Strategy Analysis for Increasing Business Performance through

Innovation Capability in the Textile Industry

Yudi Nur Supriadi

, Eeng Ahman

, and Ende

Study Program In Business Administration, STISIP Yuppentek, Kota Tangerang, Indonesia

Universitas Pendidikan Indonesia, Kota Bandung, Indonesia

Universitas Bina Bangsa, Serang, Indonesia

Keywords: Co-Creation, Entrepreneur Capability, Innovation Capability, and Performance Firm.

Abstract: This research is to find out strategies for improving business performance through the ability of innovation

in the textile industry, the authors conduct a study on the effect of co-creation, entrepreneur capability, on

the performance firm through innovation capability. The sample in this study is a company engaged in the

textile industry in Banten province as many as 125 respondents with purposive sampling method. The data

analysis technique used in this study is quantitative analysis using the SEM (Structural Equation Modeling)

model of the AMOS 23.00 program. the results of the study explain that the positive influence of

entrepreneur capability, on the performance firm through innovation capability, but for co-creation, the

results have no effect on company performance. While the entrepreneur capability variable has the most

dominant influence on company performance. The results of this study explain that the total influence of

entrepreneur capability and co-creation on innovation capability has a very large impact on improving the

performance of companies in the textile industry in Banten province. Directly, co-creation is not significant

influence business performance. It indicates that the company should respond to it by doing the

innovations.

1 INTRODUCTION

At this time the global economic phenomenon is

fluctuating, so that business development is

experiencing a downturn, this is triggered by Donald

Trump's government policy to protect the steel and

aluminum industry in the country by raising tariffs by

25% for steel and 10% for aluminum products has

caused a response countries including the European

Union, Mexico, and Canada. According to the

Indonesian Textile Association (API, 2018)

responding to Trump's policy is getting widespread

protests because it is feared that it will disrupt the

world economy. The global economy has caused this

industry to slow down in GDP as it appears to be

related to the lower value added of this industry in the

first quarter of 2017 compared to the fourth quarter of

2016. Despite the increase in industrial production of

Chemicals and Goods from Chemicals in the first

quarter of 2017 was strongly supported by an increase

in exports. Meanwhile, several types of large and

medium manufacturing industries (IBS) also

experienced a decline in production in the first quarter

of 2017. A very significant decline was experienced

by the Textile Industry whose production in the IBS

group fell by 6.87%. (Perindustrian, 2017).

Figure 1: Decline in industrial production

The textile industry in Indonesia experiences

problems that must be the concern of all parties in

solving the problem, various studies and research on

the textile industry in Indonesia until now there is no

accurate approach to finding the answers, the research

Supriyadi, Y., Ahman, E. and Ende, .

Strategy Analysis for Increasing Business Performance through Innovation Capability in the Textile Industry.

DOI: 10.5220/0009941122252236

In Proceedings of the 1st International Conference on Recent Innovations (ICRI 2018), pages 2225-2236

ISBN: 978-989-758-458-9

2225

conducted (Prasetyo, 2015) hat To deal with

problems In this regard, Indonesia must now be

prepared with a strong human resource capacity and

strong technology to accept the challenge of

competitiveness, especially from the TPT industry

sector and other human resources. All Indonesian

citizens must be ready and able to compete using their

own domestic workforce and industrial workers must

continue to be given appropriate and adequate skills,

to serve the interests of industry and commerce in the

MEA era and the world maritime axis.

The approach offered by the author in this study

is guided by two theories; Resource-Based Value

(RBV) and Capability Based Value (CBV). The RBV

draws attention to the company's internal

environment as a driver for competitive advantage.

The main proposition of this theory if a company

wants to achieve a state of strategic competitive

advantage, the company must obtain and control

resources and capabilities that are valuable, rare,

inimitable, and irreversible, plus those that have

organizations that can be applied to the company

(Kraaijenbrink, Spender, & Groen, 2010).

The company's internal factors through the role of

innovation are able to increase the spread of

knowledge-based economies, globalization, and

international competition pressures (Camagni, 1995;

Feldman & Desrochers, 2003; Hogan et al., 2011;

Storper, 1995). The fact that innovation has become

the center of organizational performance and

competitive advantage in a dynamic business

environment today cannot be underestimated.

Innovation affects organizational performance by

building specific competencies that produce sources

of competitive advantage. In order for innovation to

be implemented, organizations must have the ability

to innovate and operate in an environment (internal

and external) with the right sufficient work under

enablers under a healthy innovation management

system (Kenneth, Janet, & Stanley, 2015).

