Cluster Analysis of Innovativeness in Manufacturing Companies and Its Influence to Business Success

  • Authors

    • Edy Suroso
    • Ina Primiana
    • Umi Kaltum
    • Yudi Azis
    2018-05-22
    https://doi.org/10.14419/ijet.v7i2.29.15138
  • Types of Innovation, Innovativeness, Business Success, Manufacturing Companies.

  • The competition makes the companies under pressure to always survive in the conditions that dynamically changed. Innovation has been known as an important factor in improving the performance of the company in the face of dynamic market. The purpose of this paper are (1) to analyze innovativeness by using the 58 operations managers of manufacturing companies in Tasikmalaya City, West Java Indonesia as respondents, and (2) to know the types of innovativeness cluster determining business success. The results showed the four types of clusters of Innovativeness consisting (1) Leading Innovators cluster that have the outclass value than the others in every aspect of innovativeness, (2) Followers cluster is as the very low radical product innovations capability, (3) Inventors are very strong radical product innovations, while (4) Laggers are the lowest scores in all innovation types among the clusters. Based on ANOVA, it is concluded that every clusters of innovativeness has its own business success difference. The leading innovators type has the highest mean of business success measured by the comparison innovations type among clusters in the sales growth.

     

     

  • References

    1. [1] Gunday G, Ulusoy G, Kilic K, Alpkan L. Effects of innovation types on firm performance. International Journal of production economics. 2011;133(2):662-76.

      [2] Drucker PF. Innovation and entrepreneurship practices and principles: AMACON; 1985.

      [3] Gopalakrishnan S, Damanpour F. A review of innovation research in economics, sociology and technology management. Omega. 1997;25(1):15-28.

      [4] Manual O. The measurement of scientific and technological activities. Proposed guidelines for collecting and interpreting innovation data. 2005.

      [5] Damanpour F. Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of management journal. 1991;34(3):555-90.

      [6] Kilic K, Ulusoy G, Gunday G, Alpkan L. Innovativeness, operations priorities and corporate performance: An analysis based on a taxonomy of innovativeness. Journal of Engineering and Technology Management. 2015;35:115-33.

      [7] Schumpeter JA. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle (1912/1934). Transaction Publishers–1982–January. 1982;1:244.

      [8] Johannessen J-A. Organisational innovation as part of knowledge management. International Journal of Information Management. 2008;28(5):403-12.

      [9] Atalay M, Anafarta N, Sarvan F. The relationship between innovation and firm performance: An empirical evidence from Turkish automotive supplier industry. Procedia-Social and Behavioral Sciences. 2013;75:226-35.

      [10] Therrien P, Doloreux D, Chamberlin T. Innovation novelty and (commercial) performance in the service sector: A Canadian firm-level analysis. Technovation. 2011;31(12):655-65.

      [11] Dewar RD, Dutton JE. The adoption of radical and incremental innovations: An empirical analysis. Management science. 1986;32(11):1422-33.

      [12] Brouwer M. Schumpeterian Puzzles: Technological competition and economic evolution: University of Michigan Press; 1991.

      [13] Bessant J, Tidd J. Innovation and entrepreneurship: John Wiley & Sons; 2007.

      [14] Kotsemir MN, Abroskin A, Meissner D. Innovation concepts and typology–an evolutionary discussion. 2013.

      [15] Midgley DF, Dowling GR. Innovativeness: The concept and its measurement. Journal of consumer research. 1978;4(4):229-42.

      [16] Hurley RF, Hult GTM. Innovation, market orientation, and organizational learning: an integration and empirical examination. The Journal of marketing. 1998:42-54.

      [17] Damanpour F, Evan WM. Organizational innovation and performance: the problem of" organizational lag". Administrative science quarterly. 1984:392-409.

      [18] Ellonen R, Blomqvist K, Puumalainen K. The role of trust in organisational innovativeness. European Journal of Innovation Management. 2008;11(2):160-81.

      [19] Tellis GJ, Prabhu JC, Chandy RK. Radical innovation across nations: The preeminence of corporate culture. Journal of marketing. 2009;73(1):3-23.

      [20] Man MMK. The relationship between distinctive capabilities, innovativeness, strategy types and the performance of small and medium-size enterprises (SMEs) of Malaysian manufacturing sector. The International Business & Economics Research Journal. 2009;8(11):21.

      [21] Avermaete T, Viaene J, Morgan EJ, Pitts E, Crawford N, Mahon D. Determinants of product and process innovation in small food manufacturing firms. Trends in food science & technology. 2004;15(10):474-83.

      [22] Lehtoranta O. A comparative micro-level analysis of innovative firms in the CIS Surveys and in the VTTs Sfinno Database. Working Paper, VTT Working Papers 242005.

      [23] Kannebley S, Sekkel JV, Araújo BC. Economic performance of Brazilian manufacturing firms: a counterfactual analysis of innovation impacts. Small Business Economics. 2010;34(3):339-53.

  • Downloads

  • How to Cite

    Suroso, E., Primiana, I., Kaltum, U., & Azis, Y. (2018). Cluster Analysis of Innovativeness in Manufacturing Companies and Its Influence to Business Success. International Journal of Engineering & Technology, 7(2.29), 1107-1112. https://doi.org/10.14419/ijet.v7i2.29.15138