The impact of ownership and internationalization on sustainable firm performance

Simatupang

et al. 2022

HighTech. Innov. J.

Self Cite

This study investigates how interfirm networks affect firm performance through a multi-mediation model of innovation capability and exports in the context of high-tech industries in Indonesia as one of the emerging economies. As part of domestic and international business networks, the firm can benefit from various forms, such as being a supplier to another firm in the next value chain, learning external knowledge, resource sharing, and, in turn, increasing firm performance. However, there is no guarantee that firms engaging in the interfirm network will increase their performance through innovative capability and internationalization through exporting activities. This study utilizes the large and medium manufacturing industries 2017 dataset from an annual survey conducted by Statistics Indonesia. We created a total sample of 2,578 firms from 7 industries in Indonesia's high-tech industries based on two-digit International Standard Industrial Classification (ISIC) manufacturing industries. By employing Structural Equation Model (SEM) – Path Analysis, this study found that the interfirm network positively and significantly affects the firm's performance. Meanwhile, a significant but not unidirectional effect was found in the relationship between interfirm networks and innovation capability, as well as innovation capability on firm performance. Export plays an important role in improving the company's performance, either directly or as a mediator. However, the mediating effect of innovation capabilities and export activities on interfirm networks and firms' performance is much smaller than the direct effect of interfirm networks on firms' performance. Doi: 10.28991/HIJ-SP2022-03-05 Full Text: PDF

Section: Discussionmentioning

confidence: 99%

The Importance of Interfirm Networks in Enhancing Innovation Capability and Exporting in High-Tech Industry

Simatupang

et al. 2022

HighTech. Innov. J.

Self Cite

“…The output value is the output of industrial activities in the form of everything sold by the firm (revenue), which consists of (1) Goods produced, (2) Electric power sold, (3) Industrial services received from other parties, (4) Other revenues from non-industrial services, and (5) The difference in the value of the stock of semi-finished goods. Meanwhile, input costs are everything that the firm buys for industrial activities (Noerlina, Alamsjah, & Mursitama, 2020;Noerlina, Tjhin, Mursitama, Simatupang, & Bandur, 2021).…”

Section: Firm Performance In High-tech Industriesmentioning

confidence: 99%

The role of absorptive capacity, technological capability, and firm performance in Indonesia’s high-tech industry

Arnakim

2023

IJAEFA

The aim of this research is to examine the role of Absorptive capacity as an important ability to absorb technology and as a key to the firm's innovation capabilities. Technological capability is an important resource that companies must own to increase competitiveness because with these core resources and technology competencies, the firm can create values. Technological capabilities can be developed from internal or external sources. This study focuses on the external source in the form of royalty expense by presenting foreign experts/technology/copyrighted works/trademark/formulas to obtain technology and knowledge transfer. The research uses Large and Medium-scale Manufacturing Survey data that is taken from the Indonesian Central Bureau of Statistics (CBS). This is descriptive research that aims to produce an accurate mechanism of process relationship among variables. The results show that royalty expenses have a different relationship with firm performance. Some industries like electrical equipment and motor vehicles, as well as trailers and semi-trailers, have a very high royalty expense accompanied by the firm’s performance which is also the highest among all industries in the high-tech industry. This proves that several firms in the high-tech industry in Indonesia have a high absorptive capacity. However, different findings are seen in the chemicals and pharmaceutical industry. Firms do not spend above the industry’s average on royalty expenses, but their performance remains above the average performance of the high-tech industry in Indonesia.

An Overview of Characteristics and Condition of High-Tech Industry in Indonesia

2023

E3S Web of Conf.

This research aims to better understand the high-tech industry in Indonesia so that business owners and the government can determine the best strategy for utilizing their resources. It use a descriptive and qualitative analysis approach, presenting a general profile of industry data and characteristics through national news and information. Indonesia's high-tech industry generally relies heavily on imported components or raw materials (chemicals, pharmaceuticals, computers and electronics, electrical equipment, machinery and equipment, motor vehicles, and other transportation equipment). The chemical industry significantly contributes to the economy because it can absorb large amounts of capital, create jobs, and generate added value. Because of the enormous domestic market opportunities, the pharmaceutical industry tends to build a national value chain. The electronic, optical, and electrical industries all favor indigenous innovation. To address the issue of global warming and climate change, the machinery and equipment industry must emphasize sustainable innovation by utilizing the latest technology. In contrast, the transportation industry must focus on optimizing integrated transportation services, transportation safety, and developing environmentally friendly sustainable transportation. Following the pandemic, the development of the high-tech industry began to show growth, indicating that the Indonesian economy would recover.