According to (Asegaff, 2016) put forward an

interesting theory to know the level of innovation

capability has a significant effect on the performance

measured from the share of output in a certain period

of time. The policy that always positions the textile

industry as a group that needs to be helped is based

on the assumption that the textile industry is a weak

business group and unable to compete with large

businesses, the policy tends to continue to this day. It

is time for the textile industry to innovate because

innovation is an important aspect of the development

of a company to improve performance, the company

needs an increase in innovation involving all internal

components of the company. The company's

innovation capability can be achieved when there is a

total process of participation among individuals in the

organization to improve innovation capability

(Rahab, Sulistyandari, 2011)

The textile industry must implement co-creation

in production to win business competition, according

to (Prahalad & Ramaswamy, 2004) co-creation is a

process of participation and collaboration to interact

with customers and companies needed to adapt and

innovate new products and services to win the

competition business, according to (Roser,

DeFillippi, & Samson, 2013) argues that company

performance will increase if the industry uses a

collection of ideas and strategies and has a unique

approach to specific creations in order to increase the

productivity of company performance

Improving the performance of the textile industry

in winning the competition needs to be supported by

the ability of the company entrepreneurs. Agree with

(Atonic & Hisrich, 2004) that the concept of

entrepreneurial ability needs to be well developed by

the company because the entrepreneurial ability

process is seen as the key to the company's success in

increasing its ability to have competitive value that

can be used as a strategy of competitive advantage of

the company (Porter, 1985). Empirical data from

research conducted by (Zahra, Sapienza, & Davidson,

2006) The textile industry shows problems in the

ability to develop processes, at present, the textile

industry has limited resources, lack of knowledge

base, and weak expertise in building and integrating

various capabilities One of them is entrepreneurial

ability. But the opinion of (Alvarez & Busenitz, 2001)

and (Woldesenbet, Ram, & Jones, 2012)

Entrepreneurial ability as the ability to identify

opportunities and develop the resource base needed to

pursue opportunities.

This study the authors find research gaps related

to innovation and construction capabilities,

entrepreneurial skills, co-creation with the

performance of companies in the textile industry

sector that has been studied previously, research (Eny

Rahmani & Siyamtinah, 2011) states that the

diversity of patterns of building innovation capability

has no impact on operational performance. Agree

with (Lianto et al., 2015a) that several dimensions of

innovation capability have absolutely no influence on

the performance of SMEs, namely learning ability, R

& D ability, resource allocation capabilities,

marketing capabilities, and strategic capabilities. In

this situation, the company follows an innovative

strategy that is very open, but co-creation and low

customer collaboration that leads to its overall

performance (Soltanzadeh, 2014) thus encouraging

ICRI 2018 - International Conference Recent Innovation

2226

the writer to conduct further research. This research

is strengthened by its analysis (Wang et al., 2016).

His research shows that knowledge sharing has no

direct effect on performance.

Based on the context of a number of research gaps

that have been conducted, this study aims to

determine the factors that affect the company's

performance through innovation capability with its

construct.

2 THEORETICAL FRAMEWORK

AND HYPOTHESIS

In the literature review, this study refers to several

parts of the theory, namely grand theory in this study

in the form of management theory related to the

middle theory on the basis of management theory and

applied theory of business performance. This research

is different when compared to other researchers

before because of the research background that

includes research gaps, and different business

phenomena. This study tries to build a proposal for

the proposed grand theory, middle range theory,

applied theory about entrepreneurial ability, co-

creation, the ability to innovate in influencing

company performance. This idea was developed with

the integration of the Resource-Based (RBV) theory.

According to (Dess & Robinson JR, 1984) said

the important thing in investigating organizational

phenomena is that performance can be

operationalized by the steps used in other

environmental aspects. The company's Performance

Model was developed to reflect new thinking in the

era of competition and company effectiveness

through four perspectives that are the main

components, and then will be measured for each of

these perspectives with several measuring

instruments used to assess company performance.

In order for innovation to occur, interaction with

internal and external input sources is needed

(Sisodiya, Johnson, & Grégoire, 2013). This

interaction creates an environment of a series of

integrated components and capabilities where

innovation occurs. The environment will function to

build constructive conditions (possible) or inhibitions

for innovation. For example, enabling policies to

simplify internal management processes and

eliminate barriers to innovation; while

entrepreneurial ability serves to advocate and ensure

leadership in the innovation process (Xu & Liu, J,

2012).

Innovation has been identified as a major source

of competitive advantage. Innovation helps

companies build specific competencies that can

produce new products that better satisfy customer

needs, by improving the quality of existing products,

or reducing the cost of making products that

customers want (Hill & Jones, 2008).

