IDEAS home Printed from https://ideas.repec.org/a/ags/areint/337441.html
   My bibliography  Save this article

Creating an innovative culture in agribusiness of micro, small and medium-sized enterprises

Author

Listed:
  • Kusnandar
  • Setyowati, Nuning
  • Wida Riptanti, Erlyna

Abstract

Purpose. This research aims to assess the motivational factors in creating an innovation culture in agribusiness of micro, small, and medium-sized enterprises (MSMEs) by examining the organizational perspective, including organizational culture, organizational learning, market orientation, and attitude to innovation culture. Methodology / approach. A random cluster sampling method was used to select 100 agribusiness MSMEs in Sukoharjo Regency. This research considered exogenous latent variables, such as organizational culture, organizational learning, market orientation, and attitudes toward intention to innovate. The endogenous latent variables used were innovation intentions and innovation culture. Data were collected through an online survey and analyzed using Structural Equation Modeling (SEM) and Partial Least Square (PLS) analysis tools. Results. The results showed that organizational culture, market orientation, and attitudes influenced the intention to innovate, while the level of organizational learning did not. The intention to innovate, in turn, had a significant effect on innovative behavior, as shown in the performance of agribusiness companies. This innovative behavior was reflected in the emergence of new ideas to enhance the business, including the development of new product variants, the utilization of e-commerce for sales, and the improvement of production technology to increase cost efficiency. Therefore, there was a relationship between cultural innovation and company performance. Originality / scientific novelty. This research model was built based on behavioral theory and organizational culture, taking into account the difficulty and time required to develop an innovative culture within agribusiness MSMEs. These enterprises have organizational features different from medium and large companies. The objective of this research was to change the mindset of agribusiness MSMEs towards innovation, where innovation was no longer viewed as an option but rather a condition for success. Innovation became a value in fostering organizational culture. Practical value / implications. The practical implications of the findings were that agribusiness MSMEs should focus on efforts such as adapting to external changes, involving all employees, consistency, and a clear and long-term business vision to promote innovation. This positive attitude towards innovation could create a culture of innovation within the company, enabling MSME agribusiness to compete and develop into a better company.

