THE EFFECT OF MARKET ORIENTATION AND ENTREPRENEURIAL MARKETING ON MARKET PERFORMANCE AND BUSINESS SUSTAINABILITY OF BAG CRAFT MSMES

This study aims to investigate the effect of market orientation and entrepreneurial marketing on market performance, as well as the effect of entrepreneurial marketing and market performance on business sustainability of bag craft micro, small, and medium enterprises (MSMEs). This study was conducted using a descriptive-quantitative method, with eighty bag craft entrepreneurs serving as research participants. Questionnaires were used to collect data from the research participants over a period of thirty days. The data was analyzed using descriptive analysis and the structural equation modeling-partial least square (SEM-PLS). The results show that the market orientation and entrepreneurial marketing have a significant effect on the market performance, and so does the market performance on the business sustainability. However, the entrepreneurial marketing has no significant effect on the business sustainability. These findings imply that both market orientation and entrepreneurial marketing are essential determinants of the market orientation. Thus, the bag craft entrepreneurs must address these issues.


INTRODUCTION
Micro, small and medium enterprises (MSMEs) are productive business units carried out individuals or business units in various economic sectors and they are one of the driving factors in Indonesia's economic development (Crick, Karami, & Crick, 2021;Ranjbari, Esfandabadi, Zanetti, Scagnelli, Siebers, Aghbashlo, Peng, Quatraro, & Tabatabaei, 2021).Most economic enhancement in Indonesia is currently dominated by the development of MSMEs, as they have a large potential as an economic activator, labor absorption, and source of income to increase public welfare (Ranjbari et al., 2021;Schmidt, Kindermann, Behlau, & Flatten, 2021).This condition is strengthened by various empirical evidenves supporting dan mentioning that the MSME position is sufficiently prominent in Indonesia's economy (Fikri, Ratnasari, Ahmi, & Kirana, 2022;Prijadi & Desiana, 2017;Schmidt et al., 2021;Setyoko & Kurniasih, 2022).According to Ministry of Micro, Small, and Medium Enterprises of Indonesia in 2020, the MSMEs in Indonesia consisted of 98.67% micro enterprises, 1.22% small enterprises, and 0.10% medium enterprises, employing 96.92% of the workforce (Hernita, Surya, Perwira, Abubakar, & Idris, 2021;Nursini, 2020).Meanwhile, the number of big enterprises was approximately 0.01%, employing 3.08% of the workforce (Maksum, Rahayu, & Kusumawardhani, 2020).This data indicates that the MSMEs in Indonesia grow rapidly each year.Thus, they are expected to make a significant contribution to Indonesia's economic development.Business capital is one of the most common challenges faced by most entrepreneurs in the bag craft MSMEs (Schmidt et al., 2021).It is a problem shared by most entrepreneurs in Bojong Rangkas village.Due to a lack of business capital in the bag craft The Effect of Market Orientation and Entrepreneurial Marketing on Market Performance and Business Sustainability of Bag Craft MSMEs 209 MSMEs, their production activity slows down, resulting in a decrease in the income and profit.Therefore, the worst-case scenario for the bag craft MSMEs is bankruptcy.Other challenges faced are the lack of knowledge and understanding about how to develop their business and market activities.Most bag craftsmen in Bojong Rangkas village are solely focused on the production activity, while neglecting the importance of developing their business to its full potential.As a result, the bag craftsmen find it difficult to increase their business income, causing the business to stagnate.In addition, most bag craftsmen are unaware of the true market flow and continye to rely on traditional methods to distribute the products.Although, many entrepreneurs have outstanding business management skills and have sold them online, however, their comprehension of good and true marketing is still lacking.Therefore, their profit margin is less than ideal.
