IDEAS home Printed from https://ideas.repec.org/a/grg/02entp/v3y2012i1p42-67.html
   My bibliography  Save this article

Innovation In Distribution Channel(S) & Cost Efficiency On Small & Medium Enterprise Scales’ Performance In Indonesia

Author

Listed:
  • Ferri Kuswantoro

    (University of Malaya, Malaysia)

  • M. Mohd Rosli

    (University of Malaysia Kelantan, Malaysia)

  • Radiah Abdul Kader

    (University of Malaya, Malaysia)

Abstract

Even though the characteristic of distribution channels once established generally hardly to change (Ramaseshan et al, 1994), they become essential for SMEs export oriented to grow. It has been believed SMEs play crucial parts for generating employment, reducing poverty, adding value and contributing to GDP in most global economy. In spite of the existences literatures, studies on the relationship between distribution channel activities innovations and firm performance, particularly among export-oriented SMEs, are barely found. Using 120 samples collected from agricultural-based industry in Java-Indonesia, the result appeared innovation in distribution channel was positively significant with distribution efficiency, which in turn, improving the overall firm performance. The findings and implications would be grand challenges for SMEs export oriented in Indonesia

Suggested Citation

  • Ferri Kuswantoro & M. Mohd Rosli & Radiah Abdul Kader, 2012. "Innovation In Distribution Channel(S) & Cost Efficiency On Small & Medium Enterprise Scales’ Performance In Indonesia," Journal of Global Entrepreneurship, Global Research Agency, vol. 3(1), pages 42-67, July.
    • Handle: RePEc:grg:02entp:v:3:y:2012:i:1:p:42-67
    as

    Download full text from publisher

    File URL: http://www.globalresearch.com.my/journal/entrepreneurship_v03n01/003_Article_017_JOGE_PG042-067.pdf
    Download Restriction: no
    File URL: http://www.globalresearch.com.my/journal/entrepreneurship_v03n01/entrepreneurship_v03n01.htm
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Berry, Albert & Rodriguez, Edgard & Sandee, Henry, 2002. "Firm and Group Dynamics in the Small and Medium Enterprise Sector in Indonesia," Small Business Economics, Springer, vol. 18(1-3), pages 141-161, Feb.- May.
    2. Leonidas C Leonidou & Constatine S Katsikeas, 1996. "The Export Development Process: An Integrative Review of Empirical Models," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(3), pages 517-551, September.
    3. Danny Miller & Peter H. Friesen, 1982. "The Longitudinal Analysis of Organizations: A Methodological Perspective," Management Science, INFORMS, vol. 28(9), pages 1013-1034, September.
    4. Albert Berry & Edgard Rodriguez & Henry Sandee, 2001. "Small And Medium Enterprise Dynamics In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 363-384.
    5. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    6. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211, March.
    7. Boyle, Brett A. & Dwyer, F. Robert, 1995. "Power, bureaucracy, influence, and performance: Their relationships in industrial distribution channels," Journal of Business Research, Elsevier, vol. 32(3), pages 189-200, March.
    8. Gunnar Stefansson & Kenth Lumsden, 2009. "Performance issues of Smart Transportation Management systems," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 58(1), pages 55-70, January.
    9. Iván Major, 2008. "Technical Efficiency, Allocative Efficiency and Profitability in Hungarian Small and Medium-Sized Enterprises: A Model with Frontier Functions," Europe-Asia Studies, Taylor & Francis Journals, vol. 60(8), pages 1371-1396.
    10. Vincent Mok & Godfrey Yeung & Zhaozhou Han & Zongzhang Li, 2010. "Export orientation and technical efficiency: clothing firms in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 453-463.
    11. Nichter, Simeon & Goldmark, Lara, 2009. "Small Firm Growth in Developing Countries," World Development, Elsevier, vol. 37(9), pages 1453-1464, September.
    12. Ravi Kumar, K. & Loomba, Arvinder P. S. & Hadjinicola, George C., 2000. "Marketing-production coordination in channels of distribution," European Journal of Operational Research, Elsevier, vol. 126(1), pages 189-217, October.
    13. Chikan, Attila, 1990. "Characterization of production-inventory systems in the hungarian industry," Engineering Costs and Production Economics, Elsevier, vol. 18(3), pages 285-292, January.
    14. Ayele, Gezahegn & Moorman, Lisa & Wamisho, Kassu & Zhang, Xiaobo, 2010. "Infrastructure and cluster development," IFPRI discussion papers 980, International Food Policy Research Institute (IFPRI).
    15. Wolfgang Ulaga, 2003. "Capturing value creation in business relationships: A customer perspective," Post-Print hal-00484963, HAL.
    16. Ana M. Moreno & José C. Casillas, 2007. "High-growth SMEs versus non-high-growth SMEs: a discriminant analysis," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(1), pages 69-88, January.
    17. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
    18. Sprague, Linda G. & Wacker, John G., 1996. "Macroeconomic analyses of inventories: learning from practice," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 231-237, August.
    19. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2, May.
    20. K. R. Shanmugam & Saumitra Bhaduri, 2002. "Size, age and firm growth in the Indian manufacturing sector," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 607-613.
    21. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1, May.
    22. Pla-Barber, José & Alegre, Joaquín, 2007. "Analysing the link between export intensity, innovation and firm size in a science-based industry," International Business Review, Elsevier, vol. 16(3), pages 275-293, June.
    23. Meghana Ayyagari & Thorsten Beck & Asli Demirguc-Kunt, 2007. "Small and Medium Enterprises Across the Globe," Small Business Economics, Springer, vol. 29(4), pages 415-434, December.
    Full references (including those not matched with items on IDEAS)

