scholarly journals Pengaruh Kapasitas Absorptif dan Situs Jejaring Sosial Terhadap Kinerja Inovasi Usaha Mikro Kecil dan Menengah (UMKM) di Indonesia

Author(s):  
Prita Ayu Kusumawardhany

Global competition in the digital era is currently encouraging Micro, Small and Medium Enterprises (SMEs) in Indonesia to develop innovations to provide competitive advantage. SMEs must be able to be adaptive to be able to absorb knowledge, especially in the field of technology. The use of social networking sites can provide a lot of information about individuals and networks that can be used for business purposes. The purpose of this study was to show the relevance of absorptive capacity and the role of social networking sites towards innovations conducted by SMEs. This research is a quantitative by using survey method processed through Partial Least Square (PLS) - Path Modeling that measures absorptive capacity relationships, social networking sites with innovation performance. One hundred (100) questionnaires have been distributed to SMEs in Indonesia. Research results show that the increased absorptive capacity of SMEs through social networking sites can improve innovation performance. Therefore, several recommendations are needed so those SMEs in Indonesia know what must be done to strengthen innovation performance.


2021 ◽  
pp. 1771-1778
Author(s):  
I. S. Darmo ◽  
Suryana Suryana ◽  
C. Furqon ◽  
H. Hendrayati ◽  
Nurul Hidayah Mat Zain

This study was to analyze the effect of entrepreneurial skills and benchmarking on the performance of culinary innovations (restaurants, restaurants, and cafes) of micro-small-medium enterprises (MSMEs) in Indonesia sub-urban areas. Online questionnaires were used as the instrument to collect data, and the data were analyzed by deception analysis to illustrate various features of the variables studied. Hypothesis test was conducted by Partial Least Square Path Modeling (SEM-PM). The MSME population was 231 and the representative sample was 144 culinary companies. It was found that entrepreneurial skills, benchmarking, and performance of culinary MSME innovations tended to be lower than expected. The results of this study revealed that entrepreneurship and benchmarking skills had significant effects on innovation performance. To improve innovation performance, companies must pay more attention to practical knowledge, especially knowledge of bookkeeping and digital marketing, and make more comparisons on financial aspects.



2019 ◽  
Vol 6 (1) ◽  
pp. 49-55
Author(s):  
YAKUBU SALISU ◽  
Sani Mohammed

How to develop and enhance the effectiveness of external flow of knowledge and information to improve invention and performance of small and medium enterprises (SMEs) has becomes crucial to both researchers and managers. This study was designed to purposely examine empirically the influence of the absorptive capacity on the relationship of organizational learning capability and SMEs performance. A total of 206 valid questionnaires obtained from personal administration of the survey instrument on SMEs manager in Kano state Nigeria. Partial Least Square Structural Equation Model (PLS-SEM). The result of the study indicates that learning capability significantly and positively relates to SMEs firms performance, equally learning capability positively relates with absorptive capacity. The study further established significant positive relationship between absorptive capacity and SMEs performance. Similarly, absorptive capacity mediates the relationship between learning capability and SMEs performance. The study conclude that experimentation, risk taking, external interaction, dialogue and participatory decision making influences SMEs knowledge acquisition, assimilation, transformation and application for better performance.



2019 ◽  
Vol 20 ◽  
pp. 123-136 ◽  
Author(s):  
Wendra Wendra ◽  
Ernie Tisnawati Sule ◽  
Joeliaty Joeliaty ◽  
Yudi Azis

The notions of dynamic capabilities, intellectual capital, and innovation performance have been examined in many competitive advantage scholarly papers. However, there have been small numbers of management studies that consider the link of dynamic capabilities and intellectual capital in respect of innovation performance. Previous studies tend to argue that dynamic capabilities played a mediator or moderator role on intellectual capital and innovation performance linkage. Therefore, this study seeks to propose a new perspective that dynamic capabilities are the antecedents of intellectual capital leading to innovation performance. Thus, the rationale for this study is to propose a conceptual model and to provide empirical support on the mediator role of intellectual capital in dynamic capabilities and innovation performance linkage. By using accidental and snowballs sampling techniques, this study distributed questionnaires to 297 small and medium enterprises of the garment manufacturing in Indonesia. Partial least square offers the main statistics methodology for data analysis. Results show that dynamic capabilities had a significant influence on intellectual capital and innovation performance. Moreover, intellectual capital partially mediated dynamic capabilities’ influence on innovation performance. Therefore, it is expected that organisations should grow, implement and maintain their dynamic capabilities in order to improve their intellectual capital and innovation outcomes. Lastly, some future studies are suggested.



