The influence of knowledge sharing on business performance in MSMEs with dynamic capabilities, competitive advantages and innovation capability as mediation variables
Keywords:
Knowledge Sharing, Competitive Advantage, Dynamic Capabilities, Innovation Capability, Dynamic Location Quotient, MSMEAbstract
Micro, Small and Medium Enterprises (MSMEs) have a very important role for a country. This research aims to examine the variables that influence the business performance of MSMEs. This research uses a causal design approach to test the relationship between independent variables and dependent variables using Structural Equation Modeling (SEM) with the AMOS 24 statistical tool. The number of samples used in this research was 300 respondents from MSME activists in Indonesia. This research will also develop a model that looks at the indirect influence of dynamic capabilities, competitive advantages and innovation capability as mediating variables through a more comprehensive measurement construct so as to provide a broader perspective on results compared to previous research.
Downloads
References
Abor, J., & Biekpe, N. (2006). Small business financing initiatives in Ghana. Problems and Perspectives in Management, 4, 69–77.
Afriyie, S., Du, J. & Ibn Musah, AA. (2019). Innovation and marketing performance of SME in an emerging economy: the moderating effect of transformational leadership. J Glob Entrepr Res 9, 40. https://doi.org/10.1186/s40497-019-0165-3
Akgün, A. E., Ince, H., Imamoglu, S. Z., Keskin, H., & Kocoglu, İ. (2014). The mediator role of learning capability and business innovativeness between total quality management and financial performance. International Journal of Production Research, 52, 888–901.
Al-Ansari, Y., Pervan, S. and Xu, J. (2013), “Innovation and business performance of SMEs: the case of Dubai”, Education, Business, and Society. Contemporary Middle Eastern Issues, Vol. 6 Nos 3/4, pp. 162-180.
Avermaete, T., Viaene, J., Morgan, E. J., & Crawford, N. (2003). Determinants of innovation in small food firms. European Journal of Innovation Management, 6(1), 8–17. doi:10.1108/14601060310459163
Bamfo, B.A. and Kraa, J.J. (2019), “Market orientation and performance of small and medium enterprises in Ghana: the mediating role of innovation”, Cogent Business and Management, Vol. 6 No. 1, p. 1605703.
Boly, V., Morel, L., Assielou, N. G., & Camargo, M. (2014). Evaluating innovative processes in french firms: Methodological proposition for firm innovation capacity evaluation. Research Policy, 43(3), 608–622. doi:10.1016/j.respol.2013.09.005
Cemal Zehir, Mahmut Köle, Hacer Yıldız. (2015). The Mediating Role of Innovation Capability on Market Orientation and Export Performance: An Implementation on SMEs in Turkey, Procedia - Social and Behavioral Sciences, Volume 207, Pages 700-708, ISSN 1877-0428, https://doi.org/10.1016/j.sbspro.2015.10.141.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11) 21:10/11<1105::AID-SMJ133>3.0.CO;2-E
Greenley, G.E. (1995), “Market orientation and company performance: empirical evidence from UK companies”, British Journal of Management, Vol. 6 No. 1, pp. 1-13.
Gunday, G., Ulusoy, G., Kilic, K. and Alpkan, L. (2011), “Effects of innovation types on firm performance”, International Journal of Production Economics, Vol. 133 No. 2, pp. 662-676.
Hair Jr. J. F, Black, W.C., Babin, B. J. dan Anderson, R. E. 2014. Multivariate Data Analysis. Pearson New International Edition. Pearson Education Limited.
Hassan, M. U., Shaukat, S., Nawaz, M. S., & Naz, S. (2013). Effects of innovation types on firm performance: An empirical study on Pakistan’s manufacturing sector. Pakistan Journal of Commerce and Social Sciences, 7, 243.
Huhtala, J.P., Sihvonen, A., Fr€os en, J., Jaakkola, M. and Tikkanen, H. (2014), “Market orientation, innovation capability and business performance: Insights from the global financial crisis”, Baltic Journal of Management, Vol. 9 No. 2, pp. 134-152.
Hull, C.E. and Rothenberg, S. (2008), “Firm performance: the interactions of corporate social performance with innovation and industry differentiation”, Strategic Management Journal, Vol. 29 No. 7, pp. 781-789.
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429–438. doi:10.1016/j. indmarman.2003.08.015
J.J.P., van den Bosch, F.A.J. and Volberda, H.W. (2006), “Exploratory innovation, exploitative innovation, and performance: effects of organizational antecedents and environmental moderators”, Management Science, Vol. 52 No. 11, pp. 1661-1674.
Jaworski, B.J. and Kohli, A.K. (1993), “Market orientation: antecedents and consequences”, Journal of Marketing, Vol. 57 No. 3, pp. 53-70.
Kementerian Koperasi dan UKM. 2018. Sinergitas Pengembangan KUMKM melalui Penguatan Peran Antar Lembaga. Rapat Kerja Nasional
Keskin, H. (2006). Market orientation, learning orientation, and innovation capabilities in SMEs. European Journal of Innovation Management, 9(4), 396–417. doi:10.1108/14601060610707849
Kumar, V., Jones, E., Venkatesan, R. and Leone, R.P. (2011), “Is market orientation a source of sustainable competitive advantage or simply the cost of competing?”, Journal of Marketing, Vol. 75 No. 1, pp. 16-30.
