LINKING OF CUSTOMER AND COMPETITOR ORIENTATION ON BUSINESS PERFORMANCE

Purpose of the study was to prove empirically the relationship of Customer and competitor orientation and product innovation and business performance within the scope of Batik Small and Medium Enterprises. Sample of the study consisted of 210 managers or owners of Batik SMEs in Central Java area. The sample was taken by using purposive sampling. The result of hypothesis testing showed that Customer and competitor orientation has positive effect on business performance and product innovation. Product innovation significantly affected business performance.