Determinants of Corporate Performance: A Study on Furniture Companies in Jepara Indonesia

Abstract

The aims of this research were to analyze corporate performance through learning orientation, leader’s characteristics, market orientation, and innovation in furniture industries in Jepara, Indonesia. The samples in this research were 110 small and medium enterprises. Based on SEM analysis results, the seven research hypothesis used were; (1) learning orientation has significant effect on corporate performance; (2) learning orientation has significant effect on innovation; (3) leader’s characteristics do not have significant effect on corporate performance; (4) leader’s characteristics have significant effect on innovation; (5) market orientation has significant effect on innovation; (6) market orientation has significant effect on corporate performance; (7) Innovation does not have significant effect on corporate performance. After the test and analysis, it was found that five out of the seven hypotheses were accepted and two out of them were rejected.
Classification-JEL:
Keywords: corporate performance, innovation, market orientation, leader’s characteristics.