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Local wisdom had been adopted by business practices in an area or region aside from modern marketing theory which is used by marketers to enhance market share and increase profitability. Local wisdom is becoming increasingly common in business practices in global markets including the Indonesian market. The aim of this paper is to examine the important elements of local wisdom and its relation to marketing performance mediated by product, price, promotion and place. Quantitative analysis employed with data collected from two hundred and fifty Indonesian businessmen engaged in the textile and garments industries have been used in this study. Multidimensional scaling is used to explore the data for mapping or search for an object in the configuration of a number of low dimensional space based on the size of the proximity between objects studied. The Structural Equation Modelling has been used to analyze the indicator variables, latent variables and measurement error variables, to identify the dimensions and to measure the effect or the degree of relationship between factors that have been identified through related dimensions. The influence of one variable with other variables proved to be positive and significant, that is the local wisdom variables have a positive effect on the product and on the price. The study shows that local wisdom has no significant influence on the marketing performance, while other variables have significant influence to one another.

Exploration Dimensions of Local Wisdom and their Impact to Sustain Marketing Performance