Main Article Content
Abstract
This research aims to analyze the improvement of company performance through innovation capability and supply chain integration as a moderating variable, especially in the earthenware industry in Kasongan, Bantul, Yogyakarta. The data was taken through the distribution of questionnaires to 135 SMEs of earthenware craftsmen using proportionate stratified random sampling. The research conducted structural equation modeling to test the proposed hypotheses. The results of this research indicate that there is a significant positive effect of innovation capability on supply chain integration, and the positive effect of innovation capability and supply chain integration on company performance. So that it can be used as a reference to improve the SME’s performance.
Keywords: Company Performance, Innovation Capability, Supply Chain Integration, SMEs
Article Details
References
- Aigbogun, O., Ghazali, Z., & Razali, R. (2017). The Impact of regulatory function on supply chain resilience: Reliability of measurement scales. Global Business and Management Research: An International Journal, 9(1s). 524-531.
- Ali, M. H., Zhan, Y., Alam, S. S., Tse, Y. K. & Tan, H. K. (2017). Food supply chain integrity: the need to go beyond certification. Industrial Management & Data Systems, 117(8), 1589- 1611.
- Almatrooshi, B., Singh, & Farouk, S. (2016). Determinants of organizational performance: a proposed framework. International Journal of Productivity and Performance Management, 65(6), 844-859.
- Ayoub, H. F., Abdallah, A. B., & Suifan, T. S. (2017). The effect of supply chain integration on technical innovation in Jordan: the mediating role of knowledge management. Benchmarking: An International Journal, 24(3), 594-616.
- BPS Yogyakarta. (2017). DIY Dalam Angka. Yogyakarta: BPS.
- Dhivyadeepa, E. (2015). Sampling Techniques in Educational Research. United States: Laxmi Book Publication Solapur.
- Ferreira, J., Coelho, A., & Moutinho, L. (2018). Dynamic capabilities, creativity, and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 1-18.
- Ferreira, J. A. B., Coelho, A., & Weersma, L. A. (2019). The mediating effect of strategic orientation, innovation capabilities, and managerial capabilities among exploration and exploitation, competitive advantage, and firm’s performance. Contaduria y Administracion. 64 (1), Especial Innovacion, 1-25.
- Fernandez, J. T., & de Burgos-Jimenez, J. (2017). Supply chain integration and performance relationship: a moderating effects review. The International Journal of Logistics Management, 28(4), 1243-1271.
- Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28, 58-71.
- Hair, J. F. Jr., Black, W. C., Babin, B. J., & Anderson, R. E., (2010), Multivariate Data Analysis, 7th Edition, Person Prentice Hall, Essex, UK.
- Iddris, F., Awuah, G. B., & Gebrekidan, D. A. (2014). The role of innovation capability in achieving supply chain agility. International Journal of Management and Computing Sciences, 4(2), 104-112.
- Iddris, F. (2016). Measurement of innovation capability in the supply chain: an exploratory study. International Journal of Innovation Science, 8(4), 331-349.
- Kumar, A., & Kushwaha, G. S. (2018). Supply chain management practices and operational performance of fair price shops in India: An empirical study. Scientific Journal of Logistics, 14(1), 85-99.
- Khalfan, M. M., & McDermott, P. (2006). Innovating for supply chain integration within construction. The Australian Journal Construction Economia and Building, 6(2), 44-54.
- Kline, R. B. (2015). Principles and Practice of Structural Equation Modeling, Fourth Edition. New York, London: The Guilford Press.
- Laban, O. M., & Deya, J. (2019). Strategic Innovations and the Performance of Information Communication Technology Firms in Nairobi, Kenya. International Journal of Academic Research in Progressive Education and Development, 8(2), 1–24.
- Liao, Y., & Li, Y. (2018). Complementarity effect of supply chain competencies on innovation capability. Business Process Management Journal, 25(6), 1251-1272.
- Lii, P., & Kuo, F.-I. (2016). Innovation-orientation supply chain integration for combined competitiveness and firm performance. International Journal of Production Economics, 174, 142-155.
- Lim, J.-S., Darley, W. K., & Marion, D. (2017). Market orientation, innovation commercialization capability, and firm performance relationships: the moderating role of supply chain influence. Journal of Business & Industrial Marketing, 32(7), 913-924.
- Marsh, H. W., Guo, J., Dicke, T., Parker, P. D., & Craven, R. G. (2018). Confirmatory Factor Analysis (CFA), Exploratory Structural Equation Modeling (ESEM) & SetESEM: Optimal balance between goodness of fit and parsimony. Multivariate Behavioral Research, 1-18
- Mazzola, E., Acur, N., Piazza, M., & Perrone, G. (2018). “To own or not to own?” A study on the determinants and consequences of alternative intellectual property rights arrangements in crowdsourcing for innovation contests. Journal of Product Innovation Management, 0(0),1-22.
