The Role of Dynamic Capability and Product Innovation to Increase Competitive Advantage
Abstract
This study aims to determine dynamic capability and product innovation in determining competitive advantage in SMEs woven fabric industries (endek) in the Klungkung Regency, Bali Province. The research approach used is descriptive analysis with a quantitative approach using the Smart PLS programme. The population in this study is the owner of a woven fabric business (endek) in the Klungkung Regency, Bali Province. The results showed that dynamic capability could directly determine the product innovation and competitive advantage of woven fabric SMEs (endek) in the Klungkung Regency, Bali Province. However, product innovation can produce a competitive advantage for woven fabric SMEs (endek) in the Klungkung Regency, Bali Province. The research results also show that product innovation is a mediator in the influence of dynamic capability on competitive advantage.
References
Abbas, Muh. H., Kadir, Abd. R., Alam, S., & a, M. (2019). Marketing Performance Mediates Between Iconic Product Innovation and Sustainable Competitive Advantages. International Journal of Advanced Research, 7(11), 70–77. https://doi.org/10.21474/IJAR01/9976
Barnett, W. P., & McKendrick, D. G. (2004). Why are Some Organizations More Competitive than Others? Evidence from a Changing Global Market. Administrative Science Quarterly, 49(4), 535–571. https://doi.org/10.2307/4131490
Barney, J. (2001). Resource-based Theories of Competitive Advantage: A Ten-year Retrospective on The Resource-based View. Journal of Management, 27(6), 643–650. https://doi.org/10.1016/S0149-2063(01)00115-5
Coccia, M. (2017). Sources of technological innovation: Radical and incremental innovation problem-driven to support competitive advantage of firms. Technology Analysis & Strategic Management, 29(9), 1048–1061. https://doi.org/10.1080/09537325.2016.1268682
Ekawati, N. W., Rahyuda, I. K., Yasa, K. N. N., & Sukaatmadja, I. P. G. (2016). Implementation of Ecoprenership and Green Innovation in Building Competitive Advantage to Generate Success of New Spa Products in Bali. International Bussiness Management, 10(14), 2660–2669.
Firman, & Thabrani, G. (2018). Total Quality Management, Dynamic Capabilities, and Competitive Advantages: Mediating Effect of Innovation. Advances in Economics, Business and Management Research, 57, 162–173. http://forlap.dikti.go.id
Ghozali, I. (2014). Model Persamaan Struktural: Konsep & Aplikasi Dengan Program Amos 16.0. Badan Penerbit Universitas Diponegoro.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
Harreld, J. B., O’Reilly, C. A., & Tushman, M. L. (2007). Dynamic Capabilities at IBM: Driving Strategy into Action. California Management Review, 49(4), 21–43. https://doi.org/10.2307/41166404
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M. A., Tecce, D., Winter, S. G., & Singh, H. (2007). Dynamic Capabilities: Understanding Strategic Change in Organizations. Blackwell Publishing.
Herman, H., Hady, H., & Arafah, W. (2018). The Influence of Market Orientation and Product Innovation on the Competitive Advantage and Its Implication toward Small and Medium Enterprises (Ukm) Performance. International Journal of Science and Engineering Invention, 4(08). https://doi.org/10.23958/ijsei/vol04-i08/02
Jiang, W., Mavondo, F., & Zhao, W. (2020). The Impact of Business Networks on Dynamic Capabilities and Product Innovation: The Moderating Role of Strategic Orientation. Asia Pacific Journal of Management, 37(4), 1239–1266. https://doi.org/10.1007/s10490-018-9628-2
Khouroh, U., Windhyastiti, I., & Ratnaningsih, C. S. (2020). Kapabilitas Dinamik dan Keunggulan Bersaing: Dinamisme Lingkungan Moderator ataukah Driver? Jurnal Samudra Ekonomi Dan Bisnis, 12(1), 18–34. https://doi.org/10.33059/jseb.v12i1.2322
Kotler, P., & Armstrong, G. (2012). Prinsip-prinsip Pemasaran (13th ed., Vol. 1). Erlangga.
