Product Innovation as a Bridge between Marketing and Entrepreneurial Orientation: Evidence from SMEs in Surabaya, Indonesia

This study aims to examine and analyze the effect of Marketing Orientation and Entrepreneurial Orientation on the Marketing Performance of SMEs through product innovation as a mediating variable. The type of research used is quantitative research, using descriptive analysis methods. Data collection in this study used primary data in the form of a questionnaire via Google Form. The sampling technique used a non-probability sampling method with certain criteria and considerations. The population in this study was SME owners in Surabaya, Indonesia, selected according to predetermined criteria. Based on the purposive sampling technique, a sample of 152 respondents was obtained. The data analysis technique used was PLS (Partial Least Square) with SmartPLS 3.0 software. The research results show that Marketing Orientation and Entrepreneurial Orientation have a positive and significant effect on the Marketing Performance of SMEs. Marketing Orientation and Entrepreneurial Orientation have a positive and significant effect on Product Innovation. Product Innovation has a positive and significant effect on the Marketing Performance of SMEs. Product innovation as an intervening variable is able to mediate the effect of Marketing Orientation and Entrepreneurial Orientation on Women's Business Performance positively and significantly. As a practical implication, SMEs need to be more active in understanding customer needs and monitoring market changes. This can be done by utilizing consumer surveys, digital trend analysis, and using customer data in designing marketing strategies. An entrepreneurial spirit such as innovation, courage to take risks, and proactivity must continue to be developed. SMEs can train their marketing and production teams to be more open to new ideas and dare to explore market opportunities, including those arising from digitalization .