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All Journal Dinamisia: Jurnal Pengabdian Kepada Masyarakat SENTRALISASI Jurnal Leverage, Engagement, Empowerment of Community (LeECOM) Jurnal ABDINUS : Jurnal Pengabdian Nusantara Jurnal Abdimas Sangkabira
Satyanegara, Teresa Samantha
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Humanities Computer Science & IT Economics, Econometrics & Finance Education Environmental Science Industrial & Manufacturing Engineering Social Sciences Other

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Journal : SENTRALISASI

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Bridging Market Orientation to SME Sustainability Performance: Examining Innovation Capabilities Through A Dynamic Capabilities Approach Satyanegara, Teresa Samantha; Yusup, Adi Kurniawan
SENTRALISASI Vol. 15 No. 1 (2026): January
Publisher : Universitas Muhammadiyah Sorong

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33506/sl.v15i1.4941

Abstract

SMEs are the backbone of Indonesia’s economy, yet they continue to face structural and sustainability challenges. As such, the purpose of this study is to examine how responsive and proactive market orientations impact SMEs’ environmental and financial performance through the mediation of product and process innovation capabilities, and the moderation of market turbulence, grounded in Dynamic Capabilities Theory. This quantitative research used purposive sampling to collect data from 115 SME owners and managers across various industries in Java Island. The data was analyzed using Partial Least Squares Structural Equation Modeling to test the hypotheses. The results showed that a proactive market orientation has a significant impact on financial performance through process innovation capabilities and environmental performance. Contrarily, market turbulence did not moderate the relationship between innovation capabilities and financial performance. This research highlights the importance of proactive market orientation and process innovation capabilities to improve SME sustainability and performance. Based on this study’s findings, SMEs should invest in strengthening their proactive market orientation and process innovation capabilities to achieve sustainability and gain a lasting competitive advantage in the industry.
Co-Authors Adi Kurniawan Yusup Anastasia Filiana Ismawati Avizenna, Neola Omar Edbert, Ferdinand Herijanto, Beatrix Adelaide Lainardy, Jesslyn Eunice Sayuti, Bill Smith Setiawan, Angie Ivana Sri Nathasya Br Sitepu Tjioe, Vincentia Jennifer Evelyn Wattimena, Ann Maritza Wendra Hartono