The effect of Internal environment, Knowledge management, and Dynamic capability toward Innovative capability and E-business Performance on Clothing online business in east java, Indonesia

Hananiel M Gunawan, Henky Supit and Christina Esti Susanti
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Hananiel M Gunawan: Graduate School, Widya Mandala Surabaya Catholic University, Indonesia.
Henky Supit: Graduate School, Widya Mandala Surabaya Catholic University, Indonesia.
Christina Esti Susanti: Graduate School, Widya Mandala Surabaya Catholic University, Indonesia.

International Journal of Science and Business, 2022, vol. 11, issue 1, 83-96

Abstract: The dynamics of business competition is increasing in its intensity and aggressiveness. This requires businesses to focus on effective strategies to maintain and achieve their goals. E-commerce has forced businesses to expand their ability and also their performance in this current era. For clothing online business, especially in east Java, the effort is tremendous due to the dynamic of changing market and consumer preferences. This industry is expected to achieve and improve its performance, with various capabilities and strategies. The purpose of this research is to determine the effect of Internal Environment, Knowledge Management, Dynamic Capability, to E-Business Performance through Innovation Capability. This research uses 210 clothing online business as samples with random sampling method. Method of hypothesis testing uses structural equation model to test 10 hypotheses in this research. The result shows that Internal Environment, Knowledge Management, Dynamic Capability has significant influence on Innovation Capability. In addition, only Internal Environment, and Dynamic Capability significantly influence E-Busines performance, while Knowledge Management does not significantly influence E-Business Performance. Furthermore, Innovation Capability is found as intervening variable of relationship between Internal Environment, Knowledge Management, and Dynamic Capability to E-Business Performance.

Keywords: Internal Environment; Knowledge Management; Dynamic Capability; Innovation Capability; E-Business Performance (search for similar items in EconPapers)
Date: 2022
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