Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Building Marketing Performance Models Using Innovation and Competitive Advantage as Intervening Variables: An Empirical Study Conducted on Pt Pegadaian

Author(s): Joko Prasetyo, Mohammad Adam, Zakaria Wahab, Muchsin Saggaff Shihab, Muji Gunarto

Marketing is one of the major indicators of company performance with several studies observed to have been conducted in relation to this concept, but there are gaps concerning its key determining factors. Therefore, this study aims to examine the relationship between marketing performance, innovation, competitive advantage, as well as market and learning orientation. It also analyzes the role of innovation and competitive advantage as intervening variables. The survey was conducted on 220 agents of PT Pegadaian spread across the province of South Sumatra, Indonesia, and the data collected were analyzed using the Structural Equation Models (SEM) approach through the LISREL program package. The results showed that market and learning orientation had a positive and significant effect on innovation and competitive advantage but did not directly affect the marketing performance. Moreover, innovation and competitive advantage were also observed to have a positive and significant impact on the marketing performance, and also served as good intervening variables for the effect of market and learning orientation on marketing performance. The managerial implication of this study is that PT Pegadaian needs to continue making changes related to services based on market orientation including those associated with the customers and competitors, and also to ensure more effective coordination between their functions. Furthermore, there is also the need to develop learning orientation more massively to increase innovations and create a competitive advantage.

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