The effect of mixed marketing moderation and innovation on the influence of market orientation and entrepreneurship orientation toward marketing performance

Article history: Received: July 20, 2020 Received in revised format: September 1


Introduction
Small and medium businesses (SMEs) are independent businesses by person or individual and have strategic role to drive economic cycle of nation, while there is an impression as if disregarding their existences due to lack of human resources, capital and development (Tambunan, 2005;Chong et al., 2019). Small and medium businesses (SMEs) are also the most effective way to introduce indigenous products in national and international forums. These products prioritize quality over quantity that lead small and medium businesses (SMEs) to be more exclusive than mass-produced products so that small and medium enterprises (SMEs) products are approved by international community (Tran & Nguyen, 2019). On the other hand, the employment is less than mass industries. SMEs usually have teens to tens of workers, also better to meet a demand of workers' rights, such as pay their wages. Given the fact that many contributions of SMEs to the nation's economy, SMEs supposed to accept attention better (Xuan et al., 2020). Central Java is one of the provinces that pays attention to SMEs since 2015, there were 107,535 unit with 685,147 workers (isknew.jateng.com). Every year the provincial government pays attention to the SMEs growth rate so that it improves up to 10.29 percent. It is higher than SMEs in nationwide. Central Bureau of Statistics in Central Java released that during the last 10 years until 2018, the number of businesses in Central Java are up to 13.06 percent. There are 4.17 million businesses that are grouped into 15 categories of business sectors. There are 4.13 million companies or 98.98 percent are micro small businesses (MSEs), while 42.48 thousand companies or 1.02 percent are medium and large businesses. The SMEs growth in Central Java has triggered other provinces to develop SMEs and MSMEs to become the economic agent in Indonesia. It is supported by Bank Indonesia's statement that MSMEs as business is developing significantly. Those statements are the evidence of MSMEs growth rate in Indonesia: Based on the description of the graph above, it is explained that MSMEs growth rate in Indonesia rise significantly. Large businesses grow significantly. Improvement and growth of MSMEs in Indonesia generally happened due to government stimulation so that MSMEs get attention and reduce unemployment. In 2017, large business from 41.95 percent decline to 40.92 percent with 1.03 percent reduction, medium businesses from 13.46 percent up to 13.59 percent with 0.13 percent upgrading, small businesses from 9.94 up to 9.68 percent or decline to 0.26 percent while micro businesses from 34.64 percent, up to 38.81 percent (Kurniawati & Yuliando, 2015). Based on the rank of MSME growth in Indonesia, generally it will affect MSME performance. What people usually pay attention to is marketing performance improvement. Marketing performance is very important since SMEs focus on the results. Marketing performance is general factor and has an impact on marketing strategies of company. Another thing that makes marketing performance more meaningful due to Small and Medium Enterprises (SMEs) are independent businesses with independent management and limited resources. The success of resource management will impact on improving marketing performance. Based on the results of surveys and calculations of Central Bureau of Statistics thatn SMEs contribution to Indonesia's GDP continues to rise every year, including Small and Medium Enterprises (SMEs) in Kudus. In Kudus, regional government has provided facilities to business owners, such as Small and Medium Enterprises (SMES) that have been registered to the Department of Industry, Trade and Cooperatives. The policy has been welcomed by small business owners so that it is expected to improve competitiveness among them. One of sectors to promote is the food and beverage sector (Idrus et al., 2020). Food and beverage sector is a sector with fine growth rate is, then followed by indigeneous products based on local wisdom so that it cannot be found in other regions beside Kudus with raw materials in Kudus and cannot found in other places (Berry et al., 2001). Researchers have interest to have research on the Small and Medium Enterprises in the food and beverage sector since there were researchers who already research about processing/manufacturing. Moreover, the food and beverage sector is unique since its raw materials and specifications cannot be found in other place beside Kudus with fine MSME growth rate. This following is the information about small and medium businesses (SMEs) in food and beverages. Based on the results of Table 1, it is explained that growth level of SMEs in Kudus is very significant, up to 422 businesses in the food sector, 93 of them are businesses in the beverage category with bottled water and processed ones. Based on the research background, it is necessary to develop research on the influence of market orientation and entrepreneurship orientation on marketing performance with innovation and mixed marketingas intervening. The objective of this study is to describe market orientation, entrepreneurship orientation, innovation, mixed marketingand marketing performance. Analyzing the effect of market orientation and entrepreneurship orientation on innovation, Analyzing the influence of market orientation and entrepreneurship orientation on the mixed marketing. Analyzing the effect of market orientation and entrepreneurship orientation on marketing performance. Analyzing the effect of innovation and mixed marketing on marketing performance. Analyzing the effect of market orientation and entrepreneurship orientation on marketing performance through innovation. Analyzing the effect of market orientation and entrepreneurship orientation on marketing performance through mixed marketing.

