• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.327-338
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• 2020

This study wants to test the nexus among resource orientation, market orientation, social network, and knowledge sharing toward organizational innovation, and the nexus between organizational innovation and MSMEs performance. Questionnaires and interviews are conducted with some MSMEs actors in Central Java Province, Indonesia, in Klaten Regency and Pekalongan City. These two areas have creative MSMEs, especially Batik MSMEs that have been very large and known worldwide. The sampling technique is done purposively with certain criteria for the respondents. The data analysis technique is done using Partial Least Square. This study provides recommendations about strategic practice and policy (resource and market), social network, and knowledge sharing in increasing organizational innovation, and the impact of organizational innovation toward MSMEs performance. It also offers a comprehensive model of the determinant factor of organizational innovation by considering the aspect of strategic orientation, social network, and knowledge sharing. Other unique aspects that are also important to consider are social network and the importance of knowledge sharing in improving MSMEs Performance. The respondents are still limited in two areas, namely, Pekalongan and Klaten, so it still cannot represent the whole population. These areas also have different orientation of production process approach, namely, synthetic and natural dyes.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.295-304
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• 2019

The study aims to investigate the determinant factors in the organisation of a firm's innovative activities, and the impact of innovation capability on firm's performance of electronic firms in Ho Chi Minh city, Vietnam. How is the performance of electronic companies after delivering an innovation project? How will innovation capability affect firm's performance in electronic companies? This study aims to seek the answer of these questions. We employ a Structural Equation Model and the PLS technique in order to validate the theoretical model proposed in this study. With observation of 374 valid firms, based on Cronbach's Alpha analysis, EFA analysis, CFA analysis and SEM analysis, this study discovers 5 groups of factors including: (i) Institution factors; (ii) Attitude of leadership factors; (iii) Marketing factors; (iv) Technological resources factors; (v) Combination factors, which have direct impact on innovation capability of firms. There are 4 groups of factors that have positive impacts on financial performance of electronic firms, with descending order of importance as follows: (1) Attitude of leadership factors; (2) Quality of human resources factors; (3) Innovation capability; (4) Marketing activities factors. Research results are important implications for Government administrative agencies for business to consult and introduce effective support policies.

• Korean System Dynamics Review
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• v.10 no.2
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• pp.103-120
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• 2009

Using various data derived from the regional innovation projects in the IT and BT-sectors within Chungbuk Province, this study tries to observe formation processes of network connecting structure and their spill-over effects. Considering the dynamic nature of key issues, it applies both social network analysis and causal loop methods. After a series of simulation exercises, we find that so-called extroverted regional innovation projects, that is, ones financially supported by the central government, reveal a higher tendency in the centrality, heavily depending on a handful of well reputed organizations. It is quite similar to the reinforcing mechanism, resulting in the rich-get-richer and the poor-get-poorer. Compared with the existing documents, nonetheless, it shows relatively weak in the mechanism strength, implying the fact that regional innovation projects have significantly contributed to ameliorating the unequal distribution of innovation organizations within Chungbuk Province. On the other hand, this study concludes that all the brokerage organizations related to the regional innovation projects have settled in Chungbuk Province. Whereas the Capital Region-based organizations present a higher tendency in the knowledge-network, it seems that the regional innovation projects have significantly contributed to upgrading direct and indirect competitiveness of the local organizations.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.249-258
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• 2020

This study examines and analyzes the effect of innovation on the price to book value mediated by managerial ownership in Indonesian companies. In order to achieve the goals and objectives, the company increases its value by increasing shareholders. Improving the welfare of shareholders can be done through investment and financial policies, and is reflected in share prices in the capital market. The higher the share price, the better the owner's welfare, and the company's value will also increase. The population of this study is the manufacturing companies - as many as 162 - listed on the Indonesia Stock Exchange in 2012-2017. By using a purposive sampling method, 25 companies met the criteria for the sample. The data comes from the companies' annual report taken from the Indonesia Stock Exchange website. The data is further analyzed using partial least square (PLS). The results of the study showed that innovation has a significant effect on price to book value. The companies with high marketing innovation produce high company performance as well. The companies get a commensurate reward from marketing innovation activities to carry out continuous marketing innovations. In addition, managerial ownership does not mediate the relationship between innovation and price to book value.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.259-268
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• 2020

This study aims to provide empirical evidence on the causal relationship between bribery and firm innovation. To this end, we use a micro-dataset of small and medium firms in Vietnam surveyed in 2015. Given the binary nature of the dependent variable, a simple probit regression model is employed. However, as bribery variable is potentially endogenous, a simple probit regression may give biased estimates. We deal with the potential endogeneity by making use of the bivariate probit model. A property of the bivariate probit model is that it can produce efficient estimates of a typical probit model with endogenous binary explanatory variable. A Hausman-like likelihood ratio test is implemented following the estimation to test the existence of endogeneity. We find that bribery significantly undermines firm innovation. Also, firms run by household appear less innovative. The probability of innovation diminishes significantly if firm owners or managers have previous experience in firm products. As expected, larger firms seem to be more innovative. Exporters tend to be more innovative compared to non-exporters. Our findings provide support to the hypothesis that bribery is detrimental to firm innovation and, thus, innovation may be a mediating channel, through which, bribery impedes firm long-term performance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.8
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• pp.485-494
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• 2020

