ABSTRACT

 

This study aims to examine the effect of entrepreneurship, marketing capabilities, relational capital and empowerment of the innovation capability and performance. The research problem is how to improve innovation capabilities and performance of SMEs in Jepara Troso weaving. The sample in this study was weaving Troso Jepara SMEs owners of 120 people by using purposive sampling method, data was collected by survey method through interviews and questionnaires. Data analysis was performed by descriptive analysis methods and methods Partial Least Square (PLS). The results of data analysis showed that the development of SMEs weaving Troso Jepara still constrained on capital and marketing aspects, especially SMEs are still small weaving and traditional as well as not bankable, so that access to capital is only through cooperation that was established together and the numbers are still limited in serving all members. Results of data analysis using PLS demonstrated that there is a significant and positive effect between entrepreneurship, marketing capabilities, relational capital and empowerment of the innovation capability and performance. Performance significant and positive impact on the competitive advantages. Based on the results of research, innovation capabilities and performance can be enhanced through the development of entrepreneurship, marketing capabilities, relational capital and empowerment.

Keywords : Innovation Capability, Entrepreneurship, Marketing Capability, Relational Capital.