The Effect of Knowledge Sharing Relationship with Network Capability on Competitive Advantage in Mediating Product Innovation of Indonesian Small Medium Enterprises
Author(s)
Kevin , Nur Afifah , Giriati , Wendy , Helma Malini ,
Download Full PDF Pages: 29-38 | Views: 183 | Downloads: 75 | DOI: 10.5281/zenodo.7660232
Abstract
Research on SMEs in the world, especially in Indonesia, is very interesting to conduct. It is because there is increasing business competition and is influenced by technological developments, so it has an impact on SMEs, which are increasingly active in issuing a product. Furthermore, in Indonesia, there has been an increase in the number of SME businesses which has led to the emergence of various variations and business competition, making it interesting to study. This research aimed to investigate the overall effect of the four variables (knowledge sharing and network capability on competitive advantage through product innovation) both directly and indirectly. Data were collected from 201 business people in Indonesia as a sample selected using a purposive sampling technique, while the analysis technique used was SEM AMOS 26. The main findings in this study were that knowledge sharing and network capability had a positive and significant effect on the competitive advantage of SMEs in Indonesia.
Keywords
Competitive Advantage, Knowledge Sharing, Network Capability, Product Innovation.
References
i. Abdul-Jalal, H., Toulson, P., & Tweed, D. (2013). Knowledge sharing success for sustaining organizational competitive advantage. Procedia Economics and Finance, 7, 150-157.
ii. Aggestam, L. (2006), “Learning organization or knowledge management – which came first, the chicken or the egg?”, Information Technology and Control, Vol. 35 No. 3, pp. 295-301.
iii. Ahuja, G. (2000). Collaboration networks, structural holes, and innovation: A longitudinal study. Administrative Science Quarterly, 45(3), 425-455.
iv. Ajayi, B. (2016). The Impact of Entrepreneurial Orientation and Networking Capabilities on the Export Performance of Nigerian Agricultural SMEs. Journal of Entrepreneurship and Innovation in Emerging Economies, 2, 1-23. http:// journals. sagepub. com/ doi/ pdf/ 10.1177 /2393957515619720.
v. Aldrich, H. E., & Carter, N. M. (2004). Social network. In W. D. Gartner, K. G. Shaver, N. M. Carter & P. D. Reynolds (Eds.), Handbook of Entrepreneurial Dynamics: The Process of Business Creation (pp. 324-335). Thousand Oaks, CA: Sage.
vi. Ardyan, E. (2016). Market sensing capability and SMEs performance: The mediating role of product innovativeness success. DLSU Business and Economics Review, 25(2), 1-18.
vii. Ayanbode, O.F. (2020), “Collaborative technologies and knowledge management in psychiatric hospitals in South West Nigeria”, Information Development, pp. 1-22, doi: 10.1177/ 0266666919895563.
viii. Balboni, B., Bortoluzzi, G., Vianelli, D. (2014), The Impact of Relational Capabilities on the Internationalization Process of Industrial Subcontractors, Transformations in Business&Economics, Vol. 13, No. 32, pp. 21–40.
ix. Bashir, M. and Farooq, R. (2019), “The synergetic effect of knowledge management and business model innovation on firm competence: a systematic review”, International Journal of Innovation Science, Vol. 11 No. 3, pp. 362-387.
x. Berraies, S. (2019), “Effect of middle managers’ cultural intelligence on firms’ innovation performance: knowledge sharing as mediator and collaborative climate as moderator”, Personnel Review, Vol. 49 No. 4, pp. 1015-1038.
xi. Boer, H., & During, W. E. (2001). Innovation, What Innovation? A Comparison Between Product, Process And Organisational Innovation. International Journal of Technology Management, 22(1), 83-107. doi: 10.1504/IJTM.2001.002956
xii. Boroujerdi, S.S., Hasani, K. and Delshab, V. (2019), “Investigating the influence of knowledge management on organizational innovation in higher educational institutions”, Kybernetes, Vol. 49 No. 2, pp. 442-459.
xiii. Cabrera, A., Collins, W. C., & Salgado, J. F. (2006). Determinants of individual engagement in knowledge sharing. The International Journal of Human Resource Management, 17(2), 245-264.
xiv. Chiu, Y. T. H. (2009). How network competence and network location influence innovation performance. Journal of Business & Industrial Marketing, 24(1), 46-55.
xv. Connell, J. and Voola, R. (2013), “Knowledge integration and competitiveness: a longitudinal study of an industry cluster”, Journal of Knowledge Management, Vol. 17 No. 2, pp. 208-225.
