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.

Human capital readiness and global market orientation in Indonesian Micro-, Small- and-Medium-sized Enterprises business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bambang Tjahjadi ◽  
Noorlailie Soewarno ◽  
Viviani Nadyaningrum ◽  
Aisyah Aminy
Keyword(s):  
Human Capital ◽  
Market Orientation ◽  
Business Performance ◽  
Global Market ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Marketing Orientation

PurposeThis study aims to investigate whether human capital readiness affects business performance, and if so, whether the effect is mediated by global market orientation.Design/methodology/approachThis is a quantitative study employing partial least square structural equation modeling (PLS-SEM) to test the hypotheses. Using a survey method, the data were collected using both online and offline questionnaires. As many as 433 owners/managers of micro-, small- and-medium-sized enterprises (MSMEs) in the East Java Province of Indonesia participated in this study. A mediating research framework was developed to investigate the mediating role of global marketing orientation on the human capital readiness–business performance relationship.FindingsThe results show that human capital readiness has a direct and positive effect on business performance. Further analysis reveals that global market orientation partially mediates the effect of human capital readiness on business performance.Research limitations/implicationsFirst, this study focuses on the MSMEs in the East Java Province of Indonesia. Caution needs to be taken if the results are generalized to other regions. Second, it employed a survey method that is commonly criticized as having the potential to be biased.Practical implicationsThe findings provide a more comprehensive understanding of owners/managers of human capital readiness and how it should be improved to better execute global market orientation strategies to achieve the desired business performance.Social implicationsBecause MSMEs play a crucial role in society, this study provides a general model to improve the welfare of society by enhancing the MSMEs' business performance. By understanding its antecedents, namely, human capital readiness and the global market orientation, improvements can be made.Originality/valueHuman capital readiness has been rarely examined in previous studies. This is the only study applying the constructs of human capital readiness, global market orientation and business performance to the Indonesian MSME research setting.

Application of Information System Technology and Learning Organization to Product Innovation Capability and Its Impact On Business Performance of Leather Tanning Industry

2018 ◽  
Vol 7 (2.29) ◽  
pp. 393 ◽  
Author(s):  
Nizar Alam Hamdani ◽  
Wati Susilawati
Keyword(s):  
Information System ◽  
Learning Organization ◽  
Product Innovation ◽  
Business Performance ◽  
Survey Method ◽  
System Technology ◽  
Leather Tanning ◽  
Technology And Learning ◽  
Innovation Ability ◽  
Information System Technology

Information system technology and learning organization play a strategic role in the development of small leather industry performance. Even so, most of small leather industries in Garut assume that technology is a big investment that cannot have a direct impact on business performance. This study applied a quantitative explanatory survey method. The samples were 95 tanners in both formal and home industries located in Sukaregang, Garut, West Java. Data were analyzed using PLS-SEM. Based on the results of data analysis, it was concluded that the application of information system technology had a positive impact on the innovation ability of leather tanning products. On the other hand, the learning organization had no effect on the product innovation ability. Nevertheless, both information system technology and learning organization directly affected the business performance.  

SIMILAR, YET DIFFERENT: A COMPARATIVE ANALYSIS OF THE ROLE OF TRUST IN RADICAL AND INCREMENTAL PRODUCT INNOVATION

2015 ◽  
Vol 19 (04) ◽  
pp. 1550043 ◽  
Author(s):  
ANNA BRATTSTRÖM ◽  
HANS LÖFSTEN ◽  
ANDERS RICHTNÉR
Keyword(s):  
Comparative Analysis ◽  
Product Innovation ◽  
Business Performance ◽  
Innovation Management ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
And Performance

Trust within teams is a central performance driver in product innovation. In this paper, we examine the antecedents to and performance implications of trust in firms engaged in radical innovation compared to those working towards incremental innovations. Our findings suggest that systematic processes and structures are significantly linked to trust in firms conducting radical innovation, but not so in firms conducting incremental innovation. Our findings also indicate that trust is significantly linked to business performance in radical innovation firms, although we do not find that the link between trust and performance is stronger for radical innovation firms, compared to incremental innovation firms. A central contribution of our study is therefore a better understanding of how trust operates differently in radical innovation firms, compared to incremental innovation firms. Our findings are of interest to research on radical innovation management, as well as to researchers studying the role of trust in a context of product innovation.

scholarly journals DAMPAK KREATIVITAS DAN INOVASI PRODUK TERHADAP KINERJA UKM DI KOTA SEMARANG

