The Influence of Strategic Orientation, Knowledge Management and Innovation on Firm Performance FMCG Industries
- November 4, 2020
- Posted by: RSIS Team
- Categories: IJRSI, Management
International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue X, October 2020 | ISSN 2321–2705
Jonathan1, Prof. Dr. Hj. Farida Jasfar, ME, Ph. D2
1Management, Universitas Internasional Batam
2Management, Trisakti University
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.
Keywords: Strategic Orientation, Knowledge Management, Innovation, Firm Performance, FMCG.
Preliminary
In line with intense competition around the world and increasing changes in many business sectors in terms of product quality, technology, the mentality of corporate leaders, idea processing, companies need to renew themselves by utilizing existing competencies and exploring new things. One of the industries that is the main growth factor for Indonesia is the home industry or what is commonly called the fast moving consumer goods industry based on data from the Kantar World Panel (2019). The FMCG industry itself is an industry engaged in the needs of the community whose transactions move very quickly. Several FMCG companies are registered in Burse Efek Indonesia or that are already well known by the Indonesian public, such as Mayora, Indofood, Kino Indonesia and Unilever.
