Open AccessThe Negative Effect of Market Orientation on SMEs' Marketing Performance in The Creative Economy Sector, and How Innovation Mediating it
Author(s) -
Sarli Rahman,
Budiyanto Budiyanto,
Suwitho Suwitho
Publication year - 2021
Publication title -
international journal of economics development research
Language(s) - English
Resource type - Journals
eISSN - 2715-7903
pISSN - 2715-789X
DOI - 10.37385/ijedr.v2i2.272
Subject(s) - structural equation modeling , market orientation , business , sample (material) , marketing , industrial organization , product (mathematics) , product innovation , mathematics , statistics , chemistry , chromatography , geometry
There are problems with the performance of SMEs in the creative economy sector in Indonesia. At least about 34% to 35% of SMEs in the creative economy sector experience problems related to marketing and demand. So, this study aims to prove the effect of market orientation on the SMEs' marketing performance of the creative economy sector and to prove the mediate roles of innovation. By using a sample of 200 respondents, and Structural Equation Modeling (SEM - AMOS) analysis technique, surprising results were obtained. The results are that market orientation affects marketing performance negatively. However, product innovation and process innovation can be a solution for this.