Is Product Innovation always Beneficial for Small and Medium Enterprises?

Abstract

Currently, innovation is an important issue among SMEs, especially the creative industry. This research is based on the phenomenon that occurs in the creative (fashion) SMEs, such as batik, weaving, silver handicrafts and leather crafts industry that mostly traditionally produced in the Special Region of Yogyakarta, Indonesia. This study aims to examine the role of innovation in mediating the effect of market orientation and entrepreneur. It used a cross-sectional survey of 187 creative SMEs owners The data were analyzed with the analysis of structural equation modeling (SEM). Findings reveal that market orientation and entrepreneurial orientation proved to have a positive and significant effect on business performance. An interesting result of this study is that there are differences in measurement to construct market orientation variables in the context of SMEs. Other findings indicate that innovation plays a role as a mediator in the influence of market orientation and entrepreneurial orientation on SME business performance. Nevertheless, the mediating role of innovation in determining the magnitude of the influence between market orientation and entrepreneurial orientation on business performance is smaller than the direct influence. Overall, the results of this study indicate that a combination of market orientation and entrepreneurial orientation are the instruments that underlie fashion SMEs in shaping innovation to improve the performance of creative (fashion) SMEs.

Influence of green customer demand and eco-control on eco-innovation and on the sustainable growth of beef sector companies

“…Ainda, a ecoinovação busca alcançar o progresso econômico ao abordar os problemas ambientais e prevenir a degradação dos recursos naturais (Amara & Chen, 2022). A ecoinovação orienta as empresas a reduzirem o consumo dos recursos naturais e criarem novas formas, processos, métodos e produtos sustentáveis (Amara & Chen, 2022;Labelle et al, 2017), o que proporciona ganhos ambientais e econômicos (Cai & Li, 2018;Astuti et al, 2018) e impactam positivamente na competitividade (Musaad et al, 2020), desempenho e crescimento sustentável dos negócios (Zhu et al, 2012). Apesar da importância, pouco se sabe sobre os fatores impulsionadores da ecoinovação (Chistov et al, 2023), mais especificamente os eco controles e a demanda verde de clientes.…”

Evidence for the Mediating Effects of Eco-Innovation and the Impact of Driving Factors on Sustainable Business Growth of Agribusiness

“…As a result, the eco-innovation strategy has direct and indirect effects on the decrease of ecological pressures. Several researchers also suppose that eco-innovation achieves both environmental and economic gain (Astuti et al, 2019). Therefore, its adoption may ensure a win-win situation to promote competition and sustainable development (Bossle et al, 2016;Trollman and Colwill 2020;Khamseh 2021).…”