The role of service innovation and competitive advantage ad mediators of product innovation on marketing performance: Evidence from the SME manufacturing firms in Indonesia

Abstract

This paper aims to explore the role of service innovation and competitive advantage as a mediator of product innovation on marketing performance of small and medium enterprises (SMEs) manufacturing firms in Indonesia. The sample size used in the research was 180 SMEs and the sampling technique is area (cluster) sampling. Furthermore, the sample criteria or respondents, whose researchers' recommendations for filling in the research instrument are managers and can represent company owners. Findings provide empirical evidence that service innovation on marketing performance; competitive advantage on marketing performance; product innovation on service innovation; and product innovation on competitive advantage have positive and significant effects, except the influence of competitive advantage on marketing performance which was not significant.