which gives more weight to the evidence that is visible (ie, factors that tangible and visible) (Barnes, 1984) , Bias so emphasized the role of technical innovation than administrative innovation, for technical innovation, which is associated with the technology, is giving keberwujudan and visibility, while the administrative innovation, associated with the administration, not give them. Noble et al. (2002) states that companies with high performance not only gather market intelligence but also transform this knowledge into learning and strategic actions insightful. Grant (1996) stated that the source of competitive advantage is how knowledge is coordinated and integrated between the functional units, rather than knowledge itself. This opinion has implications need to examine the moderating role of coordination mechanisms in the use of knowledge of customers and competitors. Although coordination antarfungsional an important knowledge integration mechanism (Gatignon and Xuereb, 1997), few studies have examined how such coordination to facilitate the effects of customer orientation and product innovation by competitors to the competence of a company. The first component of market orientation, the orientation of customers, covering pemperolehan information about current customers and future as well as the dissemination and use of this information in the company. The second component, that competitor orientation, referring to pemperolehan competitor information of current and future as well as the dissemination and use of this information in the company (Jaworski and Kohli, 1993; Narver and Slater, 1990). Competitive advantage is not just a result of the ownership and control of valuable scarce resource but rather resulted from internal competencies that are special in which the company transform its resources into superior customer value (Amit and Schoemaker, 1993; Barney, 1991). Internal competencies as a way to preserve a competitive advantage difficult to imitate its competitor (Reed and DeFillippi, 1990). With a deeper understanding about customers and competitors now and in the future, managers have become dissatisfied with the inadequacy of capability at this time, which led to investment in new capabilities (Huff et al. 1992) as well as strategic change sound (Moble et al . 2002). The study results Langerak (2003, p. 108) show that customer orientation and competitor orientation positively affects the differentiation advantage. These results confirm that a thorough understanding of the target customer and the company's major competitors cause behaviors necessary to use resources to get the exact position of differentiation in comparison with competitors. The implication is that management could encourage activities that are needed to get an edge differentiation by using customer orientation and competitor. This is facilitated by a management emphasis on both the orientation through continuous reminders to employees that it is very important to be sensitive and responsive to the needs of the visible and invisible from the customer as well as the ability to plan and the company's competitors (Jaworski and Kohli, 1993). The results of this study also showed that the coordination antarfungsional had no effect on differentiation advantage. This is remarkable, because Narver and Slater (1990) states that the orientation of customers and competitors, which is a prerequisite to obtain a differentiation advantage, is strongly associated with the integration of the functional activities coordinated. The explanation may be that the approaches used to achieve continued excellence and differentiation, including imaging brands, product features and customer service, which in principle is external to the company, while the coordination antarfungsional is internal to the company. Langerak research results (2003, p. 109) also show that the competitor orientation has no influence on the cost advantage. This result is contrary to the notion that a comprehensive analysis of the current and potential competitors are required to encourage activities that are required to use the right assets to gain a cost advantage. The explanation may be that the low cost advantage largely rely on economies of scale, volume and economical sphere. The effects of this low cost is basically internal to the company, while the competitor orientation is external to the company. The implication is that to understand the strengths and weaknesses of short-term and long-term capabilities and strategies of competitors' current and potential is not a prerequisite to obtain overall cost advantage. In accordance with the reasoning that the low cost advantage is internal to the company, the results of research Langerak (2003, p. 109) show that the management could promote the activities necessary to achieve a cost advantage through the coordinated use of corporate resources. If there is no tradition antarfungsional coordination, support and effective leadership is needed to overcome the isolation of each of the functional areas of the business functions of other (Jaworski and Kohli, 1993). Companies that operate in a dynamic environment face challenges and difficulties in assessing changes in their customers, competitors step, and industrial restructuring. Two dimensions of strategic orientation (ie customers and competitors) to overcome these issues by focusing on customers and competitors to gain market knowledge. Having adequate knowledge and views on the market allow manufacturing companies to create alternative approaches that contribute to

