The mediating effects of product innovation in relation between knowledge management and competitive advantage

2019 ◽  
Vol 39 (1) ◽  
pp. 18-30
Author(s):  
Wahyono Wahyono

Purpose The purpose of this paper is to examine the mediating effect of product innovation on the relation between the knowledge management and competitive advantage. To analyze the effect of knowledge management on innovation, the effect of knowledge management on competitive advantage and the effect of innovation on competitive advantage in small and medium enterprises in food products are taken into account. Design/methodology/approach The approach used in this study was quantitative approach. The population in this study was all the small and medium entrepreneurs of typical food products of Riau and Central Java Indonesia, which consisted of 238 business units: secondary data of Industry, Trade and Cooperative Service and SME Riau and Central Java Province at 2016. The data analysis method was structural equation modeling, using three measurement models (reflection of three research variables, equivalent to the first-order factor analysis). Findings Product innovation mediated the effect of knowledge management on the competitive advantage. It indicated that the higher the knowledge management, the higher the competitive advantage would be, if mediated by higher product innovation. The test results showed that knowledge management had positive and significant effect on product innovation. The positive effect showed that the better the knowledge management by the entrepreneurs of small and medium enterprises of typical food products of Riau, the better is the product innovation and vice versa. Originality/value This paper examines the mediating effects (using Sobel test) of product innovation on the relation between knowledge management and competitive advantage (no previous research on this relation), and the study is conducted on SMEs in Indonesia, especially in Riau and Central Java provinces. Previous studies on knowledge management and other factors affecting competitive advantage are also mostly performed on smaller samples, that is in one work unit or department. Although the variables were the same, this study was conducted on different sample units.

2018 ◽  
Vol 60 (2) ◽  
pp. 530-542
Author(s):  
Samsir Samsir

Purpose The purpose of this study is to investigate the influence of leadership orientation on competitive advantage with innovation as a mediating (intervening) variable. Design/methodology/approach Quantitative methods (Creswell, 2010) are used as the study design. It is an explanatory research with the purpose of explaining the phenomenon or pattern of correlation between concepts (Kothary, 2004). SMEs (small and medium entrepreneurs) of typical food products of Riau domiciled in Kepulauan Meranti Regency are the focus of this study; the sample size included 258 respondents. Findings There is a significant effect of leadership orientation on innovation. Higher leadership orientation will result in higher innovation. There is a significant effect of innovation on competitive advantage. Higher innovation will result in higher competitive advantage. Innovation as a mediation variable in the relationship between leadership orientation and competitive advantage indicates that higher leadership orientation will cause a higher competitive advantage, if the mediated innovation is also higher. Originality/value The originality of this research lies in innovation as a mediating (intervening) variable and a complement of a previous study by including the indicator that measures the variables of the research so that research results can be completed and detailed.


2020 ◽  
Vol 32 (3) ◽  
pp. 425-442
Author(s):  
Giuseppe Festa ◽  
Matteo Rossi ◽  
Ashutosh Kolte ◽  
Mario Situm

Purpose This study aims to analyze the territory as a distinctive factor through which the concept and practice of “Made in Italy” operates. Specifically, the study considers the role of local and sub-national entrepreneurial collaborations that preserve and enhance factors such as history, style and talent as the essence of Italian “quality” and as the pillar of Italian territorial capitalism. Design/methodology/approach The research examines this Italian phenomenon by investigating small and medium enterprises (SMEs) that successfully compete abroad (and also in the domestic market) with a “glocal” approach, adopting the entrepreneurial formula of industrial districts. Findings The results indicate that international expansion is becoming increasingly more complex (as is every growth/development strategy) but that “glocalism” could represent a potential driver for the success of internationalization strategies. Specifically, for SMEs operating in industrial districts, territorial capitalism could emerge as a unique competitive factor, because it is a component of local structural capital and global reputational capital, as in the case of “Made in Italy.” Originality/value In an increasingly globalized market environment, many companies look to foreign markets to maintain and expand competitive advantage and business performance. Once the companies embark on this endeavor, organizations are involved in governing and managing these networks of finance, production and communication and the distribution-related relationships that constitute globalization. The push to engage in international development is currently imperative for SMEs, which need to extend their business engagement beyond conventional local markets and identify and exploit their distinctive competitive advantage to be able to succeed. One possible way of achieving this is the close interaction with the local territories in which these enterprises reside.


