The Role of Innovation Strategy in Mediating the Influence of Company Resources on Wood Craft Industry Performance in Gianyar Regency

The purpose of this study was to determine the effect of Company Resources on Wood Craft Industry (WCI) Performance, the influence of Company Resources on Innovation Strategy and the effect of Innovation Strategy on WCI Performance as well as analyzing the mediating role of Innovation Strategy in improving WCI Performance in Gianyar. This study used quantitative approach with WCI managers throughout Gianyar as the population as many as 130 people were taken as study sample. Data analysis techniques used were Structural Equation Modeling (SEM) and Sobel test. The study results showed that Innovation Strategy mediates the effect of Company Resources on WCI Performance. The implication of this study is aimed at the development of strategic management theory and also for the development of WCI in Gianyar regency to remain innovative in the form of product innovation, service innovation, production process innovation and innovation of raw materials.