Companies build strategy through market orientation and product innovation through
I. PendahuluanCompetition in the business world is unavoidable, companies are faced with various opportunities and threats both from outside and from within the country. Companies are required to understand what is happening in the market, what the consumer desires, and various changes in the business environment in order to compete with similar companies. Companies need to select and define the appropriate strategy to be able to create competitive advantage. Dimensions of market orientation need continuous innovation to offer additional services to customers. Gunarathne (2015) found the market orientation of social benefits added component orientation provides a new perspective on the theory of market orientation. A commonly used strategy firm market orientation and innovation (Narver and Slater, 1990). Salman (2015) describes the continuous innovation in the enterprise is the basic requirement for the creation of competitive advantage. Innovation is seen as a mechanism for companies to adapt to a dynamic environment.Product innovation is one of the effects of competitive advantage by Han et al (1998). Li (2000) found there are significant competitive advantage with performance through sales volume, the rate of profit, market share, and return on investment. Competitive advantage has the strength to compete with other companies and products remain in demand so that customers competitive advantages have a positive influence on the increase marketing performance. Several studies have shown a strong correlation between market orientation and corporate performance (Matsuno et al., 2000), whereas the results of contradiction is found (Han et al., 1998;Jaworski and Kohli, 1993). The research found that the market orientation affect the performance of the organization (Bhuian, 1998; Deshpande et al., 1993; Harris and Ogboma, 2001;Jaworski and Kohli, 1993;Matsuno and Mentzer, 2000;Pitt et al., 1996;Selnes et al ., 1996).Innovation related to the performance of the company, has been discovered by (Damanpour and Evan, 1984;Zahra, de Belardino, and Boxx, 1988) is different from the findings of Mavondo et al. (2005) product innovation does not significantly influence the effectiveness of marketing.While Darroch (2005) found no effect on the innovation performance of both financial performance and non-financial performance as market share and sales growth. Sales continue to occur and earnings continue to rise is not necessarily stable if not innovation and added value for consumers. Marketing performance drop due to marketing strategies are not appropriate. The research object rattan industry in Cirebon, West Java, Indonesia has the opportunity to be the biggest rattan producer in Asia and the world. Indonesia has a comparative advantage sufficient availability of raw materials, human resources, skills, investment growth climate. Market-oriented corporate strategy and product innovation are expected to compete in the global market a...