Ditulis oleh Superadmin pada Thursday, 10 November 2011 - 12:09:10
This paper explore the relationship between innovation and business performance and compare these relationships between clustered and dispersed Small and Medium Enterprises (SMEs) in Indonesian food processing industry. This paper also provides empirical evidence on the innovation and business performance of both clustered and dispersed SMEs. This study was driven by the important role of SMEs in Indonesian food processing industry for helping low income people access the low price foods. Furthermore, as Indonesian Government implements policy that support clustered SMEs such as financial and technological assistance, it could be expected that SMEs in the cluster area could pursue and emphasize different performance than their non clustered counterparts. Primary data was collected by convenient sampling in West Java, Indonesia. The sample includes only companies with fewer than 100 employees and those operate in the food processing industry. T-test statistics was used to compare innovation and performance of clustered SMEs and dispersed SMEs. To understand relationship between innovation and performance we used regression analysis. Several major findings were found through data analysis. First, there was significant difference between clustered and non clustered SMEs in innovation and business performance. The second findings in this research show that innovation affect business performance in both clustered and dispersed SMEs.
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