Email this article (Login required)
Email the author (Login required) Information fo Author
Index
When A New Product Innovatıon Negatıvely Impacts Marketıng Performance
Abstract
This study analysed the influence of market orientation and product innovation capability on product competitiveness to improve marketing performance on clay handicraft products in Bali-Indonesia during the Covid-19 pandemic. New insights were offered to the research subjects of clay craftsmen, and in previous studies this type of sample was rarely considered. We studied the relationships of all the variables involved. Empirical evidence was conveyed through a survey involving 60 SMEs as a saturated sample, using a PLS-based SEM as analysis tool. The results show that all direct relationships of variables are proven to be significantly positive, except that product innovation capability has a significant negative impact on marketing performance. The character of the clay craft industry has a uniqueness that was not previously thought of. The greater the ability to produce new innovation seems to have an unfavourable impact on sales of previous innovations. The unique characteristics of the industry disturbed by the Covid-19 situation adds to the narrowness of the market. A market expansion strategy is needed by developing the character of the product from pure artistic nature to decorative decoration into a combination with functionality. To achieve this goal, it is apparently constrained by the limited demographic characteristics and competence of SMEs to innovate. Originality/value; analysing innovation based on three characteristics, namely artistic, symbolic and functional, as an important variable in the clay industry in relation to consumer behaviour. The three proposed analysis based on the characteristics of product innovation had never been studied in previous studies
Keywords
Full Text:
PDFReferences
Afriyie, Samuel; Du, Jianguo; Abdul-Aziz Ibn Musah. Innovation and marketing performance of SME in an emerging economy: the moderating effect of transformational leadership Journal of Global Entrepreneurship Research; Berlin Vol. 9, Iss. 1, (Jun 2019): 1-25. DOI:10.1186/s40497-019-0165-3
Agarwal, S., Krishna Erramilli, M. and Dev, C.S. (2003), "Market orientation and performance in service firms: role of innovation", Journal of Services Marketing, Vol. 17 No. 1, pp. 68-82. https://doi.org/10.1108/08876040310461282
Akimova, I. (2000), "Development of market orientation and competitiveness of Ukrainian firms", European Journal of Marketing, Vol. 34 No. 9/10, pp. 1128-1148. https://doi.org/10.1108/03090560010342511
Al-Dmour, H., Asfour, F., Al-Dmour, R. and Al-Dmour, A. (2022), "Validation of the impact of marketing knowledge management on business performance via digital financial innovation as a mediating factor", VINE Journal of Information and Knowledge Management Systems, Vol. 52 No. 1, pp. 33-56. https://doi.org/10.1108/VJIKMS-05-2020-0085
Arifin, Samsul; Roosdani, Mohamad Rifqy. The Influence Of Product Innovation And Export Performance In Sme Furniture Industry In Jepara Regency Indonesia, Turkish Journal of Computer and Mathematics Education; Trabzon Vol. 12, Iss. 11, (2021): 7146-7152
Baker, S. 1999. The Synergistic Effect of market oriented and learning organization on organization performance. Journal of the Academy of Marketing Science. Vol.27, P. 411-427.
Baran, Şüheda; İyigün, Necla Öykü. The Mediating Role of Innovation Performance on the Relationship between Entrepreneurship Orientation and Competitiveness: A Research in the Export Companies, Journal of International Trade, Logistics and Law; Istanbul Vol. 7, Iss. 2, (Dec 2021): 6-15.
