Noorlailie Soewarno and Bambang Tjahjadi and Devitania Permatanadia (2020) Competitive Pressure and Business Performance in East Java Batik Industry. Journal of Asian Finance, Economics and Business, 7 (12). pp. 329-336. ISSN 2288-4637; eISSN: 2288-4645

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Abstract

This study aims to assess the impact of competitive pressure and innovation capability on business performance in small- and medium-sized enterprises (SMEs) in the batik industry in East Java, Indonesia. Furthermore, this study explores the impact of competitive pressure on business performance through innovation capability as a mediating variable. This research was quantitative using primary data with questionnaire as a method of sampling collection. The measurement of the variables was captured using Likert scale. The respondents were small- and medium-sized enterprises (SMEs) in the batik industry in East Java Province, Indonesia. The sample totaled 254 subjects. The data analysis was done using SEM-PLS. The results of the study show that: 1) there was a positive direct impact of competitive pressure on business performance; 2) competition pressure positively influences innovation capability; 3) innovation capability positively influences business performance; and 4) innovation capability has a partial mediating role in the effect of competitive pressures on business performance. The findings of this study suggest that managers in SME's batik industry should increase their effort to cope with the high competitive pressure to increase the innovation capability, so that they can have an advantage to face successfully competitors, leading to higher business performance.

Item Type:	Article
Uncontrolled Keywords:	Competitive Pressure; Innovation Capability; Business Performance
Subjects:	H Social Sciences H Social Sciences > HF Commerce > HF5001-6182 Business
Divisions:	04. Fakultas Ekonomi dan Bisnis > Akuntansi Artikel Ilmiah > SCOPUS INDEXED JOURNAL
Creators:	Creators NIM Noorlailie Soewarno NIDN0025126402 Bambang Tjahjadi NIDN0004025702 Devitania Permatanadia NIM041611333037
Depositing User:	Tn Sugeng Riyanto
Date Deposited:	03 May 2021 04:30
Last Modified:	03 May 2021 04:30
URI:	http://repository.unair.ac.id/id/eprint/106221
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