This study aims to determine the effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance. The population in this study is the Micro, Small, and Medium Enterprise (MSME) in the Culinary Division at D.I. Yogyakarta and use 200 respondents as a sample. By using convenience sampling technique, the researchers have the freedom to choose any culinary MSME found around D.I. Yogyakarta to be the respondent. Hypothesis testing using Structural Equation Model (SEM) analysis. The findings show that there is a positive influence of responsive market orientation on product innovation performance, proactive market orientation on product innovation performance, product innovation performance on the company's market performance, and the company's market performance on the company's financial performance. The findings of this study contribute to MSMEs that information about market orientation adopted by business actors or companies can affect the performance of new product innovations in the market to improve the company's market performance which then affects the company's financial performance.
A dynamic business environment put a high pressure on the companies to improve their innovation capabilities continously. It could be achieved by making a collaboration with external parties to capture their knowledge and technology, and then turning it into innovative products and services that companies provided. The aims of this study is to determine the effectiveness of open innovations implementation in Batik Industry in Yogyakarta on firm performance. It focuses on the analyzing of the company's ability in collaborating innovatively with external parties, such as competitors, government, and research institutions. Small Medium Enterprise (SMEs) of Batik Industry in Yogyakarta is used as the population. The sample is choosed by using convenience simple random sampling method that result in 96 SMEs. Then, the data is analysed through the Partial Least Square (PLS) method using 3 independent variables, inter-company cooperation, companies and government cooperation, and companies and research institutions cooperation that tested on firm performance. Besides, product innovation also used as intervening variable. The findings show that a collaboration between companies and government have a positive effect on product innovation, while firm collaboration with research institutions has no effect on product innovation. The role of product innovation as an intervening variable in this model is significant in mediating the effect of external parties collaboration on firm performance. Further, these findings is expected to contributed on SMEs strategies development in building innovation capabilities, particularly in open innovation implementation that would affect firm performance. Keywords: External Cooperation, Innovation, Performance
Ambidexterity is the ability of firms to undertake exploration and exploitation concurrently. Empirical evidence suggests that ambidextrous organisations are better able to manage the trade-off between flexibility and efficiency. Although ambidexterity has been the subject of many previous research studies, relatively little attention has been paid to how SMEs manage ambidexterity in an international market. A multiple case study research design was used to explore ambidexterity in two SMEs. The research utilised an inductive approach. SMEs adopt different strategies to manage ambidexterity. Larger SMEs, supported with more resources, can carry out exploration and exploitation simultaneously. By contrast, smaller sized SMEs must perform exploration and exploitation intermittently. In addition, the impacts of managers, resource flexibility, and network supports in managing ambidexterity are also discussed. This study suggests that managers of SMEs should consider resource availability and the characteristics of the international customers being served before designing a strategy for managing ambidexterity. This study contributes to the limited empirical evidence on how SMEs manage ambidexterity in international markets.
This study aimed to analyze the effect of supply chain capability on business performance of small and medium enterprises (SMEs) in Yogyakarta. Supply chain capability is the ability to coordinate activities related to the flow of materials and products, both of which are within the organization and between organizations. Supply chain operational capability is measured using 3 capabilities including structural, logistical and the technological capability. The sample of this study were selected using simple random method. A total of 193,391 SMEs were analysed this study and resulting 100 SMEs that were used as the subjects. Moreover, this study employed multiple regression analysis to analyse the proposed hypothesis. The results showed that simultaneously and partially operational capability of supply chain consisting of the structural, logistics and the technological capability affect the business performance of SMEs in Yogyakarta.Keywords: SME, Supply Chain Operational Capability, Business Performance http://dx.doi.org/10.20885/jsb.vol20.iss1.art8 AbstrakPenelitian ini bertujuan untuk menganalisis efek kapabilitas rantai pasokan pada kinerja bisnis Usaha Mikro, Kecil, dan Menengah (UMKM) di Yogyakarta. Kapabilitas rantai pasokan adalah kapabilitas untuk mengkoordinasi aktivitas terkait arus material dan produk, keduanya berada dalam ranah organisasi dan antar organisasi. Kapabilitas rantai pasokan diukur menggunakan tiga kapabilitas meliputi kapabilitas struktural, logistikal, dan teknologikal. Sampel penelitian dipilih menggunakan metode acak sederhana. Total 193.391 UMKM dianalisis di riset ini dan menghasilkan 100 UMKM yang digunakan sebagai subjek penelitian. Lebih lanjut, penelitian ini menguji hipotesis dengan analisis regresi berganda. Hasil menunjukkan bahwa baik secara parsial maupun simultan, kapabilitas operasional yang meliputi struktural, logistikal, dan teknologikal berpengaruh pada kinerja bisnis UMKM di Yogyakarta.
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