Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no4.0307

Relationship Between Innovation Activities and Business Performance: A Case Study in Indonesia  

ARIF, Muhammad Ridwan (Accounting Department, Politeknik Negeri Ujung Pandang)
HASAN, Dahsan (Accounting Department, Politeknik Negeri Ujung Pandang)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.4, 2021 , pp. 307-315 More about this Journal
Abstract
The study aims to investigate the relationship between innovation activities and business process performance in higher education institution (hereinafter referred to as "HEI") context. The data was collected using a survey and later analyzed through Partial Least Squares Structural Equation Modelling (PLSSEM) and SmartPLS software. A total of 50 questionnaires were submitted from respondents representing vocational study program management located in Makassar, Indonesia. The findings show that two hypotheses discussed in this study fit the empirical data. Specifically, the results show that there is a positive relationship between innovation activities and business process performance, involving two types of innovation activities, which are exploration activities and exploitation activities, within HEIs. Explorative activity is firmly related to exploitative activity, which furthermore links to business process performance within the HEIs observed. The results confirm that exploration activity can stimulate and lead the HEIs management to generate exploitation activity. For instance, capabilities to absorb knowledge from the external institution may lead this institution to generate advanced academic processes, as well as more efficient and effective managerial processes. The study also signifies ambidexterity capacity, suggesting that it may lead HEIs management to formulate proper strategies in achieving better performance and gaining competitive advantage.
Keywords
Innovation Activities; Higher Education; Business Process Performance; Ambidexterity Capacity;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Birkinshaw, J., Hamel, G., & Mol, M. J. (2008). Management innovation. Academy of Management Review, 33(4), 825-845. https://doi.org/10.5465/AMR.2008.34421969   DOI
2 Blass, E., & Hayward, P. (2014). Innovation in higher education; will there be a role for "the academe/university" in 2025? European Journal of Futures Research, 2(1). https://doi.org/10.1007/s40309-014-0041-x   DOI
3 Bloch, P. H. (2011). Product design and marketing: Reflections after fifteen years. Journal of Product Innovation Management, 28(3), 378-380. https://doi.org/10.1111/j.1540-5885.2011.00805.x   DOI
4 Bovkun, A. S., & Troshina, A. O. (2017). Classification of innovative activities in universities. 38(Ttiess), 82-86. https://doi.org/10.2991/ttiess-17.2017.14   DOI
5 Braunerhjelm, P., Ding, D., & Thulin, P. (2017). Does Innovation Lead to Firm Growth? Explorative versus Exploitative Innovations. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2995422   DOI
6 Brennan, J. (2010). Burton clark's the Higher Education System: Academic organization in cross-national perspective. London Review of Education, 8(3), 229-237. https://doi.org/10.1080/14748460.2010.515122   DOI
7 Cai, Y. (2017). From an analytical framework for understanding the innovation process in higher education to an emerging research field of innovations in higher education. Review of Higher Education, 40(4), 585-616. https://doi.org/10.1353/rhe.2017.0023   DOI
8 Dell'Anno, D., & del Giudice, M. (2015). Absorptive and desorptive capacity of actors within university-industry relations: does technology transfer matter? Journal of Innovation and Entrepreneurship, 4(1). https://doi.org/10.1186/s13731-015-0028-2   DOI
9 Sutrisno, A. (2019). Internationalization of Indonesian Higher Education: Recent Initiatives and their Problems. International Higher Education, (97), 12-13. https://doi.org/10.6017/ihe.2019.97.10941   DOI
10 Sheridan, I., & Fallon, D. (2018). University-Industry Collaboration : where to next? Practitioners Proceedings of the 2018 University-Industry Interaction Conference, London: United Kingdom, UIIN, Amsterdam: The Netherlands, 16-27. Retrieved from https://sword.cit.ie/e3lcp/4/
11 van Dat, T. (2020). Assessing the effects of service quality, experience value, relationship quality on behavioral intentions. Journal of Asian Finance, Economics and Business, 7(3), 167-175. https://doi.org/10.13106/jafeb.2020.vol7.no3.167   DOI
12 Vorley, T., & Nelles, J. (2009). Building Entrepreneurial Architectures. Policy Futures in Education, 7(3), 284-296.   DOI
13 He, Z., & Wong, P. K. (2014). Exploration vs . Exploitation: An Empirical Test of the Ambidexterity Hypothesis. (August 2004). https://doi.org/10.1287/orsc.1040.0078   DOI
14 Wahidmurni, W. (2020). Evaluation of entrepreneurship education in Islamic religious higher education institutions in Indonesia. International Journal of Innovation, Creativity and Change, 13(7), 693-711.
