The Effect of Design Management Capability on Product Innovation for SMEs in Indonesia
Abstract
Small, and Medium Enterprises (SMEs) are the backbone of the national economy. The increase in the number of SMEs in Indonesia must be accompanied by an increase in product innovation performance. Innovating products means contributing to the creation of competitive advantage, increased efficiency, and increased competitiveness, thus helping to ensure future performance. Bringing innovation to MSME products requires an effort to present creative visualization activities of concepts, plans, and ideas, represented in sketches and provide instructions on making something that does not yet exist, or so-called design management capability. This research investigated the extent to which the influence of the design management capability of MSME activists in Indonesia could contribute to presenting innovative products. This research provided a novelty to the construction of design management capability that combined the dimensions of previous research. The data collection method employed a questionnaire, with 360 respondents selected through the purposive sampling technique. Using Structural Equation Modeling (SEM) with AMOS 24 tool, the results of this study indicated that design management capability had a significant effect on product innovation
Downloads
References
[2] Acklin, C. (2010). Design-driven innovation process model. Design Management Journal, 5(1), 50-60.
[3] Acklin, C. (2013). Design management absorption model: A framework to describe and measure the absorption process of design knowledge by SMEs with little or no prior design experience. Creativity and Innovation Management, 22(2), 147-160.
[4] Afriyie, S., Du, J. & Ibn Musah, AA. (2019). Innovation and marketing performance of SME in an emerging economy: the moderating effect of transformational leadership. J Glob Entrepr Res 9, 40. https://doi.org/10.1186/s40497-019-0165-3
[5] Amabile, T., Conti, R., Coon, H., Lazenby, J. and Herron, M., 1996. Assessing the work environment for creativity. Academy of Management Journal, 39(5): 1154-1184.
[6] Brazier, S. (2004), “Walking backward into design: support for the SME”, Design Management Review, Vol. 15 No. 4, p. 61.
[7] Bruce, M. and Bessant, J. (2002), “Managing design as a process”, in Bruce, M. and Bessant, J. (Eds), Design in Business: Strategic Innovation Through Design, Prentice Hall, Hemel Hempstead, pp. 36-58.
[8] Bruce, M. and Cooper, R. (1997), Marketing and Design Management, International Thomson, London.
[9] Bruce, M., Cooper, R. and Vasquez, D. (1999). Effective design management for small businesses. Design Studies, 20(3), 297-315.
[10] Chiva, R., & Alegre, J. (2009). Investment in design and firm performance: The mediating role of design management. Journal of Product Innovation Management, 26(4), 424-440.
[11] Cox, G. (2005), Cox Review of Creativity in Business: Building on the UK’s Strengths, Design Council, London.
[12] Damanpour, F. and Evan, W.M. 1984. Organizational innovation and performance: the problem of organizational lag. Administrative Science Quarterly, 29, 392-409.
[13] Dickson, P., Schneider, W., Lawrence, P. and Hytry, R. (1995), “Managing design in small high growth companies”, Journal of Product Innovation Management, Vol. 12 No. 5, pp. 406-15.
[14] Fernández‐Mesa, A., Alegre‐Vidal, J., Chiva‐Gómez, R. and Gutiérrez‐Gracia, A. (2013), "Design management capability and product innovation in SMEs", Management Decision, Vol. 51 No. 3, pp. 547-565. https://doi.org/10.1108/00251741311309652
[15] Field, D. (2017, May 13). 6 major tech companies have doubled their design hiring goals in last half decade. Techcrunch. Retrieved from https://techcrunch.com/2017/05/31/here-aresome- reasons-behind-techs-design-shortage/
[16] Fueglistaller, U. (2004), Charakteristik und Entwicklung von Klein- und Mittelunternehmen (KMU), KMU Verlag HSG, St Gallen.