Bendell, Bari L; Sullivan, Diane M; Hanek, Kathrin J. Gender, technology and decision-making: insights from an experimental conjoint analysis, Alternate title: Gender, technology and decision-making International Journal of Entrepreneurial Behaviour & Research; Bradford Vol. 26, Iss. 4, (2020): 647-670. DOI:10.1108/IJEBR-04-2019-0232
Bil, Erkan; Özdemir, Erkan. The effect of technological innovation capabilities on companies' innovation and marketing performance: A field study on Technopark companies in Turkey, Journal of Life Economics; İstanbul Vol. 8, Iss. 3, (Jul 2021): 361-378. DOI:10.15637/jlecon.8.3.08
Butkovi´c, L.L.; Boškovi´c, D.; Katavi´c, M. International marketing strategies for Croatian construction companies. Procedia-Social Behav. Sci. 2014, 119, 503–509. Doi.org/10.1016/j.sbspro.2014.03.056
Cropley, David; Cropley, Arthur. (2017). Innovation capacity, organisational culture and gender, European Journal of Innovation Management; Bradford Vol. 20, Iss. 3, pp. 493-510. DOI:10.1108/EJIM-12-2016-0120
Chatarina Felisia, Helena Sidharta, I Bagus Yosia. (2020). The effect of entrepreneurship orientation and market orientation on marketing performance of furniture home industry in Sawahan District, Review of Management and Entrepreneurship, Vol. 4, No. 2, 95-116, DOI: https://doi.org/10.37715/rme.v4i2.1239
Chin, W.W. (1998), The partial least squares approach for structural equation modeling. in G. A. Marcoulides (Ed.), Modern methods for business research (pp.295-236). London: Lawrence Erbaum Associates.
ElKhouly, Sayed Elsayed; Marwan, Rania. (2015).The Impact of Age and Gender on Strategic Innovation in Micro, Small and Medium Enterprises in Egypt, Competition Forum; Indiana Vol. 13, Iss. 2, pp. 241-252.
El Chaarani, H., Vrontis, P.D., El Nemar, S. and El Abiad, Z. (2022), "The impact of strategic competitive innovation on the financial performance of SMEs during COVID-19 pandemic period", Competitiveness Review, Vol. 32 No. 3, pp. 282-301. https://doi.org/10.1108/CR-02-2021-0024
Forsman, H. Innovation capacity and innovation development in small enterprises. A comparison between the manufacturing and service sectors. Res. Policy; 2011; 40, pp. 739-750. [DOI: https://dx.doi.org/10.1016/j.respol.2011.02.003]
Fornell, C.G. and Larcker, D.F. (1981), Evaluating structural equation models with unobservable variables and measurement error, Journal of Marketing Research, Vol. 18 No. 1, 39-50. DOI/10.1177/002224378101800104
Ferdinand, A, 2002. Structural Equation Modeling Dalam Penelitian Manajemen. Semarang: BP Undip
Ferdinand A T A 2000 Marketing Management: A Strategic Approach Research Paper Series (Semarang : Diponegoro University Master of Management program)
Fernández, Juan. (2015).The impact of gender diversity in foreign subsidiaries’ innovation output, International Journal of Gender and Entrepreneurship; Bingley Vol. 7, Iss. 2, pp 148-167. DOI:10.1108/IJGE-07-2014-0022
Ferreras-Garcia, Raquel; Sales-Zaguirre, Jordi; Serradell-López, Enric. (2021). Sustainable Innovation in Higher Education: The Impact of Gender on Innovation Competences, Sustainability; Basel Vol. 13, Iss. 9, pp. 5004. DOI:10.3390/su13095004
Filieri, R.(2013). Consumer co-creation and new product development: A case study in the food industry. Marketing Intelligence and Planning, 31(1), 40–53. https://doi.org/10.1108/02634501311292911.
Greenley, H. (1995). Strategic Planning Differences among Different Multiple Stakeholder Orientation Profiles. Journal of Strategic Marketing, September,pp. 163-182.
Gordon E. Greenley, Graham J. Hooley, Amanda J. Broderick & John M. Rudd (2004) Strategic planning differences among different multiple stakeholder orientation profiles, Journal of Strategic Marketing, 12:3, 163-182, DOI: 10.1080/0965254042000262887
Grinstein, A. (2008), "The relationships between market orientation and alternative strategic orientations: A meta‐analysis", European Journal of Marketing, Vol. 42 No. 1/2, pp. 115-134. https://doi.org/10.1108/03090560810840934
Gronholdt, L., & Martensen, A. (2006). Key marketing performance measures. The Marketing Review, 6, 243–252
Gambatese, John A. & Hallowell, Matthew (2011) Factors that influence the development and diffusion of technical innovations in the construction industry, Construction Management and Economics, 29:5, 507-517, DOI: 10.1080/01446193.2011.570355
Guspul, A. 2016. Pengaruh Orientasi Pasar, Inovasi Dan Orientasi Kewirausahaan Terhadap Kinerja Pemasaran Umkm “Batako” Di Kepil Wonosobo. Jurnal PPKM III, 193- 206.