The paper proposes a conceptual model which provides direction for researchers to empirically establish the connections between dynamic capabilities, innovation capabilities, entrepreneurial capabilities and financial and strategic performance. The author uses systematic literature review process to select the articles used in this study. First, the present paper review and discuss some major contributions to the theories of dynamic capabilities, innovation capabilities, entrepreneurial capabilities and their consequences. The author seeks to highlight different understandings of the concepts to clarify the distinctions between them. Second, the conceptual model and propositions for future studies were developed. The proposed model highlights the different measures of dynamic capabilities, innovation capabilities, entrepreneurial capabilities and their consequences. The model with its associated propositions was developed base on limitations and gaps observed from past studies. It is focused on empirically testing the direct impact of dynamic capabilities, innovation capabilities, and entrepreneurial capabilities on the performance of SMEs in Vietnam. Nevertheless, the proposed model can be applied to similar situations in different contexts and countries. Further empirical testing of proposed model would contribute to enriching existing knowledge of dynamic capabilities, innovation capabilities and entrepreneurial capabilities within SMEs and how these capabilities foster superior performance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.401-411
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• 2020

This study aims to analyze the agreement of service innovation using contingency approach (manager personality, organizational structure) moderated by leadership agility. The study has been carried out on Islamic banking companies' managers in Indonesia, from East Java and Yogyakarta region using purposive sampling technique with questionnaire and interviews as the method of data collection. The total number of respondents in the sample is 184. This sample is then analyzed using Euclidience Distance Simple Regression and Simple Regression Moderation method. The results prove that: (1) there is a partial fit between incremental strategy with reactive personality and mechanical organizational structure, which increases the service performance; (2) there is a partial fit between radical strategy with proactive personality and organic organizational structure, which increases the service performance; (3) leadership agility is able to strengthen the fit of the relationship between incremental innovation strategy and reactive personality toward service performance; (4) leadership agility is able to strengthen the fit the relationship between radical innovation strategy and proactive personality toward service performance; (5) leadership agility is able to strengthen the fit of the relationship between incremental innovation strategy and mechanical organizational structure toward service performance; and (6) leadership agility is able to strengthen the fit of the relationship between radical innovation strategy and organic organizational structure toward service performance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.651-661
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• 2020

This research aims to examine the relationships among entrepreneurial orientation, organizational learning capability, firm innovation, and firm performance. To achieve a data collection, a mail survey procedure via questionnaire was implemented by using executives or managers of gems & jewelry industries, textile and clothing industries, leather and accessories, fashion apparel industries in Thailand as the key informants. Of the surveys completed and returned, 388 were usable. Hence, a model with a structural equation was used to evaluate the data survey of 388 respondents. The results reveal that, in terms of the mediating effect, organizational learning capacity and firm innovation can complement each other in order to improve entrepreneurial orientation. Findings show that entrepreneurial orientation improves firm innovation, which in turn improves firm efficiency. Firm innovation acts as a variable mediating between enterprise orientation and firm performance. Our findings contribute to the current emergence of organizational learning capacity that mediated the relationship between entrepreneurial orientation and firm performance. Entrepreneurial orientation is normally a firm performance that enterprises develop which can have use the information available and make an impact. It can be considered through the mediation of organizational learning capability, and firm innovation variable and as stated in previous literature, it can influence firm performance.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.63-73
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• 2019

The paper aims to investigate relationships between technology and innovation management, total factor productivity and economic growth in China. By comparing the trends in total factor productivity growth of industrialized economies (i.e. OECD), this study intends to showcase the importance of total factor productivity progress in the Chinese economy. The study employs time series data of an annual basis for the period from 1977 to 2016 retrieved from the World Development Indicator. The study employs unit root test, cointegration test, fully modified least squares estimation method, canonical cointegrating regression and dynamic least squares estimation method to test the hypotheses. The results of the cointegrating regression analysis show that manufacturing growth leads to an increase of total factor productivity in the short-run in China. The findings of the study suggest that manufacturing (i.e. technology and product innovation) is positively related to the increase of total factor productivity in the short-run and total output growth in the long-run. The findings suggest that promoting technology and innovation management and supporting R&D subsidies may reduce the marginal cost of conducting R&D and increase the rate of technology and innovation management and R&D activity and therefore, the total factor productivity growth rate.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.421-429
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• 2021

The aim of the study is to explore the impact of intellectual capital and knowledge management on public sector innovation and also role knowledge management as the mediator variable. The study applied a descriptive quantitative method and by using a simple random sampling approach to 200 civil workers in Indonesian government entities. The data was gathered using an online questionnaire technique and analyzed using the AMOS program for structural equation modeling (SEM). According to the findings of the research, intellectual capital has a substantial influence on knowledge management. As a result, intellectual capital and knowledge management have a significant impact on public sector innovation, with knowledge management serving as a mediator between intellectual capital and public sector innovation. Besides that, the findings of this study suggest that organizations can increase innovation by choosing the right intellectual capital and utilizing good knowledge management. This work addresses a vacuum in the literature on applying knowledge management in the public sector, and so adds substantially to the theoretical progress of the area. Moreover, this is the first study to test the mediating role of knowledge management in the relationship between intellectual capital and innovation in the public sector of a developed country.