Strategy of Green Polycentric Product Advantage on Marketing Performance of Indonesian MSMEs

Ahmad Hanfan; Ilmiawan Surya Bayuaji; Kiki Luqmanul Hakim; Catur Raharjo Febrayanto

doi:10.59890/ijmbi.v3i6.219

Authors

Ahmad Hanfan Pancasakti University, Tegal
Ilmiawan Surya Bayuaji Regional Planning Development, Research and Development Agency, Brebes Regency
Kiki Luqmanul Hakim Regional Planning Development, Research and Development Agency, Brebes Regency
Catur Raharjo Febrayanto Regional Planning Development, Research and Development Agency, Brebes Regency

DOI:

https://doi.org/10.59890/ijmbi.v3i6.219

Keywords:

Product Development Capabilities, Polycentric Product Imaging Capabilities, Customer Sensing Quality, Green Polycentric Product Advantage, MSME Marketing Performance

Abstract

This research aimed to analyze the mediating effect of green polycentric product advantage on the relationship between product development capabilities and marketing performance of micro, small, and medium enterprises. Green polycentric product advantage is a product advantage strategy that positions environmentally friendly MSME products in the minds of consumers who are oriented toward local products, emphasizing the primary role of local products, local standards, and focusing on environmentally friendly local goals. The method used is a quantitative technique. The sample size comprised 302 salted egg MSMEs in Brebes Regency, Central Java Province. The results of this study confirm the full mediating effect of green polycentric product advantage on the relationship between product development capabilities and marketing performance of MSMEs.

References

Aaker, D. A. (1989). Managing Assets and Skills: The Key to a Sustainable Competitive Advantage. California Management Review, 31(2), 91–101. https://doi.org/https://doi.org/10.2307/41166561

Aftani, K. I. G., Wahyuningsih, S. S., Seftian, A. D., & Aji, A. B. (2022). Ciri Khas dan Keunikan Telur Asin Brebes sebagai Sentra Industri Mikro. Jurnal Bina Desa, 4(2), 165–171. https://doi.org/10.15294/jbd.v4i2.31959

Agarwal, S., Eramilli, M. K., & Dev, C. S. (2003). Market orientation and performance in service firms: role of innovation. Journal of Services Marketing, 17(1), 68–82. https://doi.org/10.1108/08876040310461282

Agusdin, Wulandari, F., & Herman, L. E. (2019). Reassessment of the Entrepreneurship Orientation and Marketing Performance : The Emerging Role of Market Sensing Capability. International Juornal of Economics and Managemen Systems, 4(1), 281–288.

Al-Abdallah, G. M., & Al-Salim, M. I. (2021). Green product innovation and aggressive advantage: an empirical have a look at of chemical industrial plants in Jordanian qualified industrial zones. Benchmarking, 28(8), 2542–2560. https://doi.org/10.1108/BIJ-03-2020-0095

Alpert, F. H., & Kamins, M. A. (1995). An Empirical Investigation of Consumer Memory, Attitude, and Perceptions toward Pioneer and Follower Brands. Journal of Marketing, 59(4), 34. https://doi.org/10.2307/1252326

Andreassen, T. W., & Lindestad, B. (1998). Customer loyalty and complex services. The impact of corporate image on quality, customer satisfaction and loyalty for customers with varying degrees of service expertise. In International Journal of Service Industry Management (Vol. 9, Issue 1). https://doi.org/10.1108/09564239810199923

Ata, S. B., Zehir, C., & Zehir, & S. (2018). The Impact of New Product Development Capability and Market Orientation on the Firm Performance: A Research in Large Scale Enterprises in Turkey. Business Management Dynamics, 8(6), 1–12.

