Issue

Vol 36 No 2 (2021): May

Date Log

Submitted
Mar 3, 2021
Published
May 11, 2021

Copyright

Upon acceptance of an article, authors transfer copyright to the JIEB as part of a journal publishing agreement, but authors still have the right to share their article for personal use, internal institutional use, and for any use permitted under the CC BY-SA license

Open Access

Articles are freely available to the public without any subscription with permitted reuse. For open access articles, permitted third party (re)use is defined by the following Creative Commons user licenses: Creative Commons Attribution (CC BY-SA).

Antecedents and Implications of Innovation Capability: Empirical Study of Bakpia MSMEs in Yogyakarta

https://doi.org/10.22146/jieb.v36i2.1399
Baroroh Dwi Nurhayati
Titik Kusmantini
titik.kusmantini@upnyk.ac.id
Tri Wahyuningsih

Corresponding Author(s) : Titik Kusmantini

titik.kusmantini@upnyk.ac.id

Journal of Indonesian Economy and Business, Vol 36 No 2 (2021): May

Abstract

Introduction/Main Objectives: This research examines the antecedents and implications of innovation capability, empirically. The outcomes aim at contributing to the knowledge and understanding about the main driver of innovation capability.  Background Problems: Yogyakarta is known for its many and varied charms, its tourist attractions, the availability of facilities and infrastructure to support tourism, such as souvenir sellers. But there is known that number of total foreign and domestic tourists has been a decrease in 2018 (Semester I by 11.51% and II by 3.33%), also in 2019 (Semester I by 11.23%). This is a challenge for MSMEs in the tourism sector and MSMEs in other sectors that support tourism, such a souvenir seller. Bakpia is one of the well-known products of the food and beverage sector in Yogyakarta often bought for souvenirs. The Bakpia MSMEs’ innovations were triggered by competition among the Bakpia producers in Yogyakarta. Therefore, every Bakpia MSME must be competitive to survive in the market. Thus, there is a need to improve their innovation capability, which will impact the innovation performance of the Bakpia MSMEs in Yogyakarta. There is a gap in the research regarding the influence of the factors that are predicted to build innovation capability. Novelty: Previous studies’ results indicate that the influence of knowledge donating and knowledge collecting about innovation performance is not yet conclusive. Therefore, this study aims to fill the gap in the previous research by examining the role of capability as a mediating between knowledge sharing process (knowledge donating and knowledge collecting) to innovation performance. Research Methods: Forty-eight items of data were obtained from Bakpia MSMEs in Yogyakarta through a survey conducted by distributing questionnaires directly to them. The data were analyzed using PLS-SEM via SmartPLS version 3.3.2. Findings/Results: This study shows that the direct and indirect effects of sharing knowledge (which includes donating and collecting knowledge) about innovation performance are found to be positive but not significant. The results also indicate that innovation capability does not significantly mediate knowledge donating and knowledge collecting about innovation performance. Meanwhile, the influence of innovation capability on innovation performance was found to be positive and significant. Conclusion: The antecedents are insignificant for innovation capability, but the antecedent’s constructs still act as a driver to build innovation capability.