15 Dragan, M., Ivana, D., & Arba, R. (2014). Business Process Modeling in Higher Education Institutions. Developing a Framework for Total Quality Management at Institutional Level. Procedia Economics and Finance, 16(May), 95-103. https://doi.org/10.1016/s2212-5671(14)00779-5   DOI
16 Duval-Couetil, N., Shartrand, A., & Reed, T. (2016). The role of entrepreneurship program models and experiential activities on engineering student outcomes. Advances in Engineering Education, 5(1).
17 Goddard, J., Robertson, D., & Vallance, P. (2012). Universities, technology and innovation centres and regional development: The case of the North-East of England. Cambridge Journal of Economics, 36(3), 609-627. https://doi.org/10.1093/cje/bes005   DOI
18 Gupta, A. K., Smith, K. G., & Shalley, C. E. (2006). The interplay between exploration and exploitation. Academy of Management Journal, 49(4), 693-706. https://doi.org/10.5465/AMJ.2006.22083026   DOI
19 Gustun, O. N., & Budaragin, N. V. (2017). The lifecycle of e-learning course in the adaptive educational environment. AIP Conference Proceedings, 1797. https://doi.org/10.1063/1.4972424   DOI
20 Hair, J. F., Sarstedt, M., & Ringle, C. M. (2012). An Assessment of the Use of Partial Least Squares Structural Equation An assessment of the use of partial least squares structural equation modeling in marketing research. (September 2014). https://doi.org/10.1007/s11747-011-0261-6   DOI
21 Hortinha, P., Lages, C., & Lages, L. F. (2011). The Trade-Off Between Customer. (March 2014). https://doi.org/10.2307/41304401
22 Koryak, O., Lockett, A., Hayton, J., Nicolaou, N., & Mole, K. (2018). Disentangling the antecedents of ambidexterity: Exploration and exploitation. Research Policy, 47(2), 413-427. https://doi.org/10.1016/j.respol.2017.12.003   DOI
23 Huang, J. S., & Brown, A. (2019). Enabling Collaborative Work in Higher Education: An Exploration of Enhancing Research Collaborations within an Institution. Journal of Research Administration, 50(3), 63-89.
24 Huang, Z., Van Der Aalst, W. M. P., Lu, X., & Duan, H. (2011). Reinforcement learning based resource allocation in business process management. Data and Knowledge Engineering, 70(1), 127-145. https://doi.org/10.1016/j.datak.2010.09.002   DOI
25 Kis, V. (2005). Quality Assurance in Tertiary Education: Current Practices in OECD Countries and a Literature Review on Potential Effects. Organisation for Economic Co-Operation and Development. Directorate for Education. Education and Training Policy Division, (August), 47. Retrieved from https://www.oecd.org/education/skills-beyond-school/38006910.pdf%0Ahttp://www.oecd.org/education/skills-beyond-school/38006910.pdf
26 Kupriyanova, V., Estermann, T., & Sabic, N. (2018). Efficiency of Universities: Drivers, Enablers and Limitations. In European Higher Education Area: The Impact of Past and Future Policies. https://doi.org/10.1007/978-3-319-77407-7_36   DOI
27 Lee, J. W., Becker, K., & Potluri, R. M. (2018). Antecedents of Corporate Adoption of Social Media and the Role of the Technology Acceptance Model in the Path. SSRN Electronic Journal, 3(May). https://doi.org/10.2139/ssrn.3089058   DOI
28 Levinthal, D. A., & March, J. G. (1993). The myopia of learning. Strategic Management Journal, 14(2 S), 95-112. https://doi.org/10.1002/smj.4250141009   DOI
29 Aberson, C. L. (2015). Statistical Power Analysis. Emerging Trends in the Social and Behavioral Sciences, 1-14. https://doi.org/10.1002/9781118900772.etrds0319   DOI
