Vigory Gloriman Manalu

This study aims to understand the performance of SME’s product innovation by relating it to the foresight concept of SME owners or managers and the moderating effect of competitive intensity. It employs a quantitative research method by using a survey. This paper studies SMEs from the West Java Province of Indonesia in three industrial sectors: food, fashion, and handicrafts. These industrial sectors were chosen because they are the most competitive, and their consumers change rapidly. Data were collected through a structured questionnaire. A total of 200 questionnaires were distributed, 190 were returned, and 187 were used for data processing. Furthermore, the data were analyzed using exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM). The results show that networking, time horizon, and analysis can affect product innovation performance (p < 0.05). Furthermore, competition intensity does not affect the relationship between analysis and product innovation performance, although there is a relationship between networking and time horizon. The results of this study provide insight for Indonesian SMEs, especially in West Java. Foresight skills trained by SMEs will make them accustomed to facing high-level competition, especially in the time horizon dimension. However, on the other hand, the high intensity of competition can reduce their networking to collaborate with various related parties.

SMEs are the backbone of the economy in various countries. SMEs are usually associated with their entrepreneurial capabilities and organizational culture to create sustainable innovation. This study aims to analyze the relationship between learning orientation and entrepreneurial orientation on SME innovation performance and examine the role of organizational learning as a mediator in this relationship. A quantitative approach was used. Data were collected through a survey of SME owners or managers from West Java who focused on the food and beverage, handicraft, and fashion industrial sectors. The questionnaire collection took place from August to November 2024. Two hundred thirty-seven questionnaires were retrieved for the analysis. The structural equation modeling (SEM) approach has been used to test the hypotheses. This study found a positive and significant relationship between learning orientation and organizational learning (p < 0.05, β= 0.54), entrepreneurial orientation and innovation performance (p < 0.05, β = 0.501), entrepreneurial orientation and organizational learning (p < 0.05, β = 0.5), and organizational orientation and innovation performance (p < 0.05, β = 0.446). In contrast, the relationship between learning orientation and innovation performance was insignificant (p > 0.05, β = 0.098). A good understanding of entrepreneurial orientation will allow SMEs to innovate better and survive amidst business competition. Learning orientation, which is considered to improve innovation performance, did not significantly influence SMEs in West Java. On the other hand, SMEs in West Java must improve their organizational learning, especially organizational culture related to shared vision, which is expected to influence innovation performance.