摘要:This paper analyzes the effects of market orientation and innovation on competitive advantage and
business performance. The method of collecting data is a designed questionnaire. The sample size
is 150 textile SMEs in Selangor, Malaysia. Path analysis by operating SPSS 20.0 is used in analyzing
the research. The result shows that market orientation and innovation had positive and significant
effects on competitive advantage, partially. Market orientation and innovation give contributions
to the competitive advantage of 46.3% while the rest of 54.7% are influenced by other variables
which are not described in this study. Competitive advantage partially has a positive and significant
influence on business performance. Market orientation and innovation also have significant
effects on business performance both directly and indirectly through competitive advantage. Market
orientation, innovation, and competitive advantage give contributions to the business performance
of 58.4% while the rest of 41.6% are influenced by others variables which are not described
in this study.