- Munaf, T. (2018). Ekonomi Kreatif. Data Statistik dan Hasil Survei. Kerjasama Badan Ekonomi Kreatif dan Badan Pusat Statistik, 1-23.
- Na, Y., Kang, S., & Jeong, H. (2019). The effect of market orientation on performance of sharing economy business: Focusing on marketing innovation and sustainable competitive advantage. Sustainability, 11(3), 729-747.
- Namagembe, S., Sridharan, & Ryan, S. (2016). Green supply chain management practice adoption in Ugandan SME manufacturing firms. World Journal of Science, Technology and Sustainable development, 13(3), 154-173.
- Parulekar, A., & Verulkar, A. (2015). Supply chain management and its relationship with organizational performance: A literature review. Journal of Commerce & Management Thought, 6(4), 770-787.
- Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3(1), 44–55.
- Rojo, A., Stevenson, M., Llorens Montes, F. J., & Perez-Arostegu, M. N. (2018). Supply chain flexibility in dynamic environments. International Journal of Operations & Production Management, 38(3), 636-666.
- Sekaran, U., & Bougie, R. (2013). Research Methods for Business: A Skill Building Approach. West Sussex: John Wiley & Sons Ltd.
- Selvam, M., Gayathri, J., Vasanth, V., Lingaraja, K., & Marxiaoli, S. (2016). Determinants of firm performance: A subjective model. International Journal of Social Science Studies, 4(7), 90-100.
- Tsai, M. C., & Wang, C. (2017). Linking service innovation to firm performance: The roles of ambidextrous innovation and market orientation capability. Chinese Management Studies, 11(4), 730-750.
- Tan, K. H., Ali, M. H., Makhbul, Z. M. & Ismai, A. (2017). The impact of external integration on halal food integrity. Supply Chain Management: An International Journal, 22(2), 189-199.
- Lii, P., & Kuo, F.-I. (2016). Innovation-orientation supply chain integration for combined competitiveness and firm performance. International Journal of Production Economics, 174, 142-155.
- Wan Omar, W. M. (2017). Developing a model for the halal food supply chain. Dissertation, RMIT University.
- Yang, J. (2012). Innovation capability corporate Growth: An empirical investigation in China. Journal of engineering and technology management, 29, 34-46.
- Yunus, E. N. (2018). Leveraging supply chain collaboration in pursuing radical innovation. International Journal of Innovation Science, 10(3), 350-370.
- Yusoff, F. A. M., Yusof, R. N. R., & Hussin S. R. (2015). Halal food supply chain knowledge and purchase intention. International Journal of Economics and Management, 9(s), 155-172.
- Zou, B., Guo, F., & Song, M. (2017). Elastic and plastic innovation capability in firms. Industrial Management & Data Systems, 117(1), 198-212.
References
Aigbogun, O., Ghazali, Z., & Razali, R. (2017). The Impact of regulatory function on supply chain resilience: Reliability of measurement scales. Global Business and Management Research: An International Journal, 9(1s). 524-531.
Ali, M. H., Zhan, Y., Alam, S. S., Tse, Y. K. & Tan, H. K. (2017). Food supply chain integrity: the need to go beyond certification. Industrial Management & Data Systems, 117(8), 1589- 1611.
Almatrooshi, B., Singh, & Farouk, S. (2016). Determinants of organizational performance: a proposed framework. International Journal of Productivity and Performance Management, 65(6), 844-859.
Ayoub, H. F., Abdallah, A. B., & Suifan, T. S. (2017). The effect of supply chain integration on technical innovation in Jordan: the mediating role of knowledge management. Benchmarking: An International Journal, 24(3), 594-616.
BPS Yogyakarta. (2017). DIY Dalam Angka. Yogyakarta: BPS.
Dhivyadeepa, E. (2015). Sampling Techniques in Educational Research. United States: Laxmi Book Publication Solapur.
Ferreira, J., Coelho, A., & Moutinho, L. (2018). Dynamic capabilities, creativity, and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 1-18.
Ferreira, J. A. B., Coelho, A., & Weersma, L. A. (2019). The mediating effect of strategic orientation, innovation capabilities, and managerial capabilities among exploration and exploitation, competitive advantage, and firm’s performance. Contaduria y Administracion. 64 (1), Especial Innovacion, 1-25.
Fernandez, J. T., & de Burgos-Jimenez, J. (2017). Supply chain integration and performance relationship: a moderating effects review. The International Journal of Logistics Management, 28(4), 1243-1271.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28, 58-71.
Hair, J. F. Jr., Black, W. C., Babin, B. J., & Anderson, R. E., (2010), Multivariate Data Analysis, 7th Edition, Person Prentice Hall, Essex, UK.
