ABSTRAK
Lingkungan bisnis industri kayu dan furnitur telah berkembang dengan pesat dan semakin kompleks. Selain mementingkan fungsi dasar, banyak konsumen semakin mempertimbangkan desain sesuai selera pribadi guna mewakili jatidiri. Furnitur telah menjadi semakin bersifat identitas personal, sehingga konsumen cenderung menghindari membeli dengan desain dan produk yang sama dengan milik orang lain. Selain itu, sentimen isu lingkungan melalui isu ekolabeling turut membuat lingkungan bisnis industri kayu dan furnitur makin kompleks. Perubahan tersebut menuntut industri kayu dan furnitur meningkatkan mutu, desain dan standar eko-labeling dengan melakukan strategi inovasi yang tepat untuk menciptakan daya saing yang berkelanjutan .Inovasi menjadi dilema, untuk bertahan perusahaan dituntut meningkatkan efisiensi melalui optimalisasi resource, disisi lain harus berinvestasi mencari peluang atau produk baru. Akan tetapi penelitian sebelumnya menyatakan perusahaan yang sukses memiliki kemampuan inovasi yang dapat mengoptimalkan resource, sekaligus mencari cara, pasar, peluang, dan produk baru. Tujuan penelitian ini mengkaji anteseden yang mempengaruhi kemampuan inovasi pada perusahaan kayu dan furnitur di Jawa Tengah.Penelitian menggunakan unit analisis perusahaan kayu dan furnitur di Jawa Tengah dan teknik statistik yang digunakan adalah SEM dengan metode PLS. Hasil penelitian menunjukkan lingkungan bisnis, struktur organisasi, SDM, dan interfirm linkage mempengaruhi inovasi, dan inovasi mempengaruhi kinerja perusahaan kayu dan furnitur di Jawa Tengah. Kata kunci:Innovation, dynamic environment, competitive environment, struktur organisasi, SDM, interfirm linkage, performance, kinerja, perusahaan kayu dan furnitur

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ABSTRACT
The business environment of wood and furniture industry has grown rapidly and become more complex. Beside the basic functions concerned, many consumers are increasingly considering the design according to personal taste in order to represent their identity. Furniture has become as personal identity, therefor consumers tend to avoid buying the same product design with anyone else. In addition, environmental issues through the Eco labeling issues involved in making the business environment increasingly complex. The change of business eviornment requires the industry to improve quality, design and eco labeling standards by doing the right innovation strategy to create sustainable competitiveness. Innovation becomes a dilemma, the companies must improve efficiency through the optimization of resources to survive, on the other side they should invest to look for opportunities or new products. However, previous studies stated a successful company has the innovation ability to optimize the resource, as well as seeking ways, markets, opportunities, and new products. The purpose of this study examines the antecedents that affect the ability of innovation in the wood and furniture industry in Central Java. The research using wood and furniture company in Central Java as unit analysis, and the statistical techniques used is SEM with PLS method. The results showed the business environment, organizational structure, human resources, and interfirm linkage affect innovation, and innovation affect the performance of Wood and Furniture Company in Central Java.