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Modelling the continuous innovation capability enablers in Indonesia’s manufacturing industry

Benny Lianto (Department of Industrial Engineering, Universitas Indonesia, Depok, Indonesia)
Muhammad Dachyar (Department of Industrial Engineering, Universitas Indonesia, Depok, Indonesia)
Tresna Priyana Soemardi (Department of Mechanical Engineering, Universitas Indonesia, Depok, Indonesia)

Journal of Modelling in Management

ISSN: 1746-5664

Article publication date: 10 December 2020

Issue publication date: 17 February 2022

561

Abstract

Purpose

The purpose of this paper is to identify and screen continuous innovation capability enablers (CICEs) in Indonesia’s manufacturing sectors, develop a relationship among these enablers and determine their driving power and dependence power in the sector.

Design/methodology/approach

The initial CICEs identification process is based on a literature review, while a fuzzy Delphi method (FDM) was used for the screening process of CICEs. Total interpretive structural modelling (TISM) was used to develop contextual relationships among various CICEs. The results of the TISM are used as an input for the matrix of cross-impact multiplications applied to classification (MICMAC) to classify the driving power and dependence powers of the CICEs.

Findings

This paper selected 16 CICEs classified in seven dimensions. TISM results and MICMAC analysis show that leadership, as well as climate and culture, are enablers with the highest driving power and lowest dependence powers; followed by information technology. The results of this study indicate that efforts to continuously develop innovation capabilities in the Indonesian manufacturing industries are strongly influenced by their leadership capability, climate and culture, also information technology-related capability.

Practical implications

The framework assessed in this study provides business managers and policymakers to obtain a bigger picture in developing policies with evidence-based strategy and priority in regard to continuous innovation capability.

Originality/value

The results will be useful for business managers and policymakers to understand the relationship between CICEs and identify key CICEs in Indonesia’s manufacturing sectors, which were previously non-existent.

Keywords

Acknowledgements

The authors would like to thank University of Surabaya (UBAYA) for permits and support this research funding.

Citation

Lianto, B., Dachyar, M. and Soemardi, T.P. (2022), "Modelling the continuous innovation capability enablers in Indonesia’s manufacturing industry", Journal of Modelling in Management, Vol. 17 No. 1, pp. 66-99. https://doi.org/10.1108/JM2-04-2020-0103

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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