Entrepreneurial Orientation and Market Orientation in Business Performance of SMEs: An Exploration of the Impact on E-Commerce Adoption

In the industrial era of 4.0, digital and physical changes are inevitable, as well as for Small and Medium Enterprises (SMEs). The majority of SMEs in Jambi Province have not conducted digital technology as marketing strategy for the expansion of their market share. The purposes of this research were: (1) analyzing the impact of entrepreneurial orientation on SMEs’ business performance, (2) analyzing the influence of market orientation with e-commerce adoption towards SMEs’ business performance (3) interpreting the e-commerce adoption and market orientation impacts on SMEs’ business performance. The research design uses the mix method of qualitative and quantitative. The data was collected in form of primary and secondary data. The data analysis technique used Structural Equation Model (SEM) by using SmartPLS3 program. Samples of this study consist of 250 SMEs who had already used digital e-commerce technology in Jambi Province. The result of data analysis indicated that there was a significant influence of entrepreneurial orientation, market orientation and e-commerce adoption on SME’s business performance in Jambi Province. We believe that entrepreneurial orientation, market orientation and e-commerce adoption model in this study will have positive implication in both managerial and academic aspects.