THE IMPACT OF CAPABILITY INNOVATION TO MARKETING PERFORMANCE THROUGH VALUE CREATION AT THE CENTER OF SMALL AND MEDIUM KNITTING INDUSTRY IN BANDUNG

Author

Dr Raeni Dwisanty, S.E., M.SI Dr. Rizki Zulfikar, SE., M.Si Prof. Dr. Hj. Dwi Kartini, SE., Spec.Lic.

Abstrak

The problems faced by the entrepreneurs incorporated at the center of small and medium enterprises (SMEs) of knitting industry in Bandung vary. The weak innovation capability causesa low value creation and implies in the reduction of marketing peformance. This research aims to investigate the relation between the marketing performance in small and medium enterprises (SMEs) knitting industry in Bandung (Indonesia) which is influenced by innovation capability and value creation. The methodology used in this research is the Descriptive Analysis conducted with 281 respondents of entrepreneurs of SMEs at the knitting industry center in Bandung. The scores are calculated using LISREL 8.7 and scoring method to obtain grand mean of each variable. Structural Equation Model (SEM) is also used as the quantitative analysis to test all hypotheses in accordance to the research aims. The result of this research shows that there is a significant impact, both direct and indirect, from innovation capability and value creation to the marketing performance of the SMEs at the center of knitting industry in Bandung.