Open Access
American Research Journal of Business and Management
ISSN (Online): 2379-1047
DOI: 10.46568/arjbm
The Effects of Strategic Orientation, Technology Innovation, and Business Strategy in Improving Business Performance of Sme of Fashion Industry in Jakarta
Abstract
Small and Medium Enterprise (SME) plays a key role in actualizing the Indonesian economic
growth. Job opportunities, tax contribution, export business, and import revenue facilitate the distribution
of commodities and help develop the human resources. This research aims to unveil the effects of strategic
orientation, technology innovation, and business strategy in improving business performance of SME of fashion
industry in Jakarta. The data was collected from questionnaires distributed to 250 respondents. The data was
analyzed with structural equation modeling (SEM) and processed with LISREL 8.8. The result of this research
proves that strategic orientation plays a positive in business strategy. Based on such finding, it is concluded
that ways to sustain and increase the effectivity of strategic orientation are to collect information regarding
customers’ needs and desires, to agree upon a commitment from all decision makers and employees to satisfy
customers, and to improve business performance. By technology innovation, old-design products can have
new designs which meet the market’s expectation and are qualified. Also, the process innovation is effective
to make business performance even better. Business strategy has to assure the ability of fast-handling in order
to improve business performance, especially in tough situation such as internal and external threats. For every
sold unit, business performance will improve.