Methodology
This study is a causality descriptive study used to have clarity of correlation and the influence of cause and effect among variables. The analysis technique used is descriptive statistics namely the analysis of the frequency distribution  Hair et al. (2016) statement that the sample size for SEM analysis is 10, 20 or 30 percent of the population.

Results and discussion
The respondents filled out questionnaire that consist of parts, such as sex, age, location of business, duration of business/operation. The results of the respondents' answers were 78 males and 77 females. The age of major respondent is above 30 years. The duration of business operation in religious tourism is mostly over 2 years. The validity of this study is the moment product validity. As the result, the calculated r value was greater than the value of r table for n=185, α=5% was 0.143, it can be concluded that all research instruments were valid and the research instrument was measurable. The reliability test shows alpha Cronbach value of 0.719, entrepreneurship orientation of 0.745, innovation of 0.761, mixed marketing of 0.739 and marketing performance of 0.720. These results indicate Cronbach alpha of all variables in this study is more than 0.600 and all research instruments are reliable. SEM assumption test is done before testing the overall model. SEM assumption test conducted includes: Testing of normality, Evaluation of outlier, Evaluation of Multicollinearity. Evaluation of normality is done by using the criterion ratio of skewness value of ± 2.58 at significance level of 0.01. The data has a normal distribution if the critical ratio skewness value is below the absolute price of 2.58. The analysis results for the normality test are shown in Table 2 below: Based on the critical ratio skewness value, all indicators show a normal distribution because the value is below 2.58, while the multivariate normality test has CR value of 0.640. Therefore, multivariate is normally distributed. Outliers are observational conditions of data that have unique characteristics to find differences with other observations and have extreme values, both for single variable or combination variables (Hair et al., 2012(Hair et al., , 2013. The detection of outliers is done by look at the value of Mahalanobis distance (Hair et al., 2016). The criteria based on the Chi-Square value with degree of freedom of 95 means the number of indicator variables at the significance level of p < 0.001. Mahalonabis value of distance X2 (95, 0.001) = 143.34354, which means no value that exceeds mahalanobis. Mahalanobis Distance results can be seen in Table 3. Multicollinearity can be seen through the determinant of covariance matrix. Based on the results of data processing, the determinant value of sample covariance matrix is 0.265. It indicates that the determinant value of sample covariance matrix is far from zero. Thus, the research data does not have multicollinearity and singularity so that the data is appropriate to use. The results of SEM assuming have no problems of normality, outliers and multicollinearity, it means eligible for structural equation model piloted by using AMOS (Analysis of Moment Structure). The SEM analysis results with the AMOS program are as follows.

Fig. 2. The Results of Structural Equation Model
The results of overall model analysis in this study were compared with the Cut-off value of each goodness of fit index criteria presented in Table 4. The structural model test results above show the criteria for goodness of fit for chi-square, significance probability, CMIN / DF, RMSEA, TLI and GFI meet the requirements so the structural equation model is fit. After model compatibility test, then loading factor analysis is conducted. The analysis on each indicator variable is to make sure whether or not the indicator variable is able to form and operate variables. Test of market orientation variables factor quality with the loading factor probability on each indicator. The results are presented on the next page of Table 5:  Table 5 shows the value of each indicator has met the convergent validity above 0.50, the results are that the indicators forming latent variables are significantly an indicator of the latent factors that are formed. The factor loading value shows the customer orientation indicator has the highest contribution to explain the market orientation variable with value of 0.925, then coordination between functions with value of 0.887, also being competitor's orientation with value of 0.833. Significant test of the quality factor of entrepreneurship orientation variables is conducted with factor loading probability on each indicator. The results are presented in Table 6.  Table 6 shows the value of each indicator has met convergent validity above 0.50, the results are that the indicators forming latent variables significantly an indicator of the latent factors that are formed. The factor loading value shows that the proactive indicator has the highest contribution to explain the entrepreneurship orientation variable with value of 0.895, then a risk taker with value of 0.889, also competitive with value of 0.887 and impressive with value of 0.817. Significance test of quality factor of innovation variables with probability factor loading on each indicator. The results are presented in Table 7:  Table 7 shows the value of each indicator to meet convergent validity above 0.50, the results show that the indicators forming latent variables are significantly indicators of the latent factors that are formed. The factor loading value shows the incremental indicator has the highest contribution to explain the innovation variable with value of 0.939, next is risk taking with value of 0.840. Test the