EFEK KOMPETENSI MENGHASILKAN PENGETAHUAN SEBAGAI MEDIASI PENGARUH ORIENTASI PASAR TERHADAP INOVASI UKM TEKSTIL DI BALI

Every organization that operates in a dynamic environment will try to achieve and maintain a competitive advantage. Thus, there is a need for continuous innovation, consequently, they need to be more market oriented. The purpose of this study is to explore the role of competence in producing knowledge as the mediator in the relationship between market orientation and the innovation of textile SMEs in Bali. The design of this research is a causality research. Surveys were conducted using a research instrument in the form of questionnaires containing 22 items. The respondents in this study are the managers of the textile manufacturing SMEs and the total is 70 respondents. The respondents conveyed their opinion regarding the effect of market orientation, competence in producing knowledge, and the innovations of their firm. The analysis method used is the descriptive analysis and inferential analysis using the SmartPLS (Partial Least Square) 3.0 analysis tool. The main finding of this study shows that the competence in producing knowledge mediates the influence of market orientation on innovation. Market orientation has an influence on innovation, market orientation has a positive influence on the competence in producing knowledge, and competence in producing knowledge has a positive influence on innovation ability. The implications of this study are, in the attempt to increase the innovation ability of textile SMEs in Bali, managers should be consistent with their market orientation behaviors, such as their activity of listening to customer opinions, focus on customer commitment, focus on the targeted customers, and the competence to produce knowledge, such as active in filtering and utilizing market information.