ENHANCING MSME'S MARKETING PERFORMANCE THROUGH INNOVATION CAPABILITY MEDIATED BY TECHNOLOGY CAPABILITY AND VALUE-BASED SELLING

Authors

  • Dewi Sri Woelandari Pantjologiningroem Universitas Bhayangkara Jakarta Raya
  • Resista Vikaliana Institut Ilmu Sosial dan Manajemen Stiami
  • Novita Wahyu Setyawati Universitas Bhayangkara Jakarta Raya

DOI:

https://doi.org/10.12928/iefbr.v1i2.4756

Keywords:

SME marketing performance, innovation capabilities, technology capabilities, value-based sales.

Abstract

Introduction to The Problem: During the global Covid-19 pandemic, with social restrictions, digital marketing became a demand.  Plenty of MSMEs are unable to adapt to digital marketing quickly. It depends on innovation capabilities and technology capabilities of MSMEs, as well as an understanding of value-based selling.

Purpose: This study examines whether innovation capabilities are able to improve MSME marketing performance mediated by technology capabilities and value-based selling.

Methodology: A quantitative approach is used in this research with Structural Equation Modeling (SEM) modeling.  The questionnaire was distributed to 39 samples of MSMEs in Java, with purposive sampling..

Findings: SEM model testing shows that innovation capabilities have a positive and significant effect on improving the marketing performance of MSMEs, both directly and indirectly. Both technology capabilities and value-based selling are able to mediate the capacity for innovation to improve the marketing performance of MSMEs.   

Paper Type: Research Article

References

[1] Alexander, M. & Jaakkola, E., (2015) “Customer Engagement Behaviours and Value Co-creation,” Cust. Engagem.
[2] Bianchinia, S., G. Pellegrinoc, dan F. Tamagni. 2014. "Innovation Strategies and Firm Growth: New Longitudinal Evidence from Spanish Firms". Vol., No., hlm.
[3] Carraresi, L., X. Mamaqi, L. M. Albisu Aguado, dan A. Banterle. 2012. "Strategic capabilities and performance: an application of resource-based view in Italian food SMEs". Vol., No., hlm.
[4] Chen, C. J. (2009). Technology commercialization, incubator and venture capital, and new venture performance. Journal of Business Research, 62(1), 93- 103.
[5] Dimitrios, K., & Evangelos, P. (2012). The impact of innovation capability on the performance of manufacturing companies: The Greek case. Journal of Manufacturing Technology Management, 26(1), 104-130
[6] Dodgson, M. 2009. Asia’s National Innovation Systems: Institutional Adaptability and Rigidity in the Face of Global Innovation Challenges. Asia Pacific Journal of Management, 26(3): 589–609.
[7] Duy, N.Q. (2015). Internal and External factors in Innovation Rersistence. Vietnam Journal of Economics and Development, 221(2), 37-46.
[8] Farida, N., dan Listyorini, S., (2020), Innovation capability model and co-creation as an improvement of SMEs performance, ICISPE, Semarang, Indonesia, pp. 1-7.
[9] Gunday, G., Ulusoy, G., Kilic, K., and Alpkan, L. 2011. Effects of Innovation Types on Firm Performance. International Journal of Production Economics, 133(2): 662–676.
[10] Killa, M. F., ed. 2014. Kapabilitas Relasional Cerdas (Studi Empirik pada Industri Kreatif di Indonesia). Disajikan Ulang dari Disertasi berjudul "Membangun Kapabilitas Relasional Cerdas Unutk Meningkatkan Kinerja Pemasaran (Studi Empirik pada Industri Kreatif di Indonesia) ed. Semarang: YOGA PRATAMA.
[11] Maskell, P. (2001), ‘Growth and the Territorial Configuration of Economic Activity, Paper Presented at the DRUID Summer Conference, Copenhagen, 12–15 June 2001.
[12] Gunday, G., G. Ulusoy, K. Kilic, dan L. Alpkan. 2011. "Effects of innovation types on firm performance". International Journal of Production Economics, Vol. 133, No. 2, hlm: 662-676.
[13] Jong, A. D., Zacharias, N. A., & Nijssen, E., (2021), How young companies can effectively manage their slack resources over time to ensure sales growth: the contingent role of value-based selling, Journal of the Academy of Marketing Science, 49, 304-326.
[14] Jung H. S., Kim, K. H., & Lee, C H. (2014). Influences of perceived product innovation upon usage behavior for MMORPG: Product capability, technology capability, and user centerd design. Journal of Business Research. 67(10), 2171-2178.
[15] Racela, O. C. (2014). Customer orientation, innovation com petencies, and firm performance: A proposed conceptual model. Procedia-Social and Behavioral Sciences, 148, 16–23.
[16] Rinawiyanti E. D., & Lianto, B. (2019). Investigasi kapabilitas inovasi teknologi pada industri alas kaki di Jawa Timur. INOBIS: Jurnal Inovasi Bisnis dan Manajemen Indonesia. Vol.2, No.4, 597-613
[17] Rajapathirana, R. P. J., & Hui, Y. (2018) Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3(1), 44-55.
[18] Saunila, M. 2016. "Performance measurement approach for innovation capability in SMEs". International Journal of Productivity and Performance Management, Vol. 65, No. 2, hlm: 162-176.
[19] Shelby, D. H., & Caroline, D. (2004). The normative imperatives of business and marketing strategy: grounding strategy in resource‐advantage theory. Journal of Business & Industrial Marketing, 19(1), 5–22.
[20] Silvestre, B. S., & Neto, R. E. S., (2014). Capability accumulation, innovation, and technology diffusion: lesson from a base of the pyramid cluster. Technovation 34(5-6), 270-283.
[21] Toytari, P., & Rajala, R., (2014). Value-based selling: an organizational capability perspective, Industrial Marketing Management, 45, 101-112.
[22] Tsai, K. H., Liao, Y. C., & Hsu, T. T., (2015), “Does the use of knowledge integration mechanisms enhance product innovativeness?” Ind. Mark. Manag.
[23] Turulja, L., & Bajgoric, N., (2016). Innovation and information technology capability as antecedents of firm’s success. Interdisciplinary Description of Complex Systems 14(2), 148-156.
[24] Tzokas, N., Kim, Y. A., Akbar, H., & Al-Dajani, H., (2015), Absorptive capacity and performance: the role of customer relationship and technological capabilities in high-tech SMEs. Industrial Marketing Management. Pp. 9.
[25] Wang, C. H., Lu, L. Y., & Chen, C. B. (2008). Evaluating firm technological innovation capability under uncertainty. Technovision, 28(6), 349-363.
[26] Westlund, H. (2005), Social Capital of a Knowledge-Intense Industry: A Comparison of the Biotech Industry in Sweden, California and Japan, Stockholm: ITPS, Swedish Institute for Growth Policy Studies
[27] Zawislak, P. A., Alves, A. C. Gamarra, J. T., Barbieux, D., & Reichert, F. M., (2012), Innovation capability: from technology development to transaction capability, Journal of technology management & innovation, 7(2),
[28] Zhang, M., Sarker, S., Sarker, S., (2008). Unpacking the effect of IT capability on the performance of export focused SMEs: a report from China. International Systems Journal, 18(4), 357-380.
[29] Zhou, K. Z. & Wu, F., (2009). Technological capability, strategic flexibility, and product innovation, Strategic Management Journal, 31(5), 547-561.

