Sys Rev Pharm 2020; 11(1): 612 617 A multifaceted review journal in the field of pharmacy 612 Systematic Review Pharmacy Vol 11, Issue 1, Jan-Jun, 2020 The Role of Innovation in Mediating Effect Market Orientation and Learning Orientation on Marketing Performance (Study on Puppet Artisans in Kecamatan Kotabaru Karawang) Puji Isyanto 1 , Obsatar Sinaga 2 University of Buana Perjuangan Karawang 1 Padjadjaran University 2 Email: puji.isyanto@ubpkarawang.ac.id , Obsatar.sinaga@unpad.ac.id Article History: Submitted: 17.10.2019 Revised: 22.12.2019 Accepted: 10.01.2020 ABSTRACT This study discussed the effect of market orientation and learning orientation on innovation and its impact on marketing performance. The study was conducted in a population of Small and Micro Enterprises (SMEs) in the doll craftsmen at Kotabaru-Karawang district for a total of as much as 96 SMEs. The sample-set as many as 90 SMEs using a purposive sampling technique, which has been operating craftsmen for 3 years. The method of research used verification. While the questionnaire used a Likert scale (ordinal) was transformed into an interval scale by using the Software Method of Successive Interval (MSI) and the process using the program Statistical Package for Social Science. The results of path analysis proved that all variables are linearly related, so the model feasible path analysis for each independent variable can be used as predictors of the dependent variable. Test results prove the hypothesis, either partially or simultaneously all correlation indicates the level of significance, except for the partial effect is not significant, since the coefficient of only with a significance. This occurs as a result of the inclusion of intervening variables into the model. Keywords: market orientation, learning orientation, innovation, and marketing performance. Correspondence: Puji Isyanto University of Buana Perjuangan Karawang E-mail: puji.isyanto@ubpkarawang.ac.id DOI: 10.5530/srp.2020.1.77 © Advanced Scientific Research. All rights reserved INTRODUCTION Background Efforts to cultivate the small and medium enterprises (SMEs), especially in developing countries is a priority for Indonesia. SMEs have recognized various parties play a role in providing employment, economic growth, and income distribution. Fontana (2009) declares the contribution of SMEs to the economy more on employment, as a source of household income in rural communities. Something similar is stated at Atajudin (2012); Rahab and Sudjono (2012), SMEs are a business group that has great potential and assessed various parties as an important sector to overcome the problem of unemployment and poverty. Atajudin (2012) said that the role of SMEs currently recorded 55 million units and spread across Indonesia. SMEs are expected to increase employment and tackle unemployment. But once expected to accelerate regional development. Data SMEs nationwide in 2003 amounted to 42.4 million units and has contributed to GDP to reach 56.7% of total GDP and has employment for 79 million people (BDS LPPM UNS 2005 in Karsidi, 2005). While the data in 2011 showed the number of SMEs in Indonesia reached about 52 million, has accounted for 60% of the PDB and accommodate 97 million labor (Wikipedia, 2012). The contribution of SMEs to the national economy plays an important role, yet Sharif (2011) mentions that many obstacles to SME development. Among the strategies of Local Government in GDP and PAD enlarge prioritize resource management at medium and large businesses. Munir and Sulhadi results of the study (2008) in Suliyanto and Rahab (2010) shows SMEs nationwide have six issues; (1) capital, (2) market access, (3) skills and technology, (4) business management, (5) the availability of raw materials and (6) the business climate is not conducive. SMEs, the center of attention of various parties and encourage the intensity of research activities. Results of previous studies recommended the importance of market orientation strategy, human resource development, innovation, mastery of internal and external factors encouraging increased competitiveness and performance. Suliyanto and Rahab (2012) conducting research on SMEs in Purbalingga with a sample of 150 SMEs. This research has motivated the assumption that the relationship between the variables of market orientation, learning orientation, innovation and marketing performance as a key factor in the success of large companies can not be generalized to SMEs, as well as the relationship between the four variables still low. The results of the study of literature Raju et al. (2011) found that the orientation of the SME market is lower when compared to large-scale enterprises ranged from 0.20 to 0.44. Raju et al (2011) stated the strategy of market orientation and innovation will be different medium scale enterprises with small scale enterprises. so the research on the role of market orientation in the different groups of SMEs that are very useful to encourage the growth of the small business sector of the economy. Therefore, this study aims to test empirically "how the influence of market orientation and learning orientation towards innovation and its impact on marketing performance Micro and Small Enterprises in the district of the craftsmen doll Kotabaru Karawang regency. Criteria for Micro and Small Enterprises in this study refers to UU no. 20 of 2008 that the Micro and Small Enterprises, productive economic activities that stand-alone, carried out by an individual or business entity that is not a subsidiary or not the company-owned branches. Besides referring to the limits according to the Central Statistics Agency (BPS) that small businesses are the type of business the average household only has a workforce of 5-19 and micro (household) has a workforce of 1-4 people. THEORETICAL REVIEW Kotler and Keller (2009) define marketing management as an art and science of choosing target markets, retain and grow customers by creating, delivering, and communicating superior customer value. While Ginting (2011) is not in the library define marketing management as the analysis of the planning, implementation, and control of programs designed to create, build and maintain a favorable exchange goal to achieve organizational goals.