Knowledge integration capability, innovativeness, and entrepreneurial orientation on business performance
), (1) Sekolah Tinggi Ilmu Ekonomi Trisna Negara, Sumatera Selatan
Indonesia
(2) Universitas Pembangunan Nasional Veteran Yogyakarta
Indonesia
Corresponding Author
DOI : https://doi.org/10.29210/174000
Full Text:
Language : en
Abstract
Objectives – This study aims to analyze the business performance of SMEs in South Sumatera, which has limited resources and is affected by the COVID-19 pandemic but can still survive. The business performance is analyzed through knowledge integration capability, innovativeness, and entrepreneurial orientation.
Design/methodology/approach – The research method used is a questionnaire survey, and the respondents observed were 232 SMEs in South Sumatra. The data analysis technique uses a two-step approach to SEM with SEM-AMOS 25.
Findings – The Business Performance Model is acceptable. Furthermore, business performance is influenced by knowledge integration capability, innovativeness, and entrepreneurial orientation. The more SMEs that have a strong entrepreneurial orientation can integrate the knowledge of their employees and have the ability to adopt innovation (innovativeness) quickly, SMEs can improve their performance, even in difficult times due to the COVID-19 pandemic.
Research limitations/implications – This study only observed SMEs that survived the COVID-19 pandemic and did not involve SME respondents who failed to adapt to the pandemic. This study only uses knowledge integration capability, innovativeness, and entrepreneurial orientation in predicting performance. The ability to integrate knowledge has a relatively small impact on the performance of SMEs, and it is better if the influence of this knowledge can be analyzed further to get better results.
Originality/value – This study adds entrepreneurial orientation as a determinant of the ability to integrate knowledge in one model analyzed to predict SMEs' performance after the COVID-19 pandemic. The respondents of this research are also SMEs that have been affected by COVID-19 and are still surviving now.References
Acharya, C., Ojha, D., Gokhale, R., & Patel, P. C. (2022). Managing information for innovation using knowledge integration capability: The role of boundary spanning objects. International Journal of Information Management, 62, 102438. https://doi.org/10.1016/j.ijinfomgt.2021.102438
Alshanty, A. M., & Emeagwali, O. L. (2019). Market-sensing capability, knowledge creation and innovation: The moderating role of entrepreneurial orientation. Journal of Innovation & Knowledge, 4(3), 171–178. https://doi.org/10.1016/J.JIK.2019.02.002
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.
Anning-Dorson, T. (2018). Customer involvement capability and service firm performance: The mediating role of innovation. Journal of Business Research, 86(3), 269–280. https://doi.org/10.1016/j.jbusres.2017.07.015
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Behrens, J., & Patzelt, H. (2018). Incentives, resources and combinations of innovation radicalness and innovation speed: Innovation radicalness and innovation speed. British Journal of Management, 29(4), 691–711. https://doi.org/10.1111/1467- 8551.12265
Bouncken, R. B., Kraus, S., & Roig-Tierno, N. (2021). Knowledge- and innovation-based business models for future growth: Digitalized business models and portfolio considerations. Review of Managerial Science, 15(1), 1–14. https://doi.org/10.1007/s11846-019-00366-z
Bruton, G. D., Ketchen Jr, D. J., & Ireland, R. D. (2013). Entrepreneurship as a solution to poverty. Journal of business venturing, 28(6), 683-689. https://doi.org/10.1016/j.jbusvent.2013.05.002
Byrne, B. M. (2001). Structural equation modeling with AMOS, EQS, and LISREL: Comparative approaches to testing for the factorial validity of a measuring instrument. International journal of testing, 1(1), 55-86. https://doi.org/10.1207/S15327574IJT0101_4
Chen, J.S., Tsou, H.T., (2012). Performance effects of IT capability, service process innovation, and the mediating role of customer service. Journal of Engineering Technology Management. 29 (1), 71–94. https://doi.org/10.1016/j.jengtecman.2011.09.007
