Abstract
SMEs in the food and beverage sector should be a responsive business for reaching consumers more effectively, expanding the market, and reducing consumer transaction costs. Still, many SMEs’ in the food and beverage sector are hesitant to use social media due to lack of some aspects in their business platforms. The study aims to give an overview model of the innovation marketing process by emphasizing the characteristics of SMEs’, which is simultaneously associated with marketing mix. The proposed model combined the TOE model and characteristics with a marketing mix using SEM on 198 SMEs in the Indonesian food and beverage sector. The findings proved that each technological, environmental, organizational, and characteristics are positively related to each of the people and processes. The management team roles in innovative solutions and contingencies of a complex environment gave the highest positive effects to technology and environment. However, technology does not always facilitate the work process, the quality of result, and process consistency for more efficiency. There are highlight points, i.e. the clear visibility of employee appraisals process for bridging the gap of competencies; using perceived usefulness, perceived ease of use, and perceived trust for generating business ideas, and attracting new customers.
Highlights
Most of SMEs are in the food and beverage sector which include 2.92 million number of micro with 737,596 of employees, contribute to sustainable development and substantially related to the country’s population and its ongoing growth
The research design was conducted from 198 SMEs’ in the food and beverage sector in Indonesia (DISKUMDAG, 2019) which are more than 90% of them concentrated in agriculture (Tambunnan, 2007)
The second phase was the quantitative stage with the Structural Equation Model (SEM) to explain the simultaneously relationships of TOE model as the benefits of social media networks that considered as innovation process and SMEs’ characteristics with marketing mix for the proposed model of innovation marketing process
Summary
Most of SMEs are in the food and beverage sector which include 2.92 million number of micro with 737,596 of employees, contribute to sustainable development and substantially related to the country’s population and its ongoing growth (eibn.org, 2017). Most SMEs’ in the food and beverage sector are hesitant to use social media due to low and lack of some aspects in their business platforms. It includes ICT, wages of employees due to financial resources, knowledge and competitive ability (OECD, 2004; Singh et al, 2008), promotion and advertising, and conventional marketing strategy are (Cragg et al, 2011; Bank Indonesia and LPPI, 2015). The interaction support of innovation capability, innovation type, and firm performance has influenced employees and work environment (Rajapathirana & Hui, 2017), uncertain environment promotes technical innovation and a complex environment promotes both administrative and technical innovation
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