This study attempts to assess the innovation process based on innovation value chain model in footwear industry in East Java,rnIndonesia. A strength and weakness mapping analysis was performed and it included three factors related to company characteristics: operationrnscale based on number of employees, operational priod, and market orientation. The samples were 62 footwear industries, members of EastrnJava Indonesian Footwear Association (Aprisindo). The questionnaire was sent via email. Thirty industries (48.38%) sent the questionnairernback. A focus group discussion (FGD) was conducted with several representatives from footwear industry before the questionnaire was sent.rnThe study found that companies are relatively good at idea conversion (42,30%) but the companies have a little difficulties at diffusionrn(50,80%) and at idea generation (55,80%). From the result respose show (see table.2) that the weakest links (the innovation processrnbottleneck) is cross-pollination activity [in which the people typically don't collaborate on projects across units, businesses, or subsidiariesrn(88,6%)], while the strongest links is selection activity [the companies have a risk- averse attitude toward investing in novel ideas (39,3%)].rnBased on p-value, the study found that company characteristics influencing a certain phase of innovation value chain significantly were companyrnperiod (age of company) and market orientation. Specifically, both of them influenced idea generation phase.