Author(s): I Wayan Ramantha, Ni Luh Putu Wiagustini, I Wayan Pradnyantha Wirasedana, I Made Andika Pradnyana Wistawan
The research examines the influence of Market Orientation and Product Innovation on Funding Decisions and Financial Performance, the influence of Funding Decisions on Financial Performance, and Funding Decisions as a mediation of the influence of Market Orientation and Product Innovation on Financial Performance. The population of this research is all of the Leading SMIs in Badung Regency. In accordance with the Regional Industry Core Competition that Badung has a Potential for Excellence in the Herbal Product Industry. The number of SMIs Herbal Products in Badung Regency is 110 units. The number of samples taken by census. Data were analyzed using variance based or component based methods with Partial Least Square (PLS). The findings of this study: Market Orientation and Product Innovation have a significant positive effect on Funding Decisions; Market Orientation and Product Innovation have a significant positive effect on Financial Performance; Funding decisions have a significant positive effect on financial performance; and Funding Decisions are able to mediate the influence of Market Orientation and Product Innovation on the Financial Performance.