Mediation Model of Competitiveness to Gain SMEs Business Sustainability

Abstract

This research aims to study the correlation of market orientation with the competitiveness owned by company and business sustainability. Based on the happening phenomenon for the study about competitiveness that can control the company's business sustainability. The research is conducted in Jakarta - Indonesia, with the research object is Small Medium Enterprise (SMEs) as one of the supports for countries’ economic that is resistant to the various economic crisis. There are 120 SMEs in Jakarta which is taken data and information through a questionnaire in this experimental study. While data analysis is conducted through path analysis and research hypothesis tests. The research result is stated that market orientation built by SMEs correlates with competitiveness creation. Then, it is known that the correlation of SMEs’ competitiveness with business sustainability. Besides that, it is found that market orientation has also directly correlated with business sustainability. From the research, the result is found that research novelty is a mediation model from SMEs' competitiveness for the support of market orientation and its impact on business sustainability. This research is useful as an input for business strategy in controlling SMEs' competitiveness, for success in competing for business competition. Besides that, it encourages SMEs to determine business orientation because it impacts to business sustainability.