Building Innovation Capabilities on Collaboration and Market Orientation for Improving Marketing Performance of Wood Furniture Craft

Abstract

This research aims to test the direct influence of market orientation and innovation capabilities collaboration, with relationship marketing orientation and excellence as mediating variables, on the marketing performance of the micro industry of wood furniture handicrafts. The data was collected using questionnaires submitted by 242 people, and the analysis was carried out using SmartPLS software. The significant impact of collaborative innovation ability and relational marketing orientation on market orientation was shown to have no effect on competitive advantage. The innovation capabilities of collaborating are known to have no significant impact on marketing performance. Competitive advantage has a relationship with marketing performance, and relational marketing orientation has a significant impact on the ability of collaborative innovation. It was also found that relationship marketing orientation has a significant effect on marketing performance. This study is related to improving the marketing performance of the micro industry of wood furniture handicrafts, which has a limited scope, so the results of this study can't be generalized. It was also difficult to determine if there was any bias from the respondents. The marketing orientation of relationships and competitive advantages have contributed significantly to marketing performance. The wood furniture handicraft micro industry must improve collaboration capabilities with dealers and customers and use this as a strategic component to improve the marketing performance of the woodcraft industry. The novelty of this research is related to the capability of collaboration innovation, which is able to improve the marketing performance of small industries.

The Competitive Advantage of Furniture SMEs in East Java: The Role of Aggressiveness in Entrepreneurship Orientation

“…In addition, the SMEs furniture should formulate and implement strategies that lead relative to superior performance facing competitors in the same industry and provide more added value to customers. The growth of the wood and craft furniture industry spread throughout Indonesia has great potential to grow and develop in a long time, as do the research results conducted by Maryono et al (2021) on the woodcraft industry.…”

“…The development of the national furniture and woodcraft industry has a great potential to develop because it is supported by abundant sources of raw materials and skilled craftsmen. The ability to innovate and collaborate also needs to be improved to increase the marketing competitiveness of small industries, especially wood crafts (Maryono et al 2021).…”