According to (Lawson & Samson, 2001) the

ability of innovation is not only to be successful in

running a new business, or to manage key capabilities

but to synthesize two operational paradigms. (Chen &

Xu, 2009) defines the ability of innovation as a

process that is acquired and integrated by a

knowledge company to produce creative ideas and

new products to satisfy customers. Values and

creations in strategy and marketing have been treated

very differently (Sánchez-Fernández & Iniesta-

Bonillo, 2007); and opinions (Salem Khalifa, 2004)

depends on the definition and paradigm that exists

(Vargo & Lusch, 2004). The value in his opinion

(Prahalad & Ramaswamy, 2004) namely motivation

to map some of the most important perspectives on

value and value creation because this will help

determine the position of the subject. In general, the

explanation of value in marketing explains perceived

consumer value and consumer value, which is

conveyed as a financial value that can be reinvested

in the organization and as a better knowledge of the

process that will produce efficiency. The value of a

company can come from involvement in the product

development process that reduces risk and reduces

development costs (Prahalad & Ramaswamy, 2004).

The company's ability to change strategic direction

quickly related to products and markets (Johnson,

2013).

The idea of co-creation is the innovation of new

ways to create products and experiences through the

collaboration of companies, consumers, suppliers and

distribution partners that are interrelated in the

innovation network (Prahalad & Krisnan, 2008). The

social media-based internet era allows attachment

between producers and consumers. Potts inside

(Hatch and Schultz, 2010) explains how social media

is able to create co-creation that can produce

creativity. According to (Kotler, 2010) concludes

customer motivation in co-creation which is a product

that consumers like in creating value so that

consumers want to adjust certain products with their

lifestyle.

According to (Roudini, Hassan, & Osman, 2012)

that the ability to obtain the resources needed to do

profitable moments is recognized in the market or

new market opportunities are created.

Strategy Analysis for Increasing Business Performance through Innovation Capability in the Textile Industry

2227

2.1 The Influence of Entrepreneur

Capability on Innovation Capability

A number of authors emphasize entrepreneurship as

the main foundation (Roudini et al., 2012) states that

innovation is the beginning of the entrepreneurial

process. (Wilson & Martin, 2015) entrepreneurial

ability introduces seven universal conditions and is

needed for this type of unique freedom to be present.

The importance of the concept of entrepreneurial

ability for entrepreneurial theory and economic

policy and human development is discussed.

Economic growth and prosperity lie in the hands of

entrepreneurs. These entrepreneurs not only create

public welfare but also struggle hard to make this

world a better place. Entrepreneurs who have an

entrepreneurial spirit will continue to struggle to

improve the standard of living of the community. (Jia-

Sheng & Chia-Jung, 2010) states that there are three

dimensions of entrepreneurship, namely innovation,

initiative, and risk taking. This is in line with the

opinion (Miller, 1983) which says that

entrepreneurship requires three characteristics:

innovation including product and process innovation,

risk-taking, namely the need to have the risk-taking

ability, and proactivity, namely the ability to actively

analyze the environment and adapt to respond by

determining the right strategy. Three characteristics

of Miller are in accordance with the opinion (Covin

& Slevin, 1989) that is innovativeness, risk-taking,

and proactive as an aspect to measure

entrepreneurship

The intrinsic nature of inherent entrepreneurship

is creativity and innovation. Creativity sees old things

with new perspectives, while innovations applying

new ideas that will give more entrepreneurial value

are often used as a solution to overcome the problem

of unemployment, by giving up, becoming risky,

creative, and innovative. Entrepreneurship is an

important factor that depends on marketing ability

and innovation (O’Cass & Weerawardena, 2010).

Innovative ability is important for entrepreneurs,

where entrepreneurs can change the environment and

open new businesses (Drucker, 2015). A company

based on innovation ability can help gain growth and

profit (Statistics Canada, 1994). According to (Lin,

Chen, & Ho, 2013) states that five aspects of

innovation ability (product, process, administration,

marketing, and innovation services). Marketing

capabilities do not directly affect sustainable

competitive advantage but through the ability to

innovate (Jia-Sheng & Chia-Jung, 2010). From the

theoretical and empirical results, the hypothesis can

be drawn that entrepreneurial ability influences

innovation ability.

2.2 The Influence of Co-creation, on

Innovation Capability

The influence of co-creation on Innovation capability.

