The moderating effect of competitive intensity on foresight capability and product innovation of SMEs in Indonesia
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Received August 19, 2022;Accepted February 1, 2023;Published February 10, 2023
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Author(s)Link to ORCID Index: https://orcid.org/0000-0001-9070-1051
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DOIhttp://dx.doi.org/10.21511/ppm.21(1).2023.19
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Article InfoVolume 21 2023, Issue #1, pp. 219-229
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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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JEL Classification (Paper profile tab)M21, L25
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References55
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Tables4
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Figures2
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- Figure 1. Research framework
- Figure 2. Visualization of path coefficients
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- Table 1. Demographics of respondents
- Table 2. Reliability, validity, and measurement
- Table 3. Path coefficients
- Table 4. Summary of moderating effect of competitive intensity
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Conceptualization
Vigory Gloriman Manalu, Refius Pradipta Setyanto
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Data curation
Vigory Gloriman Manalu
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Formal Analysis
Vigory Gloriman Manalu
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Funding acquisition
Vigory Gloriman Manalu
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Investigation
Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
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Methodology
Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
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Project administration
Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
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Resources
Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
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Software
Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
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Validation
Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
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Visualization
Vigory Gloriman Manalu
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Writing – original draft
Vigory Gloriman Manalu
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Writing – review & editing
Vigory Gloriman Manalu, Siti Nurhayati, Refius Pradipta Setyanto
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Supervision
Siti Nurhayati, Refius Pradipta Setyanto
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Conceptualization