PENGARUH DARI MEDIASI SUPPLY CHAIN INTEGRATION TERHADAP HUBUNGAN INNOVATION ORIENTED DENGAN FIRM PERFORMANCE PADA UMKM KOTA BANDUNG

Abstract

Small Micro Medium Enterprises have an important and strategic role in the economic development of Indonesia. Small Micro Medium Enterprises have contributed in the GrossDomestic Product (GDP) around 57-60% and in the employment rate around 97% of the total national workforce. Small Micro Medium Enterprises more quickly in adapt their products to customer demands and needs. The innovation and creativity of  Small Micro Medium Enterprises actors make competition even higher. Innovation Orientation can improve the Firm Performance, the Firm will have a competitiveness with the supporters. The Firm need strategy to improve the relationship between Innovation Orientation and Firm Performance. The improvement of innovation is carried out, so the firm is able to fulfill customer demands and needs. Therefore, Supply Chain Integration is needed to improve the relationship between Innovation Orientation and Firm Performance. Technique for analyzing is Structural Equation Model (SEM) using SmartPLS 2 application. The result of the analysis show that Innovation Oriented have a significantly positive effect on the Firm Performance.