Chen, Y., Wang, Y., Nevo, S., Benitez-Amado, J., Kou, G., (2015). IT capabilities and product innovation performance: the roles of corporate entrepreneurship and competitive intensity. Information & Management. 52 (6), 643–657. https://doi.org/10.1016/j.im.2015.05.003
Dong, J.Q., Yang, C.H., (2019). Information technology and innovation outcomes: is knowledge recombination the missing link? European Journal of Information Systems. 28 (6), 612–626. https://doi.org/10.1080/0960085X.2019.1627489
Dung, T. Q., Bonney, L. B., Adhikari, R., & Miles, M. P. (2021). Entrepreneurial orientation and vertical knowledge acquisition by smallholder agricultural firms in transitional economies: The role of interfirm collaboration in value-chains. Journal of Business Research, 137, 327–335. https://doi.org/10.1016/j.jbusres.2021.08.054
Ferreira, J., & Azevedo, S. (2007). Entrepreneurial orientation as a main resource and capability on small firm's growth. Online at https://mpra.ub.uni-muenchen.de/5682/
MPRA Paper No. 5682, posted 10 Nov 2007 02:56 UTC
Ferreras-Méndez, J. L., Llopis, O., & Alegre, J. (2022). Speeding up new product development through entrepreneurial orientation in SMEs: The moderating role of ambidexterity. Industrial Marketing Management, 102, 240–251. https://doi.org/10.1016/j.indmarman.2022.01.015
Ferreras-Méndez, J. L., Olmos-Peñuela, J., Salas-Vallina, A., & Alegre, J. (2021). Entrepreneurial orientation and new product development performance in SMEs: The mediating role of business model innovation. Technovation, 108, 102325. https://doi.org/10.1016/j.technovation.2021.102325
Gould-Williams, J. (2003). The importance of HR practices and workplace trust in achieving superior performance: a study of public-sector organizations. International journal of human resource management, 14(1), 28-54. https://doi.org/10.1080/09585190210158501
Groza, M. D., Zmich, L. J., & Rajabi, R. (2021). Organizational innovativeness and firm performance: Does sales management matter? Industrial Marketing Management, 97, 10–20. https://doi.org/10.1016/j.indmarman.2021.06.007
Guo, J., Zhou, S., Chen, J., & Chen, Q. (2021). How information technology capability and knowledge integration capability interact to affect business model design: A polynomial regression with response surface analysis. Technological Forecasting and Social Change, 170, 120935. https://doi.org/10.1016/j.techfore.2021.120935
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis. Upper Saddle River, New Jersey: Prentice-Hall.
Hartley, J., (2011). Public Value through Innovation and Improvement. In: Macmillan, Palgrave (Ed.), Public Value Theory and Practice. Houndmills, 171–184.
Hughes, M., Hughes, P., & Morgan, R. (2007). Exploitative learning and entrepreneurial orientation alignment in emerging young firms: Implications for market and response performance. British Journal of Management, 18(4), 359–375. https://doi.org/10.1111/j.1467-8551.2007.00519.x
Hult, G., Ketchen, D., & Slater, S. (2004). Information processing, knowledge development, and strategic supply chain performance. Academy of Management Journal, 47(2), 241–253. https://doi.org/10.5465/20159575
Hyytinen, A., Pajarinen, M., & Rouvinen, P. (2015). Does innovativeness reduce startup survival rates? Journal of business venturing, 30(4), 564-581. https://doi.org/10.1016/j.jbusvent.2014.10.001
Ireland, R. D., Hitt, M. A., & Sirmon, D. G. (2003). A model of strategic entrepreneurship: The construct and its dimensions. Journal of Management, 29(6), 963-989. https://doi.org/10.1016%2FS0149-2063_03_00086-2
Jantunen, A., Puumalainen, K., Saarenketo, S., & Kyläheiko, K. (2005). Entrepreneurial orientation, dynamic capabilities and international performance. Journal of International Entrepreneurship, 3(3), 223-243. https://doi.org/10.1007/s10843-005-1133-2
Kraus, P., Stokes, P., Tarba, S. Y., Rodgers, P., Dekel-Dachs, O., Britzelmaier, B., & Moore, N. (2022). The ambidextrous interaction of RBV-KBV and regional social capital and their impact on SME management. Journal of Business Research, 142, 762–774. https://doi.org/10.1016/j.jbusres.2021.12.047
Lu, Y., Ramamurthy, K., (2011). Understanding the link between information technology capability and organizational agility: an empirical examination. MIS quarterly. 35 (4), 931–954. http://dx.doi.org/10.2307/41409967
MacLean, S., & Gray, K. (1998). Structural equation modeling in market research. Journal of the Australian market research society, 6(1), 17-32.
