KISA INSTITUE : Journal of Economics, Accounting, Business, Management, Engineering and Society
Vol. 1 No. 7 (2024): KISA INSTITUE : June 2024

INNOVATION ADOPTION BARRIERS IN INDONESIAN MANUFACTURING SMALL AND MEDIUM ENTERPRISES

Buchory, Herry Achmad (Unknown)
Suganda, Uce Karna (Unknown)
Faisal, Ijang (Unknown)



Article Info

Publish Date
01 Jun 2024

Abstract

Background: Innovation adoption remains critical for manufacturing SME competitiveness, yet many Indonesian enterprises struggle to implement innovations despite recognizing their importance. Aims: This study identifies and analyzes primary barriers preventing Indonesian manufacturing SMEs from successfully adopting innovations. Research Method: Qualitative approach involving in-depth interviews with 32 manufacturing SME owners and managers across West Java representing diverse subsectors. Thematic analysis identified recurring barrier patterns. Results and Conclusion: Analysis reveals five major barrier categories: financial resource constraints (78%), technical knowledge gaps (65%), organizational risk aversion (58%), infrastructure limitations (52%), and regulatory complexity (43%). Barriers interact creating compound effects. Contribution: Research provides empirical evidence on innovation barriers in Indonesian manufacturing SME contexts, offering practical recommendations for targeted interventions.

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Journal Info

Abbrev

kisainstitute

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

KISA INSTITUE : Journal of Economics, Accounting, Business, Management, Engineering and Society is published by Kisa Institute plays a key role in advancing multidisciplinary knowledge. With monthly outputs, the journal serves as a vibrant platform to present and develop our understanding of various ...