Keywords

knowledge sharing process, knowledge donating, knowledge collecting, innovation capability, innovation performance
Dwi Nurhayati, B., Kusmantini, T., & Wahyuningsih, T. (2021). Antecedents and Implications of Innovation Capability: Empirical Study of Bakpia MSMEs in Yogyakarta. Journal of Indonesian Economy and Business, 36(2), 179-203. https://doi.org/10.22146/jieb.v36i2.1399
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
References
  1. Ackerman, M. S., Pipek, V., & Wulf, V. (2003). Expertise Sharing: Beyond knowledge management. In Massachusetts Institute of Technology Press. https://doi.org/10.7551/mitpress/6208.003.0019
  2. Almahamid, S., Hussein, A., & Talal, B. (2008). Annual Conference La Jolla, California, U.S.A May 9 to May 12, 2008 1. 1–20.
  3. Alsharo, M., Gregg, D., & Ramirez, R. (2017). Virtual team effectiveness: The role of knowledge sharing and trust. Information and Management, 54(4), 479–490. https://doi.org/10.1016/j.im.2016.10.005
  4. Ates, A., Garengo, P., Cocca, P., & Bititci, U. (2013). The development of SME managerial practice for effective performance management. Journal of Small Business and Enterprise Development, 20(1), 28–54. https://doi.org/10.1108/14626001311298402
  5. Avermaete, T. (2002). Systems of innovation: The case of small food firms in the EU. Journal of Chemical Information and Modeling, 53(9), 1689–1699.
  6. Baregheh, A., Rowley, J., Sambrook, S., & Davies, D. (2012). Food sector SMEs and innovation types. British Food Journal, 114(11), 1640–1653. https://doi.org/10.1108/00070701211273126
  7. Birchall, D., Chanaron, J. J., Tovstiga, G., & Hillenbrand, C. (2011). Innovation performance measurement: Current practices, issues and management challenges. International Journal of Technology Management, 56(1), 1–20. https://doi.org/10.1504/IJTM.2011.042492
  8. Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31(6), 515–524. https://doi.org/10.1016/S0019-8501(01)00203-6
  9. Chin, W. W. (1998). The partial least squares approach for structural equation modeling. Modern Methods for Business Research, January 1998, 295–336.
  10. Chuluun, T., Prevost, A., & Upadhyay, A. (2017). Firm network structure and innovation. Journal of Corporate Finance, 44, 193–214. https://doi.org/10.1016/j.jcorpfin.2017.03.009
  11. Curraj, E. (2018). Business digitalization of SMEs in Albania: Innovative approaches and their impact on performance. Phd Thesis, October, 1–190.
  12. Darmanto, Wardoyo, F. S., & Dwiyani, T. (2015). Bauran Orientasi Strategi dan Kinerja Organisasi: Penerapan Variabel Anteseden, Moderasi dan Mediasi dalam Penelitian Ilmiah. [Strategy orientation mix and organizational performance: Application of antecedent variables, moderation in scientific research]. Yogyakarta: Deepublish.
  13. Davenport, Thomas H. & Prusak, Laurence. Working knowledge: how organizations manage what they know. (1998). In Choice Reviews Online (Vol. 35, Issue 09). https://doi.org/10.5860/choice.35-5167
  14. Dereli, D. D. (2015). Innovation Management in Global Competition and Competitive Advantage. Procedia - Social and Behavioral Sciences, 195, 1365–1370. https://doi.org/10.1016/j.sbspro.2015.06.323
  15. Dinas Pariwisata Daerah Istimewah Yogyakarta. (2017). Statistik Kepariwisataan 2017. [Tourism Statistics 2017] Dinas Pariwisata DIY, xiv, xv, 6.
  16. Dinas Pariwisata Daerah Istimewah Yogyakarta. (2018). Statistik Kepariwisataan 2018. [Tourism Statistics 2018]. Dinas Pariwisata DIY.
  17. Dinas Pariwisata Daerah Istimewah Yogyakarta. (2019). Statistik Kepariwisataan 2019. [Tourism Statistics 2019]. Dinas Pariwisata DIY.
  18. Drucker, P.F. (2002). Innovation and entrepreneurship: Practice and principles: Harper & Row.
  19. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
  20. Ganguly, A., Talukdar, A., & Chatterjee, D. (2019). Evaluating the role of social capital, tacit knowledge sharing, knowledge quality and reciprocity in determining innovation capability of an organization. In Journal of Knowledge Management (Vol. 23, Issue 6). https://doi.org/10.1108/JKM-03-2018-0190
  21. Garengo, P., Biazzo, S., & Bititci, U. S. (2005). Performance measurement systems in SMEs: A review for a research agenda. International Journal of Management Reviews, 7(1), 25–47. https://doi.org/10.1111/j.1468-2370.2005.00105.x
  22. Ghozali, I., & Latan, H. (2015). Partial least squares: Konsep, teknik, dan aplikasi menggunakan program smartPLS 3.0. [Partial least squares: Concepts, techniques, and applications using the smartPLS 3.0 program]. Semarang: UNDIP.
  23. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2013). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks. Sage, 165.
  24. Ihsan, A. (2010). Usaha camilan modal < 1 juta balik modal 1 bulan. [Snack business with the capital <1 million can turnover in 1 month]. Yogyakarta: Grhatama.
  25. Jantunen, A., Puumalainen, K., & Hurmelinna-Laukkanen, P. (2008). Knowledge sharing and innovation performance. Journal of Information and Knowledge Management, 7(3), 187–195. https://doi.org/10.1142/S0219649208002056
  26. Kankanhalli, A., Tan, B. C. Y., & Wei, K.-K. (2005). Contributing knowledge to electronic knowledge repositories. An Empirical Investigation, 29(1), 113–143. http://www.scopus.com/inward/record.url?scp=28744434462&partnerID=8YFLogxK%0Ahttps://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-28744434462&origin=recordpage
