The effects of search breadth and search depth on the product innovation of young firms: Evidence from Thai manufacturing industry

The rapidly changing business climate and competition that has been getting stricter demand companies to have a proper strategy to grow and sustain their business. The objective of this quantitative study is to analyze the benefits of innovation in business strategy to create a competitive advantage for micro, small and medium enterprises (MSME). Inferential statistical analysis was performed on three mediating variables: people innovation, process innovation, and product innovation, in their involvement in business strategies as an independent variable, against competitive advantage as a dependent variable. Twenty-nine MSMEs in Indonesia were used as a sample of this study to examine four hypotheses. Thirty indicators of five variables were transformed into 50 questions in a Likert-scale questionnaire distributed to selected respondents using purposive sampling. The results of the T-test show that business strategy has a significant effect on competitive advantage, which means that business strategy without innovations creates only 20.2% of its competitive advantage. On the other hand, Sobel test results demonstrate that innovations significantly mediate the influence of business strategies on companies’ competitive advantages. Finally, product innovation potentially increases the competitive advantages by 53.1%, followed by process innovation and people innovation by 47.2% and 44.5%.

Acknowledgment
The author would like to express special gratitude to the Department of Industrial Engineering at Universitas Kristen Krida Wacana, who supported this investigation, as well as all participating MSMEs. This study received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.

A Correction to this article was published on 13 July 2023

Many apparel retailing brands use e-service marketing tools such as a chatbot (a system that is available 24 hours a day, 7 days a week) to increase their competitive advantage in today’s world of digitalization. During the COVID-19 pandemic, chatbots gained more power to serve as a communication tool that provides information and maintains customer experience. Therefore, this study is conducted to investigate the influence of chatbot e-service agents’ marketing efforts (involving interaction, entertainment, trendiness, and problem-solving) on Thai customers’ perceived communication credibility and satisfaction in apparel retailing, as research in this area is limited. In order to test the hypotheses, the paper employed structural equation modeling using Amos. In addition, an online survey of 400 Thai consumers who had previously used chatbots in the apparel retailing industry was conducted. The results showed that chatbot e-service marketing efforts, including interaction, trendiness, and problem-solving, affected customer satisfaction without entertainment elements. Beyond this, a chatbot, viewing interaction and entertainment, was found to have an insignificant effect on communication credibility. Thus, the coefficient value proved that information regarding communication credibility is more dominant in customer satisfaction. Therefore, the chatbot e-service marketing effort is essential in motivating communication credibility in customer satisfaction. These findings delivered managerial implications for understanding consumers in the field of digitalization.

Influencer marketing has been widely utilized in marketing communication. With the growing interest in virtual influencers, this study aims to investigate why social media users would interact with virtual influencers. The research model was developed based on the self-congruity theory. The data were obtained by questionnaires distributed to social media users using judgmental sampling (respondents were above 18 years old and actively used Instagram within the past six months). The questionnaire was posted on social media, and 230 responses were collected and analyzed using a covariance-based structural equation. Influencer-brand fit was found to have a weak direct effect on engagement (γ = 0.158, p < 0.05), but insignificant direct effect on mimicry desire (γ = 0.160, p > 0.05). Value homophily significantly affects both engagement and mimicry desire directly (β = 0.338 and β = 0.622, p < 0.01). Moreover, value homophily was found to fully mediate the virtual influencer-brand fit/mimicry desire relationship (B = 0.546, p < 0.01) and partially mediate the relationship of virtual influencer-brand fit/engagement (B = 0.229, p < 0.01). However, the mediating effect of mimicry desire on the virtual influencer-brand fit/engagement relationship was found to be non-significant (B = 0.065, p > 0.05). This study contributes to influencer marketing by highlighting value homophily as the most significant factor explaining why consumers respond to a virtual influencer when used as a message source in marketing communication.