Published

2024-06-29

Issue

Vol. 1 No. 2 (2021): Desember

Section

Articles

License

Copyright (c) 2021 Dewi Sri Woelandari Pantjologiningroem, Resista Vikaliana, Novita Wahyu Setyawati

Creative Commons License

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

Authors who publish with Journal Islamic Economics, Finance, and Banking Review (IEFBR) agree to the following terms:

  1. All articles published are Open Access which means they will be immediately and permanently free for everyone to read and download.  We use the CC-BY-SA license options under the Creative Commons Attribution License (CC BY-SA 4.0). Creative Commons Attribution License (CC BY-SA 4.0). CC-BY-SA assures that all works will be available under CC-BY-SA always and no risk of commercial actions against the will of the copyright holder.    
  2. Anyone can use, copy and disseminate the material in any medium or format; as well as re-use, re-mix, transform, and build upon the material for any purpose, even commercially. However, they must acknowledge the authors by giving appropriate credits (cite to the article or content), provide a link to the license, and indicate if changes were made and use under the same license as the original.
  3. Authors retain copyright and grant license exclusive rights in their article to Universitas Ahmad Dahlan as the publisher of the Journal Islamic Economics, Finance, and Banking Review (IEFBR).
  4. Authors have the right to retain patent, trademark, and other intellectual property rights (including research data). 
  5. Authors have the right to proper attribution and credit for the published work.

Copyright Transfer Agreement

  1. The Authors submitting the manuscripts do so on the understanding that if they are accepted for publications, the copyright of the articles shall be assigned to Universitas Ahmad Dahlan as the publisher of the Journal Islamic Economics, Finance, and Banking Review (IEFBR).
  2. Universitas Ahmad Dahlan as the publisher of the Journal Islamic Economics, Finance, and Banking Review (IEFBR), the Editors, and the Editorial Board Members of the Journal Islamic Economics, Finance, and Banking Review (IEFBR) make every effort to ensure that no wrong or misleading data, opinions, or statements are published in the journal. In any way, the contents of the articles and circulars published in the Journal Islamic Economics, Finance, and Banking Review (IEFBR) are the sole and exclusive responsibility of their respective authors and advertisers.
  3. The publisher may revoke the publication for violating the ethical code of conduct.