Environmental Uncertainty and Market Orientation on Business Performance with Innovation as an Intervening Variable: A Survey of Banking Industry in Indonesia

Setyani Dwi Lestari ()
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Setyani Dwi Lestari: Budi Luhur University, Indonesia

GATR Journals from Global Academy of Training and Research (GATR) Enterprise

Abstract: "Objective � This causal research is aimed at obtaining information related to the effect of uncertainty environment, market orientation, and innovation in direct and indirect effect on the business performance in a holistic co-alignment perspective. Methodology � In this research, 90 samples were randomly selected and the data were analysed by path analysis after all variables were put into the correlation matrix. Findings �The results showed that: (1) environment uncertainty has a significant direct effect of the innovation; (2) environment uncertainty has a significant direct effect on the business performance; (3) market orientation has a significant direct effect on the innovation; (4) market orientation doesn�t have a significant direct effect on business performance; (5) innovation has a significant direct effect on the business performance; (6) environment uncertainty has a significant indirect effect on the business performance but through the innovation; and (7) market orientation has a significant indirect effect on the business performance but through the innovation. Novelty � Based on those findings, it could be concluded that any change or variation in the business performance was affected by environment uncertainty, market orientation, and innovation. Therefore, to improve variation in the business performance, environment uncertainty, market orientation, and innovation should be put into strategic planning in the banking industry in Indonesia. However, other variables are necessary to be taken into account in the next research."

Keywords: Environmental Uncertainty; Market Orientation; Business Performance; Innovation. (search for similar items in EconPapers)
JEL-codes: G21 L15 M31 (search for similar items in EconPapers)
Pages: 9
Date: 2017-04-24
New Economics Papers: this item is included in nep-cse, nep-ino and nep-sea
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Published in Journal of Management and Marketing Review, Volume 2, Issue 2

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