The Effect of Product Innovation and Market Orientation on Business Performance
Keywords:
Product Innovation, Market Orientation, Business Performance, Competitive AdvantageAbstract
This study uses competitive advantage as an intervening variable in the Solo
Residency coffee shop industry to examine how product innovation and market
orientation affect business performance. The performance of the coffee shop in Solo
Residency, which is still below expectations, is the issue brought up in this study.
Coffee shop managers or owners who have been in business for at least six months
make up the study's population. A non-probability or non-random sampling
technique is employed in this investigation. Purposive sampling methods were used
for the sampling. A questionnaire was given to the respondents as part of the study's
data collection strategy. 170 questionnaire responses were analyzed using the
Structural Equation model (SEM) using AMOS 26. According to the study's
findings, competitive advantage significantly improves company success. Business
performance is significantly improved by product innovation. Competitive
advantage is significantly enhanced by product innovation. Market orientation has
very little beneficial effect on business success. Coffee shops in Solo Residency can
successfully attain their competitive advantage if they implement market orientation,
since it has been shown to greatly increase competitive advantage.
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