Marchiori, D. M., Rodrigues, R. G., Popadiuk, S., & Mainardes, E. W. (2022). The relationship between human capital, information technology capability, innovativeness and organizational performance: An integrated approach. Technological Forecasting and Social Change, 177, 121526. https://doi.org/10.1016/j.techfore.2022.121526
McKenny, A. F., Short, J. C., Ketchen, D. J., Jr., Payne, G. T., & Moss, T. W. (2018). Strategic entrepreneurial orientation: Configurations, performance, and the effects of industry and time. Strategic Entrepreneurship Journal, 12(4), 504–521. https://doi.org/10.1002/sej.1291
Muhtarom, A., Syairozi, M. I., & Yonita, H. L. (2022). Analisis Persepsi Harga, Lokasi, Fasilitas, dan Kualitas Pelayanan terhadap Loyalitas Pelanggan Dimediasi Keputusan Pembelian (Studi Kasus pada Umkm Skck (Stasiun Kuliner Canditunggal Kalitengah) Metode Structural Equation Modelling (SEM)-Partial Least. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis, 10(S1), 391-402.
Muhtarom, A., Syairozi, M. I., & Rismayati, R. D. (2022). Analisis Citra Merek, Harga, Kualitas Produk Dan Promosi Terhadap Keputusan Pembelian Dimediasi Minat Beli Pada Umkm Toko Distributor Produk Skincare Kfskin Babat Lamongan. Derivatif: Jurnal Manajemen, 16(1), 36-47.
Pang, C., Wang, Q., Li, Y., Duan, G., 2019. Integrative capability, business model innovation and performance. Europ. Journal Innovative Management. 22 (3), 541–561.
Parida, V., Pes¨ amaa, O., Wincent, J., Westerberg, M., (2017). Network capability, innovativeness, and performance: a multidimensional extension for entrepreneurship. Entrepreneurship & Regional Development, 29 (1–2), 94–115. https://doi.org/10.1080/08985626.2016.1255434
Patel, P. C., Struckell, E. M., Ojha, D., & Manikas, A. S. (2020). Retail store churn and performance–The moderating role of sales amplitude and unpredictability. International Journal of Production Economics, 222, Article 107510.
Santos-Vijande, M. L., López-Sánchez, J. Á., & Trespalacios, J. A. (2012). How organizational learning affects a firm's flexibility, competitive strategy, and performance. Journal of business research, 65(8), 1079-1089. https://doi.org/10.1016/j.jbusres.2011.09.002
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach. john Wiley & sons.
Syairozi, M. (2015). Pengaruh Faktor Eksternal (Inflasi, Bunga) Dan Faktor Internal (Bagi Hasil, Jumlah Bank) Terhadap Deposito Mudharabah Pada Perbankan Syariah Di Indonesia (Doctoral dissertation, Universitas Brawijaya).
Syairozi, M. I. (2021). Analisis Kemiskinan di Sektor Pertanian (Studi Kasus Komoditas Padi di Kabupaten Malang). Media Ekonomi, 28(2), 113-128.
Zahra, S.A., Neubaum, D.O., Hayton, J., (2020). What do we know about knowledge integration: fusing micro-and macro-organizational perspectives. Academy of Management Annal. 14 (1), 160–194. https://doi.org/10.5465/annals.2017.009
Article Metrics
Abstract Views : 476 times
PDF Downloaded : 186 times
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 4.0 International License.
