scholarly journals Improving Performance and Competitive Advantage through Innovation and Design of UMKM Products

2020 ◽  
Vol 5 (8) ◽  
pp. 1336-1346
Author(s):  
Tukhas Shilul Imaroh ◽  
Katri Widiyani
Keyword(s):  
Competitive Advantage ◽  
Product Design ◽  
Product Innovation ◽  
Small And Medium Enterprises ◽  
Business Development ◽  
Creative Industry ◽  
West Sumatra ◽  
And Performance ◽  
Medium Enterprises

Business competition continues to increase, so that MSMEs must continue to have a competitive advantage and performance. The advantages of an economy are not only derived from technology, let alone natural resources. The latest sources of competitive advantage are product innovation and design. Micro, Small and Medium Enterprises (MSMEs) as part of the economy must also increase their competitiveness by making innovations. Competitive advantage based on innovation and product design should be prioritized because it has durability and a longer period of time. Likewise, the MSME group in West Sumatra tries to preserve local wisdom with various regional characteristics, but still has many limitations including facilities and ideas for business development. The group of wisdom preservation craftsmen is one part of the creative industry sub-sector in the form of the craft creative industry which can be integrated through micro, small, or medium enterprises (MSMEs). This is also directly proportional to the existence of Presidential Regulation Number 28 of 2008 concerning National Industrial Policy which is also regulates the creative industry for the development and determination of the guideline map. Therefore this research aims to improve the performance and competitive advantage of MSMEs through innovation and product design. This research is included in TKT 2, namely formulating the concept of technology and its application to the object of UMKM

scholarly journals What is the Best Strategy to Develop Creative Industry in Indonesia?

2019 ◽  
Vol 3 (2) ◽  
pp. 14
Author(s):  
Muhammad Adhi Prasnowo ◽  
Gusti Adriansyah ◽  
Khoirul Hidayat
Keyword(s):  
Product Design ◽  
Development Strategy ◽  
Swot Analysis ◽  
Small And Medium Enterprises ◽  
Creative Industries ◽  
Raw Material ◽  
Creative Industry ◽  
Economic Sectors ◽  
The Government ◽  
Medium Enterprises

<p>Small and Medium Enterprises (SMEs) have an important role and strategic for economic growth. This is because at the time of the economic crisis in Indonesia, SMEs are the economic sectors which have the most excellent durability. Wedoro Village in Sidoarjo city, Indonesia, is famous for the footwear creative industry especially slippers and shoes. A wide variety of slippers and shoes with different types available. Stores and outlets are widespread across the village. Wedoro region has been known as one of the predecessors of creative industries in the field of footwear. Currently the industrial centres of creative footwear is experiencing a decline in sales compared with its heyday in 2001-2006 years ago. This research aims to design a development strategy of the creative industry centre in Wedoro by using SWOT analysis and grand strategy. The results of this study indicate that the cause of the decline in sales is a flood of Chinese products, rising raw material prices, and the lack of innovation in product design. Hence, creative industry in Indonesia especially in Wedoro Village might need a guidance from the government in developing innovation in product design and marketing. It is therefore expected that the existence of a creative industry in Wedoro can grow and create occupations especially for local residents and also increase the revenue of the Sidoarjo city.</p>

scholarly journals Trust, Commitment and Competitive Advantage in SMEs Export Performance

2017 ◽  
Vol 19 (1) ◽  
pp. 1 ◽  
Author(s):  
Md Daud Ismail ◽  
Syed Shah Alam ◽  
Roshayati Bt Abdul Hamid
Keyword(s):  
Competitive Advantage ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Export Performance ◽  
International Markets ◽  
Export Markets ◽  
Cross Border ◽  
And Performance ◽  
Medium Enterprises ◽  
International Behavior