The distinctive aspect of the bag craft industry in Bojong Rangkas village is the uniqueness in Bojong Rangkas village is the village's uniqueness.Bojong Rangkas village is the first village in West Bogor to establish the bag craft MSMEs.According to Mr. Jamilthe village's head and one of the founders of bag craftsmen in Bojong Rangkas villagethe bag craft MSMEs have existed since 1991.Many locals, both inside and outside of the village, were interested and they came to learn the bag craft MSMEs in Bojong Rangkas village.After they understood and were able to run the MSMEs, they returned to their regions to implement the knowledge they received while in Bojong Rangkas village, by starting their own bag craft MSMEs and distributing the products in their respective areas.Therefore, Bojong Rangkas village can be considered as the founder in the establishment of bag craft MSMEs expanded over West Bogor and its surroundings.In addition, the bags produced by the craftsmen are of high quality and come in various models to suit the needs of the customers, such as fashion bags for both men and women, hamper bags for seminars or promotion purposes, school bags, and office bags.Several craftsmen also reuse and recycle the scraps of material from bag production to create other goods, such as key chains, wallets, and etc.The customers come from various background, ranging from inside the city to different provinces, and even being exported to foreign countries such as Qatar, Malaysia and Singapore.Therefore, it is interesting to study Bojong Rangkas village as a research location for this study.
Several previous researches have been conducted on the market orientation, entrepreneurial marketing, market performance, and business sustainability (Cho & Lee, 2020;Fard & Amiri, 2018;Fikri et al., 2022;Hernita et al., 2021;Kajalo & Lindblom, 2015;Maksum et al., 2020;Na, Kang, & Jeong, 2019;Nursini, 2020;Prijadi & Desiana, 2017;Ranjbari et al., 2021;Setyoko & Kurniasih, 2022;Shaher & Ali, 2020).Kajalo & Lindblom (2015) studied the relationship between market orientation, entrepreneurial marketing, and business performance.Na et al. (2019) studied the effect of market orientation on business performance.Shaher & Ali (2020) studied the effect of entrepreneurial marketing on market performance.In addition, Ranjbari et al. (2021) studied the effect of market orientation and entrepreneurial marketing on market performance.Cho & Lee (2020) studied the effect of entrepreneurial marketing on market performance.Further, Fard & Amiri (2018) studied the effect of entrepreneurial marketing on market performance.Moreover, several researches also studied the effect of market orientation and business performance on quality management and service innovation (Maksum et al., 2020;Prijadi & Desiana, 2017;Setyoko & Kurniasih, 2022).Other relevant researches have studied factors affecting the profitability and growth of small and medium enterprises (Fikri et al., 2022;Hernita et al., 2021;Nursini, 2020).This study, however, comprehensively focuses on the effect of market orientation and entrepreneurial marketing on market performance and business sustainability of the bag craft MSMEs in Bojong Rangkas village.This present study is similar to previous studies in the context of using the structural equation modeling (SEM) and case studies in Indonesia.However, the present authors attempt to create research novelty, this study adapts and combines variables from various literature and previous researches related to entrepreneurial marketing, market orientation, marketing performance, and business sustainability.Previous studies have shown that the entrepreneurial marketing and other variables have a direct impact on the MSME development and sustainability.Therefore, the results of this study are expected to contribute to the existing MSME literature and provide new empirical evidence, especially in terms of the marketing activities.For these reasons, this study aims to investigate the effect of market orientation and entrepreneurial marketing on marketing performance, as well as the effect of entrepreneurial marketing and market performance on the business sustainability of bag craft MSMEs in Bojong Rangkas village.

THEORETICAL FRAMEWORK AND EMPIRICAL STUDIES
Market orientation can be defined as the market responsibility of all functional business units and is considered as market practices (Peng & Chang, 2023).Asomaning & Abdulai (2015) explained that there are three dimensions of market orientation, including customer orientation (C), competitor orientation (CO), and inter-functional coordination (I).Implementing these dimensions in a company will improve the market performance.Saastamoinen, Reijonen, & Tammi (2020) added that the customer orientation is associated with the introduction of the customers, which enables the company to create excellent values for the customers.Meanwhile, the competitor orientation represents the company's understanding of the market demand and product positioning.On the other hand, the inter-functional coordination is related to the distribution and use of market information for the importance of the company.
