Abstract

Objectives of the this study examines the empirical relationships between market orientation (MO) and family
firms’ performance and analyzes the effects of moderating variables (market turbulence and competitive
intensity) on the relationships between market orientation and family firms’ performance of the batik industry in
Yogyakarta Province, Indonesia. The result of MO-business performance relationship in the Indonesian batik
family firms was consistent with the vast majority of MO studies; however the role of moderator variables
(market turbulence and competitive intensity) provided non-significant contribution to the MO-business
performance relationship.

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