ABSORPTIVE CAPACITY AND INNOVATION CAPABILITY: ASSESSING THE IMPACT ON SMES PERFORMANCE IN THE NEW NORMAL ERA

ABSORPTIVE CAPACITY AND INNOVATION CAPABILITY: ASSESSING THE IMPACT ON SMES PERFORMANCE IN THE NEW NORMAL ERA

absorptive capacity, innovation capability, business performance, SMEs, new normal

The new normal era during the COVID-19 pandemic has presented opportunities and challenges for SMEs. This study aimed to determine the effects of absorptive capacity and innovation capability on business performance. The research involved 189 creative SMEs owners in Malang City. The sampling technique uses proportional random sampling. Data were collected by distributing
questionnaires to respondents. The data analysis used partial least squares using high-order construction. The results showed that absorptive capacity significantly affects business performance,
and absorptive capacity significantly affects innovation capability. However, innovation capability had no significant effect on business performance. Innovation capability has also not been proven to
influence Absorptive Capacity and Business Performance indirectly. The practical implication is that SMEs owners should develop the absorptive capacity to reach, assimilate, and acquire new
knowledge to achieve better SMEs performance. Simultaneously, innovation capability does not automatically improve SMEs' performance. SMEs need extra effort to produce innovations that are rare, unique, and difficult to imitate to survive the new normal era.

Yudha Prakasa, Anang Sujoko, Nana Abdul Aziz, Andhyka Muttaqin

DOI : http://dx.doi.org/10.26418/jebik.v11i3.57368

Univ. Tanjungpura

31-12-2022

Sri Wahyuni

P-ISSN : 2087-9954, E-ISSN : 2550-0066

PDF

English

Text

Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK) Univ. Tanjungpura 2022