The Factors that Influence the Intention of Marketing and Technological Innovation in MSMEs

Abstract

Innovation drives change, and conversely, innovation occurs because of change. Initially, innovation was only oriented toward technology in discovering new products. Only large companies could do it since it requires a challenging process. All levels, including MSMEs, could carry out further developments and innovation because innovation is not only about technological innovations. Based on this, the research objectives are to analyze the influence of the MSME owner’s characteristics on the intention of marketing and technological innovation through attitude and motivation in Indonesia. SEM analysis with the Smart-PLS program was used to answer the research objectives. The population in this study is the Indonesian micro, small, and medium enterprises from various types of businesses. Samples are 128 respondents to meet Hair theory. The minimum threshold for processing by the Smart PLS program is 100. Judgment sampling is defined as the sampling technique. The results of this study are attitude and motivation affect innovation intentions, both directly and as intervening variables that encourage curiosity, optimism, and risk-taking. Opinion leadership, social status, attitudes, and motivation influence the intention of marketing innovation, whereas awareness, financial stability, optimism, risk-taking, attitudes, and motivation directly affect the intention of technological innovation. The findings of this study are useful for the government and social organizations as a companion for MSMEs to massively increase intention in innovation for MSMEs by creating activities that foster attitudes and motivation to innovate. With the massive formation of attitudes and motivation to innovate, several characteristics possessed by MSME owners are encouraged to strengthen, thus giving rise to the intention to innovate. The innovations carried out by MSMEs on a massive scale can improve their performance and become a solution to the downturn. These characteristics, attitudes, and motivations are the novelty of this research, which are the factors influencing the intention to innovate, both marketing and technological innovation.