2016 International Conference on Business, Economics, Socio-culture and Tourism

operational flexibility. Companies that have developed this capability is to operate flexibly, mencipakan procedures that cause a reduction in response time if necessary, respond quickly to competitor actions, and the capability to respond to the dynamics of the customer. Consequently, the strategic orientation could be responsible directly to achieve high flexibility in the operation of strategic and daily operations of the company (Harris et al. 1998). Operating flexibility never an attribute that is difficult to be justified. Nobody likes considered rigid, especially in business functions such as operating functions that are commonly acquired a reputation that is not willing to change. Flexibility allows operations to increase the scope of the market positioning of a company (Slack, 2005, p. 1201). This is even more true in times when the market is now considered to be more volatile, moving faster, and more competitive. That is the reason why flexibility remains an important topic in the literature of the operation. Now diminishing attention to defining the meaning of flexibility, and more attention to the role of flexibility as a core competency operation, which in the long run could be observed in almost all market context. Flexibility has occupied a central position on how operations can be made strategically to play an important role in achieving competitive advantage (Slack, 2005, p. 1201). The argument about the importance of manufacturing and service sectors of the developed countries has been well studied around the world. However, regardless of the arguments about the importance of manufacturing and service sectors as drivers of economy, or as a protection against economic turbulence the long term, the fact remains that more than eighty percent of economic activity and employment in the company non-manufacturing (services). So, although flexibility is no different from most other topics in operations are more inclined to the manufacturing sector, this will further benefit from the conceptual and empirical research in the context of services (Slack, 2005, p. 1208). Research Silvestro (1993), as well as Correa and Gianesi (1994), which examines the flexibility in the context of the services, as they distinguish between resource use flexible defensive and offensive, but the number is still less than research based manufacturing. Nevertheless, the way in which flexibility is defined in the context of services, such as "the willingness on the part of service workers to change the nature of the services or products to meet customer needs" (Johnston, 1995) and the concepts of other services which include flexibility, eg "zone countermeasures" (Johnston and Clark, 2005), the more important the need for research on all types of manufacturing and services operations. Grubbstrom and Olhager (1997) examines the fundamental relationship between the flexibility and productivity of the production level. Nevertheless, the problems of adjustment of production levels in models EPQ (Economics Production Quantity) multi-item rarely studied (Kreng and Wu, 2000, p. 255). Ranta (1990) uses the level of decision making more explicit by defining three levels of flexibility: (i) strategic, (ii) tactical, and (iii) operational. In addition, Chandrashekar (1994) considers operational flexibility as the ability to respond to changes in the volume or product mix with a predetermined period of time (short term). Operational flexibility is defined as the ability of a system to cope with changes in volume or product mix in the short period that has been determined (Kreng and Wu, 2000, p. 257). Operational flexibility has been hailed as the most important attributes or capabilities that need to be operated effectively in a competitive environment. Give operational flexibility to the company's ability to respond quickly to market demand fluctuates (Sanchez, 1995). Operational flexibility increases the effectiveness of communication, plans, and strategies that will lead to increased performance of the company (Miles et al. 1978). For example, operational flexibility can be realized through the company's ability to deploy assets to take advantage of opportunities and / or avoid the problems (Grewal and Tansuhaj, 2001). Accommodations can be made to take advantage of unexpected situations and to continue to add value for customers. Successful attempt of the company to develop operational flexibility in mind to improve company performance (Evans, 1991). Nevertheless, the fact that manufacturing companies using operational flexibility capabilities alone do not guarantee that the relationship will be successful. The manufacturing company should be able to supplement its capabilities. Numerous studies have focused on how businesses realize their unique resources to manage relationships to foster cooperation and collaboration among companies (Anderson and Narus, 1990; Borys and Jemison, 1989; Hamel, 1991). The implication is that companies use relationship management in order to encourage the integration of processes and organizational activity. By doing so will increase the company's unique resources which will further improve organizational performance (Achrol, 1997; Bello and Gilliland, 1997; Hunt 1995). Therefore, the potential value of operational flexibility should be accompanied by collaborative behavior among the partners for the capabilities of this show a form of interaction that is invaluable partner to ensure open communication and information sharing. Based on this, operational flexibility and collaboration are the capabilities that uniquely contribute to the company's competitiveness and market success. The following will explain about some things

company's performance. Marketing Strategy (marketing strategy) The relationship between strategy and performance marketing has been recorded properly in the context of domestic marketing (Buzzell and Gale, 1987; Phillips et al. 1983; Robinson and Fornell, 1986) as well as the context of international marketing (Aaby and Slater, 1989; Bilkey, 1985; Christensen et al. 1987; Cooper and Kleinschmidt, 1985). Some empirical evidence also supports a

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positive relationship between the performance of the product adaptation (Cooper and Kleinschmidt, 1985; Hill and Still, 1984; Kirpalani and MacIntosh, 1980), an adaptation sale (Killough, 1978), and pricing competitively

