ANALISIS PENGARUH ORIENTASI PASAR DAN INOVASI TERHADAP KEUNGGULAN BERSAING DALAM RANGKA MENINGKATKAN KINERJA BISNIS (Studi Empiris Pada Industri Pakaian Jadi Skala Kecil dan Menengah di Kabupaten Kudus)

Abstract

This study aims to analyze the effect of market orientation and innovation on competitive advantage and business performance on the small and medium scale apparel industry in Kudus. The data analysis method used in this research is SEM (Structural Equation Modeling), processed using AMOS 22 software. Samples taken from the owner or manager of Small and Medium Enterprises (SME) engaged in apparel in Kudus, with the number of 122 respondents. The data were collected using questionnaires and interviews. The results obtained from this study indicate that market orientation and innovation have a significant positive effect on competitive advantage in order to improve business performance. Innovation is the most dominant variable affecting business performance with the mediation of competitive advantage, followed by market orientation. Every SME is suggested to have competitive advantage, that can be realized by the way of developing new products, new processes and development in marketing to get good business performance. It also needs to be supported by gathering information about market needs, prioritizing customer satisfaction and seeking information about strategies conducted by competitors.