PENGARUH ORIENTASI PASAR TERHADAP KEUNGGULAN BERSAING MELALUI INOVASI PADA UKM BIDANG FURNITURE DI KOTA SEMARANG

One of the small and medium enterprises in the city of Semarang is the field of furniture and furniture . Furniture or furniture that is often referred to as a product included in the household so that the furniture is not the scarce goods but is needed by the community . Realization of production every year to reach an average of only 90 % of the target . The resulting production also fluctuated every year , almost every year has decreased . The purpose of this study was to determine the effect of market orientation and innovation to compete SMEs lead with furniture in the city of Semarang . The population in this study was 64 furniture craftsman whose products have been exported to SMEs furniture Semarang . Way of selecting a sample ( respondents ) were used in this study using nonprobability sampling technique. Analysis using quantitative , qualitative analysis , validity , reliability testing , path analysis , descriptive analysis and differential analysis .The results showed t value of the variable effect of market orientation on innovation by 3.690 , the hypothesis 1 ( H1 ) that the Market Orientation proven positive effect on innovation . T value of the variable effect of market orientation on Competitive Advantage of 2,079 > t Table , hypothesis 2 ( H2 ) that the positive effect on market orientation Competitive Advantage proven . T value of the variable influence of Innovation for Competitive Advantage 3.332 > t table , the hypothesis 3 ( H3 ) that innovation has a positive effect on Competitive Advantage proven . Calculated F value of the variable influences Market Orientation and Innovation for Competitive Advantage by 9.396 > F table , hypothesis 4 ( H4 ) that the Market Orientation and Innovation positive effect on Competitive Advantage proven .Craftsmen will need to improve understanding of market orientation in the face of competition . Owned and increase innovation to improve the ability and skill to produce a better product thus increasing the competitive advantage of products.