Service innovation capability, that spurs internationalization in Indonesian SMEs

  • Authors

    • Eka Sudarmaji
    • Ismiriati Nasip
    2018-05-22
    https://doi.org/10.14419/ijet.v7i2.29.13326
  • Indonesian SMEs, Internationalization, Service Innovation

  • Abstract

    Many companies search and develop new innovations as pivotal activities for better approaches to fulfill the existing customer’s requirements but failed to serve the future, service innovations that produce new markets. The absorptive capacity variables utilize the new external information and new knowledge in relation to the company innovativeness into the new product, new services, new processes, and new systems for internationalization achievement. This study investigates several factors that affect the service innovation capability based on samples of 38 Indonesian SMEs. We presume that our samples previously have a potential absorptive capacity as a basis to enhance their innovation capabilities and company’s performance. We test the hypotheses on several samples of Indonesian SMEs, using multivariate OLS regression analysis and Multi Discriminant Analysis. The results indicate that the combined factors of “number sales & marketingâ€, “product launching†and the “customer involvement†have a significant effect on “internationalization†in as a representation of service innovation capability. By keeping these "science-push" and "demand-pull†of SMEs on innovation as a top priority, the innovation opportunity will be alive and better practice under AEC implementation.

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  • How to Cite

    Sudarmaji, E., & Nasip, I. (2018). Service innovation capability, that spurs internationalization in Indonesian SMEs. International Journal of Engineering & Technology, 7(2.29), 251-256. https://doi.org/10.14419/ijet.v7i2.29.13326

    Received date: 2018-05-26

    Accepted date: 2018-05-26

    Published date: 2018-05-22