THE ROLE OF PRODUCT INNOVATION IN MEDIATING THE INFLUENCE OF ENTREPRENEURSHIP ORIENTATION ON MARKETING PERFORMANCE (A Study on Silver Craft MSMEs in Celuk, Gianyar)

The purpose of this study is to determine the role of product innovation in mediating the influence of entrepreneurship orientation on marketing performance. The sampling method used is the total population sampling method. The total sample taken is 70 respondents. The data collection is conducted by using questionnaires which are given to the owners or managers of the silver craft MSMEs in Celuk, Gianyar. The analysis technique utilized is the path analysis technique and the sobel test. The research results show that the product innovation variable is able to significantly mediate the influence of entrepreneurship orientation on marketing performance. Hence, owners of the silver craft MSMEs in Celuk, Gianyar should always improve their product innovation through new product designs, usage of new materials, and the use of new production tools, in order to increase their marketing performance.