Link Between Innovation Strategy, Innovation Culture, and SMEs Innovation Performance in Indonesia

Siti Nur Azizah, Much. Riyadus Solichin, Ika Susilowati

Abstract


This study aims to investigate the impact of innovation strategy on small and medium-sized enterprises (SMEs), focusing on the mediating role of innovation culture. There needs to be more prior literature on innovation performance in small and medium enterprises (SMEs) in Indonesia, particularly in terms of serving as benchmarks for assessing SME success. A study utilizing a questionnaire was undertaken to gather data from small and medium-sized enterprises (SMEs) located in Central Java, Indonesia. One hundred fifty surveys were collected and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The investigation findings indicate that both the proactive and the growth strategies have a good impact on the culture of innovation. Innovation culture was found to have a positive effect on innovation performance. Even though the culture of innovation mediates the relationship between proactive strategy and innovation performance, innovation culture still needs to be proven to mediate the relationship between growth strategy and innovation performance.


Full Text:

PDF

References


Alassaf, D. et al. (2020). 'The impact of open-border organization culture and employees' knowledge, attitudes, and rewards regarding open innovation: an empirical study,' Journal of Knowledge Management, 24(9), pp. 2273–2297. doi: 10.1108/JKM-02-2020-0122.

Anwar, M., Zulfiqar, S. and Shah, A. (2018). 'Networking and New Venture ' s Performance : Mediating Role of Competitive Advantage International Journal of Emerging Markets Article information :,' (August 2021). doi: 10.1108/IJoEM-07-2017-0263.

Borch, O. J. & Madsen, E. L. (2007). 'Dynamic capabilities facilitating innovative strategies in SMEs', International Journal of Technoentrepreneurship, 1(1), pp. 109–125. doi: 10.1504/IJTE.2007.014731.

Dobni, C. B. (2008). 'Measuring innovation culture in organizations The development of a generalized innovation culture construct using exploratory factor analysis. Available at: https://api.semanticscholar.org/CorpusID:203692811.

Edeh, E., Lo, W.-J. and Khojasteh, J. (2023). Review of Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook, Structural Equation Modeling: A Multidisciplinary Journal. Doi: 10.1080/10705511.2022.2108813.

Giaccone, S. C. and Magnusson, M. (2022). 'Unveiling the role of risk-taking in innovation: antecedents and effects,' R and D Management, 52(1), pp. 93–107. doi: 10.1111/radm.12477.

Hair, J. F., Howard, M. C., and Nitzl, C. (2020) 'Assessing measurement model quality in PLS-SEM using confirmatory composite analysis,' Journal of Business Research, pp. 101–110. doi: 10.1016/j.jbusres.2019.11.069.

Halim, H. A., Ahmad, N. H. and Ramayah, T. (2019). 'Sustaining the innovation culture in SMEs: The importance of organizational culture, organizational learning, and market orientation,' Asian Journal of Business Research, 9(2), pp. 14–33. doi: 10.14707/ajbr.190059.

Hanifah, H. et al. (2020a). 'Can internal factors improve innovation performance via innovation culture in SMEs ?', 2020, pp. 2016–2020. doi: 10.1108/BIJ-06-2018-0174.

Hanifah, H. et al. (2020b). 'Emanating the key factors of innovation performance : leveraging on the innovation culture among SMEs in Malaysia', 13(4), pp. 559–587. doi: 10.1108/JABS-04-2018-0130.

Helmy, I., Adawiyah, W. R. and Banani, A. (2019). 'Linking psychological empowerment, knowledge sharing, and employees' innovative behavior in Indonesian SMEs,' Journal of Behavioral Science, 14(2), pp. 66–79.

Janićijević, N. (2012). The Influence Of Organizational Culture On Organizational Preferences Towards The Choice Of Organizational Change Strategy’, Ekonomski Anali, 57, pp. 25–51. Available at: https://api.semanticscholar.org/CorpusID:18662393.

Johannessen, J.-A., Dolva, J.O. and Kolvereid, L. (1997). 'Perceived innovation success in the Russian market,' International Journal of Information Management, 17(1), pp. 13–20.

Kim, S. & Yoon, G. (2015). 'An innovation-driven culture in local government: Do senior manager's transformational leadership and the climate for creativity matter?', Public Personnel Management, 44(2), pp. 147–168. doi: 10.1177/0091026014568896.

Michaelis, T. L., Aladin, R. & Pollack, J. M. (2018). 'Innovation culture and the performance of new product launches: A global study,' Journal of Business Venturing Insights, 9, pp. 116–127. doi: https://doi.org/10.1016/j.jbvi.2018.04.001.

Miller, P. and Brankovic, A. (2011). 'Building a creative culture for sustainable innovation,' Ctra. de Castilla, 3(5), pp. 180–203.

Laksana, D. H., Apriliando, S., & Kusmantini, T. (2022). Influence of market orientation, learning orientation, and innovation capabilities and their impact on competitive advantage and company performance. Journal of Community Development in Asia, 5(2),11-23

Padilha, C. K. and Gomes, G. (2016). 'Innovation culture and performance in the innovation of products and processes: a study in companies of the textile industry,' RAI Revista de Administração e Inovação, 13(4), pp. 285–294. doi: 10.1016/j.rai.2016.09.004.

Sarstedt, M., Ringle, C. M. and Hair, J. F. (2020). Handbook of Market Research, Handbook of Market Research. Doi: 10.1007/978-3-319-05542-8.

Sundararajan, T. P.K., Hung, D. K. Mui, Albert, P. J., Subramaniam, M., Thirupathi, H., Angarita, L., S., C., Pérez-Restrepo, C., Lopez, C., A., Vashney, K., Kalyani Prem Kumar, K., P., Pandey, R., 2020, IJABIM, 5(2), 44-63

Zainol, F.A. and Ayadurai, S. (2010). 'Cultural background and firm performances of indigenous ("Bumiputera") Malay family firms in Malaysia: the role of entrepreneurial orientation as a mediating variable,' Journal of Asia Entrepreneurship and Sustainability, 6(1), pp. 3–20.




DOI: https://doi.org/10.32535/jicp.v6i4.2561

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Siti Nur Azizah

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Flag Counter

Published by:

AIBPM Publisher

Editorial Office:

JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone:+62 341 366222
Email: journal.jicp@gmail.com
Website:http://ejournal.aibpmjournals.com/index.php/JICP

Supported by: Association of International Business & Professional Management

If you are interested to get the journal subscription you can contact us at admin@aibpm.org.

ISSN 2622-0989 (Print)
ISSN 2621-993X (Online)

DOI:Prefix 10.32535 by CrossREF

Journal of International Conference Proceedings (JICP) INDEXED:

 

In Process


This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.