The Role of Industrial Clustering and Manufacturing Flexibility in Achieving High Innovation Capability and Operational Performance in Indonesian Manufacturing SMEs
Author(s):
Untung Setiyo Purwanto and Shahrul Kamaruddin, Norizah Mohamad
Tahun:
2015
Item Type:
Journal
eISSN/eISBN:
2234-6473
Keyword(s):
Industrial clustering, manufacturing flexibility, innovation capability, operational performance, manufacturing SMEs
This study aims to examine the effects of industrial clustering and manufacturing flexibility on innovation capability
and operational performance. This study follow a survey method to collect data pertaining to the phenomena of industrial clustering, manufacturing flexibility, innovation capabilit... (selengkapnya)
and operational performance. This study follow a survey method to collect data pertaining to the phenomena of industrial clustering, manufacturing flexibility, innovation capabilit... (selengkapnya)
DESKRIPSI
This study aims to examine the effects of industrial clustering and manufacturing flexibility on innovation capability
and operational performance. This study follow a survey method to collect data pertaining to the phenomena of industrial clustering, manufacturing flexibility, innovation capability, and operational performance by utilizing a single respondent design. A total of 124 Indonesian manufacturing SMEs are taken to test the proposed theoretical model by
utilizing covariance-based structural equations modeling approach. It was found that both industrial clustering and
manufacturing flexibility was positively associated with operational performance and innovation capability as well. In
addition, innovation capability may account for the effects of industrial clustering and manufacturing flexibility on
operational performance. This implies that manufacturing SMEs have to reorient their production and operation perspectives, including agglomerate with other similar or related SMEs to develop and utilize their own resources. The
SMEs also need to possess some degree of manufacturing flexibility in respond to the uncertain environment and
market changes. In addition, the SMEs should put a greater emphasize to use industrial cluster and manufacturing
flexibility benefits to generate innovation capability to achieve high performance
and operational performance. This study follow a survey method to collect data pertaining to the phenomena of industrial clustering, manufacturing flexibility, innovation capability, and operational performance by utilizing a single respondent design. A total of 124 Indonesian manufacturing SMEs are taken to test the proposed theoretical model by
utilizing covariance-based structural equations modeling approach. It was found that both industrial clustering and
manufacturing flexibility was positively associated with operational performance and innovation capability as well. In
addition, innovation capability may account for the effects of industrial clustering and manufacturing flexibility on
operational performance. This implies that manufacturing SMEs have to reorient their production and operation perspectives, including agglomerate with other similar or related SMEs to develop and utilize their own resources. The
SMEs also need to possess some degree of manufacturing flexibility in respond to the uncertain environment and
market changes. In addition, the SMEs should put a greater emphasize to use industrial cluster and manufacturing
flexibility benefits to generate innovation capability to achieve high performance