2020 ◽  
Vol 21 (1) ◽  
pp. 69-77
Author(s):  
Kalil Kalil ◽  
Evant Andi Aenurohman
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Field Research ◽  
Economic Community ◽  
Economic Activities ◽  
Market Needs ◽  
Asean Economic Community ◽  
Or Manager ◽  
The City

SME is one of the backbones of the national economy that directly faces the competition of the ASEAN Economic Community (AEC). The role of SMEs as economic activities is expected not only to be able to meet market needs in local communities but also reduce unemployment by providing employment. The purpose of this study was to determine the effect of creativity and product innovation on business performance. This research is field research for businesspeople in the city of Semarang. The sample was selected using a purposive sampling approach, a business actor (owner or manager) who is willing to be a respondent as many as 100 respondents. The results of this study indicate that creativity and product innovation simultaneously have a positive and significant effect on the business performance of SMEs in the city of Semarang. The implications of this research can be used by SMEs to optimize creativity and improve product innovation capabilities so that it has an impact on improving performance.

scholarly journals Innovation: The Driving Force for Entrepreneurial Performance among Small Informal Businesses

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Simbarashe Muparangi ◽  
Forbes Makudza
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Innovation Process ◽  
Positive Association ◽  
Process Innovation ◽  
Marketing Innovation ◽  
Strong Positive Association ◽  
Medium Enterprises ◽  
Organisational Factors ◽  
The Impact

The purpose of the study was to assess the impact of innovation on business performance of informal small business traders in Zimbabwe. The Open Theory of Innovation informed the study whilst data for the study was gathered using structured questionnaires where 175 informal small to medium enterprises (SME) offered validated responses. A causal, quantitative approach was assumed and data was analyzed using SPSS 22 software to identify the association, strength and direction of innovation and innovation determinants on SME performance. The results revealed that innovation is determined by product, process, marketing and organisational factors. The study thus found out that product innovation, process innovation and marketing innovation have strong positive association with SME performance (P < 0.05). However, the study found an insignificant association between organisational innovation and SMEs performance. The study thus concluded that for informal SMEs to enhance their performance and graduate from being small entities to large corporates, they should embrace product innovation, process innovation and marketing innovation.

scholarly journals THE IMPACT OF INSTITUTIONAL PERFORMANCE ON PAYMENT DYNAMICS: EVIDENCE FROM THE ITALIAN MANUFACTURING INDUSTRY

2020 ◽  
Vol 21 (5) ◽  
pp. 1285-1306
Author(s):  
Greta Falavigna ◽  
Roberto Ippoliti
Keyword(s):  
Manufacturing Industry ◽  
Waiting Times ◽  
Firm Dynamics ◽  
Policy Implications ◽  
Institutional Performance ◽  
Policy Makers ◽  
The Public ◽  
National Economic ◽  
The Impact

This work aims to shed new light on the relation between institutional performance and firm dynamics. Considering the Italian manufacturing industry and a panel of 3 years, the authors investigate the relation between the time needed by courts to enforce debtors’ obligations and the time needed by enterprises to repay their debts. In particular, we test the hypothesis that efficiency in settling mortgage foreclosure and bankruptcy cases can affect the creditors’ decision making on judicial disputes. According to our thesis, inordinately long waiting times to enforce credit rights may increase the contractual strength of debtors, further delaying payments. As shown by our results, there is a statistically significant positive relation between the enforcement of debtors’ obligations and the adopted payment index, confirming the key role of the judiciary in the dynamics of firms. Indeed, if the time needed to settle bankruptcy cases decreases by 25%, we can expect the payment index to decrease by 1%; while, focusing on foreclosure cases, we can expect the payment index to decrease by 2%. The policy implications of these results are rather compelling. Policy makers could reform foreclosure and bankruptcy procedures to support national economic growth, without additional burden on the public budget.

scholarly journals A nexus between Green HRM (GHRM), Supply Chain Performance (SCP) and Business Performance (BP): The mediating role of Supply Chain Organizational Learning (SCOL)

2021 ◽  
Vol 14 (2) ◽  
pp. 329
Author(s):  
Muafi ◽  
Rizqi Adhyka Kusumawati
Keyword(s):  
Supply Chain ◽  
Business Performance ◽  
Service Industry ◽  
Sampling Technique ◽  
Survey Method ◽  
Courier Service ◽  
The Impact ◽  
The Relationship ◽  
Special Region