Hair, J., Black, W., Babin, B., Anderson, R., Tatham, R. (2006). Multivariate Data Analysis (6th Ed.). Uppersaddle River, New Jersey, Pearson Prentice Hall.
Hair, J.F., Ringle, C.M. and Sarstedt, M. (2011), PLS-SEM: indeed a silver bullet, Journal of Marketing Theory and Practice, Vol. 19 No. 2, pp. 139-151.
Han, Jin, K., Kim, N., and Srivastava, R. (1998). Market Orientation And Organizational Performance: Is Innovation A Missing Link?., Journal of Marketing, October, 62(4), 30-45.
Harjadi, Dikdik; Fatmasari, Dewi; Nurhasanah, Ayu Siti. (2020). Market Orientation And Product Innovation To Increase Competitive Advantages And Its Impact On Marketing Performance, Jurnal Ekonomi dan Perbankan Syariah, Vol 12 (1): 12-21 DOI: 10.24235/amwal.v1i1.5457
Henseler, J., Ringle, C.M. and Sinkovics, R.R. (2009), The use of partial least squares path modeling in international marketing, Advances in International Marketing, Vol. 20, 277-320. DOI/10.1108/S1474-7979(2009)0000020014/full/html
Jardon, Carlos M; Xavier Martinez–Cobas. Culture and competitiveness in small-scale Latin-American forestry-based enterprising communities, Journal of Enterprising Communities; Bradford Vol. 14, Iss. 2, (2020): 161-181. DOI:10.1108/JEC-05-2019-0040
Jui-Che Tu; Xiu-Yue Zhang; Shu-Ping Chiu. Assessing the Impact of Cultural Intelligence on Sustainable Career Competitive Advantage for Students in College of Design, Sustainability; Basel Vol. 12, Iss. 1, (2020): 10. DOI:10.3390/su12010010
Kirca, Ahmet H., Satish Jayachandran and William O. Bearden, (2005), "Market Orientation: A Meta-Analytic Review and Assessment of Its Antecedents and Impact on Performance", Journal of Marketing, Vol. 69(April), pp. 24-41
Klakhaeng, Piyamas; Nampinyo, Anuch; Thitart, Phitphisut; Sudprasert, Kittiampol. (2021). Service Innovation Stimulus Inevitable For Marketing Performance of Retail Modern Trade in Thailand? Role of Service Innovation and Employee Engagement Turkish Journal of Computer and Mathematics Education; Trabzon Vol. 12, Iss. 12, pp.289-299.
Kirca, Ahmet H., Satish Jayachandran and William O. Bearden, (2005), "Market Orientation: A Meta-Analytic Review and Assessment of Its Antecedents and Impact on Performance", Journal of Marketing, Vol. 69(April), pp. 24-41
Kaniawati, Keni. (2021) Marketing Strategy Model In Improving Marketing Performance (Case Study Of Central Small Industry Areas Of Central Cibaduyut Footwears) Turkish Journal of Computer and Mathematics Education; Trabzon Vol. 12, Iss. 9, pp. 87-94.
Kohli, Ajay K. (1990). Market Orientation:The Construct, Research Proportion,and Managerial Implication. Journal of Marketing, Vol. 54, pp.. 1-18.