30 March, J. G. (1991). Exploration and exploitation in organizational learning "ملعتلا تاسسؤم يف لالغتسالاو بيقنتلا" Organization Science, 2(1), 71-87.   DOI
31 Amason, A. C., Shrader, R. C., & Tompson, G. H. (2006). Newness and novelty: Relating top management team composition to new venture performance. Journal of Business Venturing, 21(1), 125-148. https://doi.org/10.1016/j.jbusvent.2005.04.008   DOI
32 Atuahene-Gima, K., Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive market orientations for new product program performance. Journal of Product Innovation Management, 22(6), 464-482. https://doi.org/10.1111/j.1540-5885.2005.00144.x   DOI
33 Aujirpongpan, S., & Hareebin, Y. (2020). The effect of strategic intuition, business analytic, networking capabilities and dynamic strategy on innovation performance: The empirical study thai processed food exporters. Journal of Asian Finance, Economics and Business, 7(1), 259-268. https://doi.org/10.13106/jafeb.2020.vol7.no1.259   DOI
34 Benner, M. J. (2001). Exploitation, exploration, and process management: The productivity dilemma revisited. Academy of Management Review, 28(2), 238-256.   DOI
35 Mukhtarova, K., & Myltykbayeva, A. (2014). Analysis of Innovative Activity in Regions of Kazakhstan. The Journal of Asian Finance, Economics and Business, 1(4), 23-27. https://doi.org/10.13106/jafeb.2014.vol1.no4.23.   DOI
36 Bierly, P. E., & Daly, P. S. (2007). Alternative knowledge strategies, competitive environment, and organizational performance in small manufacturing firms. Entrepreneurship: Theory & Practice, 31(4), 493-516. https://doi.org/10.1111/j.1540-6520.2007.00185.x   DOI
37 Birkinshaw, J., & Gibson, C. (2004). Building ambidexterity into an organization. MIT Sloan Management Review, 45(4), 47-55.
38 Marin-Idarraga, D. A., Hurtado Gonzalez, J. M., & Cabello Medina, C. (2016). The Antecedents of Exploitation-Exploration and Their Relationship with Innovation: A Study of Managers' Cognitive Maps. Creativity and Innovation Management, 25(1), 18-37. https://doi.org/10.1111/caim.12139   DOI
39 Marinova, D., & Phillimore, J. (2003). Marinova_Phillimore_2003_Models_of_Innovation.pdf. 44-53.
40 Muafi, M., Siswanti, Y., Diharto, A. K., & Salsabil, I. (2020). Innovation culture and process in mediating human capital supply chain on firm performance. Journal of Asian Finance, Economics and Business, 7(9), 593-602. https://doi.org/10.13106/JAFEB.2020.VOL7.NO9.593   DOI
41 O'Reilly, C. A., & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: Resolving the innovator's dilemma. Research in Organizational Behavior, 28, 185-206. https://doi.org/10.1016/j.riob.2008.06.002   DOI
42 Organisation for Economic Co-operation and Development (OECD). (2017). Benchmarking Higher Education System Performance: Conceptual framework and data. Enhancing Higher Education System Performance, 97. Retrieved from http://www.oecd.org/education/skills-beyondschool/benchmarking-higher-education-systems-performance.htm
43 Ruth, K., & Deitmer, L. (2010). The relationship between technical and vocational education and training and innovation. International Encyclopedia of Education, 423-428. https://doi.org/10.1016/B978-0-08-044894-7.00796-X   DOI
44 Pandey, S., & Sharma, R. R. K. (2009). Organizational factors for exploration and exploitation. Journal of Technology Management and Innovation, 4(1), 48-58. https://doi.org/10.4067/S0718-27242009000100005   DOI