Innovation capability of MSMEs : do social capital, tecnological capital, customer capital, and social media networking matters?
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Published:
Nov 9, 2023
Keywords:
Customer Capital, Innovation Capability, Social Capital, Social Media Networking, Technological Capital
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Economy
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Abstract
MSMEs or Micro Small and Medium Enterprises are the primary of national economic growth. In developing and advancing Indonesian MSMEs, support from various elements is certainly needed, starting from funding, licensing, protecting, and coaching to adequate logistics services. Including the ability to innovate which has an impact on increasing the potential of MSMEs.The development of MSMEs depends heavily on their capacity for innovation, which must be owned by MSME perpetrators if MSMEs are to remain competitive and profitable. In order to preserve its commercial worth, a MSMEs is also effect by elements related to intellectual capital. Therefore, the purpose of this study is to evaluate the impact of intellectual capital and social media networking on innovation capability. This study used MSMEs in the Banyumas, Brebes, and Cilacap Regencies of Central Java. SEM-PLS is the data analysis method applied in this study. Through improved innovation and business development, it is anticipated that this research will be able to strengthen MSMEs capabilities. According to the study's findings social capital, technological capital, customer capital, and social media networking all positively impact an organization's capacity for innovation
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Putri, T. M., Pratama, B. C., Dirgantari, N. . and Hartikasari, A. I. . (2023) “Innovation capability of MSMEs : do social capital, tecnological capital, customer capital, and social media networking matters?”, Jurnal Mantik, 7(3), pp. 1990-2002. doi: 10.35335/mantik.v7i3.4277.
References
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Chiva, R., Alegre, J., & Lapiedra, R. (2007). Measuring organisational learning capability among the workforce. International Journal of Manpower, 28(3–4), 224–242. https://doi.org/10.1108/01437720710755227
Chou, T. C., Chen, J. R., & Pan, S. L. (2006). The impacts of social capital on information technology outsourcing decisions: A case study of a Taiwanese high-tech firm. International Journal of Information Management, 26(3), 249–256. https://doi.org/10.1016/j.ijinfomgt.2006.02.002
Dakhli, M., & De Clercq, D. (2004). Human capital, social capital, and innovation: A multi-country study. Entrepreneurship and Regional Development, 16(2), 107–128. https://doi.org/10.1080/08985620410001677835
Duffy, J. (1998). Measuring customer capital. 3, 0–4.
Ekon.go.id. 1 oktober 2022. Perkembangan UMKM sebagai Critical Engine Perekonomian Nasional Terus Mendapatkan Dukungan Pemerintah. https://www.ekon.go.id/publikasi/detail/4593/perkembangan-umkm-sebaga i- critical engine-perekonomian-nasional-terus-mendapatkan-dukungan-pemerintah
Foroudi, P., Jin, Z., Gupta, S., Melewar, T. C., & Foroudi, M. M. (2016). Influence of innovation capability and customer experience on reputation and loyalty. Journal of Business Research, 69(11), 4882–4889. https://doi.org/10.1016/j.jbusres.2016.04.047
Gita Oktarini Puteri. (2018). Implikasi Penggunaan Sosial Media Sebagai Inovasi Pelayanan Terhadap Kinerja Perusahaan?: Temuan Empiris Pada Usaha Mikro Di Yogyakarta. Energies, 6(1), 1–8. http://journals.sagepub.com/doi/10.1177/1120700020921110%0Ahttps://doi.org/10.1016/j.reuma.2018.06.001%0Ahttps://doi.org/10.1016/j.arth.2018.03.044%0Ahttps://reader.elsevier.com/reader/sd/pii/S1063458420300078?token=C039B8B13922A2079230DC9AF11A333E295FCD8
Gomes, G., & Wojahn, R. M. (2017). Organizational learning capability, innovation and performance: study in small and medium-sized enterprises (SMES). Revista de Administração, 52(2), 163–175. https://doi.org/10.1016/j.rausp.2016.12.003
Gourio, F., & Rudanko, L. (2014). Customer capital. Review of Economic Studies, 81(3), 1102–1136. https://doi.org/10.1093/restud/rdu007
Griliches, Z., & Mairesse, J. (1984). Productivity and R&D at the firm level. In R&D, Patents, and Productivity: Vol. I (Issue 826).