Purpose: This study tests and analyzes the relationship pattern (nexus) of Green HRM, SCP, and BP. In addition, this study also tests the mediation role of SCP in analyzing the relationship between GHRM and BP and the mediation role of SCP in analyzing the relationship between SCOL and BP.Design/methodology: This study uses survey method. The survey is distributed to owners/managers of courier service SMEs in two provinces (Special Region of Yogyakarta and East Java) in Indonesia. The sampling technique is conducted purposively with 165 respondents. The data analysis technique uses AMOS 23. Findings: SCOL has a positive effect on SCP and BP and mediates the effect of SCP on BP. The most interesting about the findings is GHRM has no effect on SCP and BP and SCP does not mediate GHRM on BP.Research limitations/implications: Researcher use purposive sampling which has limitation of not being able to generalize the population in two provinces, namely Special Region of Yogyakarta and East Java. This is also not ideal approach to evaluate the impact of GHRM on SCP and BP and the impact of SCOL on SCP and BP. Courier service SMEs in this study have not implemented GHRM in ideal manner so they are unable to conclude the results in a comprehensive and transparent manner.Managerial Implication: Companies need to consider aspects related to the courier service industry, namely digitalization of information and green innovation so their contribution can be seen in improving whole business performance. In addition, it is necessary to divide SMEs that have practiced GHRM and those that are not so they can make strategies and policies related to GHRM, SCP, BP and SCOL. It is also necessary to examine other aspects in improving the business sustainability of courier services, namely the complexity and service strategy orientation. SMEs who have more SCOL strategy will better implement GHRM practices associated with SCP and BP. This is important since competition in the courier service industry is getting tougher especially when faced with foreign competitors who already have global service standards.Theory Implication: This study contributes the theory enrichment of SCOL aspect in mediating the relationship pattern between SCP and BP. This study also provides theoretical contributions namely GHRM has no effect on SCP and BP and SCP does not mediate GHRM on BP.Originality/value: Study which examines the role of SCOL, especially when it is related to GHRM, SCP and BP is still limited in Asia. SME owners in the courier service industry rarely have good data integration in the system. The implementation of SC is starting from upstream to downstream processes so that SMEs need a well-planned and integrated SCOL in each work unit which ultimately have an impact on SCP and BP. 

scholarly journals The Influence of Transformational Leadership on Organizational Commitment and Job Satisfaction with Procedural Justice as Mediating Variable

2018 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Rico Saktiawan Jaya
Keyword(s):  
Job Satisfaction ◽  
Transformational Leadership ◽  
Organizational Commitment ◽  
Procedural Justice ◽  
Survey Method ◽  
Hierarchical Regression ◽  
Questionnaire Data ◽  
Regression Methods ◽  
Principles Of Justice

The purpose of this research is to test the influence of transformational leadership on organizational commitment and job satisfaction with procedural justice as mediating variable. The role of the leader is very important given the nature of the leadership taken by these leaders can exert influence on employee commitment and job satisfaction, building on the principles of justice. This study uses a quantitative approach using a survey method and questionnaire instruments. Sampling of this research using purposive sampling that employees who have worked at least two years and subordinate superintendent in Coal and Processing Handling Division (CPHD) PT KPC. Hypothesis testing is conducted using hierarchical regression methods to test mediation in accordance with the rules of Baron and Kenny (1986). Questionnaire data processing taken by SPSS Statistics 21. The results of this study indicate that procedural justice is partially mediates the influence of transformational leadership on organizational commitment and job satisfaction.

scholarly journals Model Sistem Peran Teknologi Dan Informasi Terhadap Pertahanan Bisnis Di Indonesia

2019 ◽  
Vol 16 (1) ◽  
pp. 38-47
Author(s):  
Tati Herlia
Keyword(s):  
Information Technology ◽  
System Model ◽  
Creative Economy ◽  
Creative Industry ◽  
Economic Stability ◽  
Industry Sector ◽  
National Economic ◽  
The World ◽  
Role Of Information

Business is an activity carried out and carried out by someone or a group of people or companies in the form of services or goods to obtain profits or profits. Nowadays businesses are starting to grow and develop rapidly in Indonesia in the creative economy industry sector. Creative economy is an economy that is based on high creativity with a touch of innovation to produce new and different quality products. Today's business trends are more companies in the creative economy. This is because the creative economy is faster than other industries. The fastest growing creative industry and development is in the field of information technology. The cause of the creative industry in the field of technology is growing rapidly, because the world is now entering the information technology era. So today's business does not recognize space and time. In addition, business is easy to do and easily accepted by consumers. This, if left unchecked, will disrupt national economic stability so that it is necessary to make a System Model for the Role of Information Technology towards Business Defense in Indonesia.

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