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The Influence of Market Orientation Towards Innovation and Business Performance At Companies in The Creative Industries in The Bandung City

The Influence of Market Orientation Towards Innovation and Business Performance At Companies in The Creative Industries in The Bandung City
Arianis Chan
Universitas Padjadjaran, Review of Integrative Business and Economics Research, Vol. 5, no. 2, pp.186-195, April 2016, http://sibresearch.org/uploads/3/4/0/9/34097180/riber_k16-089__186-195_.pdf
Bahasa Inggris
Universitas Padjadjaran, Review of Integrative Business and Economics Research, Vol. 5, no. 2, pp.186-195, April 2016, http://sibresearch.org/uploads/3/4/0/9/34097180/riber_k16-089__186-195_.pdf
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This research aims at investigating market orientation, business innovation and business performance on Bandung city’s creative industries and at scrutinizing the influence of market orientation towards Bandung city’s creative industry business performance. The selection of Bandung city’s creative industry is influenced by various reasons such as Bandung city’s national and international achievement on creative industry. To answer the formulated research questions, the method applied is quantitative research method. The type of the research is Descriptive research and Verificative Explanation Research. The data time horizon is cross sectional which depics a specific phenomenon at one particular time. The analysis unit in this study is leaders of 129 companies under the 15 subsectors of creative industry. Then, each variable goes through empiric hypothesis testing through the use of Structural Equation Modeling (SEM). The research findings reveal that market orientation, innovation, and business performance are in high condition. The result of coefficient of determination is 62% of changes which occur in innovation variable are explainable by changes occurring in market orientation. The testing results in obtained t score of 5.92. This result rejects the null hypothesis implying the existence of significant influence of market orientation on innovat ion when it is tested on the significance level of 5%. Calculation of coefficient of determination reveals that 24% of changes which occur in business performance variable could be explained by changes occurring in market orientation. The obtained T value is at 2.22. This result rejects the null hypotheses implying market orientation to significantly influence business performance when it is tested on the significance level of 5%. From these findings, it is fair to deem market orientation influences innovat ion more greatly than its influence on business performance.

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