Gulati, R., Lawrence, P. R., & Puranam, P. (2005). Adaptation In Vertical Relationships?: Beyond Incentive Conflict. 440(March), 415–440. https://doi.org/10.1002/smj.458
Gupta, S., & Malhotra, N. (2013). Marketing innovation: a resource?based view of international and local firms. Marketing Intelligence & Planning, 31(2), 111–126. https://doi.org/10.1108/02634501311312026
Harjanti, D., & Noerchoidah, N. (2017). the Effect of Social Capital and Knowledge Sharing on Innovation Capability. Jurnal Manajemen Dan Kewirausahaan, 19(2), 72–78. https://doi.org/10.9744/jmk.19.2.72-78
Hitchen, E. L., Nylund, P. A., Ferràs, X., & Mussons, S. (2017). Social media: open innovation in SMEs finds new support. Journal of Business Strategy, 38(3), 21–29. https://doi.org/10.1108/JBS-02-2016-0015
Innayah, M. N., Pratama, B. C., & Hanafi, M. M. (2020). The Effect of Intellectual Capital towards Firm Performance and Risk with Board Diversity as a Moderating Variable?: Study in ASEAN Banking Firms Analisis Pengaruh Intellectual Capital terhadap Kinerja dan Risiko dengan Keberagaman Direksi sebagai Pemoder. 11(85), 27–38. https://doi.org/10.15294/jdm.v11i1.21487
Innayah, M. N., Pratama, B. C., & Tubastuvi, N. (2021). Board Diversity and Its Effects on Performance and Risk?: A Study in Banking Firms in Indonesia. 22(1). https://doi.org/10.18196/jai.v22i1.10005
Jahanshahi, A. A., Nawaser, K., & Brem, A. (2019). The Effects Of Customer Capital On Customer Response Speed And Innovativeness: The Mediating Role Of Marketing Capability. International Journal of Innovation Management, 23(6), 1–25. https://doi.org/10.1142/S1363919619500580
Kementrian Perindustrian. (2021). Mendorong Kinerja Industri Tekstil dan Produk Tekstil di Tengah Pandemi. In Buku Analisis Pembangunan Industri. file:///C:/Users/MY-COM~1/AppData/Local/Temp/Edisi III - Analisis Industri TPT-rev2.pdf
Khalique, M., Bontis, N., Abdul Nassir bin Shaari, J., & Hassan Md. Isa, A. (2015). Intellectual Capital in Pakistani Small Medium Enterprises. Journal of Intellectual Capital, 16(1), 224–238.
Knack, S., & Keefer, P. (1997). Does Social Capital Have an Economic Payoff?? A Cross-Country Investigation Author ( s ): Stephen Knack and Philip Keefer Source?: The Quarterly Journal of Economics , Vol . 112 , No . 4 ( Nov ., 1997 ), pp . 1251-1288 Published by?: The MIT Press Stable. Quarterly Journal of Economics, 112(4), 1251–1288.
Latifah, L., Setiawan, D., Aryani, Y. A., Sadalia, I., & Al Arif, M. N. R. (2022). Human Capital and Open Innovation: Do Social Media Networking and Knowledge Sharing Matter? Journal of Open Innovation: Technology, Market, and Complexity, 8(3). https://doi.org/10.3390/joitmc8030116
Mursid, S., Suharno, S., & Priatna, W. B. (2018). The Effect of Social Media on the Innovation Performance of the Small-Middle Scaled Enterprises of Agribusiness in Bogor Regency. Indonesian Journal of Business and Entrepreneurship, 4(1), 22–36. https://doi.org/10.17358/ijbe.4.1.22
Nengah, N., Ekayani, S., Bagus, I., Purbawangsa, A., Sariani, N. K., & Suriani, N. N. (2021). Inovasi teknologi memediasi pengaruh intellectual capital terhadap kinerja UMKM. JPPI (Jurnal Penelitian …, 7(4), 658–669. https://jurnal.iicet.org/index.php/jppi/article/view/1285%0Ahttps://jurnal.iicet.org/index.php/jppi/article/download/1285/999
Oh, L. Bin, & Teo, H. H. (2010). Consumer value co-creation in a hybrid commerce service-delivery system. International Journal of Electronic Commerce, 14(3), 35–62. https://doi.org/10.2753/JEC1086-4415140303
Prakasa, Y., Sujoko, A., Aziz, N. A., & Muttaqin, A. (2022). Absorptive Capacity and Innovation Capability: Assessing the Impact on Smes Performance in the New Normal Era. Jurnal Ekonomi Bisnis Dan Kewirausahaan, 11(3), 325. https://doi.org/10.26418/jebik.v11i3.57368
Pratama, B. C., Darmawan, A., & Innayah, M. (2020). Covid-19 impact on MSME Business Operations around Banyumas Regency: Overview, Problems, and Suggestions. https://doi.org/10.4108/eai.5-8-2020.2301226
Pratama, B. C., Innayah, M. N., & Darmawan, A. (2021). Pendampingan Umkm Dan Pedagang Kaki Lima (Pkl) Terdampak Pandemi Covid-19 Di Area Kampus Universitas Muhammadiyah Purwokerto Dalam Menjalankan Contactless Business. Frontiers in Neuroscience, 3(1), 1–13.
