Published date: Oct 15 2024

Journal Title: KnE Social Sciences

Issue title: 8th International Conference on Sustainability (8th ICoS): Sustainable Economics

Pages: 654–673

DOI: 10.18502/kss.v9i29.17289

Hifi Rini Puspitahifi.puspita@student.unmer.ac.idPostgraduate Program, University of Merdeka Malang, Malang, Indonesia

Widji AstutiPostgraduate Program, University of Merdeka Malang, Malang, Indonesia

Bambang SupriadiPostgraduate Program, University of Merdeka Malang, Malang, Indonesia

This research aims to analyze the influence of market orientation on innovation capability and marketing performance, as well as examine the mediating role of innovation capability in the relationship between market orientation and marketing performance. The results of this quantitative research show that market orientation contributes to marketing performance and the formation of innovation capabilities, and that innovation capabilities of SMEs are reflected in attractive and safe products. This research contributes to an understanding the dynamics of market orientation, innovation, and marketing performance in SMEs in the context of Lamongan Regency. Managerial implications and policy recommendations are outlined based on research findings, with the hope of providing guidance for SMEs and related parties on improving marketing performance. These findings support the theory that market orientation can improve marketing performance with innovation capabilities. The practical implication of this research is that SMEs can strengthen their market orientation to increase product innovation.

Keywords: market orientation, innovation capability, marketing performance

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