2016 ◽  
Vol 9 (6) ◽  
pp. 76 ◽  
Author(s):  
Mahmoud Saleh Malkawi ◽  
As'ad H. Abu Rumman

<p><strong>Purpose</strong>–This study aims to explore the impact of Knowledge Management Capabilities (KMC), captured by six dimensions, on product innovation in Information Technology (IT) Small and Medium Enterprises (SMEs).</p><p><strong>Design/methodology/approach</strong>– Survey data were collected from 300 managers in (45) IT SMEs located in Jordan. SPSS was employed to analyze the data.</p><p><strong>Findings</strong>–Two key findings emerged: first, among the six dimensions of KMC, only acquisition, sharing, application, and protection were found to be positively associated with products innovation, whereas knowledge creation and storing were not. Second, no significant differences were identified in employees' answers due to company size.</p><p><strong>Research limitations/implications</strong> – This study was restricted to small and medium size enterprises, and therefore, the findings of this study may not be generalized to large enterprises. Additionally, this study was confined to the Jordanian IT sector only, thus, the findings need to be interpreted with cautious as they may not be generalized to other sectors.</p><p><strong>Originality/value</strong> – this study advances our understanding of the nature of the relationship between knowledge and innovation.</p>


Author(s):  
Aulia Ardhian Ayuningtyas ◽  
Miyasto Miyasto ◽  
Yohanes Sugiarto

Economic development in Indonesia MSMEs has an important role because the majority of Indonesia's population lives from MSME activities both in the traditional and modern sector. MSME in Central Java is also quite good. However, MSMEs in Central Java also experienced an increase in competitiveness, especially with similar businesses. Therefore, entrepreneurs are required to be able to innovate and dare to explore the resources it has for its business can continue to grow and survive amid the competition. In this study, the authors explain the condition of competitiveness of SMEs in the Kudus Regency is the business of embroidery which from year to year always decreased. Based on the result of the theoretical study directing this study developed a model with five research variables covering entrepreneurial orientation, business environment adaptability, internal resources of company, competitive advantage, and company performance. The results of the analysis show that the entrepreneurship orientation does not positively affect the competitive advantage. The adaptability of the business environment positively affects the competitive advantage. Internal resources of the company positively influence the competitive advantage. Entrepreneurship orientation positively affects the company's performance. Internal resources of the company positively affect the company's performance. Competitive advantage positively affects the company's performance.


2020 ◽  
Vol 24 (2) ◽  
pp. 369-394 ◽  
Author(s):  
Euro Marques Júnior ◽  
Jose Alcides Gobbo ◽  
Fernando Fukunaga ◽  
Roberto Cerchione ◽  
Piera Centobelli

Purpose This paper aims to highlight the degree of diffusion and intensity of use of knowledge management systems (KMSs) among small and medium enterprises (SMEs) in Brazil and apply a taxonomy that synthesizes the strategies of use of KMSs by the SMEs. In addition, it seeks to better understand the processes, practices and technologies of KM by SMEs, pointing improvements in the KMS of Brazilian SMEs and contributing to obtain better results in the search for efficiency and innovation. Design/methodology/approach Based on a literature review on KMSs used by SMEs, an empirical investigation was conceived, developed and conducted through online questionnaires involving 49 selected SMEs operating in several sectors. Findings This paper reinforces the results of the previous work of Cerchione and Esposito (2017) that point to the existence of a reciprocal relationship between KM-Tools and KM-Practices: one reinforces the other and vice versa. On the other hand, it indicates a difference in the behavior of Brazilian companies in relation to the sample of Italian companies studied by Cerchione and Esposito (2017), which presented a negative correlation between the general differentiation index and the general use intensity index of SMEs, while the Brazilian ones showed a positive correlation. Research limitations/implications The study points out the need for greater dissemination of practices and tools to support knowledge management (KM), as well as greater support for the implementation and effective use of these practices and tools within the organizational context of SMEs. Practical implications This paper identifies the main practices and tools to support KM used by Brazilian SMEs, indicating the need for investments in employee training and acquisition of tools. Social implications SMEs represent an important part of the generation of jobs and income in Brazil. Initiatives that lead to the successful implementation of tools and practices to support KM can increase the efficiency and productivity of these organizations. Originality/value This paper applies in a sample of Brazilian companies the taxonomy proposed by Cerchione and Esposito (2017) combining strategies of SMEs for the use of KMSs.


2018 ◽  
Vol 24 (1) ◽  
pp. 234-265 ◽  
Author(s):  
Fayiz Dahash Shrafat

Purpose The potential for the adoption of a knowledge management system (KMS) is becoming a crucial matter in small and medium enterprises (SMEs); however, there is a scarcity of studies related to KMS adoption in SMEs. Therefore, the purpose of this paper is to advance further our understanding of the factors that influence the KMS adoption process among SMEs. Design/methodology/approach The collected sample size was 247 respondents. For statistical analysis, Smart partial least square (PLS) (a structural model-based tool) was used to build, run and validate the process model. PLS regression techniques were used to analyze the latent constructs. Smart PLS exhibits both the measurement model and the structural model. Findings The results indicate that knowledge management capabilities, knowledge sharing, organizational learning capabilities and IT capabilities are the significant factors which influence KMS adoption. This study also identifies some unexpected results. Research limitations/implications The number of responses obtained from the survey was rather small. However, a larger number of responses would probably have resulted in a more accurate finding. Additionally, this study should be verified via a larger sample to increase its generalization. Practical implications The result of this study will provide SMEs with valuable guidelines to better understand what factors should be considered as highly important and thus providing decision makers and managers with valuable insights to increase the adoption level of KMSs. Originality/value The study addresses the research gap by developing and empirically validating a research model of KMS adoption from a different perspective that incorporates critical issues which have never been simultaneously examined.


