THE EFFECT OF INNOVATION CAPABILITY AND NEW PRODUCT DEVELOPMENT ON MARKETING PERFORMANCE OF BATIK SMEs

The role of innovation capability to produce new product becomes crucial and important factor for sustainable marketing performance. The purpose of this paper is to explain the causes of different or contradictory results of research the innovation capabilities on marketing performance. This study discusses about success finding of new product development in increasing marketing performance. This study was conducted
on 322 traditional textile batik SMEs in Central Java. The main objective of this study is to analyze on how innovation capability, mediated with new product development, can increase marketing performance. The finding shows that marketing performance can be increased by innovation capability through new product development mediation. This study describes each concept and suggestions for the betterment of new product development in the future.