Innovation speed and competitiveness of food small and medium-sized enterprises (SME) in Malang, Indonesia: Creative destruction as the mediation
Journal of Science and Technology Policy Management
ISSN: 2053-4620
Article publication date: 20 November 2019
Issue publication date: 20 November 2019
Abstract
Purpose
The purpose of this paper is to examine the role of creative destruction as mediation between the speed of innovation and competitiveness of food small and medium enterprises (SMEs). Creative destruction that is competence-based and market-based is usually done by incumbent enterprises to create barrier to entry and widen the distance with similar businesses, then the role of creative destruction as a mediation to strengthen the competitiveness is investigated.
Design/methodology/approach
To test this, data were collected from 161 SMEs that is the food SME population in Great Malang covering three areas namely Malang Municipality, Malang Regency and Batu Municipality. warp partial least square-structural equation modeling (WarpPLS-SEM) was applied because parameter estimation with WarpPLS-SEM is very efficient because it has greater statistical requirements than other covariant-based methods, which is more likely to deliver results that match the population condition (significant if that is in fact significant in the population).
Findings
The pace of innovation development is very important to improve the competitiveness of food SMEs. The idea of innovation is quickly realized and products that enter the market faster have a greater chance to improve competitiveness through profit and productivity. The pace of innovation development enhances the competitiveness of food SMEs. This study proves that competitiveness can be increased once the pace of innovation development is followed by creative destruction. Creative destruction in this case is done through increased competence and maintain the innovations that have been achieved by food SMEs. Increased business competence could be conducted through cost efficiency enhancing product quality and improving worker skill. It is conducted while maintaining the achieved innovation to strengthen the market network customer service and innovation in product packaging. The government’s role is proven not to strengthen the relationship of the pace of innovation development and competitiveness of food SMEs. The role of the government is reflected through credit facilities business licensing promotion marketing and training. These have been carried out by the government. Nevertheless, these activities do not generate widespread impact in strengthening the pace of innovation development to enhance the competitiveness of food SMEs.
Research limitations/implications
The main limitation of this study is that it analyzes processed foods and innovations in general. Future research should investigate one type of processed food based on the typology of innovation so as to provide more effective and efficient recommendations.
Originality/value
This is the first known analysis of innovation speed and creative destruction for SMEs of food sector.
Keywords
Acknowledgements
Retraction notice: The Editorial team of the Journal of Science and Technology Policy Management wish to retract the following published article:
Hutahayan, B. and Yufra, S. (2019), “Innovation speed and competitiveness of food small and medium-sized enterprises (SME) in Malang, Indonesia: Creative destruction as the mediation“, Journal of Science and Technology Policy Management, Vol. 10 No. 5, pp. 1152-1173, https://doi.org/10.1108/JSTPM-12-2017-0071.
It appears that this article has substantial overlap, amongst other sources, with the following article:
Taneo, S.Y.M., Hadiwidjojo, D., Sunaryo, S. and Sudjatno, S. (2020), “Creative destruction and knowledge creation as the mediation between innovation speed and competitiveness of food small and medium-sized enterprises in Malang, Indonesia”, Competitiveness Review, Vol. 30 No. 2, pp. 195-218, https://doi.org/10.1108/CR-12-2017-0090.
The lead author on the Competitiveness Review article is Stefanus Yufra, who is also an author on the Journal of Science and Technology Policy Management article.
These articles were submitted on the same day to the journals and it is unclear which article was submitted first.
Both journal author guidelines make it clear that articles must be original and must not infringe any existing copyright. Additionally, the guidelines make it clear that articles must not be under consideration by any other journal at the time of submission.
Citation
Hutahayan, B. and Yufra, S. (2019), "Innovation speed and competitiveness of food small and medium-sized enterprises (SME) in Malang, Indonesia: Creative destruction as the mediation", Journal of Science and Technology Policy Management, Vol. 10 No. 5, pp. 1152-1173. https://doi.org/10.1108/JSTPM-12-2017-0071
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited