Confirmation of Innovation Capabilities, Intellectual Capital, Entrepreneurship Orientation, and Performance SMEs Batik in East Java

M. Taufiq Noor Rokhman (), Armanu, Margono Setiawan and Rofiaty
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M. Taufiq Noor Rokhman: University of Brawijaya, Doctorate Program of Management Science, Faculty of Economics
Armanu: University of Brawijaya, Faculty of Economics
Margono Setiawan: University of Brawijaya, Faculty of Economics
Rofiaty: University of Brawijaya, Faculty of Economics

A chapter in Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2022), 2023, pp 179-190 from Springer

Abstract: Abstract This study aims to obtain confirmatory empirical evidence of the factors of innovation ability, intellectual capital, and entrepreneurial orientation to improve the performance of Batik SMEs in East Java. The population in this study is the owner of Batik SMEs in East Java with a total sample of 140 respondents. Analysis of the data used in this study is Confirmatory Factor Analysis. The results showed that human capital is the strongest indicator of intellectual capital formation. Risk taking is the strongest indicator in shaping entrepreneurial orientation. Marketing innovation is the strongest indicator in shaping innovation capability. Marketing performance is the strongest indicator of the performance of batik SMEs in East Java. For SME owners, it is necessary to increase intellectual capital related to social capital by cooperating with other batik entrepreneurs and setting aside a small part of the profits for the benefit of the citizens. More proactive in seeking market opportunities and marketing new products to new markets and increasing product innovation by creating products with different motifs and creating products with matching color combinations. In addition, seeking market opportunities and marketing new products to new markets is an important strategy and is able to increase product innovation with different motifs and matching color combinations.

Keywords: Intellectual capital; Entrepreneurial orientation; Innovation capability; MSME performance (search for similar items in EconPapers)
Date: 2023
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DOI: 10.2991/978-94-6463-178-4_19

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