Antecedents and Consequences of Organizational Innovation: Study on Small and Medium Enterprises in the Consumer Goods Industry
- DOI
- 10.2991/aer.k.211106.105How to use a DOI?
- Keywords
- Industry competition; Organizational innovation; Company performance; SMEs; Small and medium-sized enterprises
- Abstract
Small and medium-sized enterprises (SMEs) play a very important role in the economic development and growth of a country. SMEs have great potential in business but face many challenges in innovation implementation. This research aims to examine the level of industrial competition, organizational innovation, and company performance in SMEs and to analyze the influence of industrial competition and organizational innovation on company performance. This is a descriptive and verification study with explanatory surveys. Small and medium scale enterprises in West Bandung Regency were examined with purposive sampling technique and the sample size was 31 SMEs. Hypothesis testing was conducted through variant-based structural equation models and processed by the Partial Least Square (PLS) program. The results show that the level of industrial competition faced by SMEs is high, the level of implementation of organizational innovation is good, and the level of company performance achievement is also good. Furthermore, industrial competition has a positive influence on organizational innovation while organizational innovation has a positive effect on company performance so that industrial competition affects company performance through organizational innovation. In this research, organizational innovation is discovered as an intervening variable between industrial competition and company performance; this has not been discussed in previous studies.
- Copyright
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Gilang Ramadhan AU - Tri Setyowati PY - 2021 DA - 2021/11/23 TI - Antecedents and Consequences of Organizational Innovation: Study on Small and Medium Enterprises in the Consumer Goods Industry BT - Proceedings of the 2nd International Seminar of Science and Applied Technology (ISSAT 2021) PB - Atlantis Press SP - 675 EP - 682 SN - 2352-5401 UR - https://doi.org/10.2991/aer.k.211106.105 DO - 10.2991/aer.k.211106.105 ID - Ramadhan2021 ER -