Jurnal METRIS ◽  
2021 ◽  
Vol 22 (01) ◽  
pp. 1-9
Author(s):  
Nurul Hidayat

This research was conducted on micro, small and medium enterprises (MSMEs) in Tarakan City. To improve service innovation, micro, small and medium enterprises (MSMEs) in Tarakan City need knowledge sharing and absorption activities. This research was conducted on 150 workers in small, micro, and medium enterprises (MSMEs) in Tarakan City. Data collection was carried out using a survey method with a questionnaire. Survey responses submitted by respondents in this study indicate that knowledge sharing and absorptive capacity activities positively affect service innovation performance in micro, small and medium enterprises (MSMEs) in Tarakan City.  



2018 ◽  
Vol 57 (5) ◽  
pp. 1131-1159 ◽  
Author(s):  
Felix N. Koranteng ◽  
Isaac Wiafe ◽  
Eric Kuada

This article investigates how students’ online social networking relationships affect knowledge sharing and how the intensity of knowledge sharing enhances students’ engagement. It adopts the social capital theory as the basis for investigation, and the partial least square structural equation modeling was used to examine the hypothesized model. Responses from 586 students in higher education were analyzed. The findings provided empirical evidence which contradicts the argument that students perceive social networking sites as an effective tool for learning. Also, contrary to previous studies which posit that knowledge sharing impacts engagement, it was observed that there is no relationship between the two. However, as social networking sites differ in terms of member behavior norms, it is envisaged that if a similar study is conducted and limited to a specific academically inclined social networking site such as Academia.edu, ResearchGate, Mendeley, and so on, different findings may be observed.



2020 ◽  
Vol 13 (5) ◽  
pp. 97 ◽  
Author(s):  
Ploypailin Kijkasiwat ◽  
Pongsutti Phuensane

This study examines the moderating effect of firm size on the relationship between innovation and firm performance of small and medium enterprises in 29 countries in Eastern European and Central Asia. The study also investigates whether the impact of innovation in products and processes on firm performance is affected by financial capital. The method applied is partial least square structural equation modelling. The findings indicate that firm size and the financial capital both moderate and mediate the impact of innovation on firm performance, positively or negatively. The findings have implications for decision makers by highlighting the significance of firm size and financial sources when planning to introduce innovations to enhance firm performance.



2020 ◽  
pp. 097215091986508
Author(s):  
Gaurav Dawar ◽  
Seema Singh

The current study is a strategic approach to corporate social responsibility (CSR); the aim is to put forward the factors of CSR activities that enhance its effectiveness for small and medium enterprises (SMEs). To achieve this objective, the factors were extracted from the literature and described along with trusteeship theory of Mahatma Gandhi, and an exploratory study was conducted and data were collected using structured questionnaire based on pretested scale from 158 SMEs and tested using partial least square regression (PLSR). The statistics shows the overall model fit, and the findings indicate a significant relationship with effective CSR. The results of the study are in accordance with the previous research work, and we also find that environment-related CSR and partnership are crucial for the effectiveness of CSR in SMEs, stakeholders’ role are important and SMEs’ CSR practice is still informal. The variables identified from study will help SMEs in establishing a formal approach towards CSR and meeting the needs of business and society in the twenty-first century.



