THE EFFECT OF PRODUCT INNOVATION AND INNOVATION PROCESS ON PERFORMANCE OF MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE DURING 2014-2016
Russian Journal of Agricultural and Socio-Economic Sciences
The purpose of this study is to examine the effect of product innovation and process innovation on company performance in manufacturing companies listed on Indonesia Stock Exchange (IDX) period 2014-2016. Research variables: Dependent variable (firm performance) and independent variable (product innovation and process innovation). Measurement: company performance measured by ROA ratio, product innovation measured by PRODUCT ratio, and process innovation measured by PROCESS ratio. Sources of
... tio. Sources of this research data is secondary data, in the form of financial statements of manufacturing companies listed in IDX during the period 2014-2016. Data analysis technique used is regression analysis through SPSS. The results of this study indicate that product innovation has a positive effect on company performance, while process innovation has no positive effect on company performance. The contribution of this research is expected to give contribution to company about policy which can help improve company performance in relation to product innovation and innovation process done by company and expected also can give contribution for investor to consider innovation strategy done by company in effort to increase profit from investment which they invested in a company.