How Do Market Orientation and Innovation Effect in Increasing Business Performance? Empire Study of MSMEs in the City of Semarang

DOI

10.2991/978-94-6463-154-8_18How to use a DOI?

Keywords

Business Performance; Competitive Advantage; Market Orientation; Innovation

Abstract

This study aims to analyze the effect of innovation and market orientation on business performance through competitive advantage. This study focuses on analyzing the effect of innovation and market orientation on business performance through competitive advantage. This research was conducted on the culinary sector SMEs in the city of Semarang. The sample in this study is the culinary sector SMEs, amounting to 150 SMEs. The data analysis technique used in this research is path analysis. The results of the study show that the market orientation variable has a positive and significant effect on competitive advantage. The innovation variable also has a positive and significant effect on competitive advantage. Subsequent analysis shows that the innovation variable has a positive and significant effect on competitive advantage. Then the market orientation variable has a positive and significant influence on business performance. Likewise, the innovation variable also has a positive and significant influence on business performance. Meanwhile, competitive advantage also has the same result, which has a positive and significant effect on business performance. The advice that can be given in this research is that MSME actors, especially MSMEs in the culinary sector, must have sensitivity to market dynamics that are easy to change so that the products they sell can continue to sell well in the market. In addition, innovative strategies and products are needed to remain competitive in the midst of increasingly fierce business competition. This study has limitations in the selection of research objects, namely specifically for SMEs in the culinary sector. Therefore, further research can choose a wider research object.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Kesi Widjajanti
AU  - Eviatiwi Kusumaningtyas Sugiyanto
PY  - 2023
DA  - 2023/05/22
TI  - How Do Market Orientation and Innovation Effect in Increasing Business Performance? Empire Study of MSMEs in the City of Semarang
BT  - Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)
PB  - Atlantis Press
SP  - 186
EP  - 196
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-154-8_18
DO  - 10.2991/978-94-6463-154-8_18
ID  - Widjajanti2023
ER  -