Pratama, B. C., Innayah, M. N., & Furqon, M. (2023). Improving MSMEs ’ Networking through Digital Marketing?: The Role of Copywriting. 3(3), 673–680.
Pratama, B. C., Wibowo, H., & Innayah, M. N. (2019). Intellectual Capital and Firm Performance in ASEAN: The Role of Research and Development. Journal of Accounting and Investment, 20(3). https://doi.org/10.18196/jai.2003126
Pratono, A. H. (2018). From social network to firm performance: The mediating effect of trust, selling capability and pricing capability. Management Research Review, 41(6), 680–700. https://doi.org/10.1108/MRR-03-2017-0080
Ryu, D., Baek, K. H., & Yoon, J. (2021). Open innovation with relational capital, technological innovation capital, and international performance in SMEs. Sustainability (Switzerland), 13(6), 1–13. https://doi.org/10.3390/su13063418
Scuotto, V. (2016). The effect of social networking sites and absorptive capacity on SMES ’ innovation performance. The Journal of Technology Transfer. https://doi.org/10.1007/s10961-016-9517-0
Suroso, S., Novitasari, D., Nugroho, Y. A., Chidir, G., & Asbari, M. (2021). Managing MSME Innovation Performance: Analysis of Knowledge-Oriented Leadership and Knowledge Management Capability. Edukatif?: Jurnal Ilmu Pendidikan, 3(6), 4541–4555. https://doi.org/10.31004/edukatif.v3i6.1506
Wacquant, P. B. and L. J. D. (1992). An Invitation to Reflexive Sociology. Sociology: General Sociology, Theory And Sociology Of Knowledge. https://press.uchicago.edu/ucp/books/book/chicago/I/bo3649674.html
WU, X., & Sivalogathasan, V. (2013). Innovation Capability for better Performance: Intellectual Capital and Organization Performance of the Apparel Industry in Sri Lanka. Journal of Advanced Management Science, 1(3), 273–277. https://doi.org/10.12720/joams.1.3.273-277
Ye?il, S., & Do?an, I. F. (2021). Exploring the relationship between social capital, innovation capability and innovation. Innovation: Organization and Management, 21(4), 506–532. https://doi.org/10.1080/14479338.2019.1585187
Chiva, R., & Alegre, J. (2005). Organizational learning and organizational knowledge towards the integration of two approaches. Management Learning, 36(1), 49–68. https://doi.org/10.1177/1350507605049906
Chiva, R., Alegre, J., & Lapiedra, R. (2007). Measuring organisational learning capability among the workforce. International Journal of Manpower, 28(3–4), 224–242. https://doi.org/10.1108/01437720710755227
Chou, T. C., Chen, J. R., & Pan, S. L. (2006). The impacts of social capital on information technology outsourcing decisions: A case study of a Taiwanese high-tech firm. International Journal of Information Management, 26(3), 249–256. https://doi.org/10.1016/j.ijinfomgt.2006.02.002
Dakhli, M., & De Clercq, D. (2004). Human capital, social capital, and innovation: A multi-country study. Entrepreneurship and Regional Development, 16(2), 107–128. https://doi.org/10.1080/08985620410001677835
Duffy, J. (1998). Measuring customer capital. 3, 0–4.
