Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)

How Capable are Small and Medium Enterprises in Conducting Innovation?

Authors
Esti Dwi Rinawiyanti, Benny Lianto, Darlin Silvia Fitari
Corresponding Author
Esti Dwi Rinawiyanti
Available Online October 2019.
DOI
https://doi.org/10.2991/aprish-18.2019.15How to use a DOI?
Keywords
footwear SMEs, technological innovation capabilities, Sidoarjo
Abstract

Several studies have recognized innovation as an essential aspect of improving competitiveness. Prior studies also argued that small- and medium-sized enterprises (SMEs) should increase their innovation and technology to deal with competition. However, just how SMEs are capable of performing innovation still needs to be measured. This study purposes assessing the capability of SMEs to conduct the technological innovation. Technological innovation capability (TIC) is defined as a comprehensive set of characteristics of a company that facilities and supports its technological innovation strategies. The seven TICs in this study consist of learning, R&D, resources allocation, manufacturing, marketing, organization, and strategic planning capabilities. A sample of 62 companies located in Sidoarjo, Indonesia, in particular Wedoro-which is one of the footwear centers in East Java, was purposively selected from footwear SMEs. This study distributed questionnaires to collect the primary data and proceeded to analyze the data using descriptive analysis. The findings demonstrated that the majority of footwear SMEs in Sidoarjo are small businesses. Overall, their TICs are in the medium category, with the highest average strategic planning capability (4.96), with the lowest average being learning capability (1.83). Some solutions are suggested to increase these firms' TICs

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
October 2019
ISBN
978-94-6252-802-4
ISSN
2352-5398
DOI
https://doi.org/10.2991/aprish-18.2019.15How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Esti Dwi Rinawiyanti
AU  - Benny Lianto
AU  - Darlin Silvia Fitari
PY  - 2019/10
DA  - 2019/10
TI  - How Capable are Small and Medium Enterprises in Conducting Innovation?
BT  - Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
PB  - Atlantis Press
SP  - 129
EP  - 136
SN  - 2352-5398
UR  - https://doi.org/10.2991/aprish-18.2019.15
DO  - https://doi.org/10.2991/aprish-18.2019.15
ID  - Rinawiyanti2019/10
ER  -