MacIntosh, 1980). Evidence suggests that the adaptation of products (Cavusgil and Zou, 1994; Shoham 1999), distribution (Shoham, 1996b), and promotion (Shoham, 1996a) improve performance, while the influence of adaptation rates (Koh and Robicheauz, 1988; Shoham, 1995) is still not certainly. Effect of implementation of the concept of marketing by a company for its performance has been studied by many researchers from many different viewpoints, mostly relating to the role of marketing in the shaping and shaped by corporate culture and strategy enterprise level (Hooley et al. 1999; Mooreman and Rust , 1999; Webster, 1994, 1995). Studies of marketing as a reflection of the corporate culture has explained the relationship between the implementation of the concept of marketing and corporate performance. However, marketing as a factor in the corporate culture has not been approached as a direct cause of the performance of the company, but as something that affects the performance of the company indirectly through interactions with orientation- learning (Baker and Sinkula, 1999; Sinkula, 1994; Slater and Narver, 1995) or strategy marketing (Morgan and Strong, 1998; Slater and Narver, 1993, 1995). The use of marketing as a strategy has been shown to have positive implications for the performance of the company (Menon et al. 1999). With the formal planning and resource commitments, the uncertainty will be reduced and marketing strategies can be applied (Aaby and Slater, 1989; Christensen et al. 1987), resulting in better performance for the company (Aaker, 1988). Studies of the effects of marketing strategies make up the majority of studies examining the determinants of corporate performance (Menon et al. 1999; Piercy, 1998). These studies can be divided into two categories, namely the class of rational planning, the planning of strategies and incremental groups, regarding the implementation of the strategy (Barney, 1997; Grant, 1995; Speed, 1993). However, the latest criticism of the approach of the two sides has led research done from a different angle, this time regarding the results of the strategic planning and implementation of the strategy (Menon et al. 1999; Piercy, 1998). The situation analysis consists of explanation and understanding of the opportunities and threats that are affected by changes in the environment, helping companies in the adaptation strategic to changes in a way, therefore, affect the company's performance positively (Bourgeois and Eisenhardt, 1988; Capon et al. 1994; Grant, 1995). The situation analysis refers to the systematic analysis of the strengths, weaknesses, opportunities, and threats (SWOT) of a group in the areas of marketing strategy (Bourgeois and Eisenhardt, 1988; Kohli and Jaworski, 1990). Comprehensive nature refers to the systematic manufacture and analysis / thorough evaluation of alternative strategies in the selection process strategy (Fredrickson, 1983). Manufacture of a wide range of alternative strategies allows the selection of the most effective strategy by evaluating the ability of the implementation of many of these alternative strategies (Schweiger et al. 1986). Further studies have shown that comprehensive strategies are selected through processes of this kind have a positive impact on business performance (McKee et al. 1990). Emphasis on assets and marketing capabilities, particularly the emphasis on a wide range of capabilities, it has been said to have a positive influence on corporate performance (Day, 1994). Integration of cross-functional and inter-departmental considered to affect the market performance of a company in a positive (Ayers et al., 1997; Olson et al. 1995). To be a successful strategy implementation, the functional integration of the teams' strategy becomes imperative, as well as functional and political alignment between these teams with the whole organization (Menon et al. 1999). Communication quality refers to the quality and quantity of official and unofficial communication in the strategy-making process. High-quality communication lines to prevent an exit strategy, and improve the implementation of the strategy itself, perform a key role in the success or failure of a strategy. Many studies have concluded that the quality of communication, if it is high, to positively influence the performance of the enterprise market (Kohli and Jaworski, 1990; Narver and Slater, 1990). Process Marketing Strategy Making (MSM / process marketing strategy) consists of a situational analysis, selection strategies through the creation and analysis of alternative strategies comprehensively, STP, integration of departments and functional, communication, consensus, commitment of resources, mix 4P, and activities regulation (Becker and Homburg, 1998; Menon et al. 1999). The elements are known to have positive influence on business performance through improved specificity-neighborhood of strategies by factors internal / external (Capon et al. 1994), increasing the probability to choose the strategies most effectively through checkpoints alternative strategies effective (McKee et al. 1990), giving directives action to mix 4P and choose the strategies most appropriate through a better understanding of the environment and trends Psar, fault detection sewcara early in the process of implementing the strategy (Olson et al. 1995), repair modification and capability of adaptation in the implementation of the strategy (Moorman and Miner, 1998; Slater and Narver, 1995), reduction of uncertainty in decision-making and increased interest (Iaguinto and Fredrickson, 1997), the provision of human resources, time and funds needed in in the implementation of the strategy (Ramanujan et al. 1986), to meet customer demand targets (Kotler, 1997), and an increase in goal-oriented behavior (Bartol

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2016 International Conference on Business, Economics, Socio-culture and Tourism

