Environmental Dynamism in Increasing Innovation and Performance in Guitar MSMEs in Central Java

Agung Budiatmo, Sari Listyorini () and Gilda Maulina
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Agung Budiatmo: Universitas Diponegoro, Department of Business Administration, Faculty of Social and Political Sciences
Sari Listyorini: Universitas Diponegoro, Department of Business Administration, Faculty of Social and Political Sciences
Gilda Maulina: Universitas Diponegoro, Department of Business Administration, Faculty of Social and Political Sciences

A chapter in Proceedings of the 2nd International Conference on Management and Business (ICOMB 2023), 2024, pp 183-191 from Springer

Abstract: Abstract The creative industry in Indonesia is one of the sectors expected to contribute to the economy, one of which is the guitar craft industry. Guitar Crafts is one of the MSMEs in Sukoharjo district with extraordinary potential because their business has reached foreign markets. This research aims to determine the influence of innovation on the performance of the Guitar MSME business and to determine the effect of innovation on performance moderated by environmental dynamics. This research was conducted in Sukoharjo Regency with a sample size of 51 guitar MSMEs. The research results show that innovation has no significant effect on the performance of Guitar MSMEs, environmental dynamics have a significant effect on performance, and environmental dynamics weaken the relationship between innovation and the performance of Guitar MSMEs in Sukoharjo Regency. Guitar MSMEs need to adapt to a rapidly changing environment so that environmental dynamics will further strengthen the innovation and performance of Guitar MSMEs in Sukoharjo district.

Keywords: Innovation; environmental dynamics; performance; MSMEs (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-402-0_20

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DOI: 10.2991/978-94-6463-402-0_20

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