Effect of Customer Orientation and Competitor Orientation on New Product Development of Woven Products: The Role of Innovation Possibilities

The purpose of this research is to find out the significance of the influence of Customer Orientation, Competitor Orientation, and Innovation Capability to New Product Development, as well as knowing the role mediation of the Innovation Capability variable on weaving products. New products have a very important role in maintaining business sustainability. New customer-centered product development is a product development that focuses on finding solutions to solve customer problems and provide a more satisfying experience for customers. To stay competitive and survive in the market, companies need to improve innovation capability. The population of this study is all owners of weaving products enterprises, which the exact number is certainly known, with the number of samples is 112 respondents. This research uses structural equation modeling (SEM analysis) with the smartPLS application. The results showed that Customer Orientation and Competitor Orientation have a significant positive effect on Innovation Capability, then Competitor Orientation and Innovation Capabilityhas a significant positive effect on New Product Development, while Customer Orientation does not significantly affect New Product Development. For the mediating influence of Innovation Capability, there is a fully mediating role in the significant influence of Customer Orientation on New Product Development. Meanwhile, on the influence of Competitor Orientation towards New Product Development, there is a partial effect of mediation found