Lauw Sun Hiong; Ferdinand, Augusty Tae; Listiana, Erna. Verslas Techno-resonance innovation capability for enhancing marketing performance: a perspective of RA-theory: Teorija ir Praktika; Vilnius Vol. 21, Iss. 1, (Jan 2020): 329-339. DOI:10.3846/btp.2020.12117
Liu, Lijun; Jiang, Zuhua. Influence of technological innovation capabilities on product competitiveness, Industrial Management & Data Systems; Wembley Vol. 116, Iss. 5, (2016): 883-902. DOI:10.1108/IMDS-05-2015-0189
Li, Heng; Li, Vera; Skitmore, Martin; Wong, Johnny Kwok Wai; & Cheng, Eddie W. L. (2009) Competitiveness factors: a study of the real estate market in China, Construction Management and Economics, 27:6, 567-579, DOI: 10.1080/01446190903005865
Li, T. and Calantone, R.J. (1998), "The Impact of Market Knowledge Competence on New Product Advantages: Conceptual and Empirical Examination", Journal of Marketing, Vol. 62, No. 4, pp. 13-29
Liao, C. C., Wang, H. Y., Chuang, S. H., Shih, M. L., & Liu, C. C. (2010). Enhancing knowledge management for R&D innovation and firm performance: An integrative view. African Journal of Business Management, 4, 3026–3038.
Liu, Lijun; Jiang, Zuhua. Influence of technological innovation capabilities on product competitiveness, Industrial Management & Data Systems; Wembley Vol. 116, Iss. 5, (2016): 883-902. DOI:10.1108/IMDS-05-2015-0189
Lu, W.; Shen, L.; Yam, M.C.H. Critical success factors for competitiveness of contractors: A China study. J. Constr. Eng. Manag. 2008, 134, 972–982
Lawson, B.; Samson, D. Developing innovation capability in organisations: A dynamic capabilities approach. Int. J. Innov. Manag.; 2001; 5, pp. 377-400. [DOI: https://dx.doi.org/10.1142/S1363919601000427]
Malhotra N. (2007), Marketing research: an applied orientation, 5th edn. Pearson Education, New Delhi
Mansur, Chadi Mursid; Suliyanto, Suliyanto; Rahab, Rahab. (2019).Value of Innovation and Marketing Performance International Review of Management and Marketing; Mersin Vol. 9, Iss. 3, pp. 127-133.
Mahmud, Mahmud; Vincent Didiek Wiet Aryanto; Hasyim, Hasyim. (2017). The effect of innovation capability and new product development on marketing performance of Batik SMEs Polish Journal of Management Studies; Częstochowa Vol. 15, Iss. 2, pp.132-142.
More Chinakidzwa; Phiri, Maxwell. Impact of digital marketing capabilities on market performance of small to medium enterprise agro-processors in Harare, Zimbabwe, Verslas : Teorija ir Praktika; Vilnius Vol. 21, Iss. 2, (Jun 2020): 746-757. DOI:10.3846/btp.2020.12149
Mikhaylova, Anna A; Mikhaylov, Andrey S; Hvaley, Dmitry V. Receptiveness to innovation during the COVID-19 pandemic: asymmetries in the adoption of digital routines Regional Studies, Regional Science; Abingdon Vol. 8, Iss. 1, (Dec 2021): 311-327. DOI:10.1080/21681376.2021.1962400
Narver, J.C. and Slater, S.F.(1990). The Effect of a Market Orientation On Business Profitability.” Journal of Marketing, 54: pp.20-35, .
Nuryakin, Nuryakin; Maryati, Tri. (2020).Green product competitiveness and green product success. Why and how does mediating affect green innovation performance? Entrepreneurship and Sustainability Issues; Vilnius Vol. 7, Iss. 4, pp. 3061-3077. DOI:10.9770/jesi.2020.7.4(33)
Narver, J. C. andSlater, S. F. (1990). The Effect of Market Orientation on Business Profitability. Journal of Marketing. (54), Pp.20 – 35.
