Effect of Market Orientation on Competitive Strategy to Integrated Agro Industry in Indonesia.


Doddy Rahadi , Sucherly , Ernie Sule Tisnawati ,

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Volume 5 - January 2016 (01)


Demand for agro-products tends to increase every year. However, agro-industry products in Indonesia does not have a good competitiveness. This is because of not optimal competitive strategy mapping indicated by unfavorable market orientation. Companies that have made the market orientation as the culture of the organization will focus on the external market needs, desires and market demand as a basis for preparing a strategy to compete for their respective business units within the organization and determine the success of the company. Competitive strategy should be designed to achieve continuous competitive advantage, enabling companies to dominate the market, old and new markets. Based on the above, the study aims to analyze the influence of market orientation in improving competitive strategy on Integrated Agro Industry in Indonesia. This research uses explanatory survey method, as it will explain the relationship between the variables studied. Collecting data in the study conducted by distributing questionnaires. While the method of data analysis used in this research is Structural Equation Modeling (SEM). Based on the survey results revealed that the market orientation of the positive and significant effect in improving the competitive strategy on Integrated Agro Industry in Indonesia. Meaning that the higher market orientation, the better competitive strategy applied by the company, so it will increase the competitiveness of industry which have an impact on better performance. Market orientation is an organizational culture that leads to the market. The starting point of a market orientation is market intelligence. Market orientation focused on understanding customer wants and needs of current and future


Market Orientation, Competitive Strategy, SEM


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