2015 ◽  
Vol 18 (3) ◽  
pp. 351
Author(s):  
Ag. Sunarno Handoyo

This study deals with marketing innovation, market orientation, and social capital in affecting the competitive advantage and marketing performance in Micro, Small, and Medium Enterprises (MSMEs) of embroidery in Central Java Province. In this respect, this study tried to test and analyze the effect of marketing innovation, market orienta-tion, and social capital on competitive advantage and marketing performance in Micro, Small, and Medium Enterprises (MSMEs) of embroidery in Central Java Province. The samples are 150 respondents as the owners of the embroidery business in Central Java Province. The technical analysis used is Structure Equations Modeling with AMOS Software version 22. The results show that: (1) marketing innovation has significant effect on competitive advantage; (2) market orientation has significant effect on competi-tive advantage; (3) social capital has significant effect on competitive advantage; (4) competitive advantage has significant effect on marketing performance; (5) marketing innovation has significant effect on marketing performance; (6) market orientation has significant effect on marketing performance; (7) social capital has no significant effect on marketing performance. The implication of this study is that the MSMEs of embroidery could improve marketing performance by increasing marketing innovation, market orientation, social capital and competitive advantage. This study also shows that competitive advantage is an intervening variable on marketing performance.


2020 ◽  
Vol 4 (1) ◽  
pp. 11-19
Author(s):  
Mudiantono Soekirman ◽  
Fajar Ayu Suryani

Business competition in the current era of globalization requires companies to have a strategy to win the market. Strategic management has an important role for the survival of the company. The existence of such competition is also felt by small businesses such as Small and Medium Enterprises (SMEs). The increase in the number of SME units in Central Java was not followed by an increase in average sales of SMEs. This study aims to analyze the effect of distribution channel, ERP implementation and entrepreneurial orientation on marketing performance with competitive advantage as an intervening variable. The population in this study were small and medium enterprises owners in Central Java. Six hypothesis were formulated for this study. To test those hypothesis, this study used 104 respondent. Structural Equation Model (SEM) was applied to this study using AMOS 24  as a tool. The results of this study shows that competitive advantage is the most variable in influencing the marketing performance, while this  competititve advantage has entrepreneurial orientation as highest variable in influencing it. This study suggests that if SMEs want to increase their marketing performance, they must increase  their competitive advantage. This competitive advantage can be increase by increasing the entrepreneurial orientation.


2017 ◽  
Vol 5 (2) ◽  
pp. 61-75 ◽  
Author(s):  
Celina Solek-Borowska

The focus of this paper is to analyze small and medium enterprises through a knowledge management perspective. More specifically, the aim of the research is to further the understanding through what processes small and medium enterprises operating in the Polish market to create knowledge. Knowledge creation processes are vital to knowledge management initiatives of companies that operate in a changing environment and depend on innovation to gain the competitive advantage. Such processes significantly differ in small and large firms. Therefore, in the following study, a thorough investigation of knowledge creation processes is presented. This research attempts to fulfill the knowledge creation processes gap between small and medium enterprises in the Polish context where traditionally large firms are mainly investigated.


2016 ◽  
Vol 39 (7) ◽  
pp. 830-850 ◽  
Author(s):  
Gonzalo Maldonado-Guzmán ◽  
Gabriela Citlalli Lopez-Torres ◽  
Jose Arturo Garza-Reyes ◽  
Vikas Kumar ◽  
Juan Luis Martinez-Covarrubias

Purpose The purpose of this paper is to explore the relationship between knowledge management and creation of intellectual property within the context of small and medium size manufacturing enterprises. Design/methodology/approach A hypothesis was formulated and tested using structural equation modelling. Data were collected through an instrument that was developed based on key constructs adapted from the literature and that was first validated using Confirmatory Factor Analysis. A Cronbach’s alpha test was also conducted and the Composite Reliability Index was calculated to ensure reliability of the theoretical model. The instrument was distributed among manufacturing small and medium enterprises (SMEs) in the Aguascalientes region of Mexico, from were 125 valid responses were obtained. Findings In general, the results indicate that knowledge management has positive effects on the creation of intellectual property in manufacturing SMEs. This suggests that SMEs can create more intellectual property if they dedicate more efforts to the management of knowledge. Practical implications The implication of this research and its findings may inform the strategies formulated by policy makers, and the managerial practices that manufacturing SMEs can adopt to protect their knowledge. Originality/value Evidence suggests that studies focused on investigating the relationship between knowledge and intellectual property are limited. This paper provides a refined understanding of the relationship between knowledge management and intellectual property creation.


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