A study on the effects of innovation marketing process for Indonesian SMEs’ in food and beverage sector

Abstract

SMEs in the food and beverage sector should be a responsive business for reaching consumers more effectively, expanding the market, and reducing consumer transaction costs. Still, many SMEs’ in the food and beverage sector are hesitant to use social media due to lack of some aspects in their business platforms. The study aims to give an overview model of the innovation marketing process by emphasizing the characteristics of SMEs’, which is simultaneously associated with marketing mix. The proposed model combined the TOE model and characteristics with a marketing mix using SEM on 198 SMEs in the Indonesian food and beverage sector. The findings proved that each technological, environmental, organizational, and characteristics are positively related to each of the people and processes. The management team roles in innovative solutions and contingencies of a complex environment gave the highest positive effects to technology and environment. However, technology does not always facilitate the work process, the quality of result, and process consistency for more efficiency. There are highlight points, i.e. the clear visibility of employee appraisals process for bridging the gap of competencies; using perceived usefulness, perceived ease of use, and perceived trust for generating business ideas, and attracting new customers.

The Impact of Innovation on the Policy of an Indonesian Food Company Through Operational Research

“…Marketing and Sales Strategy: Utilizing operational research techniques such as predictive analytics can be used to anticipate future sales by analyzing past data and market patterns. Subsequently, this data can be utilized to shape marketing tactics or pricing policies (Farida & Setiawan, 2022;Nurliza et al, 2021). 4.…”

“…5. Risk Management: In order to deal with the uncertainties that are present in any business environment, such as shifting commodity prices and changing consumer preferences, operational research approaches like stochastic modeling can be used to evaluate and manage risks (Nurliza et al, 2021;Xiao & Watson, 2019).…”

“…5. Economic Conditions: Economic variables such as the inflation rate or income levels might influence consumer behavior, hence requiring adjustments in pricing or marketing strategies for these organizations (Nurliza et al, 2021;Setiawan et al, 2022;USAID, 2002).…”

Internal factors improving viability of small food and beverage businesses: The case of Indonesia

“…It also could drive up buying decision behaviors (Sudari et al, 2019) and it affects market share (Heiens et al, 2019). Marketing activity to some extent is said to be a part of innovation activity (Nurliza et al, 2021). In a competitive market environment, price, promotion, and product quality are key to sustaining in the market (Kowalska, 2020).…”

The Moderating Influence of Government Policy on The Innovation Capability-Competitiveness Relationship in Food SMES

“…Sulistyo & Ayuni (2020) also investigated the competitiveness of SMEs and innovation capability as mediating the influence of social capital and entrepreneur orientation on performance and competitive advantage. Although research by Nurliza et al (2021) was conducted on food SMEs in Indonesia, however, it aims at studying the model of the innovation marketing process. Ali et al (2021) studied food SMEs but they only on product innovation in India.…”