Purpose This study aims to examine the role of creative destruction and knowledge creation which is a mediation between the speed of innovation and the competitiveness of food small- and medium-sized enterprises (SMEs). Creative destruction and the creation of competency-based and market-based knowledge are usually carried out by companies in power to create barriers to entry and expand distance with similar businesses, so the role of creative destruction and knowledge creation as mediation to strengthen competitiveness is investigated. Design/methodology/approach The data in this study were collected from 161 UKM which are the population of food UKM in Malang, covering three regions, namely, Malang City, Malang Regency and Batu City. Warp Partial Least Square-Structural Equation Modeling (WarpPLS-SEM) has greater statistical requirements than other covariance-based methods, which are more likely to give results that are in accordance with the conditions of the population (significant if it is actually significant in the population) so that it is very efficient. Findings It is very important for the pace of innovation development to improve the competitiveness of food SMEs. Innovation ideas are quickly realized and products that enter the market faster have greater opportunities to increase competitiveness through profits and productivity. The pace of innovation development increases the competitiveness of food SMEs. This study proves that competitiveness can be increased once the pace of innovation development is followed by creative destruction and knowledge creation. In this case, creative destruction is done through increased competence and maintain the innovations that have been achieved by food SMEs. Increasing business competence can be done through cost efficiency, improving product quality and improving worker skills. This is done while maintaining innovation achieved to strengthen market networks, customer service and innovation in product packaging. The basis of organizational learning is knowledge creation; this point is missing in organizational learning theories. The focus here is on the creation of knowledge as a process, a missing factor in theories about learning organizations. Research limitations/implications This study has limitations that this study analyzes processed foods and innovations in general. Future research should investigate one type of processed food based on an innovation typology so that it can provide more effective and efficient recommendations. Originality/value To the best of the authors’ knowledge, this is the first known analysis of innovation speed and creative destruction for SMEs of food sector.
The small and medium-sized food industry (SMFI) has a great opportunity to meet domestic market demand during the Covid-19 pandemic but there are various obstacles. This paper aims to present the constraints faced by SMFIs, especially concerning raw materials and marketing, in taking advantage of domestic market opportunities, and proposes alternative solutions. The study was conducted on four SMFIs that produce functional food in Malang Regency. Data were collected through in-depth interviews. The results showed that the demand for functional foods such as garlic, ginger, turmeric and fruits increased during the Covid-19 pandemic, which seemed to be related to public awareness about increasing immunity. However, the obstacles faced by SMFIs were the high price of raw materials due to limited supply, and limited marketing because they did not have distribution licenses from BPOM. Information about the process and BPOM’s distribution permit requirements was very limited for SMFI managers, and large capital was needed to fulfill the requirements of Good Manufacturing Practices. Therefore, SMFIs should have long-term cooperation with farmers to ensure the availability of raw materials; build networks and maintain cooperation with customers; and utilize credit for MSMEs in the economic recovery program provided by the government to meet the GMP requirements in BPOM’s distribution permit. The government should conduct intensive outreach to SMFI managers about the process and requirements for distribution permits from BPOM, credit facilities, and other policies related to economic recovery during the Covid-19 pandemic. Keywords: small and medium food industry, domestic market, Covid-19 pandemic, BPOM
This research aims to determine the direct and indirect effect of work safety and health (K3) and work environment to employee's performance. The sample for this research is the 86 employees at CV Purindah Lawang Malang. Sampling technique that was used is the census technique. The data was obtained from respondents collecting data tools, which is a questionnaire. Data analysis that was used is path analysis. In this research, there are four variables, which are work safety and health (K3) and work environment as independent variables, employee's performance as a dependent variable, and work satisfaction as a mediator variable. The result of this research proves that work satisfaction is a media to improve the work environment's effect on employee's performance. So, the company should provide earplug, give allowance to the employees, and apply a standardized workspace layout. In conclusion, high work satisfaction is needed by employees in every company.
Small and Medium Food Industries (SMFIs) play an important role in the national economy but its competitiveness is low due to the limited innovation applied by business managers. Current innovation research is partial and excludes disruptive innovation and sustainable competitiveness. This research fills the gap by developing a model for increasing the competitiveness of SMFIs based on disruptive innovation and identifying constraints faced by SMFIs if the model is implemented. Data was collected through Focus Group Discussions and surveys using questionnaires. With a model framework approach, the model is composed of six subsystems, namely input, production process, post production, marketing, and supporting institutions. The potential for disruptive innovation lies in the quality of functional food products and low production costs because resources are available locally. However, the potential for disruptive innovation has not been utilized optimally by SMFI due to various obstacles. The role of government is very important to optimize the competitiveness potential of SMFI.
Small and medium food enterprises (SMFEs) have the potential to increase sustainable competitiveness through innovation. Previous research proves that one of the factors that hinder the implementation of SMFE innovation is the limited capability of entrepreneurs to manage their human resources. Research on human resources in SMEs is more focused on employees and the relationship with company performance but is still very limited on the capabilities of SMFE entrepreneurs. This research fills the gap by improving the capabilities of SMFE entrepreneurs in managing human resources (HRM) through training. Before the training, there was a training need analysis (TNA) through a Focus Group Discussion (FGD) with the head of the processed food section of the Malang Regency Industry and Trade Office and five SMFE representatives. The output from TNA is the acquisition of 14 training topics. Participants of the training were 35 SMFE entrepreneurs in Malang district that were selected purposively. Data were collected using a questionnaire with a Likert scale of 5 (score 1 for strongly disagreeing and score 5 for strongly agreeing on statements from 14 training topics) before and after training. The data were analyzed using nonparametric statistics (Wicoxon Rank Sign Test) because it was not normally distributed. The findings of the study were the knowledge of SMFE entrepreneurs increased significantly for all topics related to HRM after training. The greatest increase in knowledge was how to build a good working relationship with employees. Two other indicators that also highly increased were the process of selecting new employees and motivating employees, the facts of which were carried out simply and not systematically.
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