A MODEL OF MIXED STRATEGIC ORIENTATIONS BASED ON ENVIRONMENT IN ACHIEVING ATOUGH PERFORMANCE OF SMEs

This study aims to design a model in achieving superior performance of MSMEs. The mixed strategic orientations of demography, economy and cultural values are used to design this model. The population of this study consists offood MSMEs in Central Java. The 750 samples are chosen with convenient sampling technique. Data analysis method used the Crosstab Analysis and Structural Equation Model (SEM). The result of this research is a model explaining that demography, economy and cultural values influence antecedent variables of customer orientation, dimension of strategic orientations and organizational performance. The antecedent variables affect customer orientation; the dimension of strategic orientations affects performance; Variable of change of capacity unmoderated customer and competitor orientations on innovation orientation. Variable of competitive advantage unmediated customerand competitor orientations on performance.


Introduction
The development success in Indonesia isdominated more by material and quantitative measures. As a result, the development even creates inequality among community groups and regions. The Progress that occurs is not rooted in culture, so that, in turn, this can fade away the identity of the nation. Any advances which are based on technologies and economies generally exploit natural resources. This will, inevitably, cause worries in the future. The development of the Indonesian nation has low resilience to anticipate various changes. Some Indonesians tend have individualistic behavior and like to use natural resources unwisely. This, then, generates an exclusive economy. Indonesia cannot get out of the political-economic traps that makeit become a consumer nation. Overcoming this problem needs a strategic developmentthat directly touches the lower and middle class societies that are developing micro, small and medium enterprisesthat are often termed SMEs. This research is trying to formulate a comprehensive model that can be applied to solve the economic problems of MSMEs in Indonesia.
In searching the national and international scientific journals the researchers find there are six models that can be used to improve the quality of MSMEs, but these are in fact not comprehensive. On this occasion the researchers try to formulate a comprehensive model. Model 1 isperformance improvement with strategic orientation of customer. This model states that improving the quality of SMEs can be done by applying the customer orientation (Zehir&Acar 2011). The antecedent variableof customer orientation consists of entrepreneurial orientation, marketing-based reward system and learning orientation (Basile, 2012;Aljaz, 2012).. Model 2 is Modeling (SEM).The results the Crosstab analysis is used to know the influence of demographic environment, economic and cultural values variables on antecedent variables of customer orientation, independent variable and dependent variable. Analysis of Structural Equation Modeling (SEM) indicate the effect degree of independent variable on dependent variable, the role of change orientation variable as a mediation variable and competitiveness variable as a mediation variable.

Results
The result of Crosstab analysis between demographic, economic,cultural value variables and orientation variables of entrepreneur, reward and learningis presented in Table 1

Source: Primary data processed in 2018
Based on the analysis results presented in Table 1 can be said demographic, economi, cultural values have positive and significant influence on Variable orientation intreprenour, Variable orientation reward, learning. Crosstab analysis result between demographic, economic, cultural values variables and orientatonvariables of customer, competitor and innovationis presented in Table 2 as follows:

Source: Primary data processed in 2018
Based on the results of the analysis presented in Table 2, it can be said that demographic, economy, cultural values have significant positive effect on customer Variable orientation, competitor variable orientation, and innovation.The result of Crosstab analysis between demographic, economic, cultural values variables, and Orientation Variables of change, Competitive excellence, performance is presented in Table 3 as follows:

Source: Primary data processed in 2018
Based on the results of the analysis presented in Table 3 it can be said that the variables Demographic, Economy, Cultural Values have positively and significantly affect the change of Capasity organizational, Competitive Advantage and Performance

Structural Equation Modeling (SEM) Analysis
The result of feasibility test of SEM model shows that the model in this research is fit. The most important things in this feasibility test are Chi square and probability. Chi square should be small and this result proves so, that is 1362.72. Probability should be ≥ 0.05, and the result in this research is 0.184. Consequently, the model of this research is fit.
The result of SEM analysis of the Effect of Entrepreneurship,marketing-based reward and learning orientations on Customer Orientation is presented with CR and P values in Table 5

Source: Primary data processed in 2018
The SEM analysis result ofthe influence of customer, competitor,and learning on orientation. The SEM analysis resultof the Influence of customer and competitor orientation on innovation orientation is presented with CR and P value in Table 6 as follows:

Source: Primary data processed in 2018
The SEM analysis result onthe influence of Strategic orientation Customer, Strategic orientation Competitor, on Strategic orientation of Innovation. The SEM analysis result of Organizational change of capabilities moderate the effect of customer orientation and customer orientation on innovation is presented with CR and P value in Table 7 as follows: Source: Primary data processed in 2018  The magnitude of the influence of competitor orientation without the ability of organizational change > from the influence after the existing organizational change capability means that the ability of organizational change does not moderate. The strategy of competitor orientation in the orientation of innovation

