The effect of product innovation on business performance during COVID 19 pandemic

Abstract

Management research maintains business performance of local products during the pandemic, requiring organizations to act effectively and efficiently in managing resources based on relevant knowledge. Efforts are needed to sustain local product business, maintain the key to organizational success based on knowledge sharing and innovation in improving business performance so that local products remain sustainable. This research was analyzed quantitatively using SEM-AMOS statistical tools, in 300 local product business actors in Central Kalimantan and Bali. The proactive antecedents of market orientation were obtained significantly positive encouraging mediation role of knowledge sharing by 51% and innovation by 63% on business performance. Activities that are managed so that superior products become management activities with significant positive Planning, Organizing, Actuatingand Controlling (POAC) carried out by mediating positive impacts to maintain local product business. The novelty of this research is a conceptual model based on Knowledge Based View (KBV) to increase local product business in two provinces affected by Covid-19. The implication of this research is to encourage business actors to synergize with market orientation into relevant information to identify changes and needs, as well as to encourage knowledge sharing and innovation in improving business performance of local products that are in accordance with consumer needs.