The influence of business innovation with relationship of organizational learning and job satisfaction on market orientation

Abstract

PurposeThis paper aims to reveal the effect of organizational learning on market orientation, job satisfaction on market orientation, organizational learning on business innovation, job satisfaction on business innovation and market orientation on business innovation.Design/methodology/approachResearch was designed to use quantitative approach to understand causal relationship of variables. partial least squares structural equation modeling (PLS-SEM) was used to facilitate this approach. Questionnaire was given to 46 dairy cattle milk cooperatives in East Java, Indonesia.FindingsResearch findings are explained as follows: both high organizational learning and high job satisfaction can produce high market orientation, organizational learning reduces business innovation, job satisfaction increases business innovation and market orientation reduces business innovation of dairy cattle milk cooperatives in East Java, but this reduction is not statistically significant.Research limitations/implicationsThis research has identified that business innovation is affected by job satisfaction, while market orientation is affected by organizational learning and job satisfaction. Next research shall be conducted on another business type or business group but in greater population.Practical implicationsIt is expected that the results of this research will provide guidance for dairy cattle milk cooperatives in East Java concerning with how to improve market orientation and business innovation based on organizational learning and job satisfaction.Originality/valueThis research has determined factors that affect market orientation and examined its impact on business innovation after observing the aspects of organizational learning and job satisfaction.