Baker, W. E., & Sinkula, J. M. (2005). Environmental marketing strategy and firm performance: Effects on new product performance and market share. Journal of the Academy of Marketing Science, 33(4), 461–475. https://doi.org/10.1177/0092070305276119

Basuki, K., & Husni, A. N. (2022). The Effect of Digital Marketing and Brand Image on MSME Performance MOI Kelapa Gading Square Moderated Product Quality. … Research and Critics Institute (BIRCI-Journal …, 5(2), 14311–14322. https://www.bircu-journal.com/index.php/birci/article/view/5297

Bauer, K., Krinner, S., Helm, R., & Raabe, K. (2020). Product Development Capabilities: Exploring Mediating and Moderating Links between International Product Adaption and Industrial Manufacturers’ Business Performance. International Journal of Innovation Management, 24(7). https://doi.org/10.1142/S136391962050084X

Bharadwaj, S. G., Varadaraja, P. R., & Fahy, J. (1993). Sustainable Competitive Advantage in Service Industries: A Conceptual Model and Research Propositions. American Marketing Association, 57(4), 83–99. https://doi.org/-

Bonisoli, L., Feijoo, X. E. P., Valarezo, E., & Leyva, K. S. (2024). Green Products: Purchasing Intention, Attitude and Behaviour in the Ecuadorian Market. Revista Brasileira de Marketing, 23(4), 1504–1533. https://doi.org/10.5585/remark.v23i4.24586

Borsatto, J. M. L. S., Bazani, C., & Amui, L. (2020). Environmental regulations, green innovation and performance: An analysis of industrial sector companies from developed countries and emerging countries. Brazilian Business Review, 17(5), 559–578. https://doi.org/10.15728/bbr.2020.17.5.5

BPS. (2022). Badan Pusat Statistik Provinsi Jawa Tengah (- (ed.)). -. https://doi.org/-

Brebes, P. D. K. (1986). Peraturan Daerah Kabupaten Brebes Nomor 8 tahun 1986.

Bryła, P. (2015). The role of appeals to tradition in origin food marketing. A survey among Polish consumers. Appetite, 91(August), 302–310. https://doi.org/10.1016/j.appet.2015.04.056

Campo, S., Díaz, A. M., & Yagüe, M. J. (2014). Hotel innovation and performance in times of crisis. International Journal of Contemporary Hospitality Management, 26(8), 1292–1311. https://doi.org/10.1108/IJCHM-08-2013-0373

Carpenter, G. S., & Nakamoto, K. (1994). Reflections on “Consumer Preference Formation and Pioneering Advantage.” Journal of Marketing Research, 31(4), 570. https://doi.org/10.2307/3151884

Chang, S., Gao, Z., & Gao, Z. (2021). Polycentric Spatial Development Model and Firms’ Export Product Quality Upgrading: Evidence from Chinese manufacturing firms. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3953910

Chen, Y. S., & Chang, C. H. (2013). Enhance environmental commitments and green intangible assets toward green competitive advantages: An analysis of structural equation modeling (SEM). Quality and Quantity, 47(1), 529–543. https://doi.org/10.1007/s11135-011-9535-9

Chen, Y. S., Lai, S. B., & Wen, C. T. (2006). The impact of inexperienced innovation overall performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339. https://doi.org/10.1007/s10551-006-9025-5

ChenHo Chao, M., & Spillan, J. E. (2010). The journey from market orientation to firm performance: A comparative study of US and Taiwanese SMEs. Management Research Review, 33(5), 472–483. https://doi.org/10.1108/01409171011041901

Cooper, R. G. (1994). New Products: The Factors that Drive Success. International Marketing Review, 11(1), 60–76. https://doi.org/10.1108/02651339410057527

Cretu, A. E., & Brodie, R. J. (2007). The influence of brand image and company reputation where manufacturers market to small firms: A customer value perspective. Industrial Marketing Management, 36(2), 230–240. https://doi.org/https://doi.org/10.1016/j.indmarman.2005.08.013

Day, G. S. (2002). Managing the market learning process. Journal of Business & Industrial Marketing, 17(4), 240–252. https://doi.org/10.1108/08858620210431651

De Resende Ribeiro, O. C., & Neto, P. J. S. (2021). Sustainable competitive advantage and green innovation: A review of joint scale propositions. Gestao e Producao, 28(3). https://doi.org/10.1590/1806-9649-2021V28E5669 Diab, O. (2022). The EPG Model in Multinational Companies: The Case of Mazaya. Management Studies and Economic Systems (MSES), 7(2), 17–24.

