Resource-based framework for assessing cooperative institutional’s global competitiveness as small medium enterprise (SME)

https://doi.org/10.21744/lingcure.v5nS1.1723

Authors

Keywords:

competitiveness, digital innovation, digital transformation, resource-based view, small-medium enterprise

Abstract

Indonesian business environment heavily influenced by small-medium enterprise (SME). In embracing Industry 4.0, Indonesian SME must be able to adapt the changing environment and competitive landscape. However, the concept of competitive advantages of SMEs, especially when concerning digital transformation, yet to be clearly defined and evaluated within the industry. Several factors, directly or indirectly, affect and jointly determine the competitive strength of an individual firm. The challenge is to properly identify the specific factors, and how and to what extent they affect firm SME competitiveness. Thus, emerge the necessity to study, understand, and then identify those factors. This research seeks to answer the challenge by using a qualitative approach and the resource-based framework. Six variables discovered through studying state-of-the-art literature, namely Digital Capability, Digital Orientation, Digital Innovation, Resistance, and Government Support that connected with SME Competitiveness. The link between variables were clarified. Resulting in proposal of how those variables entwined with each other. All variables were found to be directly related to Competitiveness, with some of the relations were moderated by Digital Innovation.

Downloads

Download data is not yet available.

References

Adeoye, I. A., Agbawodikeizu, J., & Egwakhe, A. J. (2019). Innovation Adoption Determinants and Competitive Advantage of Selected SMEs in Ado-Ota, Ogun State, Nigeria. International Journal of Advanced Engineering, Management and Science (IJAEMS), 5(4), 282-289.

Adner, R., & Helfat, C. E. (2003). Corporate effects and dynamic managerial capabilities. Strategic management journal, 24(10), 1011-1025.

Ajzen, I., Netemeyer, R., Van Ryn, M., & Ajzen, I. (1991). The theory of planned behavior. Organ Behav Hum Dec. 1991; 50: 179-211. External Resources Crossref (DOI) ISI Web of Science.

Anggadwita, G., & Mustafid, Q. Y. (2014). Identification of factors influencing the performance of small medium enterprises (SMEs). Procedia-Social and Behavioral Sciences, 115, 415-423. https://doi.org/10.1016/j.sbspro.2014.02.448

Ansari, M. R., Navratan, N., & Umamaheswari, K. M. (2021). A study of awarding student achievement using blockchain. Linguistics and Culture Review, 5(S3), 823-836. https://doi.org/10.21744/lingcure.v5nS3.1629

Anwar, M., & Li, S. (2021). Spurring competitiveness, financial and environmental performance of SMEs through government financial and non-financial support. Environment, Development and Sustainability, 23(5), 7860-7882.

Aryani, I. G. A. I., & Rahayuni, N. K. S. (2016). Innovation of teaching and learning english applied to animal sciences’ student with the combination of computer media and audio visual. International Journal of Linguistics, Literature and Culture, 2(1), 1-7. Retrieved from https://sloap.org/journals/index.php/ijllc/article/view/78

Asunka, B. A. (2016). The significance of information and communication technology for SMEs in rural communities. Journal of Small Business and Entrepreneurship Development, 4(2), 29-38.

Bonjour, S., & Kraler, A. (2015). Introduction: Family migration as an integration issue? Policy perspectives and academic insights. Journal of Family Issues, 36(11), 1407-1432.

Carcary, M., Doherty, E., & Conway, G. (2016, September). A dynamic capability approach to digital transformation: a focus on key foundational themes. In The European Conference on Information Systems Management (p. 20). Academic Conferences International Limited.

Crouch, G. I., & Ritchie, J. B. (1999). Tourism, competitiveness, and societal prosperity. Journal of business research, 44(3), 137-152. https://doi.org/10.1016/S0148-2963(97)00196-3

Day, G. S. (1999). Misconceptions about market orientation. Journal of market-focused management, 4(1), 5-16.

Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 41(1), 15-21.

Dobeš, K., Kot, S., Kramoliš, J., & Sopkova, G. (2017). The perception of governmental support in the context of competitiveness of SMEs in the Czech Republic. Journal of Competitiveness.

Gatignon, H., & Xuereb, J. M. (1997). Strategic orientation of the firm and new product performance. Journal of marketing research, 34(1), 77-90.

Ginaya, G., Kanca, I. N., & Sri Astuti, N. N. (2020). Designing problem-based learning (PBL) model for tourism vocational education in 4.o industry. International Journal of Linguistics, Literature and Culture, 6(1), 14-23. https://doi.org/10.21744/ijllc.v6n1.808

Hartono, H., & Halim, E. (2020, August). The Effect of Digital Capability on Competitiveness through Digital Innovation of E-Travel Business in Indonesia. In 2020 International Conference on Information Management and Technology (ICIMTech) (pp. 615-620). IEEE.

Heidenreich, S., & Spieth, P. (2013). Why innovations fail—The case of passive and active innovation resistance. International Journal of Innovation Management, 17(05), 1350021.

Helfat, C. E., & Winter, S. G. (2011). Untangling dynamic and operational capabilities: Strategy for the (N) ever?changing world. Strategic management journal, 32(11), 1243-1250.

Hendriarto, P. (2021). Understanding of the role of digitalization to business model and innovation: economics and business review studies. Linguistics and Culture Review, 5(S1), 160-173. https://doi.org/10.21744/lingcure.v5nS1.1347

Hinings, B., Gegenhuber, T., & Greenwood, R. (2018). Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52-61. https://doi.org/10.1016/j.infoandorg.2018.02.004

Hinings, B., Gegenhuber, T., & Greenwood, R. (2018). Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52-61. https://doi.org/10.1016/j.infoandorg.2018.02.004

Hortinha, P., Lages, C., & Lages, L. F. (2011). The trade-off between customer and technology orientations: impact on innovation capabilities and export performance. Journal of International Marketing, 19(3), 36-58.

Joachim, V., Spieth, P., & Heidenreich, S. (2018). Active innovation resistance: An empirical study on functional and psychological barriers to innovation adoption in different contexts. Industrial Marketing Management, 71, 95-107.

JoSEP, A. D., KAtz, R., KonWinSKi, A., Gunho, L. E. E., PAttERSon, D., & RABKin, A. (2010). A view of cloud computing. Communications of the ACM, 53(4), 50-58.

Joseph, G. G. (2010). The crest of the peacock. Princeton University Press.

Khin, M. M., Nair, A. S., Babu, V. J., Murugan, R., & Ramakrishna, S. (2012). A review on nanomaterials for environmental remediation. Energy & Environmental Science, 5(8), 8075-8109.

Khin, N., Peh, W., Tham, W., Lam, W., Wang, M., Siow, T., ... & Yip, C. (2018). Biochemical and radiological inflammatory markers in oesophageal squamous cell carcinoma treated with radical chemoradiation. Annals of Oncology, 29, v11.

Khin, P. P., Cha, S. H., Jun, H. S., & Lee, J. H. (2020). A potential therapeutic combination for treatment of COVID-19: synergistic effect of DPP4 and RAAS suppression. Medical hypotheses, 144, 110186.

Kim, M., & Lee, S. Y. (2011). The effects of government financial support on business innovation in South Korea. Asian Journal of Technology Innovation, 19(1), 67-83.

Kolisnichenko, P. (2017). Government support for small and medium-sized business and innovative activities. Baltic journal of economic studies, 3(4).

Lee, C. M. J., Che-Ha, N., & Alwi, S. F. S. (2021). Service customer orientation and social sustainability: The case of small medium enterprises. Journal of Business Research, 122, 751-760. https://doi.org/10.1016/j.jbusres.2019.12.048

Levallet, N., & Chan, Y. E. (2018). Role of Digital Capabilities in Unleashing the Power of Managerial Improvisation. MIS Quarterly Executive, 17(1).

Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129-1157.

Liu, H., Zhou, J., Liu, H., & Xin, B. (2021). Is the uncertainty of gaining legitimacy from organizational change an antecedent of employees’ resistance to change?. Chinese Management Studies.

Lu, Y., & K.(Ram) Ramamurthy. (2011). Understanding the link between information technology capability and organizational agility: An empirical examination. MIS quarterly, 931-954.

Man, T. W., Lau, T., & Chan, K. F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies. Journal of business venturing, 17(2), 123-142. https://doi.org/10.1016/S0883-9026(00)00058-6

Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation Management: Reinventing innovation management research in a digital world. MIS quarterly, 41(1).

Neisser, U. (2014). Cognitive psychology: Classic edition. Psychology Press.

Nylén, D., & Holmström, J. (2015). Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation. Business Horizons, 58(1), 57-67. https://doi.org/10.1016/j.bushor.2014.09.001

Osman, J. (2014). An empirical investigation into the significance of intellectual capital and strategic orientations on innovation capability and firm performance in Malaysian information and communications technology (ICT) small-to-medium enterprises (SMEs). Management, RMIT University.

Oviogun, P. V., & Veerdee, P. S. (2020). Definition of language and linguistics: basic competence. Macrolinguistics and Microlinguistics, 1(1), 1–12. Retrieved from https://mami.nyc/index.php/journal/article/view/1

Paladino, A. (2007). Investigating the drivers of innovation and new product success: a comparison of strategic orientations. Journal of Product Innovation Management, 24(6), 534-553.

Peng, M. W. (2001). The resource-based view and international business. Journal of management, 27(6), 803-829. https://doi.org/10.1016/S0149-2063(01)00124-6

Quintana-García, C., & Benavides-Velasco, C. A. (2008). Innovative competence, exploration and exploitation: The influence of technological diversification. Research policy, 37(3), 492-507.

Renko, M., Carsrud, A., & Brännback, M. (2009). The effect of a market orientation, entrepreneurial orientation, and technological capability on innovativeness: A study of young biotechnology ventures in the United States and in Scandinavia. Journal of Small Business Management, 47(3), 331-369.

Renko, M., Carsrud, A., & Brännback, M. (2009). The effect of a market orientation, entrepreneurial orientation, and technological capability on innovativeness: A study of young biotechnology ventures in the United States and in Scandinavia. Journal of Small Business Management, 47(3), 331-369.

Richardson, V. J., Subramani, M., & Zmud, R. W. (2003). Benefiting from information technology investments: The role of IT conversion capability. Second Round Review at MIS Quarterly.

Robbins, M., Judge, A., & MacLachlan, I. (2009). siRNA and innate immunity. Oligonucleotides, 19(2), 89-102.

Rodríguez, J. L., & Rodríguez, R. M. G. (2005). Technology and export behaviour: A resource-based view approach. International business review, 14(5), 539-557. https://doi.org/10.1016/j.ibusrev.2005.07.002

Salavou, H. (2005). Do customer and technology orientations influence product innovativeness in SMEs? Some new evidence from Greece. Journal of marketing management, 21(3-4), 307-338.

Shirish, A., & Batuekueno, L. (2021). Technology renewal, user resistance, user adoption: status quo bias theory revisited. Journal of Organizational Change Management.

Slater, S. F., Hult, G. T. M., & Olson, E. M. (2007). On the importance of matching strategic behavior and target market selection to business strategy in high-tech markets. Journal of the Academy of Marketing Science, 35(1), 5-17.

Spanjol, J., Qualls, W. J., & Rosa, J. A. (2011). How many and what kind? The role of strategic orientation in new product ideation. Journal of Product Innovation Management, 28(2), 236-250.

