PurposeAnalyze the importance of sustainable innovation strategy applied in manufacturing companies in Indonesia which affects the company's financial performance through several mediating variables.Design/methodology/approachThe population in this research was medium and large manufacturing company business units in East Java. Business units are part of a company considered as the profit center. The business unit as the unit of analysis in this research is part of the organization that: (1) is responsible for the production and marketing of a product or set of products; (2) is formed by product type; (3) has its own competitors which are different from competitors of other business units or divisions within a parent company; (4) has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.FindingsInnovation strategy has a significant effect on financial performance. Human capital does not significantly mediate the relationship between innovation strategy and financial performance. Capital performance and internal performance do not mediate the relationship between innovation strategy and financial performance. Management accounting information system does not mediate the relationship between innovation strategy and financial performance. Internal process performance mediates the relationship between innovation strategy and financial performance. Management accounting information system and internal process performance mediate the relationship between innovation strategy and financial performance.Originality/valueThe difference in findings confirms that this research needs to be conducted. On the other hand, there is no research that has comprehensively tested the mediating effects of Human Capital and Management Accounting Information System in the relationship between Innovation Strategy and Internal Process Performance and the Impact on Corporate Financial Performance. The originality of this research can be seen in the use of contingency theory which narrows the gap between the industrial organization (I/O) paradigm and the resource-based view (RBV) regarding competitive advantage and performance. Specifically, this research introduces innovation strategy, human capital, management accounting information system, and internal business process performance as the contingency factors that affect financial performance. Second, empirically, this research tries to reduce the gap in empirical research by offering new research model and new research establishment at the level of strategic business units (SBU) in manufacturing companies in East Java. This research is expected to be useful for policy decision making, especially for managers who want to improve strategic business unit's financial performance.

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Purpose This study aims to examine comprehensively the factors determining the performance of small and medium enterprises (SMEs) producing Indonesian special food in East Java. Design/methodology/approach This study is quantitative and qualitative. Primary data was collected from entrepreneurs in East Java, those producing Indonesian special food. Secondary data was obtained from the literature, literature study, journals, Central Bureau of Statistics and the office of industry, trade, cooperatives and SMEs in East Java. Areas selected for this study were Surabaya, Madiun, Malang, Pasuruan, Lamongan and Banyuwangi. The population was small and medium entrepreneurs producing Indonesian special food in the selected cities. Based on the PLS sampling rule, the number of samples in each research area was 50, with total of 300 respondents (50 × 6). The methods of collecting primary data were interviews and questionnaire. Data analysis was done using GSCA. Findings The study firstly found the significant influence of entrepreneurial orientation on business strategies of SMEs producing Indonesian special food in East Java. SME managers have a high entrepreneurial orientation. Secondly, it found a significant influence of entrepreneurial orientation on business performance of SMEs producing Indonesian special food in East Java. Thirdly, the study found that government policy is not a moderating variable. Additionally, business strategies have a significant influence on the performance of SMEs producing Indonesian special food in East Java. Finally, dynamics of the environment and business strategy have a significant influence on the performance of manufacturing industry in South Sulawesi. Originality/value To know the effect of entrepreneurial orientation, environmental dynamism, consisting of uncertainty of environment and intensity of competition, and business strategies toward business performance. Considering the findings of the previous studies, the authors would like to re-examine the effect of entrepreneurial orientation on business performance, which also compares the findings of previous studies, especially, the one by Lee and Tsang (2003) on SMEs in Singapore.

Purpose The purpose of this paper is to examine the role of creative destruction as mediation between the speed of innovation and competitiveness of food small and medium enterprises (SMEs). Creative destruction that is competence-based and market-based is usually done by incumbent enterprises to create barrier to entry and widen the distance with similar businesses, then the role of creative destruction as a mediation to strengthen the competitiveness is investigated. Design/methodology/approach To test this, data were collected from 161 SMEs that is the food SME population in Great Malang covering three areas namely Malang Municipality, Malang Regency and Batu Municipality. warp partial least square-structural equation modeling (WarpPLS-SEM) was applied because parameter estimation with WarpPLS-SEM is very efficient because it has greater statistical requirements than other covariant-based methods, which is more likely to deliver results that match the population condition (significant if that is in fact significant in the population). Findings The pace of innovation development is very important to improve the competitiveness of food SMEs. The idea of innovation is quickly realized and products that enter the market faster have a greater chance to improve competitiveness through profit and productivity. The pace of innovation development enhances the competitiveness of food SMEs. This study proves that competitiveness can be increased once the pace of innovation development is followed by creative destruction. Creative destruction in this case is done through increased competence and maintain the innovations that have been achieved by food SMEs. Increased business competence could be conducted through cost efficiency enhancing product quality and improving worker skill. It is conducted while maintaining the achieved innovation to strengthen the market network customer service and innovation in product packaging. The government’s role is proven not to strengthen the relationship of the pace of innovation development and competitiveness of food SMEs. The role of the government is reflected through credit facilities business licensing promotion marketing and training. These have been carried out by the government. Nevertheless, these activities do not generate widespread impact in strengthening the pace of innovation development to enhance the competitiveness of food SMEs. Research limitations/implications The main limitation of this study is that it analyzes processed foods and innovations in general. Future research should investigate one type of processed food based on the typology of innovation so as to provide more effective and efficient recommendations. Originality/value This is the first known analysis of innovation speed and creative destruction for SMEs of food sector.

Purpose The purpose of this paper is to analyze the strategy of performance art, especially Silat Movement (as a source and identity of traditional dance movement of Minangkabau ethnic group), as a marketing medium of tourism, especially in West Sumatera Province. Design/methodology/approach This research used a qualitative approach among six cases of dance. Quantitative method was used to collect data about the dance movement of Minangkabau ethnic group, which is in accordance with the cultural value that they adopt. The data collecting technique used was focus group discussion, documentation, observation and interview. The case study method was used to conduct this research, focusing on the Silat dance movement as a medium to promote tourism. The research method is presented to generate a study that is in harmony with the background and the problem statement. This was a qualitative descriptive analysis research with the aim of providing a comprehensive illustration of performance art as a medium to promote tourism in West Sumatera. Findings Minangkabau ethnic dance movement, which is based on custom and religion, includes movements originating from the Silat movement. Movements in Minangkabau dance include Silat movements, such as attacking and fending off, rolling over, sawhorse posture and leg and hand movements. This is an original movement source and derives from cultural movements born from the fighter. That is why the Minangkabau dancer is a male; females were initially not allowed to dance because the movements are not suitable for them. Movement stylization suitable for a woman appears when she starts involving in dance movements in Minangkabau. Given the basis of culture and religion, the concept of suitable movements for a woman involves having no pelvic-rocking movements, erotic movements (with legs, hands and head) or other movements, such as rolling over, fighting and fending off. When male and female dancers perform together, they are not allowed to touch each other. Originality/value The movement in the dancing art of Minangkabau actually should be in harmony with, balanced on and based on the value of Adat Basandi Syarak, Syarak Basandi Kitabulah, which is the philosophy of the Minangkabau ethnic group. This means, a religious value must be seen in all expressions of dance movements of the Minangkabau ethnic group; no expression should contradict the values of the religious and customs value. A similar perception to the philosophy states that it is very helpful for Indonesian choreographer for the needs of aesthetic from the rich of Indonesian dance. Also, Hastuti and Supriyanti (2012) state that it can be a differentiator from the dance rules of Western thought patterns.