Drachal, K. (2014). What Do We Know From Eprg Model? Ecoforum Journal, 3(2), 10. http://ecoforumjournal.ro/index.php/eco/article/view/85

Dutta, S., Narasimhan, O., & Rajiv, S. (1999). Success in high-technology markets: Is marketing capability critical? Marketing Science, 18(4), 547–568. https://doi.org/10.1287/mksc.18.4.547

Folinas, D., & Rabi, S. (2012). Estimating advantages of Demand Sensing for patron items organisations. Journal of Database Marketing and Customer Strategy Management, 19(4), 245–261. https://doi.org/10.1057/dbm.2012.22

Geetha, R. (2016). Market orientation in international business. International Journal in Management and Social Science, 04(09), 31–36.

Gil, N., & Pinto, J. K. (2018). Polycentric organizing and performance: A contingency model and evidence from megaproject making plans withinside the UK. Research Policy, 47(4), 717–734. https://doi.org/10.1016/j.respol.2018.02.001

Gong, Y., Xiao, J., Tang, X., & Li, J. (2023). How sustainable advertising affects the client engagement and Sustainable buy intention? The moderating function of company social responsibility. Frontiers in Psychology, 14(March). https://doi.org/10.3389/fpsyg.2023.1128686

Guerrero, L., Guàrdia, M. D., Xicola, J., Verbeke, W., Vanhonacker, F., Zakowska-Biemans, S., Sajdakowska, M., Sulmont-Rossé, C., Issanchou, S., Contel, M., Scalvedi, M. L., Granli, B. S., & Hersleth, M. (2009). Consumer-pushed definition of conventional food products and innovation in traditional foods. A qualitative cross-cultural study. Appetite, 52(2), 345–354. https://doi.org/10.1016/j.appet.2008.11.008

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis. 7. https://doi.org/-

Han, J. K., Kim, N., & Srivastava, R. K. (1998). Market Orientation and Organizational Performance: Is Innovation a Missing Link? Journal of Marketing, 62(4), 30–45. https://doi.org/10.1177/002224299806200403

Hanfan, A. (2021). Product Configuration Capability for Improving Marketing Performance of Small and Medium Metal Industry in Central Java - Indonesia. Jurnal Manajemen Dan Kewirausahaan, 23(2), 138–147. https://doi.org/10.9744/jmk.23.2.138-147

Hanfan, A., Hapsari, I. M., Setiawan, A. I., & Nupus, H. (2023). Building the Religious Product Advantage to Increase Marketing Performance in Indonesia’s Halal Food Industry Membangun Keunggulan Produk Religiusitas untuk Meningkatkan Kinerja Pemasaran pada Industri Makanan Halal Indonesia Abstrak. Jurnal Dinamika Manajemen, 14(2), 191–204. http://jdm.unnes.ac.id

Hanfan, A., & Setiawan, A. I. (2018). Exploiting regio-centric product advantage to increase small and medium enterprises’ (SMEs) marketing performance. International Journal of Economics and Business Administration, 6(2), 3–26.

Helm, R., Krinner, S., & Endres, H. (2020). Exploring the Role of Product Development Capability for Transforming Marketing Intelligence into Firm Performance. Journal of Business-to-Business Marketing, 27(1), 19–40. https://doi.org/10.1080/1051712X.2020.1713562Henard, D. H., & Szymanski, D. M. (2001). Why a few new merchandise are extra a hit than others. Journal of Marketing Research, 38(3), 362–375. https://doi.org/10.1509/jmkr.38.3.362.18861

Hoelter, J. W. (1983). The Analysis of Covariance Structures : Goodness-Of-Fit Indices. Sociological Methods and Research, 11(3), 325–344. https://doi.org/https://doi.org/10.1177/0049124183011003003

Indonesia. (2020). Undang Undang Republik Indonesia Nomor eleven Tahun 2020 Tentang Cipta Kerja. Peraturan.Bpk.Go.Id, 052692, 1–1187.

Kalenjuk Pivarski, B., Šmugović, S., Tekić, D., Ivanović, V., Novaković, A., Tešanović, D., Banjac, M., Đerčan, B., Peulić, T., Mutavdžić, B., Lazarević, J., & Vukelić, N. (2022). Characteristics of Traditional Food Products as a Segment of Sustainable Consumption in Vojvodina’s Hospitality Industry. Sustainability (Switzerland), 14(20), 13553. https://doi.org/10.3390/su142013553

Khristianto, W., Suharyono, S., Pangestuti, E., & Mawardi, M. K. (2021). The Effects of Market Sensing Capability and Information Technology Competency on Innovation and Competitive Advantage. Journal of Asian Finance, Economics and Business, 8(3), 1009–1019. https://doi.org/10.13106/jafeb.2021.vol8.no3.1009

Kiuna, N. W. (2013). The EPRG Model Applied To Kcb Bank Group As a Multinational Corporation.

