The Influence of Market Orientation, Wholesale, Supply Chain Management and Local Wisdom on Market Performance, Mediated by CRM For MSMEs

This study aims to comprehensively investigate the extent to which four strategic variables—Market Orientation, Supply Chain Management (SCM), Wholesale, and Local Wisdom—contribute meaningfully to the achievement of Market Performance, with Customer Relationship Management (CRM) serving as a mediating variable that bridges and facilitates these relationships within the ecosystem of MSMEs (Micro, Small, and Medium Enterprises) in Batam City. To empirically test the nine hypotheses formulated based on a robust theoretical framework, this study adopts a quantitative approach, utilizing Partial Least Squares–Structural Equation Modeling (PLS-SEM) as the primary analytical tool—a method chosen for its efficacy in handling complex structural models with multiple mediation pathways. Data collection involved 270 active MSME operators in Batam City, using a Likert-scale questionnaire (ranging from 1 to 5) to measure all the constructs under investigation. The study’s projections indicate that Market Orientation, Wholesale, and SCM each exert a significant positive influence on the effectiveness of CRM implementation. Furthermore, well-managed CRM is expected to have a tangible positive impact on Market Performance. Additionally, CRM is anticipated to play a significant mediating role in linking Market Orientation and Local Wisdom to the attainment of optimal market performance. Ultimately, these contributions are intended to foster a more robust market performance—one that is adaptive to changes in the business environment and capable of sustained, long-term viability.