Effect Of Product Innovation, Value Co-creation, Market Sensing On Firm Performance Batik Indonesia

Abstract

he aim of this study is to analyze the effect of product innovation, market sensing capability, and value co-creation on firms’ performance. Small and Medium Enterprise (SMEs) Batik firms in Central Java are used as a sample. Sampling was done using a purposive sampling technique. Data were collected using a questionnaire given directly to the respondents. The total data that can be further analyzed comes from as many as 211 respondents. Data was analyzed using Structural Equation Modelling –(SEM) with the AMOS program assistance. The results shows that the product innovation has significant effects on value co-creation. In addition, value co-creation as a mediator in the product innovation relationship has significant effects on firms’ performance