The Influence Of Product Development Strategy, Marketing Capability, and Institutional Support On Export Performance
Study on Coffee SMEs that are Members of the Pasuruan Kapiten Organization
Keywords:
Product Development Strategy, Marketing Capability, Institutional Support, Export Performance, Coffee SMEsAbstract
This study aims to analyze the influence of product development strategy, marketing capability, and institutional support on export performance in coffee MSMEs that are members of the Kapiten Pasuruan organization. This study uses a quantitative approach with data collection techniques using a Likert scale questionnaire distributed to 30 MSMEs members of Kapiten Pasuruan. Data analysis was carried out using the Structural Equation Modeling (SEM) method with the Partial Least Square (PLS) approach. The results of the study indicate that product development strategy has a positive and significant effect on export performance with a path coefficient of 0.437 (t-value = 3.842). Marketing capability has a positive and significant effect with a path coefficient of 0.365 (t-value = 3.251). Institutional support also has a positive and significant effect with a path coefficient of 0.298 (t-value = 2.975). These findings indicate that coffee MSMEs that are able to develop innovative product strategies, improve marketing capabilities, and optimally utilize institutional support have a greater opportunity to improve their export performance. The study suggests the need to strengthen product innovation capacity, develop international marketing competencies, and optimize institutional support to increase the competitiveness of Indonesian coffee MSMEs in the global market.
References
Amorós, J.E., Bosma, N., & Audretsch, D. (2020). Global Entrepreneurship Monitor 2019/2020. Global Entrepreneurship Research Association.
Bontis, N. (2021). "Intellectual Capital: An Exploratory Study That Develops Measures and Models". Management Decision, 36(2), 63-76.
Cavusgil, S.T., & Zou, S. (2019). Marketing strategy and export performance: A meta-analysis. Journal of International Marketing, 27(3), 45-67.
Cavusgil, S.T., Knight, G., & Riesenberger, J.R. (2022). "International Business: The New Realities". Pearson Education.
Dana, L. P., & Welpe, I. M. (2018). Small and medium-sized enterprises in international markets: A review of empirical research. Journal of World Business, 53(4), 517-529.
Directorate General of National Export Development. (2022). "National Export Performance Report".
Drucker, P. F. (2019). "Innovation and Entrepreneurship". Harvard Business Review Press.
Edvinsson, L., & Malone, M. S. (2021). "Intellectual Capital: Realizing Your Company's True Value by Finding Its Hidden Brainpower". Harper Business.
Ellis, P. D. (2017). Marketing capabilities and export performance: A global study. International Marketing Review, 34(5), 610-631.
Ghemawat, P. (2022). "Redefining Global Strategy". Harvard Business School Press.
Ibeh, KIN (2015). Furthering export expansion in Africa: An empirical study of non-traditional export growth in Nigerian manufacturing. Journal of International Marketing, 23(1), 24-46.
International Coffee Organization. (2021). "World Coffee Trade Report".
Johanson, J., & Vahlne, J. E. (2021). "The Uppsala Internationalization Process Model Revisited". Journal of International Business Studies, 40(9), 1411-1430.
Kahiya, E.T. (2018). Export barriers and export performance: Evidence from manufacturing firms in New Zealand. Journal of Global Marketing, 31(2), 81-97.
Ministry of Cooperatives and SMEs. (2023). "Indonesian MSME Development Report".
Lages, L.F., & Montgomery, D.B. (2018). Export performance as an antecedent of export commitment: Evidence from small and medium-sized manufacturers. International Business Review, 27(4), 852-864.
Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P., & Palihawadana, D. (2017). Strategic determinants of export performance: A meta-analysis. Management International Review, 57(1), 23-52.
Lu, J. W., & Beamish, P. W. (2016). SME internationalization and performance: Growth vs. Growth profitability. Journal of International Entrepreneurship, 14(1), 36-54.
Morgan, N. A., Katsikeas, C. S., & Vorhies, D. W. (2016). Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the Academy of Marketing Science, 44(2), 221-239.
Nonaka, I., & Takeuchi, H. (2020). "The Knowledge-Creating Company". Oxford University Press.
Porter, M.E. (2021). "Competitive Strategy". Free Press.
Rachman, AF (2020). MSME empowerment policy in increasing national economic competitiveness. Journal of Public Policy, 11(2), 89-105.
Rialp, A., Rialp, J., & Knight, G. A. (2019). The phenomenon of early internationalizing firms: A comparative case study of international entrepreneurship perspectives. Journal of International Entrepreneurship, 17(2), 188-213.
Schumpeter, J. A. (2020). "Capitalism, Socialism and Democracy". Routledge.
Setyawati, I., & Hamid, N. (2016). Marketing capability development strategy of MSMEs in Indonesia. Journal of Business Administration, 14(1), 78-95.
Souchon, A. L., & Durden, G. R. (2019). Export information management and firm performance: An organizational learning perspective. Journal of International Marketing, 27(1), 78-97.
Stewart, T. A. (2020). "Intellectual Capital: The New Wealth of Organizations". Currency Doubleday.
Sunaryo, K. (2017). Export development strategy of MSMEs in Indonesia: An empirical study. Journal of Development Economics, 18(1), 45-62.
Sveiby, K. E. (2020). "The New Organizational Wealth". Berrett-Koehler Publishers.
Tambunan, T. (2019). Development of micro, small, and medium enterprises in Indonesia: A review. Journal of Economic Studies, 15(2), 123-145.
Wibowo, H., & Pratiwi, D. (2018). Analysis of factors influencing export performance of Indonesian MSMEs. Journal of Technology Management, 17(3), 256-272.
Williamson, O. E. (2021). "The Economic Institutions of Capitalism". Free Press.
World Bank Report. (2022). "Enhancing SME Competitiveness in Global Markets".
Wright, M., Liu, X., Buck, T., & Filatotchev, I. (2016). Returnee entrepreneurs, knowledge spillovers, and institutional reform in transitional economies. Journal of Management Studies, 53(7), 1120-1153.
Yamakawa, Y., Peng, M. W., & Deeds, D. L. (2017). Rising from the ashes: Organizational learning and capability building in a challenging environment. Strategic Entrepreneurship Journal, 11(3), 255-276.
Zahra, S.A., Ireland, R.D., & Hitt, M.A. (2018). International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Strategic Management Journal, 39(4), 1142-1163.
