ANALYSIS OF THE INFLUENCE OF THE IMPLEMENTATION OF INNOVATION CAPABILITIES ON PRODUCT QUALITY IN THE MEDIATION OF OPERATIONAL PERFORMANCE (Study On Leather Smes in Keparakan Kidul Yogyakarta)

This study aims to find out and analyze the influence of innovation ability on product quality in operational performance mediation. The variables in this study include: innovation ability, product quality, and operational performance. This research was conducted on 65 SMEs. The data collection method uses a questionnaire. The data analysis techniques used in this study are multiple regression, simple regression, and path analysis. The results of multiple regression analysis show that innovation ability and operational performance have a positive effect on product quality. The results of a simple regression analysis show that operational performance has a positive effect on product quality. The results of the path analysis show that operational performance is not able to mediate the influence of innovation ability on product quality.