- Yanto Ramli
- Mochamad Soelton
- Paijan
Abstract
The objective of this research is to analyze the influence of unique resources, market orientation and innovation management against the business performance of the garment industries in DKI Jakarta. This research is a descriptive and verificative research, and the construct of the research is based on the concept and the relationship between the variables in order to form the research paradigm. This study conducted a distribution of questionnaires and observations on the garment industries in Jakarta. The research method used in this study is descriptive method by using scoring analysis and verification method by using quantitative analysis. The sample determination was done through Simple Random Sampling as the garment industries has the same character, and the tool of analysis is using Partial Least Square (PLS). The results indicated that market orientation has provided a greater significant influence compare to unique resources on the business performance. Innovation management also provide a significant influence on business performance, because either unique resource and market orientation have no value if they are not developed innovatively. Understanding the customer’s needs and wants and continue with developing the company resources can definitely improve the garment business performance.
Key works: Unique Resources, Market Orientation, Innovation Management, Business Performance.
Conclusion
The garment industries are reported facing problems lack of customers, competitors sellling similar items, purchasing similar raw materials and limited capital. Other issue is not proper support by government to the garment industries. Based on the quantitative research and hypothesis testing for this study emphasise a need for a greater adoptation of innovation management practices, including the study of the customer behavior based on market orientation. The garment industries may require dramatic changes on their resources.
The objective of this research is to find out the basic problem faced by the garment industries in DKI Jakarta based on the four research variables, unique resources, market orientation, innovation management and business performance, the following conclusions were made as follows:
- The garment industries do not produce garments based on customer and market orientation and are not clear with the needs and wants of the customer.
- The research finding also shows that most of the garment industries do not implement innovation management to innovate their products to meet the customers’ intention to purchase.
- The garment industries also do not frequently do the market analysis on the competitor orientation in order to be able to compete in the market.
- The garment industries do not improve their raw materials by using the local content of fabric and innovate them even the price are sometimes higher compare to the imported materials.
The scope of this study was limited to the garment industries in DKI Jakarta. During the study, it was noted that more industries sectors may encounter the same competitive strategies. It would be worthwhile to study the industries of other sectors worldwide especially for those countries that provide garment industries.
Recomendation
Based on the conclusion above, numbers of issues during the study leads to the following recommendations: garment industries must implement innovation management both on the production and resources purchased. The industries must impose a frequent control system on reviewing the current status of market orientation in order to innovate properly and keep pace of the competitors movements.
Many countries that provide garment industries may take this study as a guidance to proceed with further research that has not been include in this study for a better conclusion and recommendation.
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