The entry of small businesses into international markets has intensified. However, despite the growing presence of small businesses in international markets, studies into their international behavior, particularly regarding the effect of international relationships on international outcomes, remain limited. This study investigates the cross-border relationships of Small and Medium Enterprises (SMEs) by examining the effects of the dimensions of the key relationship on the competitive advantage and performance of SMEs in export markets. These dimensions include trust and commitment. Results indicate that trust is significantly related to commitment and export performance. Commitment is positively related to competitive advantage but not to export performance. Trust affects competitive advantage through commitment. The effect of commitment on export performance is mediated by competitive advantage. The methodology and results are presented. The conclusion, implications, and limitations of this study are also discussed.

scholarly journals ORIENTASI PASAR DAN INOVASI PRODUK PENGARUHNYA TERHADAP KEUNGGULAN BERSAING (Studi Pada UMKM Tenun Gedogan Kota Bima)

2019 ◽  
Vol 8 (4) ◽  
Author(s):  
Muhajirin Muhajirin ◽  
Kamaluddin Kamaluddin
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Product Innovation ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Analysis Tool ◽  
World Economic ◽  
Data Analysis Tool ◽  
Medium Enterprises ◽  
The City

Small and medium enterprises are one of the leading drivers in the world economic development. Small and medium enterprises are one of the fields in absorption very significant workforce. At this time is a period of globalization where competition is getting tougher, many companies will go bankrupt or out of business if the company does not prepare the company inside current competition. The goal to be achieved is to increase market orientation and product innovation towards competitive advantage in the Gedong Weaving Small and medium enterprises (UMKM) in the City of Bima. The data used is primary data. Research sample amounting to 90 respondents. The data analysis tool in this study uses multiple linear regression. The results of this study indicate that Market orientation positive and significant effect on competitive advantage in UMKM Weaving Gedogan in Bima City, product orientation has a positive and significant effect on competitive advantage in Gedogan Weaving Small and medium enterprises (UMKM) in Bima City and there are the positive and significant influence of market orientation and product innovation has been reduced Competitive advantage in UMKM Weaving in Bima City. So that it is higher market orientation is carried out, and the higher the level of product innovation, then Increasing competitive advantage in Gedogan Weaving Small and medium enterprises (UMKM)  in Bima City.Keywords: Market Orientation, Product Innovation, Competitive Advantage

Financial Orientation, Product Innovation and Firm Performance — An Empirical Study in the Japanese SMEs

2016 ◽  
Vol 13 (03) ◽  
pp. 1640005 ◽  
Author(s):  
Kayhan Tajeddini
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Empirical Research ◽  
Product Innovation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Asian Context ◽  
And Performance ◽  
Medium Enterprises

Research into product innovation and financial orientation in the small and medium enterprises (SMEs) is burgeoning, yet our understanding of the finance product innovation and performance remains unclear. Given the lack of empirical research on the role of financial orientation on innovation performance in the SMEs, especially in an Asian context, the current study addresses the relationships between financial orientation, product innovation and business performance in the Japanese SMEs, because it has a long established record on product innovation. Data were generated from 189 Japanese businesses and the results were analyzed using multiple regression. Results confirm the study hypotheses. Implications for management are discussed, along with suggestions for further research.

scholarly journals The Effect of Market Orientation and Entrepreneurship Orientation to Competitive Advantage and Performance

2020 ◽  
Vol 03 (12) ◽  
Author(s):  
irah Ayu Putri Trarintya ◽  
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Small And Medium Enterprises ◽  
Simple Random Sampling ◽  
Total Sample ◽  
Business Enterprise ◽  
Medium Enterprise ◽  
And Performance ◽  
Medium Enterprises ◽  
Business Orientation

This study aims to explain the effect market orientation, entrepreneurship orientation and competitive advantage on performance. The population in this study was all Micro, Small and Medium Enterprises enrolled in Bali. Samples taken based on probability sampling techniques are simple random sampling, where researchers provide equal opportunities for each member of the population (employees) to be chosen as samples randomly regardless of the strata in the population itself with a total sample of 100 enterprises. This examination tried by quantitative techniques with SEM-PLS investigation. The consequences of theory testing demonstrate that 1 of 5 speculations were dismissed. Market orientation not impacts on performance. Market orientation and business enterprise orientation has positive and significant impact to competitive advantage. Business orientation and competitive advantage has positive and significant impact to performance. The example utilized in this examination is restricted with regards to Micro Small and Medium Enterprise. Proposals for further research by including another variable that was not recently contemplated. Useful ramifications in this examination is industry administrators ought to adjust their CPMS to incorporate estimates explicit to intra-hierarchical business enterprise and development and should seek after more noteworthy comprehension of changing client inclinations. This examination offers performance to improve business orientation and item advancement with the goal that it will expand competitive advantage which effects on MSMEs performance.

