Framework for Measuring Process Innovation Performance at Indonesian State-Owned Companies

Abstract

Several state-owned companies (SOEs) have successfully implemented process innovation. This paper examines the success factors that influence the successful implementation of process innovation in Indonesian state-owned companies. The present study used the three stages of an online questionnaire in the Delphi method to obtain consensus from experts. The consensus was measured based on the mean and standard deviation of the assessment answers provided by our respondents. Based on the development of process innovation implementation frameworks shown in previous studies, we obtained 28 factors that influence the successful implementation of process innovation. Our panelists believed that human resources and organizational factors, such as leadership, problem understanding, strategy, and culture, affected the success of process innovation in SOEs, even more than the research and development budget, support, and commitment factor of a given company. Meanwhile, cost efficiency was the main factor driving a company’s motivation to implement process innovation. The success factors in implementing process innovation are an essential consideration for the management of other SOEs eager to improve their company’s innovation performance, especially process innovation. Success factors were carried out comprehensively for all implementation indicators of process innovation, including inputs, process (idea generation, idea selection, and idea implementation), outputs and outcomes, diffusion, culture, strategies, and push and pull factors.

Impact of Innovation-Oriented Human Resource on Small and Medium Enterprises’ Performance

“…The references related to labor productivity are [50,54] whereas those related to product innovation include [55,56]. For the process innovation, papers are [55,[57][58][59], whereas for the marketing innovation, related literature includes [60][61][62]. Traditional HR practices are often associated with conventional approaches to managing employees and include standard procedures for recruitment, selection, training, and compensation.…”

Ambidexterity Behavior of Creative SMEs for Disruptive Flows of Innovation: A Comparative Study of Indonesia and Taiwan

“…Simultaneously, a strong commitment to innovation does not imply that top managers have been proactive-it is often the case that a significant commitment is required to catch up in the marketplace [29]. For example, SMEs that are producing have invested heavily in adapting their product designs to meet market demand and increase sales to specific consumers [7]. When commitment to innovation is high but managers are not proactive, resources set aside for network-derived opportunities may be unproductive for a more extended period.…”

“…Organizational ambidexterity is an organization's ability to efficiently manage its business and adapt to environmental changes [6]. The concept of ambidexterity in the business context has received serious attention from researchers in recent years, and it has significantly affected business performance [7]. Organizations and scholars have long sought to characterize and explain how businesses can direct their strategic orientations toward two distinct activities-exploitation and exploration-in a process known as ambidextrous strategy development [8][9][10].…”

“…Unfortunately, scholars are inconsistent in the identification of which factors affect innovation performance. The previous studies witnessed fragmentary results depending on the research context or individual author's perspective [7,33,34]. Particularly, a lack of investigation to compare the measurement of innovation performance across countries is a significant research gap.…”

The nexus between green strategic consensus, innovation, and performance evidence from eco-friendly food agro-industry companies in Indonesia

“…GSC and innovation encourage employee competence in production and cost efficiency [45], thereby increasing added value and company profits [46]. If successful, the market share that can grow from the GSC agreement [47] and green product innovation can provide long-term benefits [48] by conducting research and developing new product diversification sustainably [49].…”