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
Nurcholis, Lutfi. (2020). The mediating effect of agility at relationship between market orientation and marketing performance, Jurnal Manajemen dan Pemasaran Jasa, Vol. 13 No. 1: 65-78, https://doi.org/10.25105/jmpj.v13i1.5835
O'Shannassy, Tim. Sustainable competitive advantage or temporary competitive advantage: Improving understanding of an important strategy construct, Journal of Strategy and Management; Bingley Vol. 1, Iss. 2, (2008): 168-180. DOI:10.1108/17554250810926357
Olazo, D.B. (2022), "Marketing competency, marketing innovation and sustainable competitive advantage of small and medium enterprises (SMEs): a mixed-method analysis", Asia Pacific Journal of Marketing and Logistics, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJML-01-2022-0050
Padilla-Lozano, C.P. and Collazzo, P. (2022), "Corporate social responsibility, green innovation and competitiveness – causality in manufacturing", Competitiveness Review, Vol. 32 No. 7, pp. 21-39. https://doi.org/10.1108/CR-12-2020-0160
Pelham, A.M. (1997). “Market Orientation and Performance: The Moderating Effect of Product and Customer Differentiation.” Journal of Business and Industrial Marketing, 12(5),pp.276-296.
Pelham, A.M. (1999). Influence of Environment, Strategy, and Market Orientation of Performance of Small Manufacturing Firms.” Journal of Business Research, 45: 33-46.
Pono, M; Munir, A R; Maming, J; Kadir, N. (2019). Mediation effect of acculturative aesthetic attractiveness on the relation of product innovation to increase SMEs marketing performance, IOP Conference Series. Earth and Environmental Science; Bristol Vol. 235, Iss. 1, (Feb). DOI:10.1088/1755-1315/235/1/012065
Putri, D D; Darwanto, D H; Hartono, S; Waluyati, L R. (2019). The Effect of Supply Chain Practices on Competitive Advantages and Supply Chain Performance in Small Household Agroindustry : Direct and Indirect Effect with Partial Least Square Method, IOP Conference Series. Earth and Environmental Science; Bristol Vol. 255, Iss. 1,DOI:10.1088/1755-1315/255/1/012025
Pellicer, Eugenio; Correa, Christian Luis; Yepes, Víctor & Alarcón, Luis Fernando (2012) Organizational Improvement Through Standardization of the Innovation Process in Construction Firms, Engineering Management Journal, 24:2, 40-53, DOI: 10.1080/10429247.2012.11431935
Pono, M; Munir, A R; Maming, J; Kadir, N. (2019).Mediation effect of acculturative aesthetic attractiveness on the relation of product innovation to increase SMEs marketing performance, IOP Conference Series. Earth and Environmental Science; Bristol Vol. 235, Iss. 1, DOI:10.1088/1755-1315/235/1/012065
Rokhman, M. Taufiq Noor. (2019). Market Orientation to Improve Marketing Performance Through the Competitive Advantages of Batik SMEs, Journal of Applied Management (JAM) Vol, 17 No 3, pp 489-495
Ruangsriroj, Thapanee; Suvittawat, Adisak. (2021).The influence of resources dimensions and innovation solution on value creation: A case study of halal logistics service in Thailand Acta Logistica; Semsa Vol. 8, Iss. 4, pp.445-453. DOI:10.22306/al.v8i4.252
Szostak, Michał. (2021). Impact of gender differences in perception of creative identities of artist, creator, manager, entrepreneur and leader on sustainability, Entrepreneurship and Sustainability Issues; Vilnius Vol. 9, Iss. 2, pp.10-36. DOI:10.9770/jesi.2021.9.2(1)
Sarjita. 2017. Pengaruh Orientasi Pasar Dan Inovasi Produk Terhadap Kinerja Pemasaran Pada Sentra Industri Kecil Pembuatan Bakpia Di Kabupaten Bantul. JBMA, Vol. IV, No. 2.
Sutarlan, Sulistiyani. (2017).Technical Innovation Model in Improving Marketing Performance, International Review of Management and Marketing; Mersin Vol. 7, Iss. 5, pp. 171-177.
