The Role of Market Orientation, Creativity and Innovation in Creating Competitive Advantages and Creative Industry Performance

Sutapa Sutapa, Mulana Mulyana, Wasitowati Wasitowati

Abstract

The purpose of this study is to examine the effect of market orientation, creativity, innovation and competitive advantage on the performance of creative industries. Respondents from this study are 130 owners or leaders of creative industries in the fashion sector in Central Java Indonesia. The study is located on the North Coast of Central Java, taking five districts, namely Pekalongan, Semarang, Kudus, Rembang and Jepara. Sampling method in this research use purposive sampling method. This method is used taking into account the criteria of the creative fashion industry that has been operating for at least 3 years and innovating market-oriented products. The data obtained will be analyzed using Partial Least Square (PLS) program. The results of data analysis show that creativity has no significant effect on innovation. Market orientation significantly affects innovation and performance. Innovation also has a significant effect on excellence and competitive performance. Furthermore, competitive advantage has a significant effect on company performance.

Keywords

Market Orientation; Creativity; Innovation; Competitive Advantage; Performance.

Full Text:

PDF

References

Afsharghasemi, A., Zain, M., Sambasivan, M & Imm, S. N. S. 2013. Market Orientation, Government Regulation, Competitive Advantage and Internationalization of SMEs: a Study in Malaysia. Journal of Business Administration Research. 2 (2): 13-23.

Altuntaş, G., Semerciöz, F & Eregez, H. 2013. Linking Strategic and Market Orientations to Organizational Performance: the Role of Innovation in Private Healthcare Organizations. Procedia-Social and Behavioral Sciences. 99: 413-419.

Ar, I. M. 2012. The Impact of Green Product Innovation on Firm Performance and Competitive Capability: the Moderating Role of Managerial Environmental Concern. Procedia-Social and Behavioral Sciences. 62: 854-64.

Armanio, J. M., Ruiz, D. M & Armanio, E. M. 2008. Market Orientation and Internationalization in Small and Medium-Sized Enterprises. Journal of small Business Management. 46 (4): 485-511.

Asikhia, O. 2010. Customer Orientation and Firm Performance among Nigerian Small and Medium Scale Businesses. International Journal of Marketing Studies. 2 (1): 197-212.

Augusto, M & Coelho, F. 2009. Market Orientation and New-to-the-World Products: Exploring the Moderating Effects of Innovativeness, Competitive Strength and Environmental Forces. Industrial Marketing Management. 38 (1): 94-108.

Awuah, G. B. 2008. Networked (Interactive) Position: a New View of Developing and Sustaining Competitive Advantage. Competitiveness Review: an International Business Journal. 18 (4): 333-50.

Awwad, M. S., Ali, D & Agti, M. 2011. The Impact of Internal Marketing on Commercial Banks’ Market Orientation. International Journal of Bank Marketing. 29 (4): 308-32.

Azadehdel, M. R., Farahbod, F & Jamshidinejad, M. A. 2013. The Relationship between Knowledge Sharing, Innovation and Performance of Manufacturing and Trading Companies in Guilan Province. Inter Diciplinary Journal of contemporary research in Business. 5 (5): 408-13.

Aziz, N. A & Yassin, N. M. 2010. How Will Market Orientation and External Environment Influence the Performance among SMEs in the Agro-Food Sector in Malaysia?. International Business Research. 3 (3): 154-164.

Charterina, J & Landeta, J. 2013. Effects of Knowledge-Sharing Routines and Dyad-Based Investments on Company Innovation and Performance: an Empirical Study of Spanish Manufacturing Companies. International journal of Management. 30 (1): 20-40.

Chen, Y & Chang, C. 2013. The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership and Green Creativity. Journal of Business Ethics 116: 107-19.

Chiou, C. 2011. Dynamic Capabilities, Collaborative Network and Business Model: an Empirical Analysis of Taiwan HTC Corporation. African Journal of Business Management. 5 (2): 294-305.

Dirisu, J. I., Iyiola, O & Ibidunni, O. S. 2013. Product Differentiation: a Tool of Competitive Advantage and Optimal Organizational Performance. European Scientific Journa. 9 (34): 258-281.

Dustin, G., Bharat, M & Jitendra, M. 2014a. Competitive Advantage and Motivating Innovation. Advant in Management. 7 (1): 1-8.

Farida, N. 2016. Determinants of Marketing Performance: Innovation, Market Capabilities and Marketing Performance. Jurnal Dinamika Manjemen. 7 (1): 59-65.

Fong, C & Chang, N. 2012. The Impact of Green Learning Orientation on Proactive Environmental Innovation Capability and Firm Performance. African Journal of Business Management. 6 (3): 727-135.

Gerni, G. M. 2013. Evaluating the Effects of Market and Innovation Orientations on Family Owned Firms’ Performance: an Empirical Study in Istanbul. Advances in Management & Applied Economics. 3 (5): 139-150.

Gholami, S & Birjandi, M. 2016. The Effect of Market Orientation and Entrepreneurial Orientation on the Performance of SMEs. Journal of Current Research in Science. 5 (1): 361-69.

