Performance Analysis of Traditional Weaving SMEs in South Sulawesi: The Role of Mediating Technology Capability and Work Culture on the Effect of Open Innovation on Competitive Advantage

Abstract

The study was conducted on 152 SMEs of traditional weaving in South Sulawesi in two districts, namely 122 SMEs of Wajo Regency and 30 SMEs of Tana Toraja Regency. Data collection was obtained through the google meet link from February 2022 to April 2022 with the help of a network of traditional weaving entrepreneurs from South Sulawesi. The Open Innovation research variable is measured by seven indicators, Technology Capability is measured by ten indicators, Employee Work Culture is measured by thirteen indicators, and Competitive Advantage is measured by four indicators. The data is processed by SMARTPLS 3.0. The results of the study prove that there is a direct positive effect of Open Innovation and Employee Work Culture on Competitive Advantage. Employee Work Culture can mediate the effect of Open Innovation on Competitive Advantage. Work Culture is proven to have a mediating role in the influence of Open Innovation on Competitive Advantage.