The Influence of Strategic Orientation, Knowledge Management and Innovation on Firm Performance FMCG Industries

Jonathan, and Prof.Dr.Hj. Farida Jasfar, ME, Ph. D
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Jonathan,: Management, Universitas Internasional Batam
Prof.Dr.Hj. Farida Jasfar, ME, Ph. D: Management, Trisakti University

International Journal of Research and Scientific Innovation, 2020, vol. 7, issue 10, 93-107

Abstract: The purpose of this research is to analyze and identify the influence of a strategic orientation which is divided into market orientation, technology orientation, entrepreneurial orientation, and knowledge management on firm performance with innovation as an intervening variable. This research was conducted at 58 FMCG listed companies (Bursa Efek Indonesia) with the data collection method in the form of a questionnaire. The sample in the study amounted to 58 respondents consisting of leaders in FMCG companies listed on the IDX. The data analysis method used in this study is Partial Least Square Structural Equation Modeling (PLS-SEM) with SmartPLS Version 3 program. Data analysis was carried out by evaluating the measurement model (outer model) and structural model (inner model). The results showed that FMCG companies that prioritize innovation and have a good entrepreneurial orientation will increase firm performance, besides that FMCG companies are able to carry out market orientation so that they find what market needs are accompanied by innovation which will increase firm performance. The results also show that technology orientation and knowledge management do not play a role in creating innovation and have no effect in increasing firm performance.

Date: 2020
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