The effect of innovation on increasing business performance of SMEs in Indonesia: Study of SMEs manufacturing industry sector in West Java, Indonesia

2020 ◽  
pp. 659-663
Author(s):  
E. Herlinawati ◽  
Suryana ◽  
E. Ahman ◽  
A. Machmud
Keyword(s):  
Business Performance ◽  
Manufacturing Industry ◽  
West Java ◽  
Industry Sector

scholarly journals The Effect of Innovation on Increasing Business Performance of Smes in Indonesia

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Manufacturing Industry ◽  
Innovation Process ◽  
Global Market ◽  
Survey Method ◽  
Questionnaire Data ◽  
Industry Sector ◽  
National Economic

The purpose of this study is to analyze the effect of innovation on SME business performance, which is motivated by the important role of SMEs in national economic growth should be accompanied by a significant increase in business performance. But in reality SME competitiveness is still low in the global market due to low innovation. This study uses an explanatory quantitative survey method. There are 231,181 SMEs in the manufacturing industry sector in West Java, Indonesia as a population with a sample of 346 respondents. Data collection uses a Likert scale 1-5 questionnaire. Data analysis using SEM. The analysis shows that innovation has a positive and significant effect on business performance. The implication of this research is that the performance of SME businesses can be improved through increased product innovation, process innovation, and distribution innovation.

scholarly journals Keunggulan Komparatif dan Kompetitif Sektor Industri Pengolahan di Provinsi Jambi

2019 ◽  
Vol 3 (2) ◽  
pp. 105-116
Author(s):  
Eristian Wibisono ◽  
Amri Amir ◽  
Zulfanetti Zulfanetti
Keyword(s):  
Development Policy ◽  
Manufacturing Industry ◽  
National Development ◽  
Secondary Data ◽  
Development Planning ◽  
Wood Products ◽  
Regional Government ◽  
Furniture Industry ◽  
Location Quotient ◽  
Industry Sector

Identification of leading sectors or subsectors is one of the main tasks of the regional government and is an important part of regional development planning before formulating, drafting and establishing a better development policy strategy. The main objective of this research is to analyze and identify subsectors in the manufacturing industry sector that have comparativeness and competitiveness in Jambi Province. Main data of this study are secondary data of districts and cities in Jambi Province during the period 2011–2015 which were sourced from the Central Bureau of Statistics,  and Indonesian Ministry of National Development Planning (Bappenas). Data were analyzed using descriptive and quantitative analysis methods, namely Location Quotient analysis and Shift Share analysis. Results of the study show that the manufacturing industry subsector of Jambi Province which can be classified as comparative and competitive subsector are timber/wood products industry, paper/goods industry, rubber/rubber goods industry, and furniture industry

Validity and reliability of lean manufacturing frameworks

2014 ◽  
Vol 5 (4) ◽  
pp. 361-391 ◽  
Author(s):  
Naga Vamsi Krishna Jasti ◽  
Rambabu Kodali
Keyword(s):  
Frequency Analysis ◽  
Lean Manufacturing ◽  
Manufacturing Industry ◽  
Research Work ◽  
Middle Level ◽  
Manufacturing Industries ◽  
Validity And Reliability ◽  
Content Type ◽  
Survey Tool ◽  
Industry Sector

Purpose – The purpose of this paper is to investigate, validity and reliability analysis on existing Lean manufacturing (LM) frameworks when applied to Indian organizations. LM is one of the best manufacturing strategies that are used by manufacturing plant managers to improve manufacturing capabilities. Design/methodology/approach – In the present research work, a questionnaire-based survey was used to examine 35 LM frameworks. The study targeted respondents ranging from top- and middle-level management personnel in Indian manufacturing industry. The sample includes organizations in a variety of industries ranging from automobile, electronics, engineering, process and textile industries products. The survey tool was prepared with team of 12 members i.e. six academicians and six professionals from manufacturing industry environment. The study received 186 responses from various sectors of manufacturing industry, 180 surveys were usable resulting in a response rate of 23.90 per cent. Factor analysis was conducted to check unidimentionality of the framework. Cronbach’s alpha is calculated to find reliability of each framework’s. Lastly, frequency analysis was used to recognize familiar constructs of LM on the chosen framework. Findings – This study has identified that most of the LM frameworks revealed a high level of reliability. When the study has examined further advance about unidimensionality with respect to the construct, i.e. the LM it measures, it confirmed 11 frameworks were revealing unidimensionality. The frequency analysis was evident that a greater part of the constructs has a high mean score and mode. Finally, the research concludes that there is requirement for a novel framework to Indian manufacturing industry to stay in competition with global manufacturing industries. Research limitations/implications – Cross-sectional data from manufacturing industries and India (only one country) is used with sample size restricted to 180 only, and it would be interesting to test these frameworks for more than one industry sector and country. Practical implications – The present work tries to find the suitability of the presented LM frameworks to Indian manufacturing industry sector. The authors hoped that the present research would give the information to the management to execute the suitable LM framework in their firm. Originality/value – The present work tries to find the suitability of the presented LM frameworks to Indian manufacturing industry sector. The authors hoped that the present research would give the information to the management to execute the suitable LM framework in their firm.

