The Effect of Product Innovation and Service Innovation towards Marketing Performance (Case Study on Plastic Producer in Surabaya)

Abstract

Purpose – The purpose of thispaperis the effect of product innovation and service innovation toward marketing performance, case study on plastic producer. Design/ methodology/approach – This paper uses a quantitative approachwith Partial Least Square (PLS) analysisusing the SmartPLS 3.0 program, while the number of samplesis 76 respondents as representingeach plastic producer. Findings - The resultsshowedthatproduct innovation had a significanteffect on service innovation, service innovation had a significanteffect on marketing performance, and product innovation had an effect on marketing performance. Pratical implications – In general, service innovation and product innovation alsoplay a role as a variable complementary partial mediation on product innovation relationships and marketing performance. Product innovation and service innovation carried out individually in marketing performance. Originality/ value – Companiesthat combine product innovation and service innovation togetherwill gain greater revenue growth and profitability.