significance of quality factor in mixed marketing variable with factor loading probability on each indicator. The results of the analysis are presented in Table 8:  Table 8 shows the value of each indicator to meet convergent validity above 0.50 and explains that the indicators forming latent variables are significantly indicators of the latent factors that are formed. The factor loading value indicates the promotion indicator has the highest contribution to explain the mixed marketing variable with value of 0.931, next is order prices with value of 0.882, also place with a value of 0.840 and products with value of 0.813. Significance test of the quality factor of marketing performance variables with factor loading probability on each indicator. The results of the analysis are presented in Table 9:  Table 9 shows the value of each indicator with convergent validity above 0.50, the results explain that the indicators forming latent variables are significantly indicators of the latent factors that are formed. The factor loading value shows the indicator of sales growth has the highest contribution to explain the marketing performance variable with value of 0.915, next is the profit with value of 0.913 and market share with value of 0.799. Based on the findings, a structural equation is then compiled based on the output standardized regression weight in this following table.  Table 10 presents the result of standardized regression weights of market orientation and entrepreneurship orientation towards innovation. The coefficient of influence on innovation comes from market orientation and entrepreneurship orientation. The results are 0.410 and 0.476. As a conclusion, market orientation and entrepreneurship orientation impact on innovation. Entrepreneurship is the most influential variable on innovation. Market orientation and entrepreneurship orientation towards the mixed marketing. The coefficient of influence on mixed marketing comes from the market orientation and entrepreneurship orientation. The results are 0.573 and 0.256. Therefore, market orientation and entrepreneurship orientation impact on the mixed marketing. Market orientation variable has the highest influence on the mixed marketing. Market orientation and entrepreneurship orientation towards marketing performance. The coefficient of influence on marketing performance comes from market orientation and entrepreneurship orientation. The results are 0.248 and 0.254. Therefore, market orientation and entrepreneurship orientation impact on marketing performance. Entrepreneurship is the most influential variable on marketing performance. Marketing innovation and mix on marketing performance. The coefficient of influence on marketing performance comes from innovation and mixed marketing. The results are 0.251 and 0.192. As conclusion, innovation and mixed marketing impact on marketing performance. The most influential innovation variable on marketing performance. The hypothesis test of this study is testing the proposed research hypothesis. The hypothesis testing is based on research data processing by SEM analysis, analyzing the value of regression and results of parameter coefficient output. This following are the results of testing the research hypothesis. Based on Table 11, it shows that the market orientation and entrepreneurship orientation variables have CR value greater than 2 and p-value ≤ 0.05 that is equal to 0.000 and 0.000. Standardized Regression Weight Results market orientation of 0.410 and entrepreneurship orientation of 0.476. Based on the data above shows that entrepreneurship orientation has dominant impact on innovation. Therefore, market orientation and entrepreneurship orientation variables have significant effect on innovation, and statistically the First Hypothesis is acceptable. Based on Table 12, it shows that the market orientation and entrepreneurship orientation variables have CR value greater than 2 and p-value ≤ 0.05 that is equal to 0.000 and 0.000. Standardized Regression Weight Results market orientation of 0.256 and entrepreneurship orientation of 0.537. It means that entrepreneurship orientation has a dominant influence on mixed marketing. Therefore, the market orientation and entrepreneurship orientation variables have significant effect on the mixed marketing, and statistically the second hypothesis is acceptable. Based on Table 13, it shows that the market orientation and entrepreneurship orientation variables have CR value greater than 2 and p-value ≤ 0.05 which is equal to 0.000 and 0.002. Standardized Regression Weight Results market orientation of 0.248 and entrepreneurship orientation of 0.254. It means that entrepreneurship orientation has a dominant influence on marketing performance. Therefore, the market orientation and entrepreneurship orientation variables have significant impact on marketing performance, and statistically the third hypothesis is acceptable. Based on Table 14, it shows that the innovation and mixed marketing variables have CR value greater than 2 and p-value ≤ 0.05 which is 0.008 and 0.019. The results of the Standardized Regression Weight of innovation are 0.251 and the mixed marketing is 0.254. As conclusion, the mixed marketing has dominant influence on marketing performance. It means that innovation and mixed marketing have significant impact on marketing performance, and statistically the fourth hypothesis is acceptable. In Table 15, based on the Standardized Regression Weight data, the total effect is greater than the direct effect, such as; 1) The effect of total market orientation on marketing performance through innovation is 0.350 with direct influence of 0.248. The market orientation on marketing performance through innovation has significant impact.