scholarly journals Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java

2019 ◽  
Vol 13 (2) ◽  
pp. 231-246 ◽  
Author(s):  
Benny Hutahayan
Keyword(s):  
Significant Influence ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Manufacturing Industry ◽  
Secondary Data ◽  
Research Area ◽  
Business Strategies ◽  
Primary Data ◽  
Literature Study ◽  
Content Type

Purpose This study aims to examine comprehensively the factors determining the performance of small and medium enterprises (SMEs) producing Indonesian special food in East Java. Design/methodology/approach This study is quantitative and qualitative. Primary data was collected from entrepreneurs in East Java, those producing Indonesian special food. Secondary data was obtained from the literature, literature study, journals, Central Bureau of Statistics and the office of industry, trade, cooperatives and SMEs in East Java. Areas selected for this study were Surabaya, Madiun, Malang, Pasuruan, Lamongan and Banyuwangi. The population was small and medium entrepreneurs producing Indonesian special food in the selected cities. Based on the PLS sampling rule, the number of samples in each research area was 50, with total of 300 respondents (50 × 6). The methods of collecting primary data were interviews and questionnaire. Data analysis was done using GSCA. Findings The study firstly found the significant influence of entrepreneurial orientation on business strategies of SMEs producing Indonesian special food in East Java. SME managers have a high entrepreneurial orientation. Secondly, it found a significant influence of entrepreneurial orientation on business performance of SMEs producing Indonesian special food in East Java. Thirdly, the study found that government policy is not a moderating variable. Additionally, business strategies have a significant influence on the performance of SMEs producing Indonesian special food in East Java. Finally, dynamics of the environment and business strategy have a significant influence on the performance of manufacturing industry in South Sulawesi. Originality/value To know the effect of entrepreneurial orientation, environmental dynamism, consisting of uncertainty of environment and intensity of competition, and business strategies toward business performance. Considering the findings of the previous studies, the authors would like to re-examine the effect of entrepreneurial orientation on business performance, which also compares the findings of previous studies, especially, the one by Lee and Tsang (2003) on SMEs in Singapore.

Strategic impact of SCM and SCQM practices on competitive dimensions of Indian manufacturing industries

2019 ◽  
Vol 31 (5) ◽  
pp. 696-721 ◽  
Author(s):  
Mandeep Kaur Sidhu ◽  
Kanwarpreet Singh ◽  
Doordarshi Singh
Keyword(s):  
Business Performance ◽  
Large Scale ◽  
Manufacturing Industry ◽  
Discriminant Validity ◽  
Research Work ◽  
Manufacturing Industries ◽  
Combined Approach ◽  
Total Quality ◽  
Content Type ◽  
Manufacturing Organizations

Purpose The purpose of this paper is to evaluate the capabilities of total quality management (TQM) and supply chain management (SCM) and extract various significant factors which influence the implementation of SCM alone and synergy of both TQM–SCM in terms of business performance of Indian medium and large scale manufacturing industry. Design/methodology/approach In the present study, 116 Indian manufacturing organizations have been extensively surveyed to ascertain the inter-relationships between various success factors and competitive dimensions of SCM alone and for combined approach (TQM–SCM), through different statistical techniques. Further, to evaluate the significance of time period on competitive dimensions, two-tailed t-test has been deployed. Finally the discriminant validity test has been applied to extract highly successful and moderately successful organizations for both approaches. Findings The study compares the contributions played by only SCM initiatives and combined approach (TQM–SCM) initiatives toward realization of significant improvements of various competitive dimensions of Indian manufacturing organizations. Finally, this study reveals that synergistic relationship of TQM and SCM paradigms can be more helpful as compared to only SCM initiatives for Indian manufacturing industries to enhance overall business performance. Originality/value TQM and SCM are considered as performance improvement techniques by the manufacturing organizations. The present research work establishes that combined (TQM–SCM) initiatives have effectively contributed for realization of significant competitive dimensions, progressively from introduction to maturity phases. So, the study stresses upon the need for improving coordination between various manufacturing parameters as well as competitive dimensions of TQM and SCM paradigms to enjoy higher potential of business performance.