Entrepreneurial marketing refers to a risk-taking and profitable method to creating values, communicating with the customers, and providing values for the customers (Eggers, Niemand, Kraus, & Breier, 2020).Hutahayan (2019) mentioned that the concept of entrepreneurial marketing requires each behavior in the company to consider the idea of promotion and marketing in order to create added values.The concept is developed among entrepreneurs who begin the business and learn the values, skills, and behavior of the entrepreneurs in dealing with various problems and determining the business prospects.Nursini (2020) stated that there are four market principles in the entrepreneurial marketing, including concept (K), strategy (S), method (M), and market intelligence (IP).
Market performance is a concept used to measure a company's marketing achievement, as well as the impact of company's strategy and orientation.Maksum et al. (2020) defined it as a multidimensional process, consisting of effectiveness (V), efficiency (P), and adaptation skills in the company (L).The effectiveness and efficiency of a company's marketing activities are related to the market goals, such as income, sales growth, and market segment.The market performance has an extremely significant effect on the firm performance, profitability, and marketing status in the company (Hernita et al., 2021).In addition, Fikri et al. (2022) explained that the market performance is the business measurement of the success level of enterprises in one company including the sales, customer, profit, and sales growth.

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Business sustainability is required not only in the company, but also in suppliers and producers providing raw materials to the company, resulting in added values for them (Yacob, Sulistiyo, Erida, & Siregar, 2021).The business sustainability can be described through the triple bottom line (TBL) concept: people, planet, and profit (Jabbour, Fiorini, Ndubisi, Queiroz, & Piato, 2020).Jabbour et al. (2020) argued that there are three dimensions of business sustainability, including environmental quality, social justice, and economic benefit.In addition, Jabbour et al. (2020) also explained the concept of business sustainability as an extremely important factor for business owners, so that they can apply the effective and efficient sustainability concept and strategy.Neri, Cagno, Lepri, & Trianni (2021) stated that the TPL concept has three sustainability indicators, including economics (E), social (SC), and environment (EV).Moreover, Neri et al. (2021) also stated that the TPL concept has become widely acknlowledged to determine the sustainability of an organization or a company.Relationships among variables of market orientation (MO), entrepreneurial marketing (EM), market performance (MP), and business sustainability (BS) are presented in the following model in Figure 1.

Figure 1. Research Framework
Several prior studies revealed that there was a positive relationship between market orientation, market orientation components and market performance of small businesses (Asomaning & Abdulai, 2015;Fikri et al., 2022;Hernita et al., 2021).The small businesses planning to outperform their competitors are suggested to implement a coordinated marketing.There is also a significant relationship between market orientation and firm performance of small businesses, since its market orientation contributes positively to improving their performance.For this reason, the first hypothesis that can be proposed is as follows: H1: Market orientation has a significant effect on the market performance.
Further, several studies proved that the entrepreneurial marketing for home industry entrepreneurs as a whole reached 60% (Setyoko & Kurniasih, 2022;Tjahjadi, Soewarno, Nadyaningrum, & Aminy, 2022).The results of this study indicate that the businessmen's entrepreneurial marketing is quite good.In the entrepreneurial marketing, variables, such as concepts, strategies and market intelligence, significantly influence the market performance (Nursini, 2020;Yacob et al., 2021).Therefore, the second hypothesis that can be proposed is as follows: Furthermore, several studies had also proved that the entrepreneurial marketing directly influenced business development and business sustainability (Hanggraeni, Šlusarczyk, Sulung, & Subroto, 2019;Maksum et al., 2020;Prijadi & Desiana, 2017).This indicates that the business with stronger capabilities of entrepreneurial marketing also has a high level of business development and business sustainability.The results of this study conclude that the entrepreneurial marketing plays as an important role for shaping business development and business sustainability in the home industry and small footwear industry.Thus, the third hypothesis that can be proposed is as follows: H3: Entrepreneurial marketing has a significant effect on the business sustainability.
