The Comparison Effects between Export Market Orientation and Innovation on Business Performance  

Oleh:

Pane, Dian

Jenis: Article from Proceeding
Dalam koleksi: The 2nd International Conference on Business and Communication (ICBC): Managing Change in Global Context : Toward Sustainable Competitiveness, page 158-170.
Topik: Business Performance; Export Market Orientation Export Intelligence Dissemination; Product Innovation; Process Innovation; Profitability
Fulltext: Proceeding The 2nd ICBC p158-170.pdf (634.74KB)

Isi artikel

Export market orientation or abbreviated EMO needs to be done as an effort to improve business performance because the implementation of EMOs can enhance the export performance of company by identifying and responding the needs of consumers and its preference through the existence beyond the competition. Innovation is also well known as one of a vital contribution formula to business performance nowadays. The aims of this study are to examine EMO (export intelligence generation, export intelligence dissemination and export intelligence responsiveness), innovation (product and process innovation) and business performance (export performance). In addition, the research also compares the effects between EMO and Innovation on business performance. The population and the sample were manufacturing food and beverage companies which are conducted export with the number of population 49 companies located in Surabaya and Sidoarjo, East Java. The census sampling method is used. Furthermore, the questionnaire is used for data collection and PLS Software to analyze. The results of this study demonstrate comparison effects between EMO and Innovation on business performance. Furthermore, the effect of EMO on business performance is positive and significant. The export intelligence dissemination is the dominant dimension of the EMO’s variable but innovation on business performance is not significant and the last, profitability is the dominant dimension of export performance’s variable. In this case, product and process innovation were not became interesting issues of companies because mostly they are exporting raw or semi-finished materials/goods rather than taking risk into high cost expense by investing technology or related with it. And other consequences in facing ACFTA (ASEAN China Free Trade Agreement).The limitation of this paper showed first that a data collection via questionnaire, so that researcher cannot fully control the sincerity and honesty of the respondents in answering the questions presented. Second, cross section data that is only obtained in a certain period of time, the data collected only during the time via questionnaires, so that the development in the application of EMO and export performance of the unit of analysis cannot be obtained in the research. Third, the result from the research cannot generalize to the other companies with different product.

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