Organizational Culture Adaptability and SMEs Business Performance through Business Innovation

The aim of the study is to analyze the dimensions of cultural adaptability which consist of creating change, customer focus, and organizational learning and business innovation towards the performance of Culinary SMEs in West Java. The design of this research is causality research. The sampling technique in this study uses random sampling with a sample of 123 regional culinary SMEs in Kuningan Regency, Cirebon City, Majalengka, Indramayu and Cirebon Regency in West Java. Data collection methods used are sample research design surveys. The analysis technique is path analysis using the AMOS program of version 22. The results of this study indicate that two dimensions of cultural adaptability which consist of creating change and customer focus affect innovation and improve business performance both directly and indirectly. But the dimensions of organizational learning does not affect innovation and business performance either directly or indirectly. The results of this study also found that innovation mediates the effect of creating change and customer focus on performance. This study found that in order to create innovation and improve business performance requires change and focus on customers.