Authenticity, market orientation, and innovation capability: A multilevel analysis

Abstract

The purpose of this study is to study the effect of market orientation and authenticity on innovation capability both directly and moderated by paradox mindset, organizational level. We also study the effect of motivation, individual level, on innovation capability both directly and moderated by a paradox mindset. The hypotheses proposed in this study are empirically tested using data from 580 respondents and 180 Batik SME organizations in Indonesia. To analyze the data, multilevel analysis with MPlus software is used. The results show that in a cross-level relationship, artisan motivation had a positive effect on innovation capability, and paradox mindset significantly moderated the relationship between market orientation and innovation capability. In addition, the authors also found a significant effect of authenticity on innovation capability. The study uses multilevel analysis to evaluate the mechanism of influence of artisan motivation (bottom-up) on innovation capability, and the moderating effect of paradox mindset in the Indonesian batik industry.