The Role of Innovation Capability to Improve Marketing Performance in Food SMEs
DOI:
https://doi.org/10.24191/aej.v9i2.14410Keywords:
Customer Orientation, Entrepreneurial Orientation, Operational Capability, Innovation Capability, Marketing PerformanceAbstract
This paper aims to investigate and examine the role of Innovation capability in mediating the relationship between customer orientation, entrepreneurial orientation, and operational capability on marketing performance in food SMEs. The relationship between these five concepts in food SMEs is something that has not received serious attention from academics in Indonesia. This study used a sample of 215 food SME actors in Kendal, Central Java, Indonesia, and examined the regressive relations of the five constructs. Furthermore, the analysis tool used was SmartPLS software. This study found that customer orientation and operational capability affect innovation capability, while entrepreneurial orientation does not. operational capability and innovation capability affect marketing performance, while entrepreneurial orientation does not. innovation capability is proven to be a variable that mediates the effect of customer orientation on marketing performance and operational capability on marketing performance. However, innovation capability cannot mediate the effect of entrepreneurial orientation on marketing performance. This study used food SME respondents with the majority of them having low education levels. In addition, this study offers a variable of innovation capability as a solution to improve marketing performance for food industries by SMEs
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