Co-creation is defined as collaborative work between

consumers and companies in an innovation process,

where consumers and companies are involved in co-

ideation, co-design, co-development activities and co-

creation of new products or services (Ramaswamy,

2008). In part, co-creation is a specific form of user

contribution where "active" as opposed to "passive"

consumers participate with companies and voluntarily

contribute input (being that knowledge, opinion,

experience or resources are informed into a process

innovation, results in better and more focused on the

innovation market (Russo-Spena & Mele, 2012)

The ability of users to innovate increases radically

and rapidly as a result of continuously improving the

quality of information technology, increasing access

to easy-to-use tools and components for innovation,

and access to increasingly evolving innovations

(Magnusson, Arvola, Hursti, Åberg, & Sjödén, 2003).

This information-based business tool can be run on

personal computers, and they quickly go down in

price. As a result, innovation by users will continue to

grow even if the level of heterogeneity of needs and

desire to invest in getting the right product right

remains constant (Maklan, Knox, & Ryals, 2008).

(Hippel & Jin, 2009) illustrates that both companies

and individual consumers are increasingly able to

innovate for themselves, this is to say, innovation is

being democratized. the direct relationship between

innovation ability and personnel capabilities. In

addition, he also offers the most important

components and indices that directly influence and are

related to innovation capabilities (Momeni, 2016).

From the theoretical and empirical results, it can be

drawn the hypothesis that the co-creation influences

the innovation capability.

2.3 The Influence of Entrepreneur

Capability on Company

Performance

According to (He Xiao-Gang & Lin Gu-Yan, 2009)

using the entrepreneurial ability as a starting point to

investigate the influence on the ability of the

entrepreneurial expansion and company performance.

Research result (Cao, Kang, & Lim, 2017a) shows that

the ability of entrepreneurs to capture opportunities

ICRI 2018 - International Conference Recent Innovation

2228

has a significant influence on company performance,

and entrepreneurial innovation ability has a significant

influence on the company's financial performance but

does not have an impact on market performance.

According to (Ou Yin-Xue, 2010) claiming that

entrepreneurship capability is an important factor

influencing company performance. The ability of an

entrepreneur, such as the ability to innovate, the ability

to identify and capture opportunities, the ability to

make and utilize network resources, learning abilities,

knowledge management capabilities and ability to

avoid losses can improve corporate performance. (Yu

Dong-Ping & Duan Wan-Chun, 2012) argues that

entrepreneurial ability is given a complete (partial)

mediating effect on soft regional environments and

short-term (long-term) performance, and further

explains that entrepreneurial ability will directly

influence the transformation of the regional soft

construction environment.

Agree with the research (Wang, Sharma, & Cao,

2016) Thus the entrepreneur's capability includes the

ability to identify opportunities, network capability

relationships, capital operating capabilities, strategic

management capabilities, and innovation capabilities,

and they use case analysis to obtain the following

results: entrepreneurship capability promotes the

growth of the entrepreneurial business by influencing

business growth strategies. To verify the relationship

between ability entrepreneurs and companies. From

the theoretical and empirical results, it can be drawn

the hypothesis that the entrepreneur capability affects

the company's performance.

2.4 Effect of Innovation Capability on

Company Performance

Innovation capability has a positive effect on

company performance according to Lawless and

Anderson in (Siyamtinah & Rahmani, 2011) argues

that innovation influences the company's

performance, but depends on the complexity of the

market facing. With the complexity of market

conditions, the stronger the influence of innovation

on company performance. Research (Sharma &

Fisher, 1997) show innovation has an influence on

company performance.

Innovative ability according to (Hitt, Ireland,

Camp, & Sexton, 2001) as an effort to create a

competitive advantage in achieving company

performance. Next (McMullen & Shepherd, 2006)

says that the ability of innovation will only work well

if it is followed by actions that lead to the achievement

of organizational goals. Organizational performance

expressed by (Bukhamsin, 2015; Calantone, Cavusgil,

& Zhao, 2002; Siyamtinah & Rahmani, 2011) the

ability of innovation in corporate performance is

defined as an internal process of an organization that

contributes to creating the ability to survive and thrive.

Organizational performance is measured through

indicators on the development of the Balanced

Scorecard theory from (Kaplan & Norton, 1992) with

four perspectives: finance, customers, internal

business processes and learning and growth.

The relationship between innovation ability and

company performance is significant with

performance measurement. Performance

measurement can be used as a tool to improve

company performance through innovation

capabilities (Saunila & Ukko, 2013), Innovation

capability has a significant effect on performance.

