Peran Inovasi dalam Memediasi Orientasi Pasar terhadap Kinerja UMKM Songket Sidemen Karangasem
DOI:
https://doi.org/10.55606/jumbiku.v6i2.6952Keywords:
Business Performance, Innovation, Market Orientation, MSME Competitiveness, Songket MSMEsAbstract
Business competition in the era of globalization and digitalization requires MSMEs to be able to adapt to market changes, technological developments, and the dynamics of consumer behavior. The songket industry in Sidemen District, Karangasem Regency, as one of the centers of traditional textile crafts, has great economic and cultural potential, but faces challenges such as limited innovation, mass product competition, and fluctuations in business performance. This study aims to analyze the effect of market orientation on business performance with innovation as a mediating variable in songket MSMEs in Sidemen. The study used a quantitative approach with an explanatory research design and census sampling technique on 71 owners or managers of songket MSMEs. Data were collected through a Likert scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results showed that market orientation had a positive and significant effect on innovation and business performance, innovation had a positive effect on business performance, and innovation was proven to partially mediate the relationship between market orientation and business performance. These findings indicate that improving the performance of songket MSMEs depends not only on market understanding but also on the ability to translate market information into product, process, and marketing innovations. The implications of this research emphasize the importance of strengthening internal capabilities based on market orientation and innovation as a strategy to increase the competitiveness and sustainability of local culture-based MSMEs.
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