and Martin, 1998). The structure of the capabilities of marketing verified by unifying the concepts of market- oriented culture and processes of marketing strategies, as well as the influence of these two factors on the performance of companies identified. This study suggests a market-oriented culture and marketing strategy as the components that make up a company's marketing capabilities (Joon Yoon and Lee, 2005, p. 16). In addition, based on a literature review and explanation of the relationship between culture-oriented market and marketing strategy, it is evident that the process of marketing strategy gives the relationship between the culture of market-oriented simple and application of real marketing strategies, and that its influence on the performance of the company is increased with increasing kebergejolakan environment ( Joon Yoon and Lee, 2005, p. 16). Therefore, the underlying principles is that in the absence of market-oriented culture and processes of marketing strategies, the fulfillment of the objectives satisfactorily is difficult. So companies should first follow the procedure of making a marketing strategy based on the foundation of the company that is market-oriented culture to positively affect performance through improved marketing capabilities of the company (Joon Yoon and Lee, 2005, p. 16). Other relevant issues are related to global marketing - that adaptation versus global standardization as well as the relationship with the marketing of the market (Cooper and Kleinschmidt, 1985; Samiee and Roth, 1992; Shoham, 1995, 1999). The level of standardization versus adaptation of marketing is a function of the characteristics of the product, industry, market, organizational, and environmental (Cavusgil et al. 1993; Jain, 1989; Shoham, 1995, 1999). In terms of strategic marketing refers to the adaptation of the company STP (Segmentation, Targeting, Positioning) on competitive strategies in the areas of business that have been (Webster, 1995). The process of marketing strategy designed to assess the compliance of a company against the fundamentals in the planning and implementation of the strategy, instead of evaluating the selection of appropriate strategies by companies (joon Yoon and Lee, 2005, p. 4). Menon et al. (1999) defines Marketing Strategy Making, which is a concept that brings together the planning and implementation of marketing strategies, as "a series of activities, processes, and routines are complex in design and implementation of marketing plans." Emphasis assets and marketing capability refers to the use of effective and sustainable access to core business processes, resources, and techniques that form the foundation of marketing strategy (Day, 1994). Assets marketing consists of the size and scope of facility investment, assets, brands, and excellence channel - assets that can be invested and used by marketers - and capability refers to the ability to implement pricing strategies, customer service, and product development (Day, 1994). Environmental Dynamism (environmental dynamics) A number of researchers in organizational theory have examined the relationship-performance environment. At the enterprise level performance, suggesting that the environment can affect performance (Hansen and Wernerfelt, 1989). Some theorists organization has also considered the effects of certain dimensions of the environment to the company's performance. Hambrick (1983) found dynamism is negatively related to the three performance measures. Keats and Hitt (1988) found that dynamism negatively related to the operating performance. On television station industry, Stearns et al. (1987) found that fluctuations in the total market advertising spending is negatively correlated with the performance of the television station. Some studies have also been done on the effect of environmental uncertainty on the performance of individuals. Argote et al. (1989) found that uncertainty has a negative effect on performance. Regarding performance, it is known that the dynamism and environmental heterogeneity reduces the performance, either directly or indirectly. A number of studies have found a negative relationship between environmental uncertainty and the performance level of the company. But research Sohi (1996, p. 60) showed interesting results: that is not just the performance of the macro level, but even individual performance was affected by the changes and differences in the environment. Unlike companies, salespeople can not choose their operating environment. They must learn to adapt and operate in

a specific environment. Because the environment can affect their performance negatively, management must make several mechanisms that may minimize this negative effect. Such mechanisms may include the provision of training to deal with different situations, improve the flow of communication, or even change the decision making structures of the organization. In certain situations, which salespeople are faced with different customers, one way to reduce the negative effects of environmental heterogeneity is to organize by type of customer, or use customer management structures (Sohi, 1996, p. 60). With increased competition and advances in technology, companies are facing a very complex environment and dynamic. This is especially true in the international arena, where products and global markets has created a challenge for companies to manage marketing and sales operations (Sohi, 1996, p. 49). The uncertainty of the environment, and dimensions that dynamism and heterogeneity (plurality), has gained extensive discussion in the literature of organization theory (Bluedorn, 1993). It is also increasingly important in channel management and marketing literature (Achrol and Stern, 1988; Gaski, 1989; Lysonski, 1985). Environmental dynamism shows the frequency change and displacement felt within the marketing forces of the external environment / tasks (Aldrich, 1979 Sohi, 1996, p. 50). Changes in technology, customer preferences and competitive action are some examples of environmental dynamism. The construct is also referred to as the variability or volatility environment (Child, 1972 Sohi, 1996, p. 50), and is regarded as a dimension of uncertainty of the

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environment (Scott,

be a proposition: Collaboration is an effort to strengthen inter-partners to achieve the company's goals. Collaboration is affected by the strength of customer orientation and competitor orientation. So that together - together with operational flexibility among partners in the company's performance is expected to increase. The marketing strategy is a strategy to win business competition. Therefore it needs a reliable formula for the creation of high performance expectations. Internal environment and the external environment that is conducive to provide a favorable climate for companies in order to obtain the expected performance. This is described as the framework of theoretical concept study. The conceptual framework is useful to provide an overview or a road map for development of the theory of writing.

Marketi ion

Quality Performa of

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Collabora tion

Custom er

Cooperat ion

flexibility Orientastio

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Picture 1. The Framework of Theoretical Concept