The Effect of Market Orientation and Product Innovation on Marketing Performance Through Competitive Advantage
DOI:
https://doi.org/10.30587/innovation.v7i1.11635Keywords:
Market Orientation, Product Innovation, Competitive Advantage, Marketing PerformanceAbstract
This study aims to analyze the influence of market orientation, product innovation, and competitive advantage on the marketing performance of batik SMEs in Sidoarjo Regency. Market orientation can be measured through customer orientation, market information sharing, competitor orientation, market information, and inter-functional coordination. Product innovation can be measured through innovation culture, technical innovation, service innovation, product innovation, and pricing innovation. Competitive advantage can be measured through competitive pricing, opportunity exploration, defense against competitive threats, flexibility, and customer relationships. Marketing performance is assessed in this study through sales growth, customer growth, market share, and profitability.
This research is a quantitative descriptive study. The data source is primary data. The subjects were all Batik SME sellers and artisans in Sidoarjo Regency. The sampling procedure used was purposive sampling, with a sample size of 100 respondents. Questionnaire data collection was conducted through indirect distribution using Google Forms. The analysis method used Partial Least Squares-based Structural Equation Modeling (SEM-PLS) and was tested using Smart PLS software version 4.0.
The results were as follows: Market Orientation has a positive and significant effect on Marketing Performance; Product Innovation has a positive and significant effect on Marketing Performance; Market Orientation has a positive and significant effect on Competitive Advantage; Product Innovation has a positive and significant effect on Competitive Advantage; Competitive Advantage has a positive and significant effect on Marketing Performance; Market Orientation has a positive and significant effect on Marketing Performance through Competitive Advantage; and Product Innovation has a positive and significant effect on Marketing Performance through Competitive Advantage. Based on these seven results, it can be concluded that all seven hypotheses are valid and acceptable.
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