The Influence of Product Innovation Orientation on the Business Performance of the Coffee Shops in Bekasi City, Indonesia

Abstract

The coffee industry in Indonesia currently has a large market and potential. It can be seen by the increasing number of coffee shops in Bekasi City which increased from 79 in 2020 to 199 in 2021. In tight competition, companies must have strong competitiveness, one of which is developing a product innovation orientation. Therefore, this research was conducted to find out the influence of product innovation orientation on the business performance of the coffee shops in Bekasi City, which are considered MSMEs. The questionnaire used in this research was distributed to 100 respondents. After utilizing the simple linear regression, t-test, and coefficient of determination, this study indicates that the business performance of the coffee shops is significantly influenced by the product innovation orientation. Further study is suggested to examine the other factors, such as the skill and knowledge of the employee, that can influence business performance.