Indian Journal of Science and Technology

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Objectives: This study was carried out to verify market orientation, internal cooperation practice, and process formality on product innovation performance and business performance in Product Innovation. Methods/Statistical analysis: A survey was conducted and analyzed on manufacturing companies which had gone through New Product Development stage. Factor analysis was done by using package SPSS21 and the effects between variables were analyzed with a structural equation model using package Amos 21. Findings: First, Market Orientation was found to have a positive effect on Product Innovation Performance. Second, Internal Cooperation Practice was found to have a positive effect on Product Innovation Performance. Third, Process Formality was found to have a positive effect on the perceived Product Innovation Performance. Fourth, Product Innovation Performance was found to have a positive effect on Business Performance. Improvements/Applications: This study suggests a need to increase institutional support for enhancing Market Orientation as well as Internal Cooperation Practice and Process Formality. It also has significance in presenting effective and efficient directions for Product Innovation.

Keywords

Business Performance, Internal Cooperation Practice, Market Orientation, Process Formality, Product Innovation Performance.
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