Laforet, S. (2011). A framework of organizational innovation and outcomes in SMEs.International Journal of Entrepreneurial Behavior & Research, 17(4), 380–408.
Lawson, B. and Samson, D. (2001), “Developing innovation capability in organizations: a dynamic capabilities approach”, International Journal of Innovation Management, Vol. 5 No. 3, pp. 377-400.
Lekmat, L., Selvarajah, C. and Hewege, C. (2018), “Relationship between market orientation, entrepreneurial orientation, and firm performance in Thai SMEs: the mediating role of marketing capabilities”, International Journal of Business and Economics, Vol. 17 No. 3, pp. 213-237
Li, Y., Wei, Z. and Liu, Y. (2010), “Strategic orientations, knowledge acquisition, and firm performance: the perspective of the vendor in cross-border outsourcing”, Journal of Management Studies, Vol. 47 No. 8, pp. 1457-1482.
Makadok R. 2001. Toward a synthesis of the resourcebased and dynamic-capability views of rent creation. Strategic Management Journal 22(5): 387–401.
Malhotra, Naresh K. 2010. Marketing research: An Applied Orientation Sixth Edition Pearson Education.
Martínez-Costa, M., & Martínez-Lorente, A. R. (2008). Does quality management foster or hinder innovation? An empirical study of Spanish companies. Total Quality Management & Business Excellence, 19(3), 209–221. doi:10.1080/14783360701600639
Najib, M. and Kiminami, A. (2011), “Innovation, cooperation and business performance: some evidence from Indonesian small food processing cluster”, Journal of Agribusiness in Developing and Emerging Economies, Vol. 1 No. 1, pp. 75-96.
Nyoni, T. & Bonga, W. G. 2018. Anatomy of the small & medium enterprises (SMEs) critical success factors (CSFs) in Zimbabwe: Introducing the 3E model.
OECD- Oslo Manual. (2005). Proposed Guidelines For Collecting And Interpreting Technological Innovation Data, Paris
Oura, M. M., Zilber, S. N., & Lopes, E. L. (2016). Innovation capacity, international experience and export performance of SMEs in Brazil. International Business Review, 25(4), 921– 932. doi:10.1016/j.ibusrev.2015.12.002
Polder, M., Leeuwen, G. V., Mohnen, P., & Raymond, W. (2010). Product, process and organizational innovation: Drivers, complementarity and productivity effects.
Porter, M. E., & Kramer, M. R. (2011). The big idea: Creating shared value.
Rahayu, N. (2017, November 28). Warta Ekonomi. Dipetik Januari 26, 2018, dari UMKM Jadi Sektor Unggulan Perekonomian Indonesia: https://www.wartaekonomi.co.id/
Rahi, Samar. 2017. Research Design and Methods: A Systematic Review of Research Paradigms, Sampling Issues and Instruments Development. International Journal of Economics & Management Sciences 6: 403. doi: 10.4172/2162-6359.1000403
Sandvik, I.L. and Sandvik, K. (2003), “The impact of market orientation on product innovativeness and business performance”, International Journal of Research in Marketing, Vol. 20 No. 4, pp. 355-376.
Saunila, M. (2014), “Innovation capability for SME success: perspectives of financial and operational performance”, Journal of Advances in Management Research, Vol. 11 No. 2, pp. 163-175.
Saunila, M. and Ukko, J. (2013), “Facilitating innovation capability through performance measurement: a study of Finnish SMEs”, Management Research Review, Vol. 36 No. 10, pp. 991-1010.
Saunila, M., Pekkola, S., & Ukko, J. (2014). The relationship between innovation capability and performance. International Journal of Productivity and Performance Management, 63(2), 234–249. doi:10.1108/ijppm-04-2013-0065
Slater, S.F. and Narver, J.C. (1994), “Does competitive environment moderate the market orientationperformance relationship?”, Journal of Marketing, Vol. 58 No. 1, pp. 46-55.
Sugiyono. 2017. Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfabeta.
Sulemana, I. 2014. Factors influencing the performance of small scale entrepreneurs in the garment industry of the Tamale Metropolis of Ghana. University of Ghana.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708) 18:7<509::AID-SMJ882>3.0.CO;2-Z
Vicente, M., Abrantes, J. L., & Teixeira, M. S. (2015). Measuring innovation capabil-ity in exporting firms: The INNOVSCALE. International Marketing Review, 32(1),29–51.
Yam, R. C. M., Lo, W., Tang, E. P. Y., & Lau, A. K. W. (2011). Analysis of sources of innovation, technological innovation capabilities, and performance: An empirical study of Hong Kong manufacturing industries. Research Policy, 40(3), 391–402. https://doi.org/10.1016/j.respol.2010.10.013
Zaefarian, G., Forkmann, S., Mitręga, M., & Henneberg, S. C. (2017). A capability perspective on relationship ending and its impact on product innovation success and firm performance. Long Range Planning, 50, 184–199.
Zhang, M., & Hartley, J. L. (2018). Guanxi, IT systems, and innovation capability: The moderating role of proactiveness. Journal of Business Research, 90, 75–86. doi:10.1016/j. jbusres.2018.04.036.