Halim, M. A. S. A., Muda, S & Amin, W. A. A. W. M. 2011. The Measurement of Entrepreneurial Personality and Business Performance in Terengganu Creative Industry. International Journal of Business and Management. 6 (6): 183-93.

Hassan, M. U., Qureshi, S. U., Hasnain, A., Sharif, I & Hassan, R. 2013. Market Orientaion, Learning Orientation and Organizational Performance: Evidence from Banking Industry of Pakistan. Science International. 25 (4): 945-956.

Hosseini, M. 2012. An Investigation on the Effect of Supply Chain Integration on Competitive Capability: an Empirical Analysis of Iranian Food Industry. International Journal of Business and management. 7 (5): 73-91.

Hsu, S. 2012. Effects of Competitive Strategy, Knowledge Management and E-Business Adoption on Performance. The Journal of Human Resource and Adult Learning. 8 (2): 42-50.

Ghozali, I. 2013. Apikasi Analisis Multivariat dengan Program SPSS 21. Semarang: Badan Penerbit Universitas Diponegoro.

Jardon, C. M & Martos, M. S. 2013. Intellectual Capital as Competitive Advantage in Emerging Clusters in Latin America. Journal of Intellectual Capital. 13 (4): 462-81.

Kamukama, N., Ahiauzu, A & Ntayi, J. M. 2011. Competitive Advantage: Mediator of Intellectual Capital and Performance. Journal of Intellectual Capital. 12 (1): 152-64.

Karacaoglu, K., Bayrakdaro, A & San, F. B. 2013. The Impact of Corporate Entrepreneurship on Firms’ Financial Performance: Evidence from Istanbul Stock Exchange Firms. International Business Research. 6 (1): 163-176.

Kaya, N & Patton, J. 2011. The Effects of Knowledge-Based Resources, Market Orientation and Learning Orientation on Innovation Performance: an Empirical Study of Turkish Firms. International Bibliography of the Social Sciences. 23 (2): 204-219.

Kok, R. A. W & Biemans, W. G. 2009. Technovation Creating a Market-Oriented Product Innovation Process: a Contingency Approach. Technovation. 29 (8): 517-26.

Lakhal, L. 2009. Impact of Quality on Competitive Advantage and Organizational Performance. Journal of the Operational Research Society. 60 (5): 637-345.

Liu, H., Ke, W., Wei, K. K & Hua, Z. 2011. Effects of Supply Chain Integration and Market Orientation on Firm Performance Evidence from China. International Journal of Operation and Production Management. 33 (3): 322-346.

Maatoofi, A. R & Tajeddini, K. 2011. Effect of Market Orientation and Entrepreneurial Orientation on Innovation Evidence from Auto Parts Manufacturing in Iran. Journal of Management Research. 11 (1): 20-30.

Mahmood, R. 2013. Entrepreneurial Orientation and Business Performance of Women-Owned Small and Medium Enterprises in Malaysia: Competitive Advantage as a Mediator. International Journal of Business and Social Science. 4 (1): 82-91.

Martinez, C., Guzman, G. M & Martinez, C. 2013. The Relationship between Market Orientation and Innovation in Mexican Manufacturing SME’S. Advances in Management and Applied Economics. 3 (5): 125-37.

Mehrabani, S. E. 2012. Knowledge Management and Innovation Capacity. Journal of Management Research. 4 (2): 164 ‐ 177.

Mirza, W. A. 2011. The Dilemma of Knowledge Management, Innovation and Entrepreneurship in SME’S: an Empirical Study. Interdiciplinary Journal of Contaporary Research in Business. 3 (20): 1112-1129.

Mulyana, S . 2016. The Impact of Entrepreneurial Orientation and Collaborative Networks on Creative Industries Performance. Journal Dinamika Manajemen. 7 (2): 166-81.

Najib, M., Dewi, F. R & Widyastuti, H. 2014. Collaborative Networks as a Source of Innovation and Sustainable Competitiveness for Small and Medium Food Processing Enterprises in Indonesia. International Journal of Business and Management. 9 (9): 147-60.

Oudan, R. 2012. Market Orientation-Transforming Trade and Firm Performance. International Journal of Marketing Studies. 4 (2): 3-9.

Pantouvakis, A., Vlachos, I & Zervopoulos, P. D. 2017. Market Orientation for Sustainable Performance and the Inverted-U Moderation of Firm Size: Evidence from the Greek Shipping Industry. Journal of Cleaner Production. 165: 705-720.

Parkman, I. D., Holloway, S. S & Sebastiao, H. 2012. Creative Industries: Aligning Entrepreneurial Orientation and Innovation Capacity. Journal of Research in Marketing and Entrepreneurship. 14 (1): 95-114.

Permatasari, A & Dhewanto, W. 2013. Business Model Innovation towards Competitive Advantage: Case Study in Indonesian Cosmetics and Herbal Health Companies. Information Management and Business Review. 5 (8): 385-393.

