Market orientation and innovation on corporate performance: A study of food and beverage sector SMEs in Surabaya

Irwan Poerwanto; Ananda Sabil  Hussein; Sri Palupi Prabandari

doi:10.20525/ijrbs.v11i3.1708

Authors

Irwan Poerwanto Student of Brawijaya University https://orcid.org/0000-0002-5004-7777
Ananda Sabil Hussein Brawijaya University https://orcid.org/0000-0002-4030-1073
Sri Palupi Prabandari

DOI:

https://doi.org/10.20525/ijrbs.v11i3.1708

Keywords:

Market Orientation, Exploration Innovation, Exploitative Innovation, Corporate Performance

Abstract

This study aims to examine and analyze the influence of market orientation on corporate performance with exploration innovation and exploitative innovation as mediation in SMEs. 85 respondents were used as samples from food and beverage sector SMEs at Sentra Siola Surabaya. Purposive sampling was used as the sampling method. Data analysis in this study used Structural Equation Modeling - Partial Least Square (SEM PLS). The result indicates that market orientation has a significant effect on exploration innovation, exploitative innovation, and corporate performance. Exploration innovation has a significant effect on corporate performance; therefore, exploration innovation partially mediates the effect of market orientation on corporate performance. However exploitative innovation was found to have no effect on corporate performance. Changes in external factors, primarily due to the COVID-19 pandemic, are seen as being able to cause a paradigm shift on the importance of a long-term orientation compared to a short-term orientation.

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