Partner Innovation Collaboration and Management Support Toward Innovation Speed and New Product Performance in Small Manufacturing Firms

Fansuri Munawar,Didi Tarmidi

doi:10.17358/jabm.6.2.437

Abstract

The purpose of this study was to examine and analyze the role of partner innovation collaboration and management support on innovation speed, and its implications towards new product performance in small manufacturing firms. This study took samples in the category of small manufacturing firms in the food & beverage sector, shoes & bags sector, craft sector, and diverse sector. Then, this study uses primary data using a questionnaire distributed to 95 owners or managers of small manufacturing firms in the Bandung and surrounding areas. Data analysis uses structural equation modeling based on partial least square with the help of SmartPLS 3.0. The results showed that partner innovation collaboration had a positive and significant effect on innovation speed, then management support had a positive and significant effect on innovation speed, then innovation speed had a positive and significant effect on new product performance, most recently the role of partner innovation collaboration also had a positive effect and significant to new product performance. The R-Square calculation results show that partner innovation collaboration and management support influence 0.432 on innovation speed, then partner innovation collaboration and innovation speed have an effect of 0.637 on new product performance. This study implied that small manufacturing firms to utilize an innovation collaboration with partners and allocate more time, effort, thought, costs in the effort to innovation, and be able to create an atmosphere of work together with employees that support innovation activities. Further research is to include moderation variables that support the improvement of new product performance such as absorptive capacity and technological uncertainty. Keywords: management support, partner innovation collaboration, innovation speed, new product performance

Highlights

Nowadays, the small manufacturing sector is still at the forefront of economic growth in Indonesia
There is a classic problem for small manufacturing firms who often have difficulty facing the expansion of large companies
It is exemplified in the food and beverage industry which is dominated by 128 large companies with a market share of about 65% of the food and beverage sector in Indonesia (Sidarta et al 2016)

Summary

Introduction

The small manufacturing sector is still at the forefront of economic growth in Indonesia. There is a classic problem for small manufacturing firms who often have difficulty facing the expansion of large companies It is exemplified in the food and beverage industry which is dominated by 128 large companies with a market share of about 65% of the food and beverage sector in Indonesia (Sidarta et al 2016). Martowardojo (2016) explains that the quality of human resources and technical and non-technical skills in SMEs was still low, the development of new products was still limited, and innovation was low. In line with this opinion, Satari (2014) explains that one of the main obstacles of manufacturing SMEs is the low quality of human resources and innovation. The researchers discovered the role of innovation speed in improving new product performance (Carbonell & Rodríguez, 2010; Shan et al 2016)

Objectives

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Results

Conclusion