Customer relationship management and value creation as key mediators of female-owned MSMEs’ market performance

Abstract

As a country with high numbers of female entrepreneurs, Indonesia acknowledges that entrepreneurial orientation and marketing orientation are two critical factors that can influence the market performance of a business. This research explores the impact of these two orientations on market performance. To add contribution to this line of research, we incorporate value creation and customer relationship management as mediating variables in their relationship with market performance of MSMEs in West Java, Indonesia. Our questionnaire was distributed to 200 female MSME owners in West Java, Indonesia. We analyzed the data using path analysis with LISREL as an assisting tool. The result suggests that firms with high levels of entrepreneurial orientation tend to achieve superior market performance due to their willingness to take risks and seize new opportunities. Entrepreneurial firms are often more innovative and quick to respond to changes in the market, giving them a competitive advantage over their rivals. Firms that are market-oriented focus on understanding and meeting the needs of their customers, which can lead to higher sales and profitability in the long run.