In addition, a few of studies explained that there was a highly significant relationship and influence between business sustainability and market performance (Gnanaweera & Kunori, 2018;Maksum et al., 2020;Prijadi & Desiana, 2017).These results demonstrate that higher business sustainabilityin terms of economic, environmental and social sustainabilitywould lead to an increase in the company's market performance.Hence, the fourth hypothesis that can be proposed is as follows: H4: Market performance has a significant effect on the business sustainability.

RESEARCH METHODS
This study was done in a descriptive-quantitative manner (Creswell & Creswell, 2018).In general, this study was carried out in fourth stages.First, this study developed a questionnaire consisting of four main variables, such as market orientation, entrepreneurial marketing, market performance, and business sustainability.The questionnaire was measured using a 5-point Likert scale.It was then theoretically validated by two lecturers who were experts in the field of economics and business.Second, the valid questionnaire was distributed to eighty bag craft entrepreneursin which all of them was the total population of this study and would be used as the research samples.The sampling method used was the census method.The data was collected over a period of 30 days.Third, after the data was collected, the data was examined for its validity and reliability.The data was analyzed using IBM SPSS 2.2.The results show that it has r-value of 0.361 (significant at 5%) by analyzing 30 respondents.The questionnaire would be considered reliable if its Cronbach's alpha is > 0.6.Fourth, the data was also analyzed for its descriptive statistics to describe the respondent profile.The SEM-PLS analysis was employed to examine the effect of market orientation and entrepreneurial marketing on market performance, as well as the effect of entrepreneurial marketing and market performance on business sustainability of bag craft MSMEs in Bojong Rangkas village (Mike & Cheung, 2015).

DATA ANALYSIS AND DISCUSSIONS
The results of this study show that the bag craft entrepreneurs in Bojong Rangkas village are mostly male (95%), in their productive age (30 -40 old) (48.75%), and high school graduates (45%).65% of them started the business by following their parents' path.Most of them (50%) also acknowledged that they ran the business to meet their daily needs, and 60% of them had successfully did it.Further, in terms of length of business, most of them had run their business for 6-10 years (35%), followed by more than 15 years (28.75%),1-5 years (26.25%), and 10-15 years (10%).The bag crafts they produced were synthetic (77.5%) and made of animal skin (22.5%).

Figure 2. Initial Model Figure 3. Fix Model
The SEM-PLS analysis examined the outer and inner model.The initial results of the outer model analysis are presented in Figure 2. It shows that there is only one indicator (C3) of customer orientation dimension in the variable of market orientation excluded from the model, because its loading factor value is less than 0.6 and not valid (Aghili & Amirkhani, 2021).After repeating the process of outer model analysis, the fix model was obtained and is presented in Figure 3.The fix model explains that all indicators of each dimension in the latent variables have a good convergent validity.
Further, the results of this study show that there are three influential indicators of market orientation that would affect the market performance and business sustainability of the bag craft MSMEs.These indicators have the highest loading factor value, including the service given to consumer (C4) (0.841), the response on market probability (CO2) (0.875), and the communication among sellers in market place (I1) (0.915).Meanwhile, there were four influential indicators of entrepreneurial marketing that would also affect the market performance and business sustainability of the bag craft MSMEs.These indicators have the highest loading factor value, including skills in reading the market opportunity and need (K3) (0.833), skills in distributing the product to the customers (S3) (0.846), skills in joining the relationship with the the customers (M1) (0.824), and skills in having informal networking (IP1) (0.875).In addition, the results of this study show that there are three indicators of market performance which would affect the business sustainability of the bag craft MSMEs.These indicators have the highest loading factor value, including the product sales growth (V1) (0.874), the coming customers (P2) (0.904), and the profit of products sold (L2) (0.905).On the other hand, the business sustainability has three indicators with the highest loading factor value which could be the measurement in enhancing the bag craft MSMEs in Bojong Rangkas village.They include the number of products (E1) (0.858), the allowance for social health insurance (SC3) (0.912), and the resources and raw materials (EV3) (0.954).The following Table 1 shows the results of discriminant validity test.The variables would be considered valid if the composite reliability (C.R.) value was more than 0.07 and the average variance extracted (AVE) value was more than 0.05 (Rode & Ringel, 2019).