  27. Dalkir, K. (2011). Book Knowledge Management in Theory and Practice. In 2011, 485 p. : ill.., Cambridge, Mass. : MIT Press, Cambridge, Mass. Cambridge, Mass. : MIT Press, Cambridge, Mass. http://site.ebrary.com/lib/unimannheim/docDetail.action?docID=10476096
  28. Koperasi, P., & DIY, U. K. M. (2017). Perkembangan koperasi & ukm diy. 17.
  29. Lawson, B., & Samson, D. (2001). Developing Innovation Capability In Oorganization : A Dynamic. International Journal of Innovation Management, 5(3), 377–400.
  30. Lei, H., Nguyen, T. T., & Le, P. B. (2019). How knowledge sharing connects interpersonal trust and innovation capability: The moderating effect of leadership support. Chinese Management Studies, 13(2), 276–298. https://doi.org/10.1108/CMS-06-2018-0554
  31. Liao, S. H., Fei, W. C., & Chen, C. C. (2007). Knowledge sharing, absorptive capacity, and innovation capability: An empirical study of Taiwan’s knowledge-intensive industries. Journal of Information Science, 33(3), 340–359. https://doi.org/10.1177/0165551506070739
  32. Lin, H. F. (2007). Knowledge sharing and firm innovation capability: An empirical study. International Journal of Manpower, 28(3–4), 315–332. https://doi.org/10.1108/01437720710755272
  33. Prajogo, D. I., & Ahmed, P. K. (2006). Relationships between innovation stimulus, innovation capacity, and innovation performance. R and D Management, 36(5), 499–515. https://doi.org/10.1111/j.1467-9310.2006.00450.x
  34. Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation and Knowledge, 3(1), 44–55. https://doi.org/10.1016/j.jik.2017.06.002
  35. Ritala, P., Olander, H., Michailova, S., & Husted, K. (2015). Knowledge sharing, knowledge leaking and relative innovation performance: An empirical study. Technovation, 35, 22–31. https://doi.org/10.1016/j.technovation.2014.07.011
  36. Sánchez, J. H., Sánchez, Y. H., Collado-Ruiz, D., & Cebrián-Tarrasón, D. (2013). Knowledge Creating and Sharing Corporate Culture Framework. Procedia - Social and Behavioral Sciences, 74, 388–397. https://doi.org/10.1016/j.sbspro.2013.03.029
  37. Sekaran, U. & Bougie, R. (2013). Research methods for business: a skill-building approach. Chichester: John Wiley & Sons Ltd.
  38. Sözbilir, F. (2018). Innovation Capacity and Innovation Performance in Terms of Educational Level of Managers. Journal of Business Research - Turk, 10(2), 1–12. https://doi.org/10.20491/isarder.2018.415
  39. Sugondo, S., (2019, September 19). Kota Yogyakarta memiliki 40 persen industri kreatif sektor pangan dan minuman. [Yogyakarta has 40 (fourty) percent of the creative industry in the food and beverage sector]. Jogja Inside. Retrieved from https://jogjainside.com/Kota-yogyakarta-memiliki-40-persen-industri-kreatif-sektor-pangan-dan-minuman/
  40. Sulistiyani, R., & Harwiki, W. (2016). How SMEs Build Innovation Capability Based on Knowledge Sharing Behavior? Phenomenological Approach. Procedia - Social and Behavioral Sciences, 219, 741–747. https://doi.org/10.1016/j.sbspro.2016.05.070
  41. Terziovski, M. (2007). Building Innovation Capability in Organizations: An International Cross-Case Perspective.
  42. Tidd, J., & Bessant, J. (2009). Managing Innovation: Integrating Technological, Market and Organizational Change. In Journal of Chemical Information and Modeling.
  43. Utoyo, I., Fontana, A., & Satrya, A. (2020). The role of entrepreneurial leadership and configuring core innovation capabilities to enhance innovation performance in a disruptive environment. International Journal of Innovation Management, 24(6). https://doi.org/10.1142/S1363919620500607
  44. Van den Hooff, B., & de Leeuw van Weenen, F. (2004). Committed to share: Commitment and CMC use as antecedents of knowledge sharing. Knowledge and Process Management, 11(1), 13–24. https://doi.org/10.1002/kpm.187
  45. Van Den Hooff, B., & Ridder, J. A. (2004). Knowledge sharing in context: The influence of organizational commitment, communication climate and CMC use on knowledge sharing. Journal of Knowledge Management, 8(6), 117–130. https://doi.org/10.1108/13673270410567675
  46. Walsham, G. (2018). Knowledge management: System and Practices. European Management Journal, 19(6), 599–608. http://www.sciencedirect.com/science/article/pii/S0263237301000858
  47. Wang, L., Li, S., & You, Z. (2020). The effects of knowledge transfer on innovation capability: A moderated mediation model of absorptive capability and network reliance. Journal of High Technology Management Research, 31(1), 100372. https://doi.org/10.1016/j.hitech.2020.100372
  48. Yeşil, S., Koska, A., & Büyükbeşe, T. (2013). Knowledge Sharing process, innovation capability and innovation performance: an empirical study. Procedia - Social and Behavioral Sciences, 75, 217–225. https://doi.org/10.1016/j.sbspro.2013.04.025
  49. Zizlavsky, O. (2016). Innovation performance measurement: Research into Czech business practice. Economic Research-Ekonomska Istrazivanja , 29(1), 816–838. https://doi.org/10.1080/1331677X.2016.1235983
Read More
Author biographies is not available.
Download this PDF file
PDF
Statistic
Read Counter : 909 Download : 1045