Suggested Citation

  • Kusnandar & Setyowati, Nuning & Wida Riptanti, Erlyna, 2023. "Creating an innovative culture in agribusiness of micro, small and medium-sized enterprises," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(2), June.
  • Handle: RePEc:ags:areint:337441
    DOI: 10.22004/ag.econ.337441
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/337441/files/9_Kusnandar_article.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.337441?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rajneesh Narula, 2020. "Policy opportunities and challenges from the COVID-19 pandemic for economies with large informal sectors," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 302-310, September.
    2. GuoXiang Tang & Kwangtae Park & Anurag Agarwal & Feng Liu, 2020. "Impact of Innovation Culture, Organization Size and Technological Capability on the Performance of SMEs: The Case of China," Sustainability, MDPI, vol. 12(4), pages 1-14, February.
    3. Kyllikki Taipale-Erävala & Kaisa Henttonen & Hannele Lampela, 2019. "Entrepreneurial competencies in successfully innovative SMEs," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 38(3), pages 251-276.
    4. Abdul-Halim Hasliza & Ahmad Noor Hazlina & Thurasamy Ramayah & Geare Alan, 2019. "Innovation Culture in SMEs: The Importance of Organizational Culture, Organizational Learning and Market Orientation," Entrepreneurship Research Journal, De Gruyter, vol. 9(3), pages 1-14, July.
    5. Abdul-Halim Hasliza & Ahmad Noor Hazlina & Geare Alan & Thurasamy Ramayah, 2019. "Innovation Culture in SMEs: The Importance of Organizational Culture, Organizational Learning and Market Orientation," Entrepreneurship Research Journal, De Gruyter, vol. 9(3), pages 1-14, July.
    6. S M Kabir & Ahasanul Haque & Abdullah Sarwar, 2017. "Factors Affecting the Intention to Become an Entrepreneur: A Study from Bangladeshi Business Graduates Perspective," Post-Print hal-01580857, HAL.
    7. Dylan Balla-Elliott & Zoë B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton, 2020. "Determinants of Small Business Reopening Decisions After COVID Restrictions Were Lifted," NBER Working Papers 27362, National Bureau of Economic Research, Inc.
    8. Azam Sazvar & Mahmood Yahyazadehfar, 2019. "Exploring the effect of venture capital development on innovation performance of knowledge-based companies," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 36(4), pages 359-377.
    9. Suminah Suminah & Sapja Anantanyu & Suwarto Suwarto & Sugihardjo Sugihardjo & Dwiningtyas Padmaningrum, 2023. "The Influence of Empowerment towards Agricultural Business Actors’ Ability in Surakarta, Indonesia," Social Sciences, MDPI, vol. 12(2), pages 1-21, January.
    10. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    11. Martin Souček & Denis Drexler & Steven Van Wichelen & Stanislav Mokrý & Ondřej Dufek, 2015. "The Influence of Package Attributes on Consumer Perception among Generation Y," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 1(1), pages 54-64.
    12. Yu-Shan Chen, 2008. "The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms," Journal of Business Ethics, Springer, vol. 77(3), pages 271-286, February.
    13. Nakos, George & Dimitratos, Pavlos & Elbanna, Said, 2019. "The mediating role of alliances in the international market orientation-performance relationship of smes," International Business Review, Elsevier, vol. 28(3), pages 603-612.
    14. Tulus Tambunan, 2019. "Recent evidence of the development of micro, small and medium enterprises in Indonesia," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-15, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Riptanti, Erlyna Wida & Harisudin, Mohamad & Kusnandar & Khomah, Isti & Setyowati, Nuning, 2024. "Effect of entrepreneur personality and social network sites on innovation performance: evidence from Indonesia," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 10(1), March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wilson, Grant Alexander & Case, Tyler & Dobni, C. Brooke, 2023. "A global study of innovation-oriented firms: Dimensions, practices, and performance," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    2. Donard Games & Ranggi Putri Rendi, 2019. "The effects of knowledge management and risk taking on SME financial performance in creative industries in an emerging market: the mediating effect of innovation outcomes," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-14, December.
    3. Falahat, Mohammad & Ramayah, T. & Soto-Acosta, Pedro & Lee, Yan-Yin, 2020. "SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs’ international performance," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    4. Yao-Chin Lin & Chun-Liang Chen & Cheng-Fu Chao & Wei-Hung Chen & Henry Pandia, 2020. "The Study of Evaluation Index of Growth Evaluation of Science and Technological Innovation Micro-Enterprises," Sustainability, MDPI, vol. 12(15), pages 1-25, August.
    5. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    6. Claudia C. Colmenares-Mejía & Norma Serrano-Díaz & Doris C. Quintero-Lesmes & Ligia Meneses & Isail Salazar Acosta & Álvaro J. Idrovo & Duván Y. Sanabria-Echeverry & Helmer Cordero-Rebolledo & Víctor , 2021. "Seroprevalence of SARS-CoV-2 Infection among Occupational Groups from the Bucaramanga Metropolitan Area, Colombia," IJERPH, MDPI, vol. 18(8), pages 1-13, April.
    7. Aksoy, Hasan, 2017. "How do innovation culture, marketing innovation and product innovation affect the market performance of small and medium-sized enterprises (SMEs)?," Technology in Society, Elsevier, vol. 51(C), pages 133-141.
    8. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    9. Nadia Zahoor & Francis Donbesuur & Zaheer Khan & Shlomo Y. Tarba & Cary L. Cooper, 2023. "Revisiting the Accelerated Internationalization of Emerging Market SMEs: The Roles of Firms’ Collaborations and Environmental Management Practices," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    10. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    11. Florio, Massimo & Graeme, Brad & Astbury, Philip & Armstrong, Harvey W. & Audretsch, David B. & Dermastia, Mateja & Picciotto, Robert & Delponte, Laura & Rampton, James & Sartori, Davide & Vignetti, S, 2016. "Support to SMEs - Increasing research and innovation in SMEs and SME development. Final report. Work package 2," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 141310, June.
    12. Rui Guo & Lan Tao & Caroline Bingxin Li & Tao Wang, 2017. "A Path Analysis of Greenwashing in a Trust Crisis Among Chinese Energy Companies: The Role of Brand Legitimacy and Brand Loyalty," Journal of Business Ethics, Springer, vol. 140(3), pages 523-536, February.
    13. Boeker, Warren & Howard, Michael D. & Basu, Sandip & Sahaym, Arvin, 2021. "Interpersonal relationships, digital technologies, and innovation in entrepreneurial ventures," Journal of Business Research, Elsevier, vol. 125(C), pages 495-507.
    14. Frida Thomas Pacho, 2018. "Diversified Network Effects on Innovation Performance in Tanzania: Innovation Strategy in Service Firms," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 5(1), pages 1-1, December.
    15. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    16. Geng, Ruoqi & Mansouri, S. Afshin & Aktas, Emel, 2017. "The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 245-258.
    17. Marisa Reis Azevedo Botelho & Graciele Fátima Sousa & Michelle Castro Carrijo & Juliene Barbosa Ferreira & Ariana Cericatto Silva, 2022. "Survival determinants for Brazilian companies, 1996 to 2016," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(2), pages 233-266, June.
    18. Asare Yaw Obeng & Peter L Mkhize, 2017. "Operational Risk, Bank Size and the Financial Performance of Commercial Banks in Kenya," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(3), pages 51-69, April.
    19. Gerrit Anton De Waal & Paul Knott, 2019. "Npd Tools, Thoroughness And Performance In Small Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-26, August.
    20. Zahoor, Nadia & Gabriel Pepple, Dennis & Choudrie, Jyoti, 2021. "Entrepreneurial competencies and alliance success: The role of external knowledge absorption and mutual trust," Journal of Business Research, Elsevier, vol. 136(C), pages 440-450.

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:areint:337441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://are-journal.com/are .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.