The Impacts of Business Sustainability Factors on Competitiveness and Marketing Performance: An Exploratory Approach to the Case of Indonesian Micro-, Small, and Medium Enterprises

This study aims to analyze the influence of entrepreneurial marketing, internet marketing, market orientation, and social entrepreneurship orientation on business sustainability, marketing performance, and competitiveness. A total of 235 micro-, small, and medium enterprises (MSMEs) in Jabodetabek and Sukabumi were successfully processed with SmartPLS 3 software to be analyzed using the SEM-PLS two-stage embedded approach. In micro-enterprises (MEs), the results of the analysis show that the variables of internet marketing, market orientation, and social entrepreneurship orientation have a significant positive effect on social aspects. Meanwhile, entrepreneurial marketing has a significant positive effect on environmental aspects. Furthermore, only two aspects of sustainability (economic and social aspects) have a positive effect on competitiveness and marketing performance. In another case with small and medium enterprises (SMEs), the results of the analysis show that variable market orientation has a positive effect on economic aspects and a negative effect on social aspects. While the social entrepreneurship orientation variable has a positive effect on social aspects, it has a negative effect on economic aspects. Furthermore, the economic aspects of SMEs have a positive effect on competitiveness and marketing performance. Environmental aspects have a positive effect on competitiveness, and social aspects affect marketing performance. Finally, competitiveness variables affect the marketing performance of SMEs. In general, it is necessary for the government to differentiate between MEs and SMEs because they have different business capabilities. MEs need a more social approach, while SMEs need a more economic approach in order to support their sustainability aspects.