THE IMPACT OF STRATEGIC ORIENTATION, MARKET ORIENTATION, AND ENTREPRENEURIAL ORIENTATION ON CORPORATE INNOVATION IN SMES: THE ROLE OF ORGANIZATIONAL LEARNING

Abstrak

This study investigates the impact of strategic orientation, market orientation, and entrepreneurial orientation on corporate innovation among Indonesian SMEs, with organizational learning serving as a mediating variable. Using a quantitative survey design, data were collected from 261 SME owners and managers in Batam and the Riau Islands—regions recognized for their dynamic entrepreneurial ecosystems. The results indicate that market orientation has the most significant positive effect on corporate innovation, while strategic and entrepreneurial orientations also show positive but weaker direct effects. However, the mediating role of organizational learning was found to be statistically insignificant across all orientation paths, suggesting that many SMEs have yet to institutionalize learning as a systematic mechanism for innovation. These findings reinforce the importance of developing a strong market-oriented culture and structured learning systems to enhance innovation capability. The study contributes to the Knowledge-Based View (KBV) and Dynamic Capabilities theory by emphasizing the enabling role of learning processes in transforming strategic intent into innovation performance, offering both theoretical insights and practical implications for SME competitiveness in emerging economies.