ABSTRACT

This research aims to build a model of sustainable innovation-supporting resources, and their role in controlling market targets. This model involves a number of other supporting variables such as market literacy, consumer-preference influence, and technology accessibility. The view of this research framework is relevant to implementation in batik Small-to-Medium Enterprises (SMEs). From 320 SMEs of batik in Solo, 127 are selected as the sample by using a purposive sampling technique and the data is taken from the Cooperatives Department of Surakarta. Data analysis uses the partial least square technique with WarpPLS 5.0 software.

The results show that market literacy has a positive effect on consumer-preference influence. Market literacy has no effect on sustainable innovation. Sustainable innovation has a positive effect on niche market control. Consumer-preference influence has a positive effect on sustainable innovation, as does technology accessibility. Consumer-preference influence has a positive effect on niche market control.

Sustainable innovation, as the novelty in this research, contributes to market target control.