The Role of Product Innovation Mediates the Effect of Market Orientation and Entrepreneurial Orientation on Marketing Performance

ABSTRACT: Small and Medium Industries (SMIs) have a strategic role in the national economy, especially inabsorbing labor, increasing people’s income and growing economic activity in the region. The development ofSMIs is an integral part of efforts to develop democratic economy and poverty alleviation by applying theconcept of efficiency. The purpose of this study was to analyze the role of product innovation mediates theeffect of market orientation and entrepreneurial orientation on marketing performance, using saturationsampling, so that the number of samples used in this study were 34 Songket woven fabric industries. Datacollection methods used in this study through questionnaires. Data analysis techniques used are descriptivestatistics, path analysis test, and sobel tests.The results showed that market orientation, entrepreneurial orientation, and product innovation had a positiveand significant effect on marketing performance. Market orientation and entrepreneurial orientation have apositive and significant effect on product innovation. Product innovation is a mediating variable of the effectbetween market orientation and entrepreneurial orientation on marketing performance.

Keyword: Product Innovation, Marketing Performance, Entrepreneurial Orientation, Market Orientation.