This study aims to analyze marketing performance on the direct and indirect influence of external environmental variables and market orientation through the mediation of product innovation. The data of this quantitative research was harvested from questionnaires distributed to 184 owners of Plered Ceramics business, selected through saturated sampling, and was analyzed using Structural Equation Modeling in SmartPLS. This study finds that external marketing environment and market orientation positively and significantly influence marketing performance and product innovation, that product innovation affects marketing performance, and that product innovation mediates the effect of marketing orientation on marketing performance and the effect of external marketing environment on marketing performance.
Keywords: MSMEs., Market Orientation, Marketing Performance, Product Innovation, marketing environment
