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Journal : Jurnal Aplikasi Bisnis dan Manajemen (JABM) E-Journal

Development of Innovation Capabilities in The Covid-19 Pandemic Era and Its Effect on Financial Performance Wijayanto, Andi; Nuzula, Nila Firdausi
Jurnal Aplikasi Bisnis dan Manajemen Vol. 11 No. 3 (2025): JABM Vol. 11 No. 3, September 2025
Publisher : School of Business, Bogor Agricultural University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/jabm.11.3.778

Abstract

Background: The COVID-19 pandemic has profoundly affected multiple aspects of life, particularly the business sector, which has struggled with the challenges posed by decreasing consumer spending. Globally, an economic crisis has occurred in many countries, including Indonesia, which experienced a recession in the third quarter of 2020 with a GDP decline of 3.49%. As the country with the highest number of COVID-19 cases in Southeast Asia and a high mortality rate, Indonesia faces major challenges in economic recovery. The government has implemented various measures to support people affected by the pandemic. In this situation, companies must develop adaptive strategies not only to survive but also to seize opportunities to improve their performance, even surpassing pre-pandemic conditions.Purpose: To explain how manufacturing companies in Indonesia invest in R&D to develop their innovation capabilities and financial performance during the crisis caused by the COVID-19 pandemic, to prove the differences between the innovation capabilities of Indonesian manufacturing companies before and during the crisis and its effect on financial performance.Design/methodology/approach: The research was conducted on 37 Indonesian manufacturing companies that disclosed expenditures for research and development (R&D) activities. Observational data are financial reports from 2018 to 2021. Data analysis techniques use the Wilcoxon Signed-Rank Test and Linear Regression.Findings/Result: The R&D intensity and ROA before and during the crisis did not differ significantly, whereas ROE showed a significant difference. Innovation capabilities show a significant effect on financial performance, both in ROA and ROE.Conclusion: Only 22% of Indonesian manufacturing companies allocate funds for R&D activities. Nevertheless, the Indonesian manufacturing companies under study demonstrated greater efforts to innovate during the COVID-19 pandemic. Investment in R&D increased from an average of 0.67% before the pandemic to 1.06% during the pandemic. The company's financial performance showed a decline during the pandemic.Originality/value (State of the art): This research has the novelty of revealing the development of innovation capabilities of Indonesian manufacturing companies during the COVID-19 pandemic and using a financial approach to prove the influence of innovation capabilities on company financial performance. Keywords: financial performance, innovation capabilities, manufacturing companies, pandemic era; research and development (r&d)
Co-Authors . DARMINTO . Suhadak . Topowijono Aan Suryana Agung Nugroho Luthfi Imam Fahrudi Agung Santoso Putra Alfiyah Agussalim Amalia Agista Maharani Amanda Ade Winona Amelinda Islamey Andi Wijayanto Andi Wijayanto Ardhito Ario Hutomo Ari Darmawan Arief Indra Wahyu Setyawan Arinda Sasmita Rahma Arja, Rayssa Nathasa Bayu Wichaksono Pangestu Budhy Ayu Nurputri Cacik Rut Damayanti Cacik Rut Damayanti Candra Puspita Ningtyas Damayanti, Cacik Rut Dea Kusuma Riyadi Dewi Mandiri, Satimah Sarisitamah Dewi, Winda Rufiana Didik Hartono Dina Aprilia Utami Dyah Putri Fuji Lestari Dаrwаti Dаrwаti Elsafan Kukuh Aditya Esti Junining Fadilla Eka Ningsih Fadillah Amin Fahrudi, Agung Nugroho Luthfi Imam Ferina Nurlaily Firdani Antika Sari Fitria Intan Ayuningtias Fuaida, Roudhotul Gagas Sеptian Nurfikri Gilang Salman Al Farisi Gilda Maulina Harril Brimantyo Ika Meriyanti Jabir Putri Ika Sisbintari Ikhsandinoto, Achmad Basith Illinova, Julian Arsyad Islami Putri Apriani Isti Purwaningtyas Kevin Adiyasa Pahlevi Kurniawan Winata Laili Fitria Nurfadillah Laras Sati Giri Noerani Linggahua, Akhyian Hamimah M. Saifi Mai Sovi Triswidjanti Maulina, Gilda Mawardi, Muhammad Khalid Meutea Saraswati Mifthachul Cholifah Miranti Sedyaningrum Moch. Dzulkirom Mochammad DJUDI MUKZAM, Mochammad DJUDI Mohamad Faathir Al Hakim Muchammad Rizki Agung Putra Muhamad Ibrahim Muhamad Wahyu Firmansyah Muhammad Apri Wirawan Sinaga Muhammad Nur Hidayah Muhammad Saifi Muhammad Yusril Mustafa, Muthyah Ainunsary Nada Faradila Naufal Yafi’ Najy Nelly Sulistyani Putri Neng Windy Naedya Cahyanti Ni Wayan Kartika Yowana Nia, Nia Mardiana Nugraha Farelio Siregar Nur Imamah Nuraeni Nuraeni, Desika Putri Nuria Setiarini Nurlita Sukma Alfandia Nurul Lianawati N’imatul Lailiyah Oktana Indriyatna Jatnika One Septy Wulandari Onni Meirezaldi Pregnandia Ladina Prima Rahma Sari Prisya Esterlina Purba, Bernadetha Eveline Gabriella Qur'anitasari Qur'anitasari Rachma Bhakti Utami Raden Rustam Hidayat RANI RACHMAWATI Reika Happy Sugiastuti Reza Hendrawan rizky Adhitya Rizqi Laila Rohmah Romadhani, Ahmad Rony Yuda Prasetyo Rosyida Maulina Rully Herlinasari Samira Hanim Saparila Worokinasih Saputra, Arjun Sarah Torgara Aprillia Manurung Satria Lukman Pinarbaga Sekar Arum Kinanti Septa Lukman Andes Shabrina Nur Adliah Sirivanh, Thongvanh Siti Ragil Siti Ragil Handayani Siti Ragil Handayani Sri Mangesti Rahayu Sri Mangesti Rahayu Sri Sulasmiyati Stefani Fabiola Christine Suhadak Suhadak Suhadak Suhadak Sulasmiati, Sri Suroto Suroto Syahla Dwinovita Putri Taufik Hidayat Theresia Vania Hamolin Tita Irbah Rofifah Topo Wijono Topowijono Topowijono Tria Syafitri Valeria Pramudita Suwandani Vieni Angelita Buana Wahyu Aprilia Sari Yuliana Prasiska Yuni Anisa Lestari