scholarly journals Competitive advantage to enhance internationalization and marketing performance woodcraft industry: A perspective of resource-based view theory

2021 ◽  
pp. 45-56 ◽  
Author(s):  
I Putu Gde Sukaatmadja ◽  
Ni Nyoman Kerti Yasa ◽  
Henny Rahyuda ◽  
Made Setini ◽  
Ida Bagus Agung Dharmanegara
Keyword(s):  
Competitive Advantage ◽  
Significant Influence ◽  
Product Innovation ◽  
Small And Medium Enterprises ◽  
International Market ◽  
Resource Based View ◽  
Marketing Performance ◽  
Industry Sector ◽  
Medium Enterprises

The increasingly tight competition has caused problems for small and medium enterprises (SMEs) in increasing their marketing performance. During the last few years, the marketing performance of SMEs operating in the Project woodcraft industry sector in the Badung Bali has moved downwards. The goal of this research is to develop knowledge in the fields of Strategic Management, specifically regarding product innovation to achieve a competitive advantage in an attempt to improve internationalization and marketing performance. The population in this research is all of the SMEs operating in the woodcraft industry sector and is based in Badung Bali. The sample size in this research is determined based on Slovin's formula and the total includes 100 units of SME operating in the woodcraft industry. The method used is the quantitative approach, which examines the role of competitive advantage in mediating the influence of product innovation on internationalization and marketing performance. Based on the research results, product innovation has a positive and significant influence on both, competitive advantage and internationalization. Product innovation and competitive advantage have positive and significant influences on marketing performance. Competitive advantage has a positive and significant influence on internationalization. Meanwhile, it has been revealed that competitive advantage can mediate the influence of product innovation on marketing performance and competitive advantage can mediate the influence of product innovation on the internationalization of SME operating in the Project woodcraft industry sector in Badung Bali. Based on these findings, the project woodcraft industry SME in Badung Bali is advised to be more innovative in producing their products, so that there would be an increase in marketing performance in the international market. It is also recommended for subsequent researchers to add in other variables, such as product quality and market orientation, to enrich the information attained.

The Influence of Market Orientation and Product Innovation on the Competitive Advantage and Its Implication toward Small and Medium Enterprises (Ukm) Performance

2018 ◽  
Vol 4 (08) ◽  
Author(s):  
Hendri Herman ◽  
Hamdy Hady ◽  
Willy Arafah
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Significant Influence ◽  
Product Innovation ◽  
Regression Coefficient ◽  
Small And Medium Enterprises ◽  
Entire Population ◽  
Sample Technique ◽  
Saturated Sample ◽  
Medium Enterprises

This study aims to: (1) determine the effect of market orientation on competitive advantage; (2) to know the effect of innovation on competitive advantage; (3) to know the influence of market orientation and product innovation together to competitive advantage; (4) the effect of market orientation on the performance of SMEs, (5) to know the effect of product innovation on the performance of SMEs, (6) to know the effect of competitive advantage on SMEs performance, and (7) to know the effect of market orientation, product innovation, and competitive advantage together SMEs. This research uses an explorative design that aims to conduct a search and reveal the factors that can be estimated as the cause of the occurrence of a condition that is not yet known the cause and the mechanism.The population in this study is the SMEs in Batam city with the type of production business with a population of 153 SMEs. The number of samples was determined using a saturated sample technique in which the entire population in the study was sampled. So the number of samples in this study was as many as 153 SMEs. From the results of the study found that market orientation has a positive and significant impact on competitive advantage. Product innovation has a positive and significant impact on competitive advantage. Market orientation and product innovation together have a positive and significant impact on competitive advantage with R2 value of 83%. The dominant variable influencing competitive advantage is product innovation with regression coefficient value 0,62. Market orientation has a positive and significant effect on SME's performance. Product innovation has a positive and significant effect on SME's performance. Competitive advantage positively and significantly influence to SMEs performance, market orientation, product innovation and competitive advantage together have positive and significant influence to SMEs performance with R2 value equal to 90%. The dominant variable affecting the performance of SMEs is the advantage of competing with the value of regression coefficient 0.47. This research offers implementation to SMEs to improve market orientation and product innovation so that it will increase competitive advantage which impact on SMEs performance.

