The moderating effect of competitive intensity on foresight capability and product innovation of SMEs in Indonesia

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This study aims to understand the performance of SME’s product innovation by relating it to the foresight concept of SME owners or managers and the moderating effect of competitive intensity. It employs a quantitative research method by using a survey. This paper studies SMEs from the West Java Province of Indonesia in three industrial sectors: food, fashion, and handicrafts. These industrial sectors were chosen because they are the most competitive, and their consumers change rapidly. Data were collected through a structured questionnaire. A total of 200 questionnaires were distributed, 190 were returned, and 187 were used for data processing. Furthermore, the data were analyzed using exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM). The results show that networking, time horizon, and analysis can affect product innovation performance (p < 0.05). Furthermore, competition intensity does not affect the relationship between analysis and product innovation performance, although there is a relationship between networking and time horizon. The results of this study provide insight for Indonesian SMEs, especially in West Java. Foresight skills trained by SMEs will make them accustomed to facing high-level competition, especially in the time horizon dimension. However, on the other hand, the high intensity of competition can reduce their networking to collaborate with various related parties.

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    • Figure 1. Research framework
    • Figure 2. Visualization of path coefficients
    • Table 1. Demographics of respondents
    • Table 2. Reliability, validity, and measurement
    • Table 3. Path coefficients
    • Table 4. Summary of moderating effect of competitive intensity
    • Conceptualization
      Vigory Gloriman Manalu, Refius Pradipta Setyanto
    • Data curation
      Vigory Gloriman Manalu
    • Formal Analysis
      Vigory Gloriman Manalu
    • Funding acquisition
      Vigory Gloriman Manalu
    • Investigation
      Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
    • Methodology
      Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
    • Project administration
      Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
    • Resources
      Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
    • Software
      Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
    • Validation
      Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
    • Visualization
      Vigory Gloriman Manalu
    • Writing – original draft
      Vigory Gloriman Manalu
    • Writing – review & editing
      Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
    • Supervision
      Siti Nurhayati, Refius Pradipta Setyanto