The Relationships Between Market Orientation, Customer Engagement, and Innovation Performance Of Manufacturing Smes

The purpose of this study is to develop innovation performance modes based on the market orientation and customer engagement influence. The market orientation through customer engagement enable companies to achieve innovative performance of Small, medium enterprises (SME) manufacturing in Bali. The conceptual model was developed to analyze the mediating role of customer engagement in market orientation relationships and innovation performance. The research design was cross-sectional with 242 responses. Data collection was based on the questionnaires conducted on managers or owners of manufacturing SMEs in Bali. The model was tested using Partial Least Square (PLS). This study establised that strong market orientation practices and high customer engagement significantly influence innovation performance. The tresearch indicates the practical benefits that organizations may obtain by building and managing market-oriented behavior and customer engagement. Therefore, understanding market orientation practices and customer engagement is important in creating better innovation performance.