EFFECTS OF PRODUCT INNOVATION AND ORGANISATIONAL CAPABILITIES ON COMPETITIVE ADVANTAGE: EVIDENCE FROM UK SMALL AND MEDIUM MANUFACTURING ENTERPRISES

2008 ◽  
Vol 12 (02) ◽  
pp. 113-137 ◽  
Author(s):  
ANA CRISTINA O. SIQUEIRA ◽  
ANDY D. COSH
Keyword(s):  
Competitive Advantage ◽  
Product Innovation ◽  
Path Dependence ◽  
Small And Medium Enterprises ◽  
Job Rotation ◽  
Manufacturing Enterprises ◽  
Organisational Routines ◽  
Medium Enterprises ◽  
The Relationship ◽  
Technology Industries

We investigate the extent to which product innovation moderates the relationship between capabilities and competitive advantage among small and medium enterprises (SMEs). Using resource-based and capabilities theories, we examine capabilities as organisational routines, focusing on job rotation and multi-skilling. We examine competitive advantage by using logistic regression to assess the probability of top performance in productivity relative to most other firms in the same industry. Considering the path-dependence in developing capabilities and innovation, we use a longitudinal sample of 300 UK manufacturing SMEs in traditional and high-technology industries to evaluate the effects of innovating and using capabilities continuously over time. The results suggest that firms using job rotation or multi-skilling and introducing product innovations consistently from 2002 through 2004 are more likely to be top performers in 2004. The findings support a theoretical model according to which the association between capabilities and competitive advantage is moderated by innovation.

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
Keyword(s):  
Knowledge Management ◽  
Competitive Advantage ◽  
Product Innovation ◽  
Small And Medium Enterprises ◽  
Food Products ◽  
Mediating Effects ◽  
Content Type ◽  
Central Java ◽  
Typical Food ◽  
Medium Enterprises

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.

scholarly journals PENGARUH ORIENTASI KEWIRAUSAHAAN DAN INOVASI PRODUK TERHADAP KINERJA USAHA KECIL MENENGAH DENGAN VARIABEL INTERVENING KEUNGGULAN BERSAING (STUDI PADA UKM DI BANJARMASIN)

2020 ◽  
Vol 4 (3) ◽  
pp. 392-407
Author(s):  
Isra Ul Huda ◽  
Anthonius Karsudjono ◽  
Pupita Nia Maharani
Keyword(s):  
Competitive Advantage ◽  
Product Innovation ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Role ◽  
Analysis Technique ◽  
Small Medium Enterprises ◽  
Medium Enterprises

This study aims to determine and analyze the effect of Entrepreneurship Orientation and Product Innovation on the Performance of Small and Medium Enterprises with Intervening Competitive Advantage Variable. This study uses quantitative data analysis methods, the analysis technique is Partial Least Square (PLS). The reason for choosing to use the PLS method is the testing of the mediating role of an intervening variable. The results of the analysis conducted stated that the Entrepreneurship Orientation did not significantly influence Competitive Advantage and also the Performance of Small and Medium Enterprises. Product Innovation has a significant effect on Competitive Advantage and does not have a significant effect on the Performance of Small and Medium Enterprises and Competitive Advantage does not have a significant effect on the Performance of Small and Medium Enterprises. Entrepreneurship Orientation does not significantly influence Small Medium Enterprises Performance with Intervening Variable Competitive Advantage and Product Innovation has no significant effect on Small Medium Enterprises Performance with Intervening Competitive Advantage Variable

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