Abstract:
Bead craft MSMEs in East Martapura face challenges in competing with other products in a dynamic market, as well as in meeting changing consumer preferences. Product innovation carried out by craftsmen is by paying attention to product quality, product variants, and product design. Meanwhile, in market orientation, craftsmen are customer-oriented, competitor-oriented, and coordinate between functions both with fellow employees and employees with their superiors. This study aims to analyze the influence of product innovation and market orientation on the performance of MSME bead crafts in East Martapura. The method used in this study is a quantitative method with a survey approach, where data is collected through questionnaires distributed to MSME bead craftsmen. The research population is MSME bead craftsmen in East Martapura, with a saturated sampling technique that covers all members of the population. Data analysis was conducted using multiple linear regression to determine the relationship between product innovation and market orientation on MSME performance. The results of the study indicate that product innovation has a positive and significant effect on MSME performance, indicating that developing quality and varied products can increase the attractiveness and sales of MSMEs. Conversely, market orientation has a negative effect on performance, indicating that excessive focus on market trends without considering internal stability can have a detrimental impact on MSMEs. The implications of this study highlight the importance of continuous product innovation and wise market orientation to maintain optimal MSME performance.
