Research Article

The Implication of Innovation Management Against Unique Resources To Enhance The Business Performance of Small And Medium Enterprises (Sme) In Pasar Tanah Abang, Jakarta, Indonesia

Yanto Ramli
Universitas Mercu Buana, Indonesia
* Corresponding author
DOI icon 10.24018/ejbmr.2020.5.4.448

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Submitted 2020-07-28
Published 2020-08-10

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Table of Contents

Article Main Content

The objective of this research is to analyze the business performance of the small and medium enterprises (SME) textile industries in Pasar Tanah Abang, Jakarta, Indonesia in order to find out how these SME industries can survive with the competition of thousands of SME in this area. This research is to analyze the implication of innovation management as the intervening variable that influence the unique resources and market orientation used by the SME industries to improve their business performance.

The collection of data is done through the distribution of questionnaire to the SME textile industries as the respondents in Pasar Tanah Abang, Jakarta, Indonesia. The method of analysis is based on descriptive and verification research, the sample determination is using Purposive Random Sampling and the data analysis is using Partial Least Square (PLS).

The results indicated that unique resources has the highest significant influence compare to market orientation on the business performance. Innovation also provides a significant influence on business performance, because either unique resources and market orientation have least value if they are not enhanced innovatively to obtain competitives advantage. Understanding the customer’s needs and wants and continue with develop innovatively the company resources can obtain competitive advantage to improve the small and medium enterprises garment industries business performance.

Keywords: Unique resources, market orientation, innovation management, business performance

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