Market Orientation And Product Innovation To Increase Competitive Advantages And Its Impact On Marketing Performance

Dikdik Harjadi,Dewi Fatmasari,Ayu Siti Nurhasanah

doi:10.24235/amwal.v1i1.5457

Dikdik Harjadi, Dewi Fatmasari + Show 1 more

Open Access

https://doi.org/10.24235/amwal.v1i1.5457

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Abstract

This study aims to find out the effect of market orientation and product innovation on competitive advantage in relation to marketing performance on food SMEs (Small Medium Enterprises) in Darma Sub-District, Kuningan District, West Java. By applying a total sampling method, 42 food SMEs in Darma Sub-District were selected as samples in this study. Meanwhile, the research method used in this study was descriptive-verificative method. Basically, there were thee variables in this study, namely; 1) dependent variable (Z) – in this case, performance marketing; 2) intervening variable (Y) – in this case, competitive advantage; and 3) independent variable (X) – which includes market orientation (X1) and product innovation (X2). The collected data were then analyzed by applying path analysis and IBM SPSS 21.0. The result showed that; 1) market orientation has a positive and significant effect on competitive advantage with value (0,029 < 0,05); 2) product innovation has a positive and significant effect on competitive advantage with value (0,000 < 0,05); 3) market orientation has a positive and significant effect on marketing performance with value (0,045 < 0,05); 4) product innovation has a positive and significant effect on marketing performance with value (0,033 < 0,05); and 5) competitive advantage has a positive and significant effect on marketing performance with value (0.000 < 0,05).

Highlights

Changes that are so fast these days lead to competition that can not be avoided, making the company faced with various opportunities and threats arising from both domestic and foreign countries, increasing competition in fighting over the market requires companies to choose and determine the right strategy in marketing their products, continue to try to understand and understand the desires of consumers, and can see market changes that occur in the business environment is one thing that companies can use to be able to compete with other companies.The dynamic changes of business environment and consumer needs encourage companies to give their best efforts to meet these demands
This illustrates that market orientation, product innovation and competitive advantage have a positive effect on marketing performance
The results showed that competitive advantage has a positive and significant effect on marketing performance, which was obtained from the results of path analysis test with a significance value of 0,000

Summary

Introduction

Changes that are so fast these days lead to competition that can not be avoided, making the company faced with various opportunities and threats arising from both domestic and foreign countries, increasing competition in fighting over the market requires companies to choose and determine the right strategy in marketing their products , continue to try to understand and understand the desires of consumers, and can see market changes that occur in the business environment is one thing that companies can use to be able to compete with other companies.The dynamic changes of business environment and consumer needs encourage companies to give their best efforts to meet these demands. This illustrates that market orientation, product innovation and competitive advantage have a positive effect on marketing performance. The result of statistical tests showed that market orientation has a positive and significant effect on competitive advantage.

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Results

Conclusion