2) The effect of total entrepreneurship orientation on marketing performance through innovation is 0.373 with direct influence of 0.254. entrepreneurship orientation on marketing performance through innovation has significant impact. In Table 16, based on the Standardized Regression Weight data, the total effect is greater than the direct effect, such as; 1) The effect of total market orientation on marketing performance through the mixed marketing is 0.305 with direct influence of 0.248. The market orientation on marketing performance through mixed marketing has significant impact.
2) The effect of total entrepreneurship orientation on marketing performance through the mixed marketing is 0.357 with direct influence of 0.254. The entrepreneurship orientation towards marketing performance through the mixed marketing has significant impact.

Conclusion
Based on the discussion above, the conclusion of this research, (1) Market orientation that implement on customer orientation, competitor orientation and coordination of functions can improve innovation for food and beverage SMEs in the Religious Tourism in Kudus. The competitors' role has broad market segment that contributes most to innovation, so the encouragement to continuously improve for SMEs is needed. Meanwhile, innovation test by using incremental and radical indicators. Incremental is the encouragement to make changes on products and make continuous improvements. On the other hand, radical indicator means SMEs focus more on making changes generally and often making changes. Therefore, market orientation can influence on innovation significantly; (2) Entrepreneurship orientation successfully influences innovation. Entrepreneurship orientation using proactive indicators, dare to take risks, competitive and aggressive to explain incremental and radical. The statement of quick respond to changes in strategy by competitors becomes the most dominant influence on encouragement of continuous changes. It means that SMEs have the spirit to change with response from competitors as a consideration; (3) Market orientation that implement on customer orientation, competitor orientation and coordination among functions can improve the mixed marketing for food and beverage SMEs of Religious Tourism in Kudus. The role of competitors to have a wide market segment contributes most to the mixed marketing, so the encouragement to continuously improve is needed. Meanwhile, the mixed marketing is measured by product, price, place and promotion indicators; (4) Entrepreneurship orientation that implement on proactivity, dare to take risks, competitive and aggressive. The role of entrepreneurship orientation with risk taking indicator in a statement of dare to enter a new market actually the most dominant or strong role for continuous promotion. Quickly respond towards strategy changes of competitors. Be proactive towards the development of competitors and flexible in negotiation with customers; (5) The results of market orientation affect marketing performance such as customer orientation, competitor orientation and coordination among functions. The most dominant role is customer orientation statements, next is competitor orientation and coordination among functions. Customer orientation indicates the strong correlation between sales and profit growth. Therefore, the stronger customer orientation, the more it will support sales growth; (6) Entrepreneurship orientation is impalement on being proactive, risk-taking, competitive and aggressive. Proactive is a response to quickly respond towards strategy changes of competitors. Proactive means the ability to unravel sales improvement monthly; (7) Innovations based on incremental with the encouragement to make product changes and make continuous improvements as the most dominant value. It means that in order to compete with competitors, it is necessary to make continuous improvements. Moreover, there is also radical with making changes generally to get high scores or the most dominant rather than frequently making changes; (7) Mixed marketing with product, price, place and promotion indicators by holy foods and beverages easily have, competitive prices based on quality, representative place and continuous promotion. The most dominant thing is continuous promotion so that it rises sales, profits continuously and expand the marketing network by product opportunities; (8) Market orientation implement on the competition to meet customers advocacy. In other words, it means the opportunity to recognize customers and competitors' movement. Market orientation can be seen from customer orientation, competitor orientation and coordination among functions. Basically, the customer orientation is a priority to make customers do not use other products. The support of customer orientation through understanding customer advocacy for business existence is very dominant rather than competitors who have broad market segments (9) Entrepreneurship orientation implement on proactive, risk-taking, competitive and aggressive indicators. Quickly respond towards strategy changes of competitors is the most dominant influence. It means competitors' strategies need to be considered, because they can be used as a reference to create new strategies. Being proactive towards the development of competitors means that proactive attitude for SMEs especially those in Religious Tourism can contribute to marketing performance. Encourage to develop new products is needed to ensure sales results. As conclusion, ensuring sales results to improve and progress will show the marketing performance improvement.