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ORIENTATION AND SENSING BASED DRIVERS TO ENHANCE MARKETING PERFORMANCE OF INDONESIAN PHARMACEUTICAL SMES: MEDIATING ROLE OF MARKET PIONEERING

Abstract

Endang Sulistya Rini, Yeni Absah, Isfenti Sadalia

In the shadow of increased number of pharmaceutical small and medium sized enterprise in Indonesia, which has given rise to immense competition, management must constantly provide greater value in order to preserve a competitive position and market share. This study discovers how two noticeable market strategies such as market orientation and market pioneering influence a pharmaceutical SME marketing performance. Specifically, it was scrutinized how market pioneering mediates the interaction between market-oriented dimension and market performance. A questionnaire survey in a purposive sample of 423 top managers from pharmaceutical small and medium sized enterprises, data was analyzed by operating structural equation modeling, statistical analysis
showed that proactive market orientation, responsive market orientation and market sensing capability are significantly related to marketing performance and are crucial to maintain firm performance. This study also spells out that market pioneering mediates orientation drivers (responsive, proactive orientation, sensing capability) and marketing performance. This paper is added in existing literature that provides delivers new insights for market orientation by exploring the inter connection of market performance and market pioneering. It provides broader understanding of market responsive proactivity. It facilitates managers in devising market-oriented strategies.

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