An evaluation of transfusion of TQM-TPM implementation initiative in an Indian manufacturing industry

2015 ◽  
Vol 21 (2) ◽  
pp. 134-153 ◽  
Author(s):  
Kanwarpreet Singh ◽  
Inderpreet Singh Ahuja
Keyword(s):  
Business Performance ◽  
Large Scale ◽  
Manufacturing Industry ◽  
Core Competencies ◽  
Current Status ◽  
Total Quality ◽  
Content Type ◽  
Global Challenges ◽  
Manufacturing Performance ◽  
Manufacturing Organization

Purpose – The purpose of this paper is to include investigations of current status of Total Quality Management (TQM) and Total Productive Maintenance (TPM) implementation initiatives as well as benefits attained through synergetic TQM-TPM implementation in the manufacturing organization to assess roadmap followed by Indian manufacturing entrepreneur toward affecting manufacturing performance enhancements. Design/methodology/approach – The study has been carried out in the large scale manufacturing organization in the country that have implemented or are in the process of implementing TPM alone and TQM-TPM both. The study emphasizes upon comparing of business performance enhancements accrued through these quality improvement approaches. Findings – The study revealed that Transfusion of TQM-TPM initiatives can significantly contribute toward the better improvement of manufacturing performance in the organization, rather than TPM alone initiatives, also leading toward realization of core competencies for meeting global challenges. Research limitations/implications – The study is conducted to develop an understanding of contributions of TQM and TPM initiatives in Indian manufacturing industry. The present study endeavors to investigate the effect of an aggressive TQM-TPM implementation plan for strategically meeting global challenges and competition. Originality/value – The study highlights the contributions made by holistic TQM-TPM implementation in an Indian manufacturing enterprise.

The empirical model of trust, loyalty, and business performance of the dairy milk supply chain

2017 ◽  
Vol 119 (12) ◽  
pp. 2765-2787 ◽  
Author(s):  
Aries Susanty ◽  
Arfan Bakhtiar ◽  
Ferry Jie ◽  
Mustofa Muthi
Keyword(s):  
Business Performance ◽  
Significant Positive Effect ◽  
Collaborative Communication ◽  
West Java ◽  
Content Type ◽  
Dairy Farmer ◽  
Central Java ◽  
Dairy Cooperatives ◽  
Positive Effect ◽  
Central Java Province

Purpose The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and business performance. Design/methodology/approach Data used in this study were primary data which were collected through personal interviews and closed questionnaires using a five-point Likert scale ranging from 1 to 5. The sample consisted of 170 individual dairy farmer and several dairy cooperatives, which were located in Central Java Province (Boyolali and Semarang Districts) and West Java Province (West Bandung District). The study used partial least squares with the aid of the SmartPLS software program to analyze the hypothesis. Findings The results of hypothesis testing indicate that collaborative communication and price satisfaction had a significant positive effect on trust for Central Java and West Java Province. Meanwhile, power dependence had a significant negative effect on trust only for West Java Province. Trust had a significant positive effect on supplier loyalty for both of the two provinces. Significant positive effect of supplier loyalty on business performance was supported in Central Java Province, whereas in West Java Province, supplier loyalty had a positive but not significant effect on business performance. Research limitations/implications The limitation of this study is related to the number of samples, the type of scale used to measure a business performance, and the focus that is only on the relationship between the fargmers and cooperative to improve the performance of cooperative without considering the role of management. So, the future research may replicate this study in another region or in the other contexts of agribusiness sector that usually depends on farmer as a producer of the raw material. It may also enhance the measurement of business performance of dairy cooperative by using a direct measure of financial performance and non-financial performance and broaden the scope of research into the role of management of dairy cooperative. Practical implications It is recommended that managers of dairy cooperatives always involve the farmers when making marketing decisions especially concerning prices, products, market, and promotion. As organizational stakeholders, their involvement is vital in determining the ability of the dairy to achieve its goals. The other recommendation is the managers of cooperatives must have a clear policy on the price of milk, and this policy should indicate the transparency and accountability. Then, regarding the long-term benefit of dairy cooperative, it is recommended for dairy cooperatives to add the value of the milk so they can access wider markets, which, in turn, will maximize returns to the members. Based on this recommendation, it is better if the dairy cooperative in Indonesia not only serves as a marketing cooperative, but also serves as a farm supply cooperative which may process or formulate the milk into a more valuable product. Social implications The research confirms that individual dairy farmer’s loyalty can benefit the business of dairy cooperative. It may encourage more dairy cooperative to tap the good relationship with the individual dairy farmer at the initial stage of the economic growth of their business. Intensifying competition between dairy cooperatives would potentially bring even better quality and quantity of milk from the loyal dairy farmer. Originality/value Although this research used the conceptual model from the previous study, this research will make some improvement. First, it used more indicators to measure each dimension of the construct, and the investigation was slightly more complex and broader since the object of the research was represented by two regions, namely, Central Java Province and West Java Province.

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