Market orientation and innovation on corporate performance
Irwan Poerwanto ORCID ↗ · Ananda Sabil Hussein ORCID ↗ · Sri Palupi Prabandari
International Journal of Research in Business and Social Science · 2022 · Vol. 11 / Issue 3 · 27-32
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Abstract
This study aims to examine and analyze the influence of market orientation on corporate performance with exploration innovation and exploitative innovation as mediation in SMEs. 85 respondents were used as samples from food and beverage sector SMEs at Sentra Siola Surabaya. Purposive sampling was used as the sampling method. Data analysis in this study used Structural Equation Modeling - Partial Least Square (SEM PLS). The result indicates that market orientation has a significant effect on exploration innovation, exploitative innovation, and corporate performance. Exploration innovation has a significant effect on corporate performance; therefore, exploration innovation partially mediates the effect of market orientation on corporate performance. However exploitative innovation was found to have no effect on corporate performance. Changes in external factors, primarily due to the COVID-19 pandemic, are seen as being able to cause a paradigm shift on the importance of a long-term orientation compared to a short-term orientation.
Authors & affiliations
Irwan Poerwanto
Affiliation not supplied
Ananda Sabil Hussein
Affiliation not supplied
Sri Palupi Prabandari
Affiliation not supplied
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