Table 2 shows that the cross loading value of all latent variables meets the discriminant validity criteria.The cross loading value of each items from indicator on the construct is greater than the cross loading value.This indicated that the results of discriminant validity test for all constructs are valid and reliable.The model that had met the criteria was considered as the final model.Further, the parameters used to analyze the inner model were R 2 , path coefficient, and tvalue (Rode & Ringel, 2019).The results of hypothesis testing can be seen in the following Table 3.This study finds that out of a total of four paths, there is one path that does not have a positive and significant result, because the t-statistic value is smaller than the t-table (1.96).The market orientation has a positive and significant effect on the market performance with a path coefficient value of 0.491 and t-statistics value of 2.920, implying that the first hypothesis can be supported empirically.The overall market orientation could improve the market performance, since the market orientation was an extremely important part of the market performance system.The market orientation could support the bag craft MSMEs in increasing the product sales, service and communication with the customers, so that it facilitated the product distribution.The feedback given by the customers to share their experience on the products would add customer preferences and enrich the product variances.This finding also implied that the communication between sellers in the sales area must be increased as much as possible, so that the MSMEs could gather important information for their business and sell their bags more quickly in the market.A more effective communication between the sellers would result to more customers coming to buy their products and the bags could be recognized more extensively.Asomaning & Abdulai (2015) proved that there was a positive relationship between market orientation, its component, and the market performance of the small businesses.Coordinated marketing was an extremely important part of the small businesses to achieve superior market performance.Further, this effect is also greater and more influential than the effect of entrepreneurial marketing on the market performance.
In addition, the second hypothesis proposes that the entrepreneurial marketing has a significant effect on the market performance.Its path coefficient is 0.291 and t-statistics value is 1.981, indiating that the second hypothesis can be supported empirically.This implied that the overall entrepreneurial marketing could improve the market performance, because it was the complement of the market performance system.The entrepreneurial marketing did not only help the entrepreneurs in improving their sales, but also their spirit to be successful.The more improved the entrepreneurial marketing skills, the higher the market performance.Hanggraeni et al. (2019) explained that the entrepreneurial marketing was a crucial aspect of business and marketing, since every individual behavior contributed to the marketing concept in creating the added values.Tjahjadi et al. (2022) argued that the entrepreneurial marketing applied by the entrepreneurs had been optimal.The implementation in the bag craft MSMEs was related to the skills of the bag craftsmen in distributing the bags.The more skillful the bag craftsmen in distributing the bags to the customers, the more recognized and popular the bags.Furthermore, the third hypothesis proposes that the entrepreneurial marketing has a significant effect on the business sustainability.However, this hypothesis cannot be supported empirically since its path coefficient is 0.088 and its t-statistics value is 1.222.This demonstrated that the entrepreneurial marketing has no significant effect on the business sustainability.There were two indicators of entrepreneurial marketing with a low loading factor value, including the skills in selling (K1) and skills in conducting the market expansion (S2).This was due to the educational background of the bag MSME entrepreneurs in Bojong Rangkas village where most of them were only senior high school graduates.As a consequence, they had difficulties in understanding the market information and developing new products.Tjahjadi et al. (2022) stated that the high or low educational level of individual could affect their skills in developing their business.In addition, most of the bag craftsmen had a lack of understanding on how to sell their product.As a result, extending the entrepreneurs' expertise to new marketing domains remaind tough.
Finally, the fourth hypothesis proposing that the market performance has a significant effect on the business sustainability.It has a path coefficient of 0.837 and t-statistics value of 11.776, implying that the fourth hypothesis can be supported empirically.This finding also implied the MSMEs that they must use maximize the use of their resources to improve their marketing performance.Improving the market performance in the product sales activity also improved the competitiveness in the business sustainability, since a high or low market performance affected the high or low business sustainability in the company.The entrepreneurs must extremely prioritize the product quality, used raw material, employee welfare, and environmental impact to ensure that the finished product was safe for the customers.During the COVID-19 pandemic in all parts of the world, the bag craft entrepreneurs had to adapt to the changes of customer behaviors, where most of the customers preferred online shopping due to the social and physical distancing regulation.These changes demanded the bag craft entrepreneurs in Bojong Rangkas village to adapt to market changes to compete in the bag industry sustainably.Gnanaweera and Kunori (2018) also confirmed that the market performance had a significant effect on the business sustainability in the company.This finding supported that a high level of business sustainabilitysuch as in the economic, environmental, and social aspectswould improve the market performance of the company.

