The Effect of Market Orientation, Entrepreneurship Orientation, and Imitation Strategy on Competitive Advantage (Study on SME of Leather Bag and Suitcase in East Java)

Abstract

This study is intended to examine and analyze the effect of market orientation, entrepreneurship orientation, and imitation strategy on the competitive advantage of SME of leather bags and suitcases in East Java.

The study population is all members of 515 people of SME of leather bags and suitcases in East Java. The locations

are spread in Sidoarjo, Mojokerto Mojokerto city, Magetan and Malang. The sample calculation uses Slovin’s formula with the calculation result of 180 samples. The data are analyzed by using the Structural Equa- tion Modeling with the help of AMOS 20 software. The results show that market orientation, entrepreneurship orientation, and imitation strategy have a positive and significant impact on the competitive advantage of SME of leather bags and suitcases in East Java. The higher the market orientation is, the stronger the entrepreneurship

orientation, and the better the imitation strategy are. Thus the competitive advantage of SME of leather bags and suitcases in East Java is also higher.