The Relationship Between Entrepreneurial Orientation and Performance of SMEs in Indonesia

The Role of Process Innovation between Firm-Specific Capabilities and Sustainable Innovation in SMEs: Empirical Evidence from Indonesia

“…Our result suggests that the dynamic capability approach of three firm-specific capabilities: absorptive capacity as obtaining the external knowledge and ingesting it for internal use by combining internal and external knowledge, stakeholder integration as integrating stakeholder expectation into a firm's operational routine, and intrapreneurship as the way of pursuing opportunities formed by internal routines and individual practices, are enhance the best practices of process innovation. As such, our findings are consistent with the previous studies of process innovation activated by absorptive capacity [174,198,199], intrapreneurship [134,136,173], and stakeholder integration [143,144,146]. An interesting finding was that absorptive capacity has the smallest effect size on process innovation.…”

“…Still, it has medium national human development index of 69.76, which is lower than the standard national human development index (70)(71)(72)(73)(74)(75)(76)(77)(78)(79)(80) [172]. On the contrary, there is evidence that certain capabilities are able to influence SMEs in Indonesia to be more innovative, such as entrepreneurship orientation [173] and absorptive capacity [174].…”