Creativity Barrier and The Impact on Innovation and Business Performance of SMEs

Although innovation is recognized as important for a company, not all companies can do it due to some limitations or barriers they have, especially for small and medium-sized companies. One of these barriers is in terms of creativity. This study discussed this issue by investigating how the effect o...

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Main Authors: Sarli Rahman, Onny Setyawan, Bord Nandre Aprila
Format: Article
Language:English
Published: University of Brawijaya 2024-09-01
Series:Jurnal Aplikasi Manajemen
Subjects:
Online Access:https://jurnaljam.ub.ac.id/index.php/jam/article/view/8283
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author Sarli Rahman
Onny Setyawan
Bord Nandre Aprila
author_facet Sarli Rahman
Onny Setyawan
Bord Nandre Aprila
author_sort Sarli Rahman
collection DOAJ
description Although innovation is recognized as important for a company, not all companies can do it due to some limitations or barriers they have, especially for small and medium-sized companies. One of these barriers is in terms of creativity. This study discussed this issue by investigating how the effect of creativity barriers of SMEs in generating varied, unique, and original ideas on the company's ability to carry out innovative practices, as well as its impact on the business performance of SMEs. Thus, this study aimed to test empirically on 350 SMEs in Riau Province whether barriers to creativity (creativity barriers) can be antecedents of innovation and business performance in the context of cross-sector small and medium-sized enterprises with structural equation modeling (SEM) analysis technique. The findings of this study indicate a significant effect related to the effect of creativity barriers on SMEs' product and process innovation. The results of this study also found that creativity barriers did not have a significant effect on performance. This study's last findings prove the mediation role of the innovation process in the relationship between creativity barriers and performance. The results of this study prove that success in making product innovation can be a differentiating factor that causes some SMEs to grow and develop while others do not, even though they have almost the same limitations or barriers. In practical terms, the results of this study show how important it is for SMEs to always adopt innovative practices, such as making changes, updates, and improvements to improve their business performance.
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spelling doaj-art-c8204c8673ac42d88bbc2f330126aaf52025-08-20T02:30:08ZengUniversity of BrawijayaJurnal Aplikasi Manajemen1693-52412302-63322024-09-0122310.21776/ub.jam.2024.022.03.191590Creativity Barrier and The Impact on Innovation and Business Performance of SMEsSarli Rahman0Onny Setyawan1Bord Nandre Aprila2Institut Bisnis dan Teknologi Pelita Indonesia, IndonesiaInstitut Bisnis dan Teknologi Pelita Indonesia, IndonesiaInstitut Bisnis dan Teknologi Pelita Indonesia, IndonesiaAlthough innovation is recognized as important for a company, not all companies can do it due to some limitations or barriers they have, especially for small and medium-sized companies. One of these barriers is in terms of creativity. This study discussed this issue by investigating how the effect of creativity barriers of SMEs in generating varied, unique, and original ideas on the company's ability to carry out innovative practices, as well as its impact on the business performance of SMEs. Thus, this study aimed to test empirically on 350 SMEs in Riau Province whether barriers to creativity (creativity barriers) can be antecedents of innovation and business performance in the context of cross-sector small and medium-sized enterprises with structural equation modeling (SEM) analysis technique. The findings of this study indicate a significant effect related to the effect of creativity barriers on SMEs' product and process innovation. The results of this study also found that creativity barriers did not have a significant effect on performance. This study's last findings prove the mediation role of the innovation process in the relationship between creativity barriers and performance. The results of this study prove that success in making product innovation can be a differentiating factor that causes some SMEs to grow and develop while others do not, even though they have almost the same limitations or barriers. In practical terms, the results of this study show how important it is for SMEs to always adopt innovative practices, such as making changes, updates, and improvements to improve their business performance.https://jurnaljam.ub.ac.id/index.php/jam/article/view/8283Creativity BarriersProduct InnovationProcess InnovationSMEs
spellingShingle Sarli Rahman
Onny Setyawan
Bord Nandre Aprila
Creativity Barrier and The Impact on Innovation and Business Performance of SMEs
Jurnal Aplikasi Manajemen
Creativity Barriers
Product Innovation
Process Innovation
SMEs
title Creativity Barrier and The Impact on Innovation and Business Performance of SMEs
title_full Creativity Barrier and The Impact on Innovation and Business Performance of SMEs
title_fullStr Creativity Barrier and The Impact on Innovation and Business Performance of SMEs
title_full_unstemmed Creativity Barrier and The Impact on Innovation and Business Performance of SMEs
title_short Creativity Barrier and The Impact on Innovation and Business Performance of SMEs
title_sort creativity barrier and the impact on innovation and business performance of smes
topic Creativity Barriers
Product Innovation
Process Innovation
SMEs
url https://jurnaljam.ub.ac.id/index.php/jam/article/view/8283
work_keys_str_mv AT sarlirahman creativitybarrierandtheimpactoninnovationandbusinessperformanceofsmes
AT onnysetyawan creativitybarrierandtheimpactoninnovationandbusinessperformanceofsmes
AT bordnandreaprila creativitybarrierandtheimpactoninnovationandbusinessperformanceofsmes