DESIGNING ARCHITECTURAL MARKETING CAPABILITIES TO INCREASE THE PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES

ABSTRACT This study aims to examine the relationship between the components of market orientation, i.e., customer orientation, competitor orientation, inter-functional coordination, architectural marketing capabilities and business performance. Researchers have been trying to find a solution for the gap that exists between market orientation and business performance. The respondents of this study were the owners or heads of 358 SMEs located in Central Java, Indonesia. This study used structural equation modeling (SEM) for data analysis. The results showed that customer orientation (CSO), competitor orientation (CO), and inter-functional coordination (IC) have a significant effect on architectural marketing capabilities (AMC) and business performance (BP), and that AMC also has a significant effect on business performance. Furthermore, architectural marketing capabilities can mediate the relationship between customer orientation, competitor orientation, inter-functional coordination and business performance.