IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/91257.html
   My bibliography  Save this paper

The Effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance: A Case Study on MSMEs in the Culinary Field in D.I. Yogyakarta

Author

Listed:
  • Ichwan, A’bdul Fatach
  • Nursyamsiah, Siti

Abstract

This study aims to determine the effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance. The population in this study is the Micro, Small, and Medium Enterprise (MSME) in the Culinary Division at D.I. Yogyakarta and use 200 respondents as a sample. By using convenience sampling technique, the researchers have the freedom to choose any culinary MSME found around D.I. Yogyakarta to be the respondent. Hypothesis testing using Structural Equation Model (SEM) analysis. The findings show that there is a positive influence of responsive market orientation on product innovation performance, proactive market orientation on product innovation performance, product innovation performance on the company's market performance, and the company's market performance on the company's financial performance. The findings of this study contribute to MSMEs that information about market orientation adopted by business actors or companies can affect the performance of new product innovations in the market to improve the company's market performance which then affects the company's financial performance.

Suggested Citation

  • Ichwan, A’bdul Fatach & Nursyamsiah, Siti, 2019. "The Effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance: A Case Study on MSMEs in the Culinary Field in D.I. Yogyakarta," MPRA Paper 91257, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91257
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/91257/1/MPRA_paper_91257.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John Tsalikis & Bruce Seaton & Tiger Li, 2008. "The International Business Ethics Index: Asian Emerging Economies," Journal of Business Ethics, Springer, vol. 80(4), pages 643-651, July.
    2. John Tsalikis & Bruce Seaton, 2008. "The International Business Ethics Index: Japan," Journal of Business Ethics, Springer, vol. 80(2), pages 379-385, June.
    3. Gary L. Lilien & Pamela D. Morrison & Kathleen Searls & Mary Sonnack & Eric von Hippel, 2002. "Performance Assessment of the Lead User Idea-Generation Process for New Product Development," Management Science, INFORMS, vol. 48(8), pages 1042-1059, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandre Ardichvili & Douglas Jondle & Brenda Kowske & Edgard Cornachione & Jessica Li & Thomas Thakadipuram, 2012. "Ethical Cultures in Large Business Organizations in Brazil, Russia, India, and China," Journal of Business Ethics, Springer, vol. 105(4), pages 415-428, February.
    2. John Tsalikis & Bruce Seaton & Phillip Shepherd, 2014. "Business Ethics Index: Latin America," Journal of Business Ethics, Springer, vol. 119(2), pages 209-218, January.
    3. Bianca Avram-Pop & Simona Sabou & Stelian Brad, 2017. "The Influence Of Demographic Aspects Upon Business Ethics In Romanian Individuals," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 23-31, December.
    4. Maya Todeschini, 2011. "“Webs of Engagement”: Managerial Responsibility in a Japanese Company," Journal of Business Ethics, Springer, vol. 101(1), pages 45-59, March.
    5. Hau, Yong Sauk & Kang, Minhyung, 2016. "Extending lead user theory to users’ innovation-related knowledge sharing in the online user community: The mediating roles of social capital and perceived behavioral control," International Journal of Information Management, Elsevier, vol. 36(4), pages 520-530.
    6. Wang Kai & Tao Yu & Wang Hui, 2017. "Combining Ideas in Crowdsourced Idea Generation," Foundations of Management, Sciendo, vol. 9(1), pages 203-212, February.
    7. Burcharth, Ana Luiza Lara de Araújo & Lettl, Christopher & Ulhøi, John Parm, 2015. "Extending organizational antecedents of absorptive capacity: Organizational characteristics that encourage experimentation," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 269-284.
    8. Zhang, De-Peng & Yang, Chen-hui & Zhang, Feng-Hua, 2014. "Analysis of the equity preference influence in customer participation incentives," Economic Modelling, Elsevier, vol. 41(C), pages 1-8.
    9. de Jong, Jeroen P.J. & Gillert, Nils Lennart & Stock, Ruth M., 2018. "First adoption of consumer innovations: Exploring market failure and alleviating factors," Research Policy, Elsevier, vol. 47(2), pages 487-497.
    10. Erik Brouwer & Tom Poot & Kees Montfort, 2008. "The Innovation Threshold," De Economist, Springer, vol. 156(1), pages 45-71, March.
    11. Alexander Brem & Volker Bilgram & Adele Gutstein, 2021. "Involving Lead Users in Innovation: A Structured Summary of Research on the Lead User Method," World Scientific Book Chapters, in: Alexander Brem (ed.), Emerging Issues and Trends in INNOVATION AND TECHNOLOGY MANAGEMENT, chapter 2, pages 21-48, World Scientific Publishing Co. Pte. Ltd..
    12. L. G. Pee, 2016. "Customer co-creation in B2C e-commerce: does it lead to better new products?," Electronic Commerce Research, Springer, vol. 16(2), pages 217-243, June.
    13. von Hippel, Eric & Kaulartz, Sandro, 2021. "Next-generation consumer innovation search: Identifying early-stage need-solution pairs on the web," Research Policy, Elsevier, vol. 50(8).
    14. Ruo-Yu Liang & Wei Guo & Ling-Hao Zhang & Lei Wang, 2019. "Investigating Sustained Participation in Open Design Community in China: The Antecedents of User Loyalty," Sustainability, MDPI, vol. 11(8), pages 1-19, April.
    15. Jeroen de Jong, 2014. "The Emperical Scope of User Innovation," Scales Research Reports H201403, EIM Business and Policy Research.
    16. Anna S. Cui & Fang Wu, 2016. "Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 516-538, July.
    17. Lettl, Christopher & Rost, Katja & von Wartburg, Iwan, 2009. "Why are some independent inventors 'heroes' and others 'hobbyists'? The moderating role of technological diversity and specialization," Research Policy, Elsevier, vol. 38(2), pages 243-254, March.
    18. Furrer, Olivier & Sudharshan, Devanathan & Tsiotsou, Rodoula H. & Liu, Ben S., 2016. "A framework for innovative service design," FSES Working Papers 476, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    19. Alfonso Gambardella & Christina Raasch & Eric von Hippel, 2017. "The User Innovation Paradigm: Impacts on Markets and Welfare," Management Science, INFORMS, vol. 63(5), pages 1450-1468, May.
    20. Laurent Busca & Julien Grobert & Cyrielle Vellera, 2021. "Effect of congruent scent diffusion on individual creative fluidity: Mental imagery instruction and iconic stimulus as possible moderators," Post-Print hal-03256558, HAL.

    More about this item

    Keywords

    responsive market orientation; proactive market orientation; product innovation; company performance;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:91257. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.