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Market Orientation and Value Creation in Improving Business Performance of the Fertilizer Industry in Indonesia

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  • Indarto Pamoengkas

Abstract

Purpose: This research aims at examining the effect of market orientation and value creation on business performance of the fertilizer industry in Indonesia. Approach/Methodology/Design: This research used observation using time horizon with cross section one shot in year 2018. Unit of analysis in this research is organic fertilizer company or inorganic with company’s management as the observation unit. The survey was conducted to 35 fertilizer companies in Indonesia. Verification analysis was used to measure quantitative data and hypothesis testing by using PLS (Partial Least Square). Findings: The findings showed that market orientation and value creation had a significant influence in improving business performance in the fertilizer industry in Indonesia. In addition, value creation had a greater role than market orientation in improving business performance.. Practical Implications: The result of this research is expected to give implication for business actor of fertilizer industry in Indonesia as an effort to improve its business performance by increasing value creation supported by increasing market orientation. Originality/Value: The result of this research is expected to give implication for business actor of fertilizer industry in Indonesia as an effort to improve its business performance by increasing value creation supported by increasing market orientation.

Suggested Citation

  • Indarto Pamoengkas, 2020. "Market Orientation and Value Creation in Improving Business Performance of the Fertilizer Industry in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 143-152.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:1:p:143-152
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    References listed on IDEAS

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    1. M.M. Fonseka & Peng Wang & Muhammad Suhaib Manzoor, 2013. "Impact of human resource slacks on firm performance: Evidence from a developing country," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 31(2), pages 279-306.
    2. Huang, Chi-Jui, 2010. "Corporate governance, corporate social responsibility and corporate performance," Journal of Management & Organization, Cambridge University Press, vol. 16(5), pages 641-655, November.
    3. Ing. Eva Tomaskova, 2009. "The Current Methods of Measurement of Market Orientation," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 135-150.
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    More about this item

    Keywords

    Market orientation; value creation; business performance; fertilizer industry.;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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