Iddris, F., Awuah, G. B., & Gebrekidan, D. A. (2014). The role of innovation capability in achieving supply chain agility. International Journal of Management and Computing Sciences, 4(2), 104-112.
Iddris, F. (2016). Measurement of innovation capability in the supply chain: an exploratory study. International Journal of Innovation Science, 8(4), 331-349.
Kumar, A., & Kushwaha, G. S. (2018). Supply chain management practices and operational performance of fair price shops in India: An empirical study. Scientific Journal of Logistics, 14(1), 85-99.
Khalfan, M. M., & McDermott, P. (2006). Innovating for supply chain integration within construction. The Australian Journal Construction Economia and Building, 6(2), 44-54.
Kline, R. B. (2015). Principles and Practice of Structural Equation Modeling, Fourth Edition. New York, London: The Guilford Press.
Laban, O. M., & Deya, J. (2019). Strategic Innovations and the Performance of Information Communication Technology Firms in Nairobi, Kenya. International Journal of Academic Research in Progressive Education and Development, 8(2), 1–24.
Liao, Y., & Li, Y. (2018). Complementarity effect of supply chain competencies on innovation capability. Business Process Management Journal, 25(6), 1251-1272.
Lii, P., & Kuo, F.-I. (2016). Innovation-orientation supply chain integration for combined competitiveness and firm performance. International Journal of Production Economics, 174, 142-155.
Lim, J.-S., Darley, W. K., & Marion, D. (2017). Market orientation, innovation commercialization capability, and firm performance relationships: the moderating role of supply chain influence. Journal of Business & Industrial Marketing, 32(7), 913-924.
Marsh, H. W., Guo, J., Dicke, T., Parker, P. D., & Craven, R. G. (2018). Confirmatory Factor Analysis (CFA), Exploratory Structural Equation Modeling (ESEM) & SetESEM: Optimal balance between goodness of fit and parsimony. Multivariate Behavioral Research, 1-18
Mazzola, E., Acur, N., Piazza, M., & Perrone, G. (2018). “To own or not to own?” A study on the determinants and consequences of alternative intellectual property rights arrangements in crowdsourcing for innovation contests. Journal of Product Innovation Management, 0(0),1-22.
Munaf, T. (2018). Ekonomi Kreatif. Data Statistik dan Hasil Survei. Kerjasama Badan Ekonomi Kreatif dan Badan Pusat Statistik, 1-23.
Na, Y., Kang, S., & Jeong, H. (2019). The effect of market orientation on performance of sharing economy business: Focusing on marketing innovation and sustainable competitive advantage. Sustainability, 11(3), 729-747.
Namagembe, S., Sridharan, & Ryan, S. (2016). Green supply chain management practice adoption in Ugandan SME manufacturing firms. World Journal of Science, Technology and Sustainable development, 13(3), 154-173.
Parulekar, A., & Verulkar, A. (2015). Supply chain management and its relationship with organizational performance: A literature review. Journal of Commerce & Management Thought, 6(4), 770-787.
Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3(1), 44–55.
Rojo, A., Stevenson, M., Llorens Montes, F. J., & Perez-Arostegu, M. N. (2018). Supply chain flexibility in dynamic environments. International Journal of Operations & Production Management, 38(3), 636-666.
Sekaran, U., & Bougie, R. (2013). Research Methods for Business: A Skill Building Approach. West Sussex: John Wiley & Sons Ltd.
Selvam, M., Gayathri, J., Vasanth, V., Lingaraja, K., & Marxiaoli, S. (2016). Determinants of firm performance: A subjective model. International Journal of Social Science Studies, 4(7), 90-100.
Tsai, M. C., & Wang, C. (2017). Linking service innovation to firm performance: The roles of ambidextrous innovation and market orientation capability. Chinese Management Studies, 11(4), 730-750.
Tan, K. H., Ali, M. H., Makhbul, Z. M. & Ismai, A. (2017). The impact of external integration on halal food integrity. Supply Chain Management: An International Journal, 22(2), 189-199.
Lii, P., & Kuo, F.-I. (2016). Innovation-orientation supply chain integration for combined competitiveness and firm performance. International Journal of Production Economics, 174, 142-155.
Wan Omar, W. M. (2017). Developing a model for the halal food supply chain. Dissertation, RMIT University.
Yang, J. (2012). Innovation capability corporate Growth: An empirical investigation in China. Journal of engineering and technology management, 29, 34-46.
Yunus, E. N. (2018). Leveraging supply chain collaboration in pursuing radical innovation. International Journal of Innovation Science, 10(3), 350-370.
Yusoff, F. A. M., Yusof, R. N. R., & Hussin S. R. (2015). Halal food supply chain knowledge and purchase intention. International Journal of Economics and Management, 9(s), 155-172.
Zou, B., Guo, F., & Song, M. (2017). Elastic and plastic innovation capability in firms. Industrial Management & Data Systems, 117(1), 198-212.