Spanjol, J., Qualls, W. J., & Rosa, J. A. (2011). How many and what kind? The role of strategic orientation in new product ideation. Journal of Product Innovation Management, 28(2), 236-250.

Sugandini, D., Effendi, M. I., & Istanto, Y. (2020). The Resistance of SMEs in Adopting Social Media: TOE Model.

Sugandini, D., Effendi, M. I., & Istanto, Y. (2020, October). The resistance of social media adoption to SMEs in Yogyakarta: Exploratory Study. In Proceeding of LPPM UPN “Veteran” Yogyakarta Conference Series 2020–Economic and Business Series (Vol. 1, No. 1, pp. 267-273).

Suryasa, W., Sudipa, I. N., Puspani, I. A. M., & Netra, I. (2019). Towards a Change of Emotion in Translation of K???a Text. Journal of Advanced Research in Dynamical and Control Systems, 11(2), 1221-1231.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.

Tsou, H. T., Chen, J. S., & Liao, W. H. (2014). Market and technology orientations for service delivery innovation: the link of innovative competence. Journal of Business & Industrial Marketing.

Urbancova, H. (2013). Competitive advantage achievement through innovation and knowledge. Journal of competitiveness, 5(1).

von Leipzig, T., Gamp, M., Manz, D., Schöttle, K., Ohlhausen, P., Oosthuizen, G., ... & von Leipzig, K. (2017). Initialising customer-orientated digital transformation in enterprises. Procedia Manufacturing, 8, 517-524. https://doi.org/10.1016/j.promfg.2017.02.066

Waheeduzzaman, A. N. M., & Ryans, J. K. (1996). Definition, perspectives, and understanding of international competitiveness: A quest for a common ground. Competitiveness Review: An International Business Journal.

Wahyuningtyas, R., Disastra, G. M., & Rismayani, R. (2021). Digital Innovation and Capability to Create Competitiveness Model of Cooperatives in Bandung, Indonesia. Jurnal Manajemen Indonesia, 21(2), 171-182.

Wei, J., & Liu, Y. (2015). Government support and firm innovation performance: Empirical analysis of 343 innovative enterprises in China. Chinese Management Studies.

Westerman, G., Tannou, M., Bonnet, D., Ferraris, P., & McAfee, A. (2012). The Digital Advantage: How digital leaders outperform their peers in every industry. MITSloan Management and Capgemini Consulting, MA, 2, 2-23.

Wisenthige, K., & Guoping, C. (2016). Firm level competitiveness of small and medium enterprises (SMEs): analytical framework based on pillars of competitiveness model. International research journal of management, IT and social sciences, 3(9), 61-67.

Yadav, R., Sharma, S. K., & Tarhini, A. (2016). A multi-analytical approach to understand and predict the mobile commerce adoption. Journal of enterprise information management.

Yasa, I. C., Tabak, A. F., Yasa, O., Ceylan, H., & Sitti, M. (2019). 3D?Printed microrobotic transporters with recapitulated stem cell niche for programmable and active cell delivery. Advanced Functional Materials, 29(17), 1808992.

Zahra, S. A. (2008). Being entrepreneurial and market driven: implications for company performance. Journal of strategy and management.

Zhou, K. Z., & Li, C. B. (2010). How strategic orientations influence the building of dynamic capability in emerging economies. Journal of Business Research, 63(3), 224-231.

Zhou, K. Z., Yim, C. K., & Tse, D. K. (2005). The effects of strategic orientations on technology-and market-based breakthrough innovations. Journal of marketing, 69(2), 42-60.

Published

2021-11-09

How to Cite

Rismayani, R., Wahyuningtyas, R., & Disastra, G. M. (2021). Resource-based framework for assessing cooperative institutional’s global competitiveness as small medium enterprise (SME). Linguistics and Culture Review, 5(S1), 1436-1448. https://doi.org/10.21744/lingcure.v5nS1.1723

Issue

Section

Research Articles