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The Effect of Company’s Culture and Dynamic Capability toward Company’s Innovation and Performance on F&B SME in Surabaya

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  • Hananiel M. Gunawan

    (Lecturer, Business School, Universitas Pelita Harapan (Surabaya Campus), Indonesia.)

  • Oliandes Sondakh

    (Lecturer, Business School, Universitas Pelita Harapan (Surabaya Campus), Indonesia.)

Abstract

The dynamics and intensity of competition in business and among companies are increasing over time. This issue forced businesses to improve their capabilities, especially to achieve the goals and improve their performances. Food and beverage industries play a huge role in Indonesia’s economy, particularly in SMEs. Food and Beverage industry is chosen because this industry requires a strategic position and various capabilities to be able to survive the competition. The purpose of this study is to examine the influence of company’s culture and dynamic capabilities and their effects on innovation capabilities and performances. This study used 120 medium-sized enterprises in the food and beverage industry as a sample by using a random sampling method. The hypothesis testing method uses structural model equations to test 5 hypotheses in this study. The results showed that company’s culture and dynamic capabilities should have a significant impact on company’s ability to innovate and their performance as well.

Suggested Citation

  • Hananiel M. Gunawan & Oliandes Sondakh, 2021. "The Effect of Company’s Culture and Dynamic Capability toward Company’s Innovation and Performance on F&B SME in Surabaya," International Journal of Science and Business, IJSAB International, vol. 5(11), pages 65-78.
    • Handle: RePEc:aif:journl:v:5:y:2021:i:11:p:65-78
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    References listed on IDEAS

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    2. Butler, Patrick & Peppard, Joe, 1998. "Consumer purchasing on the Internet:: Processes and prospects," European Management Journal, Elsevier, vol. 16(5), pages 600-610, October.
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