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Market-Based Innovation Capability: A Perspective of Resource Advantage Theory of Competition

In: Proceedings of the 3rd Annual Management, Business and Economics Conference (AMBEC 2021)

Author

Listed:
  • Tumpal P. Situmorang

    (Diponegoro University, Faculty of Economics and Business
    Wira Wacana Christian University, Faculty of Economics)

  • Farida Indriani

    (Wira Wacana Christian University, Faculty of Economics)

Abstract

Highly competitive environment requires a company to explore any market opportunities for it to maintain its business quality. Company’s capability to identify market opportunities will raise its sustainability and competitive advantage, which may potentially improve its performance. Competitive advantage is an organization’s capability to develop its resources. With its capability enhanced, a company may potentially produce innovative products. The purpose of this research was to examine the gap between entrepreneurial opportunity and marketing performance with Market-Based Innovation Capability as the variable to improve marketing performance. The research samples were business owners in the creative industry in Central Java. The results show that market-based innovation capability as the mediating variable was capable of improving marketing performance, and market penetration power was also capable of improving marketing performance.

Suggested Citation

  • Tumpal P. Situmorang & Farida Indriani, 2023. "Market-Based Innovation Capability: A Perspective of Resource Advantage Theory of Competition," Advances in Economics, Business and Management Research, in: Nurafni Eltivia & Nur Indah Riwajanti & Kartika Dewi Sri Susilowati (ed.), Proceedings of the 3rd Annual Management, Business and Economics Conference (AMBEC 2021), pages 191-203, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-026-8_22
    DOI: 10.2991/978-94-6463-026-8_22
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