HOW SMES IMPROVE THEIR PERFORMANCE THROUGH MARKET ORIENTATION AND E-COMMERCE ADOPTION? THE MODERATING ROLE OF O2O CHANNEL ADOPTION

Abstract

Small and medium-sized enterprises (SMEs) are vital to the economy and have the potential to grow and expand to support the expansion of the overall Indonesian economy. Consequently, SMEs must maximize their performance improvements. The study assessed the effect of market orientation on the performance of small and medium-sized firms (SMEs) and the mediating role of e-commerce, which was increased by the use of online-to-offline (O2O) channels. A total of 382 SME respondents participated in the study. The SMEs were selected using processes for purposive sampling, and questionnaires were utilized to collect data. An explanatory research design was employed. The study investigated several hypothesized correlations using the structural equation model (SEM) LISREL for data analysis. This study demonstrates how market orientation, e-commerce adoption, and O2O channel adoption influence the success of small and medium-sized firms (SMEs). Conclusion: To enhance performance, SMEs should adopt and implement market orientation techniques, e-commerce, and O2O channel adoption strategies.