[17] Gerlitz, L., Hack, A., & Prause, G. (2016). An Integrated Design Management Concept: Creating Innovative Space for Emergent SMEs and Value for Knowledge Absorbers. Journal of Entrepreneurship and Innovation in Emerging Economies, 2(1), 38–55. https://doi.org/10.1177/2393957515619717
[18] Golovko, E. and Valentini, G. 2011. Exploring the complementarity between innovation and export for SMEs’ growth. Journal of International Business Studies, 42, 362-380.
[19] Gorb, P. and Dumas, A. (1987), “Silent design”, Design Studies, Vol. 8 No. 3, pp. 150-6.
[20] Hertenstein, J.H., Blatt, M.B. and Veryzer, R.W. (2005), “The impact of industrial design effectiveness on corporate financial performance”, Journal of Product Innovation Management, Vol. 22 No. 1, pp. 3-21.
[21] Ho, Y., Fang, H. and Lin, J. (2011), “Technological and design capabilities: is ambidexterity possible?”, Management Decision, Vol. 49 No. 2, pp. 208-25.
[22] Jevnaker, B. H. (2000). Championing design: Perspectives on design capabilities. Design Management Journal: Academic Review, 1(1), 25-39.
[23] Kementerian Koperasi dan UKM. 2018. Sinergitas Pengembangan KUMKM melalui Penguatan Peran Antar Lembaga. Rapat Kerja Nasional
[24] Liu, X.H. and Rieple, A. (2019). Design management capability in entrepreneurship: A case study of Xiaomi. International Journal of Design, 13(3), 125-138.
[25] Moultrie, J., Clarkson, P.J. and Probert, D. (2007), “Development of a design audit tool for SMEs”, Journal of Product Innovation Management, Vol. 24 No. 4, pp. 335-68.
[26] OECD. 2005. The measurement of scientific and technological activities. Proposed guidelines for collecting and interpreting technological data. OECD, Paris.
[27] Rahayu, N. (2017, November 28). Warta Ekonomi. Dipetik Januari 26, 2018, dari UMKM Jadi Sektor Unggulan Perekonomian Indonesia: https://www.wartaekonomi.co.id/
[28] Shih, Gerry (2012, April 12). In Silicon Valley, designers emerge as rock stars. Reuters. Retrieved from https://www. reuters.com/article/us-designers-startup/in-silicon-valleydesigners-emerge-as-rock-stars-idUSBRE83C0QG20120413
[29] Teece, D. J. (1998). Capturing value from knowledge assets: The new economy, market for know-how, and intangible assets. California Management Review, 40(3), 55-79.
[30] Teece, D.J., Pisano, G. and Shuen, A. (1997), “Dynamic capabilities and strategic management”, Strategic Management Journal, Vol. 18 No. 7, pp. 509-33.
[31] Venture capital funnel shows odds of becoming a unicorn are about 1%. (2019, June 5). CB Insights. Retrieved from https:// www.cbinsights.com/research/venture-capital-funnel-2/
[32] Vidal, Joaquín & Barber, José & Chiva, Ricardo & Villar, Cristina. (2012). Organisational learning capability, product innovation performance and export intensity. Technology Analysis & Strategic Management - TECHNOL ANAL STRATEG MANAGE. 24. 511-526. 10.1080/09537325.2012.674672.
[33] Walsh, V. (1996), “Design, innovation and the boundaries of the firm”, Research Policy, Vol. 25 No. 4, pp. 509-29.
[34] Zou, S. and Ozsomer, A. 1999. Global product R&D and the firm's strategic position. Journal of International Marketing, 7(1), 57-77.
TRANSFER OF COPYRIGHT
JRBEM is pleased to undertake the publication of your contribution to Journal of Research in Business Economics and Management.
The copyright to this article is transferred to JRBEM(including without limitation, the right to publish the work in whole or in part in any and all forms of media, now or hereafter known) effective if and when the article is accepted for publication thus granting JRBEM all rights for the work so that both parties may be protected from the consequences of unauthorized use.
