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Research Paper | Economics | Indonesia | Volume 8 Issue 5, May 2019 | Popularity: 7 / 10

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The Effect of Market Orientation, Handling Processing Orientation and Absorptive Capacity to Become a Born Global SMEs in Indonesia Fisheries Industry

Adi Wibowo, Yuswar Zainul Basri, Willy Arafah Dr

Abstract: Born global has evolved over a short period of time. The success of this type of company is intriguing. Byproposing a model for the Indonesian fisheries born global, the study is carried out to understand morein regards to the success of the born global companies. The model combines the direct and indirect effects of three variables: market orientation, handling and processing orientation, and absorptive capacity. In addition to the relationship of establishing born global companies with other variables, independent relationships are also taken into account. The model offered is tested by a structural calculation model of quantitative research methods. The sample used112 respondents from middle to top management of fishing companies in Indonesia. Structural Equation Model (SEM) is used to analysed the data. It is suggested that direct and indirect relationships of the building model indicate a positive relationship, with the exceptionfor the direct relationship of handling and processing orientation to the born global (not significant value). The results shows that the absorptive capacity plays an important role for market orientation and handling and processing orientation as the key success of the born global small medium entreprises in Indonesia.

Keywords: Market Orientation, Handling Processing Orientation, Absorptive capacity, Born global companies

Edition: Volume 8 Issue 5, May 2019

Pages: 2081 - 2087

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