Kotler, P., Keller, K. L., & Chernev, A. (2022). Marketing Management (- (ed.); 16th ed.). Harlow : Pearson Education. https://doi.org/-

Kotler, P. T., & Armstrong, G. (2020). Principles of Marketing (- (ed.); 18th ed.). Prentice-Hall, Inc. https://doi.org/-

Krush, M. T., Agnihotri, R., Trainor, K. J., & Nowlin, E. L. (2013). Enhancing organizational sensemaking: An examination of the interactive effects of sales capabilities and marketing dashboards. Industrial Marketing Management, 42(5), 824–835. https://doi.org/10.1016/j.indmarman.2013.02.017

Kusuma, I. G. A. T., Tahu, G. P., Widyani, A. A. D., & Langgeng, M. (2022). When A New Product Innovatıon Negatıvely Impacts Marketıng Performance. Asia Pacific Management and Business Application, 011(01), 37–58. https://doi.org/10.21776/ub.apmba.2022.011.01.3

Leonidou, L. C., Leonidou, C. N., Fotiadis, T. A., & Zeriti, A. (2013). Resources and talents as drivers Of motel environmental advertising strategy: Implications for aggressive gain and performance. Tourism Management, 35, 94–110. https://doi.org/10.1016/j.tourman.2012.06.003

Li, T., & Calantone, R. J. (1998). The Impact of Market Knowledge Competence on New Product Advantage: Conceptualization and Empirical Examination. Journal of Marketing, 62(4), 13–29. https://doi.org/10.1177/002224299806200402

Liu, C. M., Lin, K. W., & Huang, C. J. (2014). Effects of product improvement on running performance In fabric industry. Anthropologist, 17(1), 157–163. https://doi.org/10.1080/09720073.2014.11891425

Löfsten, H. (2014). Product innovation procedures and the trade-off among product innovation overall performance and enterprise overall performance. European Journal of Innovation Management, 17(1), 61–84. https://doi.org/10.1108/EJIM-04-2013-0034

Mahmud, M., Aryanto, V. D. W., & Hasyim, H. (2017). The effect of innovation capability and new product development on marketing performance of batik SMEs. Polish Journal of Management Studies, 15(2), 132–141. https://doi.org/10.17512/pjms.2017.15.2.12

Meulen, H. S. Van Der. (2007). A normative definition method for origin food products. Anthropology of Food, S2(6), 406. http://aof.revues.org/document406.html

Michael, X., & Mark, E. (1997). A cross-countrywide comparative observe of latest product improvement processes : Japan and The United States. Journal of Marketing, 61(2), 1–18.

Mulyana, M., & Azka, M. (2022). Market Sensing Capability and Customer Relationship Management on Marketing Performance: Role E-Marketing Strategy. Jurnal Manajemen Indonesia, 22(3), 279. https://doi.org/10.25124/jmi.v22i3.3768

Mulyana, M., Hendar, H., Zulfa, M., & Ratnawati, A. (2020). Marketing Innovativeness on Marketing Performance: Role of Religio-Centric Relational Marketing Strategy. Journal of Relationship Marketing, 19(1), 52–74. https://doi.org/10.1080/15332667.2019.1664869

Nik Abdullah, N. H. (2019). Gaining competitive advantage through new product development capability in Malaysian Government Linked Companies. Indonesian Journal of Economics, Social, and Humanities, 1(1), 37–49. https://doi.org/10.31258/ijesh.1.1.4

Nurudin, N., Muyassarah, M., & Asyifa, L. N. (2021). Competitive Advantage: Influence of Innovativeness, Marketing Sensing Capabilities and Brand Image on Marketing Performance MSE’s. At-Taqaddum, 13(2), 197–212. https://journal.walisongo.ac.id/index.php/attaqaddum/article/view/13380

Nuryakin, N., & Maryati, T. (2022). Do inexperienced innovation and inexperienced aggressive benefit mediate the impact of inexperienced marketing orientation on SMEs’ green marketing performance? Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2065948

Papadas, K. K., Avlonitis, G. J., Carrigan, M., & Piha, L. (2019). The interaction of strategic and internal green marketing orientation on competitive advantage. Journal of Business Research, 104(104), 632–643.

