Entrepreneurial Marketing and Product Innovation in Improving Business Performance: A Case Study on Batik Trusmi Cirebon

Abstract

Purpose: The research aims, and contribution of this research are to complement previous research on entrepreneurial marketing and product innovation in the Trusmi Cirebon batik business, the current obstacles and how to solve them to improve business performance. Theoretical Framework: As the small business industry, Batik Trusmi must innovate some matter on its business. Innovation classifies as three form there are product innovation, business model innovation and process innovation. This research discussed the product innovation and marketing innovation system as part of the business model. The innovation on the product and marketing system will affect the business performance. So, this research discusses about the role of entrepreneurial marketing and product innovation to improve the business performance. Method: This is qualitative research with a case study approach. Data collection methods used by researchers to obtain primary data include interviews, observation, and documentation. The type of interview conducted by the researcher is a semi-structured interview. There are 4 respondents as the actor of Batik Trusmi MSMEs. Result and Conclusion: The results of this study indicate that entrepreneurial marketing and product innovation are needed to improve business performance. The main obstacles on developing Batik Trusmi business are the lack of innovation on the product and the quite understanding of the entrepreneur on effective marketing system. The results of this study indicate that all MSME entrepreneurs have yet to understand entrepreneurial marketing and always try to present the new creativity on the Batik Trusmi product whether on the pattern model, size, packaging, colour, and the others. The results of this study also show that MSME entrepreneurs who have implemented product innovation and entrepreneurial marketing can improve their business performance more quickly. Originality/Value: This research focuses on product innovation where the most of MSMEs entrepreneur has no eagerness to develop their product better. Most of MSMEs entrepreneur sense “enough” on their product and this condition oftentimes will push the business into worst condition. Another hand, this research discuss about entrepreneurial marketing on micro, small, and medium enterprises (MSMEs) whereas the most of MSMEs entrepreneur never consider the importance of marketing on the selling the products.