The Role of Innovation Capability on Business Performance at Small Medium Enterprises (original) (raw)
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The objective of this research is to analyze the business performance of the small and medium enterprises (SME) textile industries in Pasar Tanah Abang, Jakarta, Indonesia in order to find out how these SME industries can survive with the competition of thousands of SME in this area. This research is to analyze the implication of innovation management as the intervening variable that influence the unique resources and market orientation used by the SME industries to improve their business performance. The collection of data is done through the distribution of questionnaire to the SME textile industries as the respondents in Pasar Tanah Abang, Jakarta, Indonesia. The method of analysis is based on descriptive and verification research, the sample determination is using Purposive Random Sampling and the data analysis is using Partial Least Square (PLS). The results indicated that unique resources has the highest significant influence compare to market orientation on the business perfo...
Enhancing small and medium enterprises performance through innovation in Indonesia
Journal of Hospitality and Tourism Technology, 2020
Purpose This study aims to identify the effect of entrepreneurial orientation and organizational culture on organizational innovation and organizational performance among small- and medium-sized enterprises (SMEs) on the creative industry which is supporting tourism in Indonesia. Design/methodology/approach A quantitative approach was used to distribute questionnaires using a purposive sampling technique to 183 SME’s owners of the creative industry that produce and trade the products directly to the customers. A partial least square (PLS) was conducted to analyze the data. Findings Entrepreneurial orientation and organizational culture have a significant effect on innovation, which in turn, influences the performance. Interestingly, innovation does not have a significant influence on performance as well as does not mediate the influence between entrepreneurial orientation and organizational performance. Research limitations/implications The issue of innovation in this study was meas...
2021
This study aims to examine the influence of innovation variables, organizational culture and entrepreneurial orientation on the performance of small and medium enterprises in Makassar City, Indonesia. The research method used in this research is a quantitative analytic approach with multiple regression analysis, F test, and t-test. The results of this study indicate that simultaneously the variables of innovation, organizational culture and entrepreneurial orientation influence the performance of Small and Medium Enterprises and partially the variables of innovation, organizational culture and entrepreneurial orientation affect the performance of Small and Medium Enterprises. So, it is suggested to small entrepreneurs in particular to maintain their abilities related to innovation and entrepreneurial orientation and to implement organizational culture in carrying out business activities to improve business performance.
Proceedings of the 1st International Conference For Inter-disciplinary Studies (ICIS) , 2014
This research is to find out the effect of organizational learning and innovation on business performance of Small-Medium Enterprises (SMEs) manufacturing rattan products in West Java Province, Indonesia. After understanding literatures on organizational learning, innovation, and business performance, the research then formulates a model of organizational learning, innovation and business performance and defines how those variables are associated. Hypotheses on organizational learning-business performance, innovation-business performance, and learning organization-innovation association are tested. Organizational learning is measured based on 4 (four) dimensions, namely: information acquisition, information distribution, information interpretation, and behavioral and cognitive changes. Innovation is measured based on 3 (three) dimensions, namely: product and service innovation, process innovation, and innovative culture. Business performance is measured based on financial and non-financial performance of the enterprises. Validity and reliability tests are conducted by using SPSS 21. Then, the association is tested through Structural Equation Modeling (SEM) from a database of 109 SMEs in rattan product manufacturing in Cirebon Regency, West Java Province. The results show that the presence of organizational learning and innovation is associated to business performance of SMEs as stated in the proposed model.
International Journal of multidiciplinary Research and Development, 2020
Much research has been done to examine the relationship between organizational learning, innovation capability, and company performance. The results of various studies confirm the existence of a positive relationship between organizational learning, innovation capability, and company performance. However, empirical research that focuses on the relationship between these three constructs simultaneously is still limited. This study explores the relationship between these three constructs using Structural Equation Modeling with data obtained from 62 manufacturing companies located in the eastern region of Jakarta province, Indonesia. The finding supports the notion that learning in organizations can play a role as a driver for improving company performance as well as a determinant of innovation activities. The capability of innovation itself is the main driver for improving company performance. Specifically, the findings indicate that the effect of learning in organizations on innovation capability is higher than its effect on manufacturing performance. The findings reflect that innovation capability is capable of acting as mediators in the relationship between organizational learning and manufacturing performance.
2020
The development of the contribution of GDP to micro, small, and medium enterprises is seen to have increased from year to year. Besides being able to have a positive impact on the country, MSMEs also have a good impact on several provinces in Indonesia, one of which is West Java. MSMEs take part in increasing income in West Java. However, in reality, West Java only provides the fourth largest contribution (14.33%) to the National Gross Domestic Product (GDP) after DKI Jakarta, East Java and East Kalimantan (Ministry of Industry, 2017). Even though 50% of the total national industry is in West Java. This indicates that the performance of MSMEs in West Java has not improved over time. So it can be stated that the performance of the MSME business in West Java is still low. The cause of the weak performance of MSMEs is allegedly due to weak innovation and entrepreneurial orientation as well as inadequate knowledge management in managing businesses. Based on this phenomenon, this study a...
The Effect of Innovation on Business Competitiveness of Small and Medium Enterprise in Indonesia
Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019), 2019
This study examines the effect of innovation on the competitiveness of the handicraft sector creative industries in Indonesia. The number of samples was taken as many as 205 SMEs spread in West Java in a proportional random manner. The technique of data collection is done by the questionnaire directly to the respondents. The data analysis technique in this study is a structural equation model (SEM) approach. The use of SEM allows researchers to test the validity and reliability of research instruments, confirming the accuracy of the model while testing the effect of innovation variables on competitiveness variables. The statistical tool used in this study is AMOS version 23. The findings reveal that innovation has a significant positive effect on the competitiveness of SMEs. This study shows that innovation is an important factor that can increase competitiveness. Companies that are able to innovate appropriately will be able to compete with other companies.
Indonesian Journal of Business and Entrepreneurship, 2018
The utilization of intellectual resources in business is growing rapidly today. It is characterized by creative ideas emerging from organizations and companies that are competing in all areas. This research aims to examine the influence of entreprenuership orientation toward innovation capability mediating by intellectual resources. This research employs a quantitative approach using survey method. Data collection was conducted at 61 Small and Medium Enterprises (SMEs) Furniture located in Madiun area, East Java from February to July 2017. The data were analyzed using measurement model of structural equation modeling supported by partial least square (PLS) 3.0 software. This study shows that entrepreneurship orientation has a positive and significant effect on intellectual resources and innovation capability, while the influence of intellectual resources has no effect on innovation capability. The result of mediation testing of intellectual resources as mediator between entrepreneurship orientations and innovation capability is not proven in this research.
2017
This study was aimed to examine the influence of innovation toward business performance and competitive advantage as a mediator. To test the empirical models, Structural Equation Modelling (SEM) was used. Among the software used to assist the analysis in this study were AMOS 21.0, SPSS 16.0 and Microsoft Excel 2007. The sample size of this research was 125 owners-managers of Small and Medium Enterprises (SMEs) in the Purwokerto Province, Indonesia. The result showed that innovation has positive effect on business performance, innovation has positive effects on competitive advantage, competitive advantage has a positive effect on business performance, and competitive advantage doesn’t mediate the influence of innovation to business performance.