Title: THE INFLUENCE OF MARKET ORIENTATION ON ABSORPTIVE CAPACITY AND SUPPLIER INNOVATION IN THE AUTOMOTIVE INDUSTRY: EMPOWERING CLIMATE MODERATION EFFECTS
Author: AGITYA KUSUMA KAMALALYA
Affiliations : Master of Management Science Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
Knowledge sources originating from both internal and external companies are often important in the innovation process. A company's market orientation will shape the market intelligence it obtains from competitors and customers, as well as how it disseminates it. Previously possessed knowledge can form absorptive capacity, namely the capability to recognize the value of new information, assimilate it, and apply it in an innovation. It is hoped that the climate of empowerment will further strengthen the innovation carried out. This research aims to determine the influence of market orientation on the supplier's absorptive capacity and the influence of absorptive capacity on the company's innovation. It was also seen whether the empowerment climate created by Astra had a moderating effect. It is hoped that this research will provide implications for Astra to continue improving relationships with suppliers. The study was conducted through a survey of supplier companies to PT Astra Internasional, Tbk. (Astra). As a measurement technique, Partial Least Square (PLS) is used. The research was conducted on 87 respondents taken using purposive sampling technique.
Keywords: market orientation, potential absorptive capacity, realized absorptive capacity, empowerment climate, supplier innovation
Sources: http://repository.unair.ac.id/38616/
