Market Orientation, Product Innovation, and E-Commerce Adoption for Competitive Advantage: Evidence from the Ciayumajakuning Batik Industry

Yusuf Yusuf

doi:10.59261/jbt.v7i4.821

Authors

Yusuf Universitas Swadaya Gunung Jati

DOI:

https://doi.org/10.59261/jbt.v7i4.821

Keywords:

Competitive Advantage, E-Commerce, Market Orientation, Marketing Performance, Product Innovation

Abstract

Background: The batik industry in the Ciayumajakuning region (Cirebon, Indramayu, Majalengka, and Kuningan), West Java, holds significant cultural and economic value. However, many small batik enterprises face challenges in product innovation, digital marketing adoption, and sustaining competitiveness amid rapid market changes.

Objective: This study aims to examine the influence of market orientation on product innovation and e-commerce adoption, the effect of product innovation and e-commerce on competitive advantage, and the subsequent impact of competitive advantage on marketing performance in the small batik industry of the Ciayumajakuning region.

Methods: This study adopted a quantitative approach using a survey method. Data were collected from 230 batik business owners/managers in the Ciayumajakuning region, drawn from a population of 529 registered small batik enterprises using proportionate stratified random sampling. Data analysis was performed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS software.

Results: The results show that market orientation has a positive and significant effect on both product innovation (β = 0.521, t = 5.872) and e-commerce adoption (β = 0.487, t = 6.214). Product innovation (β = 0.438, t = 4.924) and e-commerce (β = 0.412, t = 5.342) each significantly influence competitive advantage. Furthermore, competitive advantage has a significant positive effect on marketing performance (β = 0.589, t = 6.451). All five hypotheses were accepted.

Conclusion: Market orientation serves as a strategic foundation for driving product innovation and e-commerce adoption, which in turn strengthens competitive advantage and improves marketing performance.

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