2020 ◽  
Vol 12 (1) ◽  
pp. 21-51 ◽  
Author(s):  
Stephen Oduro

Purpose Open innovation (OI) is now recognized as one essential innovation paradigm to help small and medium enterprises (SMEs) quell their liability of newness and smallness. However, little is known about SMEs’ OI barriers, particularly in emerging economies. Drawing on both network and transaction cost theory, this study aims to explore the barriers to SMEs’ OI adoption in Ghana. Design/methodology/approach The study adopted an exploratory sequential research design that involved both qualitative and quantitative study methodologies. A total of 644 responses (21 survey interviews and 623 usable questionnaires) across SMEs in Ghana were collected and analyzed in the study. A qualitative analysis involving quotations extracted from the respondent’s statement was used to present the qualitative findings, whereas SEM-partial least square, co-variance approach, was used to analyze the formulated hypotheses. Findings Results show that significant barriers to SMEs OI adoption are collaboration barriers – difficulty in finding the right partners and problems of cooperation and coordination of operational functions; organizational barriers – lack of flexible internal procedures and structures and organizational inertia; and strategic barriers – opportunistic behavior of partners and lack of strategic and resource fit. Contrary to existing findings, financial and knowledge barriers were disclosed as driving factors, rather than barriers, to SMEs’ OI adoption; these findings challenge conventional thinking about SMEs’ major OI barriers. Research limitations/implications This study focuses on only SMEs in one emerging economy, namely, Ghana, which may limit the generalization of the findings. Practical implications The findings of this study, while limited to Ghana, offer useful insights to SMEs managers, development practitioners and policymakers respecting the overall importance of the OI model, its associated impediments, as well as the strategic measures to quell those barriers. Originality/value This study provides a pioneering empirical investigation into the main barriers to SMEs’ OI adoption in a less-explored emerging market context through a mixed research approach.



2017 ◽  
Author(s):  
Sirajuddin Omsa ◽  
Ibrahim H. Abdullah ◽  
Hisnol Jamali

Five competitive forces that comprise bargaining power of buyers, bargaining power of suppliers, threat of newentrants, threat of substitute products or services, and intensity of rivalries have been studied by many researchers for several years. However, linking them with Porter’s generic strategy in order to gain financial and market performance in the Micro, Small and Medium Enterprises (MSMEs) context is very rare. The main purpose of this study is to analyze how those fivecompetitive forces affect generic strategies developed by Porter and how the generic strategies affect firm performances. Questionnaire, survey and deep interview were conducted to figure out the implemented generic strategies by the owners of MSMEs of wooden furniture in East Java, Indonesia. Smart partial least square (PLS) was used to analyse the data. The results show that power of buyers (PoB) significantly affects only differentiation strategy (DS), power of supplies (PoS) significantly affects cost leadership strategy (CLS) and focus strategy (FS) but does not significantly affect differentiation strategy (DS), and threat of rivalries (ToR) significantly affects differentiation strategy (DS) and focus strategy (FC). In regards to the relationship between generic strategies and firm performances (FP), the results of this study show that both DS and FS significantly affect FP, while CLS does not significantly affect FP. Based on these findings, it is suggested that the owners of MSMEs wooden furniture in East Java (Indonesia) consider PoB, PoS, and ToR before performing DS and FS to gain much greater firm performances in the future.



Author(s):  
Yana Hendayana ◽  
Suryana Suryana

Objective - This research aims to test the effect of productivity and innovation toward competitiveness of batik SMEs in West Java. Methodology/Technique - The study uses Partial Least Square (PLS) for data analysis, as well as an explanatory method and simple random sampling. Findings - The results of the data testing show that competitiveness is effected by productivity and innovation by 71.7%. Novelty - The objective of this study is to analyse the gap in productivity and innovation and its effect on the competitiveness of batik SMEs in West Java Indonesia. Batik centre in West Java was developed by the government in collaboration with the private sector to increase the level of production of batik SMEs. In reality, there is a gap in productivity between written batik and stamped batik. Written batik design innovations and production methods need to be improved to compete and survive in the batik industry. Porter (1995:5) describes competition as the core of the success or failure of firms. Productivity of written batik has declined in the past 5 years. From recent BPS data, processed by the Pusdatin Ministry of Industry 2017, the industry has declined by around 10% per year between 2012 and 2017. Type of Paper: Empirical. Keywords: Productivity; Innovation; Competitiveness; Batik; Small and Medium Enterprises. JEL Classification: M10, M11, M19.



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