Peter S. D., Babakus, E., Englis-Danskin, P & Pett, T. 2010. The Influence of CEO Gender on Market Orientation and Performance in Service Small and Medium-sized Service Businesses. Journal of Small Business Management. 48 (4): 475-496.

Putri, V. W & Yuniawan, A. 2016. Organizational Effectiveness: Social Capital and Competitive Advantage Approach. Jurnal Dinamika Manajemen. 7 (1): 76-90.

Remli, N., Daud, W. N. W., Zainol, F. A & Muhammad, H. 2013. A Proposed Conceptual Framework for Market Orientation and Innovation towards Takaful Performance in Malaysia. International Journal of Business and Management. 8 (7): 100-106.

Ren, L., Xie, G & Krabbendam, K. 2010. Sustainable Competitive Advantage and Marketing Innovation within Firms. Management Research Review. 31 (1): 79-89.

Rosli, M. M & Sidek, S. 2013. The Impact of Innovation on the Performance of Small and Medium Manufacturing Enterprises: Evidence from Malaysia. Journal of Innovation Management in Small & Medium Enterprise. 1-16.

Russell, S. N & Millar, H. H. 2014. Exploring the Relationships among Sustainable Manufacturing Practices, Business Performance and Competitive Advantage: Perspectives from a Developing Economy. Journal of Management and Sustainability. 4 (3): 37-54.

Salim, I. M & Sulaiman, M. 2011. Organizational Learning, Innovation and Performance: a Study of Malaysian Small and Medium Sized Enterprises. International Journal of Business and Management. 6 (12): 118-26.

Sanchez-Gutierrez, J., Gonzalez-Uribe, E. G., Gutierrez-govea, A & Garcia-jimenez, E. F. 2012. Competitiveness: an Analysis of the Restaurant Industry. Advances in Competitiveness Research. 20 (3): 32-46.

Santos-vijande, L. 2012. Marketing Capabilities Development in Small and Medium Enterprises: Implications for Performance Marketing Capabilities Development in Small and Medium. Journal of Centrum Cathedra. 5 (1): 2012.

Shoemaker, M. E & Pelham, A. M. 2013. Does Salesperson Perception of the Firm-Level of Market Orientation Influence Sales Behavior and Performance Attributions?. Journal of Managerial Issues. 25 (4): 381-400.

Singh, H & Mahmood, R. 2013. Determining the Effect of Export Market Orientation on Export Performance of Small and Medium Enterprises in Malaysia: an Exploratory Study. Advances in Management & Applied Economics. 3 (6): 223-32.

Sohn, S. Y & Jung, C. S. 2010. Effect of Creativity on Innovation: Do Creativity Initiatives Have Significant Impact on Innovative Performance in Korean Firms?. Creativity Research Journal. 22 (3): 320-28.

Sousa, F. C. D. 2012. Creativity, Innovation and Collaborations. International Journal of Organizational Innovation. 5 (1): 26-65.

Steiner, G. 2009. The Concept of Open Creativity: Collaborative Creative Problem Solving for Innovation Generation-a System Approach. Journal of Business & Management. 15 (1): 5-33.

Sugianto, L & Hartono, S. 2017. Enhancing Capability of Human Resources Innovation. Jurnal Dinamika Manajemen. 8 (1): 108-121.

Sulistyo, H. 2016. Asia Pacific Management Review Innovation Capability of SMEs through Entrepreneurship, Marketing Capability, Relational Capital and Empowerment. Asia Pacific Management Review. 21 (4): 196-203.

Suliyanto & Rahab. 2012. The Role of Market Orientation and Learning Orientation in Improving Innovativeness and Performance of Small and Medium Enterprises. Asian Social Science. 8 (1): 134-145.

Upadhyay, A & Sivakumar, N. 2015. Impact of Marketing Orientation on Financial Performance of Banks in India. International Journal of Banking, Risk and Insurance Rrelationship. 3 (1): 36-45.

Vytlacil, L. L. 2010. Market Orientation and Business Performance: the Role of Positional Advantage. Disertation. Minneapolis: Capella University.

Widana, G. O., Wirjono, S. K., Purwanegara, M. S & Toha, M. 2015. The Role of Business Ethics in the Relationship between Market Orientation and Business Performance. International Journal of Finance & Banking Studies. 4 (1): 95-112.

Wingwon, B. 2012. Effects of Entrepreneurship, Organization Capability, Strategic Decision Making and Innovation toward the Competitive Advantage of SMEs Enterprises. Journal of Management and Sustainability. 2 (1): 137-51.

Wong, H & Ellis, P. D. 2007. Is Market Orientation Affected by the Product Life Cycle?. Journal of Word Business. 42: 145-56.

Yadav, S. K & Tripathi, V. 2014. Market Orientation and SMEs Performance. Journal of Entrepreneurship and Management. 3 (3): 27-34.

Yuan Li., Zhao, Y., Tan, J & Liy, Y. 2008. Moderating Effects of Entrepreneurial Orientation on Market. Journal of Small Business Management. 46 (1): 113-33.


View Counter: Abstract - 5183 and PDF - 4462

Refbacks

  • There are currently no refbacks.