THE IMPACT OF ORGANIZATION COMMITMENT TO PROCESS AND PRODUCT INNOVATION IN IMPROVING OPERATIONAL PERFORMANCE

This study aims at examining the impact of the organization commitment on on operational performance through the planning and control process process innovation, and product innovation. The questionnaires were distributed to 90 respondents composed of 84 respondents representing 42 shoe firms, and 6 respondents representing the experts from the industry association. Data analysis used the partial least square (PLS) technique with smart PLS software. The result reveals that the organization commitment affects the planning and controlling process, process innovation. The planning and controlling process influence the process innovation. The planning and control process does not affect the product innovation. The process innovation influences product innovation. Process innovation and the product innovation affect the operational performance. This work contributes to the current research in the supply chain management, and the shoe firm may adopt this finding in enhancing the operational performance of the firm.