Seaden, George ; Guolla, Michael; Doutriaux, Jerome & Nash, John (2003) Strategic decisions and innovation in construction firms, Construction Management and Economics, 21:6, 603-612, DOI: 10.1080/0144619032000134138
Sexton, Martin & Barrett, Peter (2003) Appropriate innovation in small construction firms, Construction Management and Economics, 21:6, 623-633, DOI: 10.1080/0144619032000134156
Sigalas, Christos; Papadakis, Vassilis M. Empirical investigation of relationship patterns between competitive advantage and superior performance, Journal of Strategy and Management; Bingley Vol. 11, Iss. 1, (2018): 81-111. DOI:10.1108/JSMA-01-2017-0010
Sun, Hongyi; Lau, Antonio. (2020).The impact of modular design and innovation on new product performance: The role of product newness, Journal of Manufacturing Technology Management; Bradford Vol. 31, Iss. 2,pp.370-391. DOI:10.1108/JMTM-09-2018-0319
Sun, Hongyi; Lau, Antonio. (2020). The impact of modular design and innovation on new product performance: The role of product newness, Journal of Manufacturing Technology Management; Bradford Vol. 31, Iss. 2, pp.370-391. DOI:10.1108/JMTM-09-2018-0319
Sullivan, Don O’ & Abela, Andrew V. (2007). Marketing Performance Measurement Ability and Firm Performance, Journal of Marketing Vol. 71, pp. 79–93
Undp, Covid 19: Socio Economi Impact. https://www.undp.org/coronavirus/socio-economic-impact-covid-19?utm_source=EN&utm_medium=GSR&utm_content=US_UNDP_PaidSearch_Brand_English&utm_campaign=CENTRAL&c_src=CENTRAL&c_src2=GSR&gclid=CjwKCAjwwo-WBhAMEiwAV4dybY2jd22y8SzbuBcU-sqIRiHHGyYoO_mK4bHSMDoWjr-bNIJJDjY6HhoCeSIQAvD_BwE
United Nation. (April 2020). A UN framework for the immediate socio-economic response to COVID-19,
https://unsdg.un.org/sites/default/files/2020-04/UN-framework-for-the-immediate-socio-economic-response-to-COVID-19.pdf
UNDP dan LPEM FEB Universitas Indonesia. (2020), Report: Impact of COVID-19 Pandemic on MSMEs in Indonesia, https://www.undp.org/indonesia/publications/impact-covid-19-pandemic-msmes-indonesia
Voss, G.B., Voss, Z.G. (2000), Strategic orientation and firm performance in an artistic environment. Journal of Marketing, 64(1), 67-83.
Wajdi Ben Rejeb; Sarra Berraies; Talbi, Dorra. (2020). The contribution of board of directors’ roles to ambidextrous innovation: Do board’s gender diversity and independence matter?, European Journal of Innovation Management; Bradford Vol. 23, Iss. 1, pp. 40-66. DOI:10.1108/EJIM-06-2018-0110
Yan, S.; Chew, D.A.S. An investigation of marketing strategy, business environment and performance of construction SMEs in China. Afr. J. Bus. Manag. 2011, 5, 2396–2405.
Yang, T. and Li, C. (2011), "Competence exploration and exploitation in new product development: The moderating effects of environmental dynamism and competitiveness", Management Decision, Vol. 49 No. 9, pp. 1444-1470. https://doi.org/10.1108/00251741111173934
Yu, Chuanpeng; Zhang, Zhengang; Lin, Chunpei; Yenchun Jim Wu. (2017). Knowledge Creation Process and Sustainable Competitive Advantage: the Role of Technological Innovation Capabilities Sustainability; Basel Vol. 9, Iss. 12, pp.2280. DOI:10.3390/su9122280
Zastempowski, Maciej. What Shapes Innovation Capability in Micro-Enterprises? New-to-the-Market Product and Process Perspective, Journal of Open Innovation : Technology, Market, and Complexity; Basel Vol. 8, Iss. 1, (2022): 59. DOI:10.3390/joitmc8010059
Zulfikar, Rizki (2018). Marketing Performance Influenced by Market Orientation Thro-ugh Value Creation, Advances in Social Science, Education and Humanities Research, Volume 225, pp 291-297
DOI: https://doi.org/10.21776/ub.apmba.2022.011.01.3
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
