MEDIATION OF INNOVATION CAPABILITY ON THE INFLUENCE OF MARKET ORIENTATION ON MARKETING PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN LAMONGAN DISTRICT
Hifi Rini Puspita, Widji Astuti, Bambang Supriadi

University of Merdeka Malang

Abstract

This research aims to analyze the influence of market orientation on innovation capability and marketing performance, as well as examining the mediating role of innovation capability and in the relationship between market orientation and marketing performance. Through a quantitative research approach with an explanatory research design, this research analyzes the influence of market orientation on innovation capabilities and marketing performance, as well as examining the mediating role of innovation capabilities and in the relationship between market orientation and marketing performance. The results of the research show that market orientation contributes to marketing performance and the formation of innovation capabilities and that innovation capabilities of SMEs are reflected in attractive and safe products. This research provides an important contribution to understanding the dynamics of market orientation, innovation and marketing performance in SMEs in the context of Lamongan Regency. Managerial implications and policy recommendations are outlined based on research findings, with the hope of providing guidance for SMEs and related parties in improving marketing performance. These findings support the theory that market orientation can improve marketing performance with innovation capabilities. The practical implication of this research is that SMEs can strengthen their market orientation to increase product innovation.

Keywords: Market orientation, innovation capability and marketing performance

Topic: Young Entrepreneurship and Creative Economic