INOVASI DAN KEUNGGULAN KOMPETITIF SEBAGAI VARIABEL MEDIASI PENGARUH ORIENTASI PASAR TERHADAP KINERJA BISNIS (studi empiris pada Usaha Kecil dan Menengah di Purwokerto)

This study was aimed to explain the influence of market orientation and business performance toward innovation and competitive advantage as mediation. To test the empirical models, Structural Equation Modelling (SEM) was used. Among the software used to assist the analysis in this study were AMOS 21.0, SPSS 16.0 and Microsoft Excel 2007. Sample size of this research was 155 owners and/or managers of Small and Medium Enterprises (SMEs) in the Purwokerto areas. The result showed that market orientation has positive effect on innovation, market orientation has positive effect on competitive advantage, innovation has positive effect on business performance, competitive advantage has positive effect on business performance, market orientatikon has positive effect on business performance, innovation as mediation variable of market orientation to business performance, and competitive advantage as mediation of innovation to business performance. Keywords : Market Orientation, Innovation, Competitive Advantage, Business Performance