This study aims to resolve the research gap on the influence of market orientation on innovation capacity, with entrepreneurial orientation in coffee shop start-up businesses in Indonesia. The approach used in this research is quantitative with a purposive sampling technique with 110 respondents. The data analysis technique used is Partial Least Square (PLS), and the results of this study indicate that market orientation has a significant effect on innovation capacity, market orientation has a significant effect on entrepreneurial orientation, entrepreneurial orientation has a significant effect on innovation capacity, and market orientation has a significant effect on innovation capacity. Innovation capacity through entrepreneurial orientation.
Key words: market orientation, innovation capacity, entrepreneurial orientation, start-up business
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