Lay Hong, T., Boon Cheong, C., & Syaiful Rizal, H. (2016). Service Innovation in Malaysian Banking Industry towards Sustainable Competitive Advantage through Environmentally and Socially Practices. Procedia - Social and Behavioral Sciences, 224, 52–59. https://doi.org/10.1016/j.sbspro.2016.05.399
Leiblein, M. J., Chen, J. S., & Posen, H. E. (2017). Resource Allocation in Strategic Factor Markets: A Realistic Real Options Approach to Generating Competitive Advantage. Journal of Management, 43(8), 2588–2608. https://doi.org/10.1177/0149206316683778
Li, D. yuan, & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research, 67(1), 2793–2799. https://doi.org/10.1016/j.jbusres.2012.08.007
Neill, S., McKee, D., & Rose, G. M. (2007). Developing the Organization’s Sensemaking Capability: Precursor to an Adaptive Strategic Marketing Response. Industrial Marketing Management, 36(6), 731–744. https://doi.org/10.1016/j.indmarman.2006.05.008
Pandza, K., & Thorpe, R. (2009). Creative Search and Strategic Sense?making: Missing Dimensions in the Concept of Dynamic Capabilities. British Journal of Management, 20(s1). https://doi.org/10.1111/j.1467-8551.2008.00616.x
Prabowo, H., Sriwidadi, T., & Ikhsan, R. B. (2021). The Influence of Dynamic Capability on Sustainable Competitive Advantage: An Empirical Study of Small Businesses in Indonesia. Journal of Asian Finance, Economics and Business, 8(6), 949–959. https://doi.org/10.13106/jafeb.2021.vol8.no6.0949
Prajogo, D. I. (2016). The Strategic Fit Between Innovation Strategies and Business Environment in Delivering Business Performance. International Journal of Production Economics, 171, 241–249. https://doi.org/10.1016/j.ijpe.2015.07.037
Puspaningrum, A. (2017). The Effect of Market Orientation and Innovation on Competitive Advantages. Pressacademia, 4(4), 549–558. https://doi.org/10.17261/Pressacademia.2017.761
Roespinoedji, R., Saudi, M., Hardika, A., & Rashid, A. (2019). The Effect of Green Organizational Culture and Green Innovation in Influencing Competitive Advantage and Environmental Performance. International Journal of Supply Chain Management, 8(1), 278–286.
Sharfman, M. P., & Dean Jr, J. W. (1997). Flexibility in Strategic Decision Making: Informational and Ideological Perspectives. Journal of Management Studies, 34(2), 191–217. https://doi.org/10.1111/1467-6486.00048
Sharma, P., Davcik, N. S., & Pillai, K. G. (2016). Product Innovation as a Mediator in the Impact of R&D Expenditure and Brand Equity on Marketing Performance. Journal of Business Research, 69(12), 5662–5669. https://doi.org/10.1016/j.jbusres.2016.03.074
Sheng, M. L. (2017). A Dynamic Capabilities-based Framework of Organizational Sensemaking Through Combinative Capabilities Towards Exploratory and Exploitative Product Innovation in Turbulent Environments. Industrial Marketing Management, 65, 28–38. https://doi.org/10.1016/j.indmarman.2017.06.001
Suardhika, I. N. (2021). Model Strategi Bersaing Berbasis Sumberdaya Bagi Usaha Kecil Dan Menengah. CV Azka Pustaka.
Suardhika, I. N., & Adriati, I. G. A. W. (2018). Strategic Orientation Based on Business Environment and Entreprenurs Behavior as Well as its Effects on SME Performance and Competitiveness in Bali Indonesia. International Journal of Contemporary Research and Review, 9(02). https://doi.org/10.15520/ijcrr/2018/9/02/417
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1142/9789812796929_0003
Vu, H. M. (2020). A Review of Dynamic Capabilities, Innovation Capabilities, Entrepreneurial Capabilities and Their Consequences. Journal of Asian Finance, Economics and Business, 7(8), 485–494. https://doi.org/10.13106/JAFEB.2020.VOL7.NO8.485
Wang, L. L., & Gao, Y. (2021). Competition network as a source of competitive advantage: The dynamic capability perspective and evidence from China. Long Range Planning, 54(2). https://doi.org/10.1016/j.lrp.2020.102052
Winarso, W. (2020). Competitive Advantage and Marketing Performance on SMEs: Market Orientation and Innovation of Local Product in Bekasi, Indonesia. Test Engineering & Management, 83(March), 18385–18395.
Zatia Zatia, Fitri Kumalasari, & Almansyah Rundu Wonua. (2023). Pengaruh Kapabilitas Dinamis Dan Kapabilitas Inovasi Terhadap Keunggulan Kompetitif. Manajemen Kreatif Jurnal, 1(4), 176–188. https://doi.org/10.55606/makreju.v1i4.2168
Zhang, J., & Wu, W. (2017). Leveraging Internal Resources and External Business Networks for New Product Success: A Dynamic Capabilities Perspective. Industrial Marketing Management, 61, 170–181. https://doi.org/10.1016/j.indmarman.2016.06.001
Abstract viewed = 4 times
PDF downloaded = 7 times
