Vol. 6, Issue 2 (2019)
Factor influencing the marketing performance of Indonesian palm oil companies
Author(s): Ali Yusuf, Lukman Achmad, Fikriah
Abstract: The concept of marketing performance is still not widely studied empirically, especially in the emerging markets such as Indonesia. This study aims to gain a deeper understanding of the relationship between the external business environment, internal business environment, marketing strategy, and marketing performance. This study uses a survey method to obtain data about four variables studied in this study. The sample involved in this study included 112 oil palm companies, located in the North Sumatra province, Indonesia. The main analysis method used in this study is Structural Equation Modeling (SEM) analysis. The results showed that the influence of the external business environment on the marketing strategy and marketing performance was positive and significant. The internal business environment was also found to be positively and significantly impacted on the marketing strategy and marketing performance. The findings of this study add to the knowledge of the simultaneous relationship between the external business environment, internal business environment, marketing strategy, and marketing performance. This finding implies that companies must pay more attention to the three items of the external business environment: the national economic condition, the technological change and development, and competitive conditions as well as three items of the internal business environment: organizational size, financial condition, and human resources.