Market Orientation Drives Competitive Edge and Performance in Indonesian MSMEs

Oktaviah, Ainnia Dewi
Sari, Dewi Komala

Academia Open
Vol 9 No 1 (2024): June

This study examines the impact of Product Innovation and Market Orientation on Marketing Performance, with Competitive Advantage as an intermediate variable, among MSMEs in Desa Kejapanan, Gempol. Using a sample of 70 respondents and analyzing data with Path Analysis via SmartPLS 3.0, the findings reveal that Product Innovation positively but insignificantly affects Marketing Performance, whereas Market Orientation has a significant positive impact. Both Product Innovation and Market Orientation significantly enhance Competitive Advantage, which in turn significantly improves Marketing Performance. The results underscore the importance of customer-oriented strategies and quality product innovations for better marketing outcomes. Future research should include variables like Digital Marketing and Social Media Advertising to further explore marketing performance improvements. Highlights: 1. Market Orientation: Significantly boosts Competitive Advantage and Marketing Performance.2. Product Innovation: Positively affects Marketing Performance, not significantly.3. Future Research: Include Digital Marketing and Social Media Advertising variables. Keywords: Product Innovation, Market Orientation, Marketing Performance, Competitive Advantage, MSMEs