Dzulfikri Azis Muthalib (1), Juharsah (2), Laode Asfahyadin Aliddin (3)
This study aims to examine the role of product innovation in mediating the effect of market orientation on the marketing performance of Micro, Small, and Medium Enterprises (MSMEs). The study employed an explanatory quantitative approach involving 110 MSME owners and managers selected through purposive sampling. Data were collected using a structured questionnaire measuring customer orientation, competitor orientation, interfunctional coordination, product innovation, and marketing performance. Data analysis was conducted using Structural Equation Modeling with Partial Least Squares (SEM-PLS) to examine direct and indirect relationships among the variables. The results show that market orientation has a positive and significant effect on product innovation and marketing performance. Furthermore, product innovation significantly mediates the relationship between market orientation and marketing performance. These findings strengthen the literature on market orientation and product innovation and provide practical implications for MSMEs in developing market-based innovation strategies to improve marketing performance and competitiveness.
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