IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiiiy2020i1p143-152.html
   My bibliography  Save this article

Market Orientation and Value Creation in Improving Business Performance of the Fertilizer Industry in Indonesia

Author

Listed:
  • Indarto Pamoengkas

Abstract

Purpose: This research aims at examining the effect of market orientation and value creation on business performance of the fertilizer industry in Indonesia. Approach/Methodology/Design: This research used observation using time horizon with cross section one shot in year 2018. Unit of analysis in this research is organic fertilizer company or inorganic with company’s management as the observation unit. The survey was conducted to 35 fertilizer companies in Indonesia. Verification analysis was used to measure quantitative data and hypothesis testing by using PLS (Partial Least Square). Findings: The findings showed that market orientation and value creation had a significant influence in improving business performance in the fertilizer industry in Indonesia. In addition, value creation had a greater role than market orientation in improving business performance.. Practical Implications: The result of this research is expected to give implication for business actor of fertilizer industry in Indonesia as an effort to improve its business performance by increasing value creation supported by increasing market orientation. Originality/Value: The result of this research is expected to give implication for business actor of fertilizer industry in Indonesia as an effort to improve its business performance by increasing value creation supported by increasing market orientation.

Suggested Citation

  • Indarto Pamoengkas, 2020. "Market Orientation and Value Creation in Improving Business Performance of the Fertilizer Industry in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 143-152.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:1:p:143-152
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/journal/1567/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M.M. Fonseka & Peng Wang & Muhammad Suhaib Manzoor, 2013. "Impact of human resource slacks on firm performance: Evidence from a developing country," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 31(2), pages 279-306.
    2. Huang, Chi-Jui, 2010. "Corporate governance, corporate social responsibility and corporate performance," Journal of Management & Organization, Cambridge University Press, vol. 16(5), pages 641-655, November.
    3. Ing. Eva Tomaskova, 2009. "The Current Methods of Measurement of Market Orientation," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 135-150.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lucy W. Lu, 2021. "The moderating effect of corporate governance on the relationship between corporate sustainability performance and corporate financial performance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(3), pages 193-206, September.
    2. Chidiebele Innocent Onyali & Chinedu Uchenna Okerekeoti, 2018. "Board Heterogeneity and Corporate Performance of Firms in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 103-117, July.
    3. María del Mar Miras‐Rodríguez & Amalia Carrasco‐Gallego & Bernabé Escobar‐Pérez, 2015. "Are Socially Responsible Behaviors Paid Off Equally? A Cross‐cultural Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(4), pages 237-256, July.
    4. Haifeng Zhang & Zhuo Zhang & Ekaterina Steklova, 2020. "Do Companies Need Financial Flexibility for Sustainable Development?," Sustainability, MDPI, vol. 12(5), pages 1-14, February.
    5. ChungMing Lau & Yuan Lu & Qiang Liang, 2016. "Corporate Social Responsibility in China: A Corporate Governance Approach," Journal of Business Ethics, Springer, vol. 136(1), pages 73-87, June.
    6. Saskia Crucke & Adelien Decramer, 2016. "The Development of a Measurement Instrument for the Organizational Performance of Social Enterprises," Sustainability, MDPI, vol. 8(2), pages 1-30, February.
    7. Gusti O. Widana & Sudarso K. Wirjono & Mustika S. Purwanegara & Mohamad Toha, 2015. "The Role of Business Ethics in the Relationship between Market Orientation and Business performance," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 4(1), pages 95-111, January.
    8. Patrick Velte, 2023. "Which institutional investors drive corporate sustainability? A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 42-71, January.
    9. Carmen Pilar Marti & M. Rosa Rovira‐Val & Lisa G. J. Drescher, 2015. "Are Firms that Contribute to Sustainable Development Better Financially?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(5), pages 305-319, September.
    10. Astrid Rudyanto, 2017. "State Ownership, Family Ownership, and Sustainability Report Quality, The Moderating Role of Board Effectiveness," GATR Journals afr129, Global Academy of Training and Research (GATR) Enterprise.
    11. Yue Vaughan & Yoon Koh, 2023. "Better-connected boards and their influence on corporate social responsibility: Evidence from U.S. restaurant industry," Tourism Economics, , vol. 29(8), pages 2057-2080, December.
    12. Pan, Maomao & Bai, Min & Ren, Xiaoxiao, 2022. "Does internet convergence improve manufacturing enterprises’ competitive advantage? Empirical research based on the mediation effect model," Technology in Society, Elsevier, vol. 69(C).
    13. Cuadrado Ballesteros, Beatriz & García Rubio, Raquel & Martínez Ferrero, Jennifer, 2015. "Efecto de la composición del consejo de administración en las prácticas de responsabilidad social corporativa," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 18(1), pages 20-31.
    14. Elif Akben-Selcuk, 2019. "Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey," Sustainability, MDPI, vol. 11(13), pages 1-10, July.
    15. Kurniawan, Putu Sukma, 2018. "Factors Affecting Company’S Capability In Performing Integrated Reporting: An Empirical Evidence From Indonesian Companies," INA-Rxiv xrcbe, Center for Open Science.
    16. Nikolić Jelena & Zlatanović Dejana, 2018. "Corporate Governance and Corporate Social Responsibility Synergies: A Systemic Approach," Naše gospodarstvo/Our economy, Sciendo, vol. 64(3), pages 36-46, September.
    17. Andreea Barbu & Gheorghe Militaru & Dana Corina Deselnicu & Ştefan-Alexandru Catană, 2021. "Key Success Factors That Enable IT Service Providers to Achieve Organizational Performance: Evidence from Romania," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    18. Isabel‐María García‐Sánchez & Jennifer Martínez‐Ferrero & Emma García‐Meca, 2018. "Board of Directors and CSR in Banking: The Moderating Role of Bank Regulation and Investor Protection Strength," Australian Accounting Review, CPA Australia, vol. 28(3), pages 428-445, September.
    19. Wei Wei & Ryan W. Tang & Jing Yu Yang, 2018. "Independent directors in Asian firms: An integrative review and future directions," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 671-696, September.
    20. Eduardo Ortas & Igor Álvarez & Eugenio Zubeltzu, 2017. "Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis," Sustainability, MDPI, vol. 9(6), pages 1-26, June.

    More about this item

    Keywords

    Market orientation; value creation; business performance; fertilizer industry.;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiii:y:2020:i:1:p:143-152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.