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Effect of product innovation on SME’s performance: The moderating role of organizational learning and market orientation

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  • Prasetyo Hadi

    (Universitas Pembangunan Nasional "Veteran" Jakarta)

Abstract

This research was conducted to identify the determinants of SME's performance as well as look at the underlying conditional factors. Researchers examine the direct effect of product innovation on SME's performance and consider the moderating role of market orientation and organizational learning. Using the quantitative method, the researchers conducted a survey of 170 SME owners in DKI Jakarta Province who were selected using a purposive sampling method. This survey was conducted online by distributing questionnaires through an online platform. The data is then analyzed using Structural Equation Model with AMOS and Process by Hayes. The results of hypothesis testing show that product innovation has a positive effect on the performance of SMEs, and this effect will be stronger when SMEs have high market orientation and high organizational learning. This research can be used as a reference by owners or managers of SME to advance their businesses. SME need to innovate products and form a conducive climate in market-oriented organizations, as well as a climate that allows them to carry out organizational learning.

Suggested Citation

  • Prasetyo Hadi, 2023. "Effect of product innovation on SME’s performance: The moderating role of organizational learning and market orientation," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 5(2), pages 47-54, April.
    • Handle: RePEc:adi:ijbess:v:5:y:2023:i:2:p:47-54
    DOI: 10.36096/ijbes.v5i2.405
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    References listed on IDEAS

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    1. Nakos, George & Dimitratos, Pavlos & Elbanna, Said, 2019. "The mediating role of alliances in the international market orientation-performance relationship of smes," International Business Review, Elsevier, vol. 28(3), pages 603-612.
    2. Ramadani, Veland & Hisrich, Robert D. & Abazi-Alili, Hyrije & Dana, Léo-Paul & Panthi, Laxman & Abazi-Bexheti, Lejla, 2019. "Product innovation and firm performance in transition economies: A multi-stage estimation approach," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 271-280.
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