CONCLUSION, SUGGESTION AND LIMITATION
The results of this study confirm that the market orientation and entrepreneurial marketing have a positive and significant effect on the market performance.The market performance also has a positive and significant effect on the business sustainability.However, the entrepreneurial marketing has no significant effect on the business sustainability.
These findings imply that the market orientation was able to improve the overall marketing performance, since the market orientation was a very important part of its system.It could help the bag craftsmen increasing their product sales, service and communication with the customers so as to facilitate the product marketing to be more coordinated.These findings also explain that the entrepreneurial marketing was able to improve the overall market performance, because it was a complement to the marketing performance system.In addition to being able to help the entrepreneurs increasing their sales, the entrepreneurial marketing could motivate them to be successful.Further, the insignificant effect of entrepreneurial marketing on business sustainability was because the craftmen found it difficult to capture and understand the latest information to develop their products according to the newest trend.The increase in marketing performance, especially in the product sales activities, would lead to the increase in the business sustainability in the bag craft industry.The dynamics of marketing performance would have an impact on the dynamics of business sustainability.
The positive development of the bag craft MSMEs in Bojong Rangkas village signified the importance of entrepreneurial marketing for the entrepreneurs to understand the process and how to sell their products through four factors, namely concepts, strategies, methods and intelligence.In the concepts of entrepreneurial marketing, the producers or sellers had to understand about the changes currently happening on the market to increase the sales effectiveness.The implementation of the strategies in the context of bag craft MSMEs was related to the ability of craftmen to sell their products according to the purchasing power of local customers.The craftmen already had the ability to sell their products to the local customers and their products had been recognized by the wider community.Further, the methods in the entrepreneurial marketing was related to establishing relationships and communicating with loyal and new customers customers intensely.This highlighted the importance of good relations with the customers, since they had a significant influence on the bag craft MSMEs' sustainability.Meanwhile, the intelligence in the entrepreneurial marketing had been performed by the entrepreneurs who expanded new networks to facilitate information in the current market and maximizing the existing networks, considering that the information was the driver in the MSME sustainability.
The results of this study has several managerial implications.In terms of market orientation, there are three market orientation factors important to develop the MSMEs, namely customer orientation, competitor orientation, and interfunctional coordination.The customer orientation provides the best service to the needs of customers.When there are potential customers interested in buying the products, the sellers must be quick in responding and providing the customer needs to make them satisfied.The sellers must understand the competitor orientation, wherer they have to look for information and develop strategies to compete with new competitors in the bag industry.They have to provide better service than their competitors in dealing with the customers and their requests.Meanwhile, the interfunctional coordination emphasizes the sellers to communicate and share information with other workers about the needs and fashion trends that are currently developing in the market.The inter-function coordination makes the communication between the entrepreneurs and workers more effective so as to create superior customer values.
This study confirms that both market orientation and entrepreneurial marketing are the essential factors must be considered for enhancing the market performance.Moreover, the market performance is extremely needed to improve the business sustainability.Consequently, every entrepreneurs have to notice several factors, such as market orientation, entrepreneurial marketing, and market performance, to ensure the business sustainability in the future.
However, this study has several limitations.Out of a total of 80 respondents participating in this study, only 30 respondents of them who filled the questionnaire completely with needed information for further analysis.As a result, the results of this study cannot generalize and describe the phenomena as a whole.For this reason, future researches are suggested to study more participants to obtain better and more accurate findings.
Entrepreneurial marketing has a significant effect on the market performance.
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Table 3 . Results of Hypothesis Testing
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