ANALISIS ORIENTASI KEWIRAUSAHAN DAN ORIENTASI PASAR TERHADAP KINERJA USAHA MELALUI KEMAMPUAN MANAJEMEN SEBAGAI VARIABEL INTERVENING (STUDI PADA INDUSTRI UKM SEKTOR KULINER DI MEDAN PERJUANGAN)

The Government of North Sumatra has around 2.5 million small and medium enterprises scattered throughout the region. Of these, an estimated 55-60% of them are engaged in culinary (food and beverage). The economic growth of Medan city in general can not be separated from the contribution of SMEs. This can be seen from the number of SMEs quite a lot with the amount of ± 242,890 SMEs consisting of the type of business trading services, handicraft industry, and various other businesses. Based on data at BPS Medan, the number of SMEs reached 99.8% of the overall economic business in Medan. Which means, the number of SMEs to reach 500 times the number of large businesses. However, the contribution of SMEs is estimated to reach only 39.8% while large businesses account for 60.2%. Thus, big business actors show a strong position and the SMEs are still limited. The purpose of this research are: 1) to know whether the entrepreneurial orientation affect the business performance on SMEs Culinary Sector in Medan Struggle ?, 2) to determine whether market orientation affects business performance on SMEs Culinary Sector in Medan Perjuangan ?, 3) to know Does the entrepreneurial orientation affect the management capabilities of SMEs in the Culinary Sector in Medan Perjuangan ?, 4) to find out whether the market orientation affects the management capabilities of SMEs in the Culinary Sector in Medan Perjuangan ?, and 5) to know whether management capability is able to be a liaison variable between orientation Entrepreneurship and market orientation on business performance in SMEs Culinary Sector in Medan Perjuangan? This research is explanatory research. The location of the research was conducted in Medan City Medan Perjuangan by focusing on SMEs moving in the culinary sector. The time of study started from September 2016 to March 2017. The population in this research is all effort in SMEs in culinary sector. Sampling is done by using purposive sampling. Methods of data collection are done in primary and secondary. Data analysis method used in this research is multiple linear regression. The results of this study indicate that the variables of good entrepreneurship orientation can improve business performance. The implementation of an attitude, innovative, proactive, and courage to take good risks have an important role in supporting the achievement of entrepreneurship orientation, so as to contribute to improving the performance of SMEs culinary sector in Medan Perjuangan. The entrepreneurship orientation is able to contribute both to the ability of management, and the ability of management to improve business performance. Thus, the implementation of entrepreneurial orientation is reflected through risk-taking, and the role of management capacity is defined as the ability to manage conflict, recognize, define and solve problems, motivate and influence others, unable to explain improvement of SMEs' business performance in Medan Perjuangan. Keywords: Orientation of Entrepreneurship, Market Orientation, Knowledge Management, and Business Performance