Patala, S., Albareda, L., & Halme, M. (2022). Polycentric Governance of Privately Owned Resources in Circular Economy Systems. Journal of Management Studies, 59(6), 1563–1596. https://doi.org/10.1111/joms.12810

Pätäri, S., Tuppura, A., Toppinen, A., & Korhonen, J. (2016). Global sustainability megaforces in shaping the destiny of The European pulp and paper enterprise toward a bioeconomy. Forest Policy and Economics, 66(May), 38–46. https://doi.org/10.1016/j.forpol.2015.10.009

Perlmutter, H. V. (1969). The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4: 9–18. Columbia Journal of World Business, 4(1), 9–18.

Propheto, A., Kartini, D., Sucherly, & Oesman, Y. M. (2020). Marketing overall performance as implication of logo photograph mediated by trust. Management Science Letters, 10(4), 741–746. https://doi.org/10.5267/j.msl.2019.10.023

Rahayu. (2017). Strategi kapabilitas pemasaran hijau sebagai upaya meningkatkan keunggulan bersaing. Buletin Ekonomi, 15(2), 155–303.

Ramaswami, S. N., Srivastava, R. K., & Bhargava, M. (2009). Market-primarily based totally abilties and monetary overall performance of firms: Insights Into marketing’s contribution to organization value. Journal of the Academy of Marketing Science, 37(2), 97–116. https://doi.org/10.1007/s11747-008-0120-2

Resnick, L. dan M. L. (2001). Selling On Semior Market Requires Education, Commitment, Credibility. National Underwriter Journal, 105(22), 58.

Romadhoni, B. A. (2020). Telur Asin Brebes Dari Sajen Menjadi Kuliner Indonesia. Suara Jawa Tengah, 2–3.

S.Day, G. (1994). The capabilities of market-driven organisation. Journal of Marketing, 58(4), 37–52. https://tutcat.linneanet.fi/cgi-

Samad, A. A., Said, S., Mapparenta, Serang, S., & Hamid, M. (2018). Green Marketing in Small Businesses. Advances in Economics, Business and Management Research, 75, 268–271. https://doi.org/-

Sanz-Cañada, J., Sánchez-Hernández, J. L., & López-García, D. (2023). Reflecting on the Concept of Local Agroecological Food Systems. Land, 12(6), 1–22. https://doi.org/10.3390/land12061147

Sherry, A. (2021). Management Styles of Multinational Corporations and PepsiCo Orientation in the Lebanese Market. Management Studies and Economic Systems, 6(4–3), 101–107. https://doi.org/10.12816/0059998

Smith, J. B., & Barclay, D. W. (1999). Selling companion relationships: The function of interdependence and relative influence. The Journal of Personal Selling & Sales Management, 19(4), 21–40.

Sonnino, R. (2007). Embeddedness in action: Saffron and the making of the neighborhood in southern Tuscany. Agriculture and Human Values, 24(1), 61–74. https://doi.org/10.1007/s10460-006-9036-y

Sulaeman, M., & Kusnandar, H. F. (2020). Establish a Competitive Advantage with Market Sensing Capability, Distinctive Competence and Product Innovation for Performance Marketing and Sustainability Efforts. Journal of Physics: Conference Series, 1477(7). https://doi.org/10.1088/1742-6596/1477/7/072019

Suryani, T., Fauzi, A. A., & Nurhadi, M. (2021). Enhancing emblem photograph withinside the virtual era: Evidence from Small and medium-sized enterprises (smes) in Indonesia. Gadjah Mada International Journal of Business, 23(3), 314–340. https://doi.org/10.22146/gamaijb.51886

Tatiek, N., & Hendar, H. (2021). The Effect of Customer and Competitor Market Sensing Capability on Business Performance of SMEs: An Empirical Study in Indonesia. Journal of Asian Finance, 8(8), 601–0612. https://doi.org/10.13106/jafeb.2021.vol8.no8.0601