BARRIERS AND DETERMINANTS OF MARKET ORIENTATION ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES

Abstract The crucial role of Micro, Small, and Medium Enterprises (SME) in the economy is often hindered by various challenges in the implementation of market orientation. This study aims to analyze the influence of barriers and determinants of market orientation on SME performance and to identify factors that affect the effectiveness of market orientation implementation among SME. The research employs a quantitative approach with a survey design, where data were collected through structured questionnaires distributed to respondents selected via stratified random sampling. The analysis results indicate that market orientation has a significant impact on SME performance, with the primary barriers identified being resource constraints, limited access to market information, and managerial capabilities. The findings suggest that SME capable of effectively adopting market orientation tend to exhibit better financial performance and higher levels of customer satisfaction. The study concludes by underscoring the importance of integrating market orientation into SME business strategies to enhance competitiveness and business sustainability. Recommendations for future research include a more in-depth exploration of the role of technology and innovation in supporting market orientation, as well as an analysis of the impact of government policies on SME development.