Ekon.go.id. 1 oktober 2022. Perkembangan UMKM sebagai Critical Engine Perekonomian Nasional Terus Mendapatkan Dukungan Pemerintah. https://www.ekon.go.id/publikasi/detail/4593/perkembangan-umkm-sebaga i- critical engine-perekonomian-nasional-terus-mendapatkan-dukungan-pemerintah
Foroudi, P., Jin, Z., Gupta, S., Melewar, T. C., & Foroudi, M. M. (2016). Influence of innovation capability and customer experience on reputation and loyalty. Journal of Business Research, 69(11), 4882–4889. https://doi.org/10.1016/j.jbusres.2016.04.047
Gita Oktarini Puteri. (2018). Implikasi Penggunaan Sosial Media Sebagai Inovasi Pelayanan Terhadap Kinerja Perusahaan?: Temuan Empiris Pada Usaha Mikro Di Yogyakarta. Energies, 6(1), 1–8. http://journals.sagepub.com/doi/10.1177/1120700020921110%0Ahttps://doi.org/10.1016/j.reuma.2018.06.001%0Ahttps://doi.org/10.1016/j.arth.2018.03.044%0Ahttps://reader.elsevier.com/reader/sd/pii/S1063458420300078?token=C039B8B13922A2079230DC9AF11A333E295FCD8
Gomes, G., & Wojahn, R. M. (2017). Organizational learning capability, innovation and performance: study in small and medium-sized enterprises (SMES). Revista de Administração, 52(2), 163–175. https://doi.org/10.1016/j.rausp.2016.12.003
Gourio, F., & Rudanko, L. (2014). Customer capital. Review of Economic Studies, 81(3), 1102–1136. https://doi.org/10.1093/restud/rdu007
Griliches, Z., & Mairesse, J. (1984). Productivity and R&D at the firm level. In R&D, Patents, and Productivity: Vol. I (Issue 826).
Gulati, R., Lawrence, P. R., & Puranam, P. (2005). Adaptation In Vertical Relationships?: Beyond Incentive Conflict. 440(March), 415–440. https://doi.org/10.1002/smj.458
Gupta, S., & Malhotra, N. (2013). Marketing innovation: a resource?based view of international and local firms. Marketing Intelligence & Planning, 31(2), 111–126. https://doi.org/10.1108/02634501311312026
Harjanti, D., & Noerchoidah, N. (2017). the Effect of Social Capital and Knowledge Sharing on Innovation Capability. Jurnal Manajemen Dan Kewirausahaan, 19(2), 72–78. https://doi.org/10.9744/jmk.19.2.72-78
Hitchen, E. L., Nylund, P. A., Ferràs, X., & Mussons, S. (2017). Social media: open innovation in SMEs finds new support. Journal of Business Strategy, 38(3), 21–29. https://doi.org/10.1108/JBS-02-2016-0015
Innayah, M. N., Pratama, B. C., & Hanafi, M. M. (2020). The Effect of Intellectual Capital towards Firm Performance and Risk with Board Diversity as a Moderating Variable?: Study in ASEAN Banking Firms Analisis Pengaruh Intellectual Capital terhadap Kinerja dan Risiko dengan Keberagaman Direksi sebagai Pemoder. 11(85), 27–38. https://doi.org/10.15294/jdm.v11i1.21487
Innayah, M. N., Pratama, B. C., & Tubastuvi, N. (2021). Board Diversity and Its Effects on Performance and Risk?: A Study in Banking Firms in Indonesia. 22(1). https://doi.org/10.18196/jai.v22i1.10005
Jahanshahi, A. A., Nawaser, K., & Brem, A. (2019). The Effects Of Customer Capital On Customer Response Speed And Innovativeness: The Mediating Role Of Marketing Capability. International Journal of Innovation Management, 23(6), 1–25. https://doi.org/10.1142/S1363919619500580
Kementrian Perindustrian. (2021). Mendorong Kinerja Industri Tekstil dan Produk Tekstil di Tengah Pandemi. In Buku Analisis Pembangunan Industri. file:///C:/Users/MY-COM~1/AppData/Local/Temp/Edisi III - Analisis Industri TPT-rev2.pdf
Khalique, M., Bontis, N., Abdul Nassir bin Shaari, J., & Hassan Md. Isa, A. (2015). Intellectual Capital in Pakistani Small Medium Enterprises. Journal of Intellectual Capital, 16(1), 224–238.
Knack, S., & Keefer, P. (1997). Does Social Capital Have an Economic Payoff?? A Cross-Country Investigation Author ( s ): Stephen Knack and Philip Keefer Source?: The Quarterly Journal of Economics , Vol . 112 , No . 4 ( Nov ., 1997 ), pp . 1251-1288 Published by?: The MIT Press Stable. Quarterly Journal of Economics, 112(4), 1251–1288.