Source: Primary data processed in 2018
Based on Table 8 it can be argued that customer and competitive orientation strategies have a positive and significant effect on competitive advantage. Competitive advantage strategy influences performance of MSMEs Table 9 The Influence of Competitive Advantage Competes on Performance

Source: Primary data processed in 2018
Based on Table 9 it can be said that competitive advantage positively and significantly influence on performance The SEM analysis result of the Influence of customer and competitor orientations on performance mediated by competitive advantage with CR and P value is presented in Table 10.

Source: Primary data processed in 2018
Based on Table 10 can be said customer orientation strategy and competitor orientation strategy have a significant positive effect on performance.
The SEM analysis result of the Influence of customer, competitor, Competitive Advantage Orientationson Performance is presented with CR and P values in Table 11 (2009); Gravenhost et al. (2010) which state that organizational change ability influences innovation orientation, the stronger the organizational change ability is, the higher the orientation of innovation will be; and the weaker the organizational change ability is, the lower the orientation of innovation will be. The change of strategic orientation immoderate the influence of customer and competitor strategic orientations on innovation strategic orientation.The capability of organizational change is an independent variable of innovation orientation variables. Customer and competitor strategic orientations affect the competitive advantage.
The results of this study indicate that the strategy of customer and competitor orientation positively and significantly influence on competitive advantage. The higher level of customer and competitor orientation will lead to higher competitive advantage. These results are in line with the research (Grawe, 2009;Lewrick 1, Omar2 & Robert, 2011), suggesting market orientation influences competitive advantage. The results of this study are in line with research by Jhonson et al. (2009) the results of his research stated that customer orientation influences the competitive advantage of manufacturing companies. These results are indeed logical, businesses that have many customers, can satisfy customers, paying close attention to customers, considering competitors, out perform competitors will have competitive advantage. So competitive advantage can be improved by improving customer and competitor orientation strategy.
The Competitive advantage strategy influences SMEs' performance. This study shows the result that competitive advantage positively and significantly affects Performance. This result is consistent with the results of researches byAna et al. (2011); Francesco & r.(2011) stating that competitive advantage consists of product and market advantages, both of which affect performance.Thus Competitive advantage strategy influences MSMEs' performance. The higher the level of competitive advantage then the performance of MSMEs will be higher. These results are very logical, SMEs that have a high competitive advantage level has a high level of performance. Performance levels can be improved by increasing the competitive advantage. SMEs that have a high competitive advantage will have a good performance.
The strategy of competitive advantage unmediates thestrategic orientations ofcustomerand competitor on the performance of MSMEs.The result of this study indicates the competitive advantage unmediates customer and competitor strategic orientation on performance. This result contradict the research of Luke and Ferrell (2009), which states that customer and competitor orientations have no effect on new product development, but improve performance. Cost competitive advantages in the process and the use of machines affect performance (Ana et al., 2011;Francesco & r, 2011). Competitive advantage does not mediate the effect of customer orientation on organizational performance but only as an inherent variable of organizational performance Competitive advantage strategy unmediates customerand competitor orientations on performance. Customer, and competitor orientations should increase Performance SMEs. Customer and competitor orientations that do not increase competitive advantage will not improve performance. The orientations of customer, and competitor that do not increase competitive advantage may not be in accordance with the customers'will or the competitors'

Conclusion
The Model of Mixed Strategic Orientations Based on Environment in Achieving aTough Performance of MSMEs is designed based on: Demographic environment consists of gender, age, education and experience; Economic environment consists of impact, price, income and government; Cultural value environment consists of Javanese, Chinese and Padang cultural values;Antecedent Variable oriented on customer consists of entrepreneurship, Reward and learning orientations.
The mixed strategic orientations consist of customer, competitor, innovation, change and competitive advantage orientations. Environmental variables affect the antecedent variables of customer orientation, mixed strategic orientations and performance. The mixed strategic orientations influence positively and significantly on performance. Change orientation variable moderates the effects of customer and competitor orientations on innovation orientation. Variable of competitive advantage mediates the orientations of customer, competitor and innovation on performance

Limitation
This research is conducted with population and sample of food MSMEs in Central Java, so the use of the model is still limited in the case of food SMEs. This model is not suitable for MSMEs clothing or other business sectors.

Recommendation
The future researchers can use different populations, samples or sampling methods, for example the research including samples of clothing business, and using purposive sampling method.