The Role of Innovation Capability on Business Performance at Small Medium Enterprises

Abstract

Usaha kecil menengah membutuhkan kemampuan inovasi yang kuat untuk mencapai keunggulan kompetitif. Berdasarkan penelitian empiris sebelumnya, studi ini menekankan pentingnya kemampuan inovasi sebagai peran terhadap kinerja bisnis. Data dikumpulkan dari 228 perusahaan menengah kecil di Kediri, Jawa Timur, Indonesia, dan dianalisis menggunakan structural equation model. Hasil penelitian meliputi pertama, kemampuan inovasi dan kewirausahaan memiliki dampak positif secara signifikan terhadap kinerja bisnis masing-masing. Kedua, orientasi pembelajaran memiliki pengaruh yang signifikan dan positif terhadap kemampuan inovasi. Ketiga, sumber daya TI memiliki dampak signifikan positif terhadap orientasi pembelajaran dan kemampuan inovasi masing-masing.Kata kunci: Orientasi Pembelajaran, Sumber daya Teknologi Informasi (TI), Kewirausahaan, Kemampuan Inovasi, Kinerja Bisnis. Small medium enterprises require strong innovation capability to achieve competitive advantage. Based on previous empirical researches, this study emphasizes the importance of innovation capability as the role on business performance. Data were collected from 228 of small medium enterprises in Kediri, East Java, Indonesia and analyzed using structural equation model. The major findings include first, innovation capability and entrepreneurship has significantly positive impact on business performance respectively. Second, learning orientation has a significant and positive effect on innovation capability. Third, IT resource has significantly positive impact on learning orientation and innovation capability respectively.Keywords:  Learning Orientation, InformationTechnology (IT) Resources, Entrepreneurship, Innovation Capability, BusinessPerformance.