xvi. Cummings, J. N. (2004). Work groups, structural diversity, and knowledge sharing in a global organization. Management Science, 50(3), 352-364.
xvii. Droge, Cornelia & Shownee Vickery, 1994, “Sources and Outcomes of Competitive Advantage: An Exploratory Study in the Furniture Industry”, Decision Sciences, Vol. 25 No. 5/6.
xviii. Dustin, G., Bharat, M., & Jitendra, M. (2014). Competitive Advantage and Motivating Innovation. Advances In Management, 7(1), 1–8.
xix. Eris, E. D., & Ozmen, O. N. T. (2012). The Effect of Market Orientation, Learning Orientation and Innovativeness. International Journal of Economic Sciences and Applied Research 5(05.01), pp. 77-108.
xx. Eshlaghy, A. T., & Maatofi, A. (2011). Learning Orientation, Innovation and Performance. European Journal of Social Sciences, 19(1).
xxi. Garcia, R., & Calantone, R. J. (2002). A critical look at technological innovation typology and innovativeness terminology: A literature review. Journal of Product Innovation Management, 19(2), 110-132.
xxii. Gusty, I.A.S. (2014), “Analisis Kinerja Keuangan Sebelum dan Sesudah Merger Pada Perusahaan yang Terdafatar di Bursa Efek Indonesia”, JINAH ( Jurnal Ilmiah Akuntansi dan Humanika), Vol. 3 No. 2.
xxiii. Hartini, S. (2012). Peran Inovasi: Pengembangan Kualitas Produk dan Kinerja Bisnis. Jurnal Manajemen Dan Kewirausahaan Universitas Airlangga, 14(1).
xxiv. Herrmann, A., Gassmann, O., & Eisert, U. (2007). An empirical study of the antecedents for radical product innovations and capabilities for transformation. Journal of Engineering and Technology Management, 24(1-2), 92-120.
xxv. Herry, C., Bach, D.R., Esposito, F., Di Salle, F., Perrig, W.J., Scheffler, K. and Seifritz, E. (2007), “Processing of temporal unpredictability in human and animal amygdala”, Journal of Neuroscience, Vol. 27 No. 22, pp. 5958-5966.
xxvi. Husein, S., & Nuryakin. (2018). The Effect of Product’s Attribute Attractiveness on The Relationship Between Product Innovation and Customer’s Purchasing Interest A Study on Customers of Honda Matic Motorcycle in Indonesia. WSEAS Transactions on Business and Economics, 15, 329-339.
xxvii. Janssen, M., Stoopendaal, A. M. V., & Putters, K. (2015). Situated novelty: Introducing a process perspective on the study of innovation. Research Policy, 44(10), 1974-1984.
xxviii. Julpisit, A. (2019), “A collaborative system to improve knowledge sharing in scientific research projects”, Information Development, Vol. 35 No. 4, pp. 624-638.
xxix. Kogut, B., & Zander, U. (1992). Knowledge of the Firm, Combinative Capabilities, and The Replication of Technology. Organization Science, 3(3), 383-397.
xxx. Lin, H. F. (2007). Knowledge sharing and firm innovation capability: an empirical study. International Journal of Man Power, 28(3/4), 315-332.
xxxi. Lin, M.J.J. and Chen, C.J. (2008), “Integration and knowledge sharing: transforming to long-term competitive advantage”,International Journal of Organizational Analysis, Vol. 16 Nos 1-2, pp. 83-108.
xxxii. Lukas,B.A. dan Ferrell,O.C. 2000. The Effect of Market Orientation on Product Innovation. Journal of the Academy of Marketing Science, DOI 10.1177/0092070300282005, Vol.28, No.2.
xxxiii. Magnier-Watanabe, R. and Senoo, D. (2009), “Congruent knowledge management behaviors as discriminate sources of competitive advantage”, Journal of Workplace Learning, Vol. 21 No. 2, pp. 109-124.
xxxiv. Mavondo, F. T., Chimhanzi, J., & Stewart, J. (2005). Learning orientation and market orientation Relationship with innovation, human resource practices and performance. European Journal of Marketing, 39(11/12), 1235.
xxxv. Naili Farida and Nuryakin (2021), “Network capability, relational capability and Indonesian manufacturing SME performance: an empirical analysis of the mediating role of product innovation”, Engineering Management in Production and Services, Vol. 13, Issue 1.
xxxvi. Ngugi, I. K., & Johnsen, R. E. (2010). Relational Capabilities for Value Co-Creation and Innovation in SMEs. Journal of Small Business and Enterprise Development, 17(2), 260-278.
