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All Journal DIJB (Diponegoro International Journal of Business)
Suyono Suyono
Business Department, Institut Bisnis dan Teknologi Pelita Indonesia
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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Analysis of SMEs performance based on innovation practice, market orientation, and innovation barriers Sarli Rahman; Suyono Suyono; Onny Setyawan; Mimelientesa Irman
Diponegoro International Journal of Business Vol 6, No 2 (2023)
Publisher : Department of Management | Faculty of Economics and Business | Universitas Diponegoro

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14710/dijb.6.2.2023.77-89

Abstract

This study focuses on factors that can improve SME business performance, from a theoretical market-base view perspective, with a market orientation construct, and from a resource-base view theory, specifically from innovation resources, with a market orientation construct. In addition, this study also aimed to look at the factors that can hinder SMEs from carrying out innovation practices, and how these barriers affected the innovation practices and performance of SMEs. Through an online survey, collected of 352 answered of respondents analyze using Structural Equation Methods. From the results of the AMOS SEM analysis, it was found that market orientation directly affects the performance of SMEs without finding the mediating role of innovation practices. However, innovation practices can mediate the effect of innovation barriers on SME performance in a negative direction. The result of this study has theoretical and practical implications that will also be discussed.
Co-Authors Mimelientesa Irman Onny Setyawan Sarli Rahman