Latifah, L., Setiawan, D., Aryani, Y. A., Sadalia, I., & Al Arif, M. N. R. (2022). Human Capital and Open Innovation: Do Social Media Networking and Knowledge Sharing Matter? Journal of Open Innovation: Technology, Market, and Complexity, 8(3). https://doi.org/10.3390/joitmc8030116
Mursid, S., Suharno, S., & Priatna, W. B. (2018). The Effect of Social Media on the Innovation Performance of the Small-Middle Scaled Enterprises of Agribusiness in Bogor Regency. Indonesian Journal of Business and Entrepreneurship, 4(1), 22–36. https://doi.org/10.17358/ijbe.4.1.22
Nengah, N., Ekayani, S., Bagus, I., Purbawangsa, A., Sariani, N. K., & Suriani, N. N. (2021). Inovasi teknologi memediasi pengaruh intellectual capital terhadap kinerja UMKM. JPPI (Jurnal Penelitian …, 7(4), 658–669. https://jurnal.iicet.org/index.php/jppi/article/view/1285%0Ahttps://jurnal.iicet.org/index.php/jppi/article/download/1285/999
Oh, L. Bin, & Teo, H. H. (2010). Consumer value co-creation in a hybrid commerce service-delivery system. International Journal of Electronic Commerce, 14(3), 35–62. https://doi.org/10.2753/JEC1086-4415140303
Prakasa, Y., Sujoko, A., Aziz, N. A., & Muttaqin, A. (2022). Absorptive Capacity and Innovation Capability: Assessing the Impact on Smes Performance in the New Normal Era. Jurnal Ekonomi Bisnis Dan Kewirausahaan, 11(3), 325. https://doi.org/10.26418/jebik.v11i3.57368
Pratama, B. C., Darmawan, A., & Innayah, M. (2020). Covid-19 impact on MSME Business Operations around Banyumas Regency: Overview, Problems, and Suggestions. https://doi.org/10.4108/eai.5-8-2020.2301226
Pratama, B. C., Innayah, M. N., & Darmawan, A. (2021). Pendampingan Umkm Dan Pedagang Kaki Lima (Pkl) Terdampak Pandemi Covid-19 Di Area Kampus Universitas Muhammadiyah Purwokerto Dalam Menjalankan Contactless Business. Frontiers in Neuroscience, 3(1), 1–13.
Pratama, B. C., Innayah, M. N., & Furqon, M. (2023). Improving MSMEs ’ Networking through Digital Marketing?: The Role of Copywriting. 3(3), 673–680.
Pratama, B. C., Wibowo, H., & Innayah, M. N. (2019). Intellectual Capital and Firm Performance in ASEAN: The Role of Research and Development. Journal of Accounting and Investment, 20(3). https://doi.org/10.18196/jai.2003126
Pratono, A. H. (2018). From social network to firm performance: The mediating effect of trust, selling capability and pricing capability. Management Research Review, 41(6), 680–700. https://doi.org/10.1108/MRR-03-2017-0080
Ryu, D., Baek, K. H., & Yoon, J. (2021). Open innovation with relational capital, technological innovation capital, and international performance in SMEs. Sustainability (Switzerland), 13(6), 1–13. https://doi.org/10.3390/su13063418
Scuotto, V. (2016). The effect of social networking sites and absorptive capacity on SMES ’ innovation performance. The Journal of Technology Transfer. https://doi.org/10.1007/s10961-016-9517-0
Suroso, S., Novitasari, D., Nugroho, Y. A., Chidir, G., & Asbari, M. (2021). Managing MSME Innovation Performance: Analysis of Knowledge-Oriented Leadership and Knowledge Management Capability. Edukatif?: Jurnal Ilmu Pendidikan, 3(6), 4541–4555. https://doi.org/10.31004/edukatif.v3i6.1506
Wacquant, P. B. and L. J. D. (1992). An Invitation to Reflexive Sociology. Sociology: General Sociology, Theory And Sociology Of Knowledge. https://press.uchicago.edu/ucp/books/book/chicago/I/bo3649674.html
WU, X., & Sivalogathasan, V. (2013). Innovation Capability for better Performance: Intellectual Capital and Organization Performance of the Apparel Industry in Sri Lanka. Journal of Advanced Management Science, 1(3), 273–277. https://doi.org/10.12720/joams.1.3.273-277
Ye?il, S., & Do?an, I. F. (2021). Exploring the relationship between social capital, innovation capability and innovation. Innovation: Organization and Management, 21(4), 506–532. https://doi.org/10.1080/14479338.2019.1585187
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