Better Performance Prospect of Large-Medium Enterprises: The Role of Innovation
DOI:
https://doi.org/10.14414/jebav.v22i3.2041Keywords:
Innovation, Business Prospect, Large-Medium Enterprises.Abstract
Based on the Business Characteristics Survey 2019 conducted by Statistics Indonesia, enterprises developed innovation are only 11.65%. Although innovation provides the benefit of a significant increase in revenue, there are 63.44% of companies that do not innovate. Therefore, it is necessary to study the effect of innovation on the prospects of large and medium-sized businesses in Indonesia. This study also observed the innovation types and business characteristics of large-medium enterprises. The data processed in this study came from the micro-data of 312,080 large-medium enterprises resulting from the 2016 Census of Economic-Advanced Data Collection for Large-Medium Enterprises and Micro-Small Enterprises. It was carried out by Statistics Indonesia in 2017 in 34 provinces in Indonesia. The method used to analyze the data was Logistic Regression. The result of the study showed that marketing innovations and product innovations were the most innovative types widely carried out by large-medium enterprises. The effect of innovation variable was seen in categories of manufacturing; water supply, sewerage, waste management & remediation; construction, transportation & storage; financial & insurance; and human health & social work. These categories will have better business prospects when there are more types of business innovations implemented. These suggest that leaders of large-medium enterprises and related stakeholders engaged in these sectors to pay more attention to innovation factors and their indicators in the operation of enterprises.References
Amabile, T. M. (2013) Componential Theory of Creativity, Encyclopedia of Management Theory. doi: 10.4135/9781452276090.n50.
Batterink, M. (2009) Profiting from external knowledge: How firms use different knowledge acquisition strategies to improve their innovation performance- Innovation and sustainability series. The Netherlands: Wageningen Academic.
Bayarcelik, E. B., Tasel, F. and Apak, S. (2014) ‘A Research on Determining Innovation Factors for SMEs’, 150, pp. 202–211. doi: 10.1016/j.sbspro.2014.09.032.
Becker, B. and Gerhart, B. (1996) ‘The impact of human resource management on organizational performance: Progress and prospects’, Academy of Management Journal, 39(4), pp. 779–801. doi: 10.2307/256712.
Borghini, S. (2005) ‘Organizational creativity: Breaking equilibrium and order to innovate’, Journal of Knowledge Management, 9(4), pp. 19–33. doi: 10.1108/13673270510610305.
Bowen, F. E., Rostami, M. and Steel, P. (2010) ‘Timing is everything: A meta-analysis of the relationships between organizational performance and innovation’, Journal of Business Research. Elsevier Inc., 63(11), pp. 1179–1185. doi: 10.1016/j.jbusres.2009.10.014.
Chen, Y. (2006) ‘Marketing innovation’, Journal of Economics and Management Strategy, 15(1), pp. 101–123. doi: 10.1111/j.1530-9134.2006.00093.x.
Cornell University, INSEAD and the World Intellectual Property Organization (WIPO) (2019) Global Innovation Index 2019 Creating Healthy Lives- The Future of Medical Innovation. 12th edn. Edited by S. Dutta, B. Lanvin, and S. Wunsch-Vincent. Geneva, Switzerland.
Cornell University, INSEAD and WIPO (2015) The Global Innovation Index 2015: Effective Innovation Policies for Development. Edited by S. Dutta, B. Lanvin, and S. W. Vincent. Fontainebleau, Ithaca, and Geneva: Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO).
Deschamps, J. P. and Nelson, B. (2014) Innovation Governance: How Top Management Organizes and Mobilizes for Innovation. West Sussex, United Kingdom: Jossey Bass.
Fagerberg, J; Mowery, D; Nelson, R. (2006) The Oxford Handbook of Innovation. Oslo, Berkeley, New York: Oxford University Press.
Harlan, J. (2018) Analisis Regresi Logistik. Depok: Penerbit Gunadarma.
Hilbe, J. M. (2009) Logistic Regression Models. Boca Raton, USA: CRC Press.
Hilbe, J. M. (2015) Practical Guide to Logistic Regression. Boca Raton, USA: A Chapman & Hall Book.
Iqbal, A. (2014) ‘Creativity and innovation in Saudi Arabia : An overview’, (February 2015), pp. 37–41. doi: 10.5172/impp.2011.13.3.376.
Kleinknecht, A. et al. (2002) Innovation and Firm Performance. London: Palgrave Macmillan.
Liu, X. (2016) Applied Ordinal Logistic Regression Using Stata. Sage Publications.
Long, J. S. and Freese, J. (2001) Regression models for categorical dependent variables using Stata. Texas, USA: Stata Press Publication.
Ma, L. et al. (2018) ‘Deploying Human Capital for Innovation : A Study of Multi-Country Manufacturing Firms’, International Journal of Production Economics. doi: 10.1016/j.ijpe.2018.12.001.
Nelson, R. R. (1993) National Innovation Systems: A Comparative Analysis. Edited by R. R. Nelson. New York, USA: Oxford University Press.
Organization for Economic Co-operation and Development (OECD) (2004) Patents, Innovation and Economic Performance, OECD Conference Proceeding.
Organization for Economic Co-operation and Development (OECD) (2010) Innovative Workplaces Making Better Use of Skills Within Organisations. Paris: OECD Publishing. Available at: www.oecd.org/innovation/strategy.
Peters, B. (2006) Innovation and Firm Performance: An Empirical Investigation for German Firms. Mannheim: ZEW Economic Studies.
Rajapathirana, R. P. J. and Hui, Y. (2018) ‘Relationship between innovation capability, innovation type, and firm performance’, Journal of Innovation & Knowledge, 3, pp. 44–55.
Rejeb, H. Ben et al. (2008) ‘Measuring innovation best practices: Improvement of an innovation index integrating threshold and synergy effects’, 28, pp. 838–854. doi: 10.1016/j.technovation.2008.08.005.
Silverberg, G. and Verspagen, B. (2003) ‘Breaking the waves : a Poisson regression approach to Schumpeterian clustering of basic innovations’, 27(5), pp. 671–693.
Sohn, S. Y., Kim, D. H. and Jeon, S. Y. (2015) ‘Re-evaluation of global innovation index based on a structural equation model’, Technology Analysis & Strategic Management, 7325(November). doi: 10.1080/09537325.2015.1104412.
Statistics Indonesia (2017) Pedoman Pencacah Pendataan UMK dan UMB SE2016. Jakarta: Statistics Indonesia.
Tidd, J., Bessant, J. and Pavitt, K. (2005) Managing innovation: Integrating technological, market and organizational change. 3rd edn. England: Joh Wiley & Sons.
Downloads
Additional Files
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Rapita Handayani, Rossanto Dwi Handoyo

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.