    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. Ali, Jabir, 2016. "Performance of small and medium-sized food and agribusiness enterprises: evidence from Indian firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), September.
    2. Susan Velasco Portillo, 2015. "El agotamiento del régimen fordista boliviano y la financiarización de YPFB," Revista Lebret, Universidad Santo Tomás - Bucaramanga, vol. 7, pages 308-325, December.
    3. Andersson, Thomas, 1991. "Approaches to Partnerships Causing Asymmetries Between Japan and the West," Working Paper Series 320, Research Institute of Industrial Economics, revised Feb 1992.
    4. Aghion, Philippe & Akcigit, Ufuk & Howitt, Peter, 2014. "What Do We Learn From Schumpeterian Growth Theory?," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 0, pages 515-563, Elsevier.
    5. Haucap, Justus, 2017. "The rule of law and the emergence of market exchange: A new institutional economic perspective," DICE Discussion Papers 276, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    6. Janvier Kini & Nicky Pouw & Joyeeta Gupta, 2020. "Organic vegetables demand in urban area using a count outcome model: case study of Burkina Faso," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-16, December.
    7. Ahmet Faruk Aysan & Luis Carlos Castillo-Téllez & Dilek Demirbas & Mustafa Disli, 2021. "Foreign Trade, Education, And Innovative Performance: A Multilevel Analysis," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(3), pages 413-440, September.
    8. Blaeschke, Frédéric & Haug, Peter, 2014. "Does Intermunicipal Cooperation Increase Efficiency? Evidence from the Hessian Wastewater Sector," IWH Discussion Papers 11/2014, Halle Institute for Economic Research (IWH).
    9. Morasch, Karl, 1995. "Moral hazard and optimal contract form for R&D cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 28(1), pages 63-78, September.
    10. Ip Eric C., 2012. "Judicial Review in China: A Positive Political Economy Analysis," Review of Law & Economics, De Gruyter, vol. 8(2), pages 331-366, October.
    11. Gianni De Fraja & Claudio A. G. Piga, "undated". "Strategic Debt in Vertical Relationships," Discussion Papers 98/16, Department of Economics, University of York.
    12. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    13. Li, Xiaokang & Guo, Hongdong & Li, Lin, 2016. "Contract Farming in China: Perspectives of Smallholders in Vegetable Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235573, Agricultural and Applied Economics Association.
    14. Schaeck, K. & Cihák, M., 2010. "Competition, Efficiency, and Soundness in Banking : An Industrial Organization Perspective," Discussion Paper 2010-68S, Tilburg University, Center for Economic Research.
    15. Eric Brousseau & Jean-Marie Codron, 1998. "La complémentarité entre formes de gouvernance [Le cas de l'approvisionnement des grandes surfaces en fruits de contre saison]," Économie rurale, Programme National Persée, vol. 245(1), pages 75-83.
    16. Williamson, Oliver E., 2007. "Transaction Cost Economics: An Introduction," Economics Discussion Papers 2007-3, Kiel Institute for the World Economy (IfW Kiel).
    17. Jürgen Peters, 2000. "Buyer Market Power and Innovative Activities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(1), pages 13-38, February.
    18. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    19. Dufwenberg, Martin, 1996. "Time Consistent Matrimony with Endogenous Trust," Working Paper Series 1997:1, Uppsala University, Department of Economics.
    20. Roodhooft, Filip & Warlop, Luk, 1999. "On the role of sunk costs and asset specificity in outsourcing decisions: a research note," Accounting, Organizations and Society, Elsevier, vol. 24(4), pages 363-369, May.

    More about this item

    Keywords

    Distribution channel; innovation; efficiency; performance; SMEs; Indonesia;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    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:grg:02entp:v:3:y:2012:i:1:p:42-67. 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: editor The email address of this maintainer does not seem to be valid anymore. Please ask editor to update the entry or send us the correct address (email available below). General contact details of provider: http://www.globalresearch.com.my/journal.htm .

    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.