xxxvii. Nonaka, I. (1991). The Knowledge-Creating Company. Havard Business Review(November-Desember), 96-10
xxxviii. Nuryakin. (2018). Competitive Advantage and Product Innovation Key Success of Batik SMES Marketing Performance In Indonesia. Academy of Strategic Management Journal, 17(2), 1-17.
xxxix. Nwaiwu, F., Duduci, M., Chromjakova , F., & Otekhile, C. A. F. (2020). Industry 4.0 concepts within the Czech SME manufacturing sector: an empirical assessment of critical success factors. Business: Theory and Practice, 21(1), 58-70. doi: 10.3846/btp.2020.10712
xl. Papastamatelou, J., Busch, R., Otken, B., Okan, E. Y., & Gassemi, K. (2016). Effects of Network Capabilities on Firm Performance Across Cultures. International Journal of Management and Economics, 49(1), 79–105. Doi :10.1515/ijme-2016-0005.
xli. Parida, V., Pemartín, M., & Frishammar, J. (2009). “The impact of networking practices on small firm innovativeness and performance : a multivariate approach”. International Journal Technoentrepreneurship, 2(2), 115–133.
xlii. Rao, Y., Guo, K. H., & Chen, Y. (2015). Information systems maturity, knowledge sharing, and firm performance. International Journal of Accounting & Information System, 23(2), 106-127.
xliii. Ritter, T., & Gemunden, H. G. (2003). Network Competence: Its Impact on Innovation Success and Its Antecedents. Journal of Business Research, 56, 745-755.
xliv. Russell, S. N., & Millar, H. . (2014). Exploring the Relationship Among Sustainable Manufacturing Practises, Business Performance and Competitive Advantage: Perspective From a Developing Economy. Journal of Management and Sustainability, 4(3), 37– 54.
xlv. Salavou, H., & Avlonitis, G. (2008). Product innovativeness and performance a focus on SMEs. Management Decision, 46(7), 969-985. doi: 10.1108/00251740810890168
xlvi. Souto, J. E. (2015). Business Model Innovation and Business Concept Innovation as the context of Incremental and Radical Innovation. Tourism Management, 51, 142-155.
xlvii. Spender, J. C., & Grant, R. M. (1996). Knowledge and the Firm: Overview. Strategic Management Journal, 17, 5-9.
xlviii. Storey, D.J. (2002), “Education, training and development policies and practices in medium-sized companies in the UK: do they really influence firm performance?”, The International Journal of Management Science, Vol. 30 No. 4, pp. 249-264.
xlix. Suliyanto (2011), “The effect of orientation learning on competitive advantage through product innovation: study on small and medium enterprises”, Business And Management Review, Vol. 1 No. 7, pp. 28-36.
l. Un, C. A. (2010). An Empirical Multi-Level Analysis for Achieving Balance Between Incremental and Radical Innovations. Journal of Engineering and Technology Management, 27, 1-19.
li. Usman, I., Hartani, N. H., & Sroka, M. (2020). Operational performance of SME: the impact of entrepreneurial leadership, good governance and business process management. Polish Journal of Management Studies, 21(1), 408-418. doi:10.17512/pjms.2020.21.1.30
lii. Utterback, J. M., & Abernathy, W. J. (1975). A Dynamic Model of Process and Product Innovation. The International Journal of Management Science, 3(6), 639- 656.
liii. Van den Hooff, B., & De Ridder, J. A. (2004). Knowledge sharing in context: the influence of organizational commitment, communication climate and CMC use on knowledge sharing. Journal of Knowledge Management, 8(6), 117-130
liv. Wahyono (2019), “The mediating effects of product innovation in relation between knowledge management and competitive advantage”, Journal of Management Development Vol. 39 No. 1, 2020 pp. 18-30.
lv. Wang, Shining and Wang, Nianxin, “Knowledge Sharing, Innovation and Performance”, Expert Systems with Applications, Vol 13, pp. 8899-8908, 2012.
lvi. Yeşil, S., Koska, A., & Buyukbese, T. (2013). Knowledge Sharing Process, Innovation Capability and Innovation Performance: An Empirical Study. Procedia - Social and Behavioral Sciences, 75, 217-225. doi: 10.1016/j.sbspro.2013.04.025
lvii. Yulianto, A. (2013), “Keputusan Struktur Modal dan Kebijakan Dividen sebagai Mekanisme Mengurangi Masalah Keagenan”, Jurnal Dinamika Manajemen, Vol. 4 No. 2, pp. 162-177.
lviii. Zacca, R., Mumin, D., & Ahrens, T. (2015). Impact of network capability on small business performance. Management Decision, 51(1), 2-23.
Cite this Article: