Market orientation and business performance: the mediating role of total quality management and service innovation among Moslem fashion macro, small and medium enterprises in Indonesia

Abstract

Purpose The purpose of this study is to see the effect of market orientation (MO) on business performance with two intervening variables, namely, service innovation and total quality management (TQM) with Muslim fashion micro, small, and medium enterprises as the object of research. Design/methodology/approach This study uses a quantitative approach with structural equation modelling-partial least square analysis techniques. Date were collected using an online questionnaire that got 100 respondents. The respondents of this research are the owner, manager, human resource development, chief financial officer and chief operating officer of a business that is engaged in Muslim fashion. Findings This study found that MO has an effect on business performance either directly or through mediating variables, namely, service innovation and TQM. Research limitations/implications This study only focuses on the Muslim fashion business and does not pay attention to businesses operating in other sectors. Practical implications The results of the study highlight the need for Muslim fashion business owners/managers to pay more attention to customer feedback. This is by adopting modern ways of communicating, providing training for employees and starting to join the Muslim fashion business community. These things need to be highlighted because in the items measured, they get the smallest mean among other items that are in the same variable. Originality/value To the best of the authors’ knowledge, this research is the first to find out the effect of MO on business performance using mediating variables, namely, service innovation and TQM.