DESIGNING ARCHITECTURAL MARKETING CAPABILITIES TO INCREASE THE PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES

Mulyana, Mulyana; Zakaria, Zainuddin; Mahmood, Rosman

doi:10.1590/S0034-759020210404

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ARTICLES • Rev. adm. empres. 61 (4) • 2021 • https://doi.org/10.1590/S0034-759020210404 copy

DESIGNING ARCHITECTURAL MARKETING CAPABILITIES TO INCREASE THE PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

This study aims to examine the relationship between the components of market orientation, i.e., customer orientation, competitor orientation, inter-functional coordination, architectural marketing capabilities and business performance. Researchers have been trying to find a solution for the gap that exists between market orientation and business performance. The respondents of this study were the owners or heads of 358 SMEs located in Central Java, Indonesia. This study used structural equation modeling (SEM) for data analysis. The results showed that customer orientation (CSO), competitor orientation (CO), and inter-functional coordination (IC) have a significant effect on architectural marketing capabilities (AMC) and business performance (BP), and that AMC also has a significant effect on business performance. Furthermore, architectural marketing capabilities can mediate the relationship between customer orientation, competitor orientation, inter-functional coordination and business performance.

KEYWORDS
Customer orientation; competitor orientation; inter-functional coordination; architectural marketing capabilities; business performance

Variable and Indicator	Loading factor
Customers Orientation
Our business strategy is directed towards achieving customer satisfaction	.696
We strive to gain a competitive advantage based on understanding customer needs	.721
We develop strategies to create value-added products for customers	.722
We attach great importance to after-sales service	.705
Competitors Orientation
We respond quickly to competitors' actions that threaten the company's development.	.690
We create products that are better than competitors' products	.752
We respond quickly to changes in prices of major competitors in the business	.677
We regularly monitor the marketing efforts of major competitors	.703
Inter-functional coordination
We and employees work together in teams to serve customers	.684
We and employees share information about competitors' strengths and weaknesses	.799
We and employees work together to respond to competitors' actions quickly	.724
We and employees work together to formulate a strategy to deal with competitors	.676
All employees work together to create superior products according to customer desires	.680
Architectural Marketing Capability
Our skills in developing marketing planning continue to improve	.753
Our ability to develop creative marketing strategies continues to increase	.675
Our ability to segment and target markets continues to increase	.657
Our ability to allocate effective marketing resources continues to increase	.796
Our ability to interpret marketing strategies into actions continues to increase	.744
Our ability to execute marketing strategies quickly continues to increase	.736
Business Performance
The sales of our company have continued to increase over the past three years	.764
The number of our customers has continued to increase over the past three years	.741
Our company's sales territory has continued to increase over the past three years	.716
The profits of our company have continued to increase over the past three years	.675
The capital of our company has continued to increase over the past three years	.741

N = 358	1	2	3	4	5
Customer Orientation (CSO)	.808
Competitor Orientation (CO)	.438	.797
Inter-functional Coordination (IC)	.546	.532	.871
Architectural Marketing Capability (AMC)	.519	.499	.500	.871
Business Performance (BP)	.523	.513	.525	.552	.858
Average Variance Extracted (AVE)	.679	.797	.871	.781	.770

Relationship Specifications	Std. β	Unstd β	SE	C. R.
H1: CSO -> AMC	.202	.245	.094	2.611^* * p < 0.01
H2: CO -> AMC	.293	.311	.078	4.004^* * p < 0.01
H3: IC -> AMC	.265	.269	.069	3.893^* * p < 0.01
H4: CSO -> BP	.181	.226	.095	2.385^* * p < 0.01
H5: CO -> BP	.203	.223	.081	2.738^* * p < 0.01
H6: IC -> BP	.202	.212	.073	2.920^* * p < 0.01
H7: AMC -> BP	.255	.263	.071	3.688^* * p < 0.01

Fundação Getulio Vargas, Escola de Administração de Empresas de S.Paulo Av 9 de Julho, 2029, 01313-902 S. Paulo - SP Brasil, Tel.: (55 11) 3799-7999, Fax: (55 11) 3799-7871 - São Paulo - SP - Brazil
E-mail: rae@fgv.br

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[1] mulyana@unissula.ac.id