The Effect of Innovation Capability on Export Performance (Study on wood handicraft SMEs in Bali)

Ni Wayan Eka Mitariani, Agus Wahyudi Salasa Gama, Ni Made Widnyani

Abstract


Objectives: This study adopts the theory of Service Dominant Logic (SDL) because a product must provide appropriate value for its target customers, and a value must be created with its customers as developed in the concept of value co-creation. This study aims to find an appropriate framework in improving the export performance of handicraft SMEs in Bali.

Methodology: This research is a type of associative research. The population in this study were all SME's wood craft in Bali, which amounted to 242 companies with the owner or manager as the unit of analysis. Sampling using the census method. The analysis technique uses Partial Least Square. The response rate in this study was 80.17%, because as many as 46 closed and two SMEs were not willing to fill out the questionnaire.

Finding: The implication of this research is that it can assist in making decisions and policies at the company level related to innovation capability, aesthetic-utilitarian value, and positional advantage in improving export performance.

Conclusion: Wood craft SMEs that are able to create products with aesthetic-utilitarian value consisting of three dimensions, namely visual benefits, physical benefits and functional benefits will be able to increase their export performance.


Keywords


Innovation Capability; Export Performance; SMEs Bali.

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