This finding is in line with the results of research that

states that creative and innovative organizations are

able to improve individual and organizational

performance and create a competitive advantage

(Liao, Fei, & Chen, 2007). Likewise, the results of

research that state that the higher the creativity of

innovation will improve organizational performance

(Salim, Won, Nesbitt-Hawes, Campbell, & Abbott,

2011). From the theoretical and empirical results, the

hypothesis that the innovation capability has a

positive effect on company performance can be

drawn.

2.5 Effect of Co-creation Capability on

Company Performance

Explanation of co-creation affects the company's

performance, the implementation of co-creation partly

mediates the influence of innovation capabilities. For

that implication of research findings and practices

about the depiction and application of unique value

co-creation models (Fatemeh Hamidi, 2017),

according to (S.J.F. Ren, 2015) The results show that

the use of CRM capabilities is significantly related to

company performance.

Explanation of the definition of co-creation is an

interactive dialogue between performance companies

and a group of consumers (Russo-Spena & Mele,

2012), (Piller, Ihl, & Vossen, 2010), (Nicolajsen &

Scupola, 2011), which can vary in interaction, with the

aim of jointly increasing the value of offers for both

companies and consumers (Magnusson et al., 2003),

(Maklan et al., 2008). The relationship between the

stages in which a company is involved in joint creation

and improvement in a company's growth and

profitability (Ramaswamy, 2008). From the

theoretical and empirical results, it can be drawn the

Strategy Analysis for Increasing Business Performance through Innovation Capability in the Textile Industry

2229

hypothesis that co-creation has a positive effect on

company performance.

The company observes the environment to avoid

strategic surprise actions and to ensure the health of

the organization in the long run. This is in accordance

with the opinion (Hunger & Bamford, 2015), (Hitt et

al., 2001) which suggests that the external and

internal environment plays an important role in

determining individual business. According to

(Hunger & Bamford, 2015) states that environmental

analysis functions in planning strategies for

monitoring the environmental sector in determining

opportunities or threats to the company. The

relationship pattern of each of the variables can be

seen in the following Figure :

Figure 2: Research framework model

3 RESEARCH METHODS

The object of research is the target to get data,

according to the opinion (Sugiyono, 2003)

understanding of the object of research as follows:

"The object of research is a scientific goal to get data

with certain goals and uses about something that is

valid and reliable about something (certain variants)”.

This research begins with the exploration of theory,

the concepts that will be used. This explanatory

research activity is used to find and limit research

problems so that they can be applied and can be

examined (Zigmund, 2000).

Samples are taken in accordance with the

provisions set for the benefit of the Structural

Equation Model analysis tool. According to (Hair, et

al., 1998) in determining the sample size, the sample

size depends on the parameter estimation method

used. If the parameter estimation using the

recommended sample size method is between 100-

200. The sample size that must be met in this

modeling is a minimum of 100 and then uses a

comparison of 5 observations for each parameter

estimation, which is 5 x the number of indicators.

Based on the determination of the sample

(Singarimbun, 1999), according to Augusty (2005),

according to (Hair, et.al, 1955), then in determining

the number of sample indicators used as a basis for

determining the sample, where there are 25 indicators

used in comparison 5 observation, for each parameter

estimation of each indicator, the number of samples

used is 5 x 25 parameters = 125 samples for the

Textile industry. Then the total sample used was 125

samples

To analyze the data, the Structural Equation

Modeling is used from the AMOS statistical software

package in the model and hypothesis study. Structural

equation model, Structural Equation Model (SEM) is

a set of statistical techniques that allow testing a series

of relatively "complicated" simultaneous

relationships (Ferdinand, 2014).

4 RESULTS AND DISCUSSION

4.1 Structural Equation Modeling

(SEM) Analysis

Data processing results for full SEM model analysis

are shown in Figure below:

Figure. 2: Results of structural equation modeling analysis

Testing the research hypothesis according to

(Siswoyo, 2017) was carried out on the 5 proposed

hypotheses. Testing this hypothesis is done by using

the t-value value with a significance level of 0.05. The

value of t-value in the Amos program 23.00 is the

Critical Ratio (CR) value in the regression weight

(Group Number 1- Default model) of the matching

model if the critical ratio (CR) ≥ 1.967 or the

probability value (P) ≤ 0.05 then H0 is rejected (the

research hypothesis is accepted). The test criteria are

rejected by H0 if the v-value or critical ratio (CR) ≥

1.967 or the value of p≤ 0.05.

The test results for all hypotheses proposed in this

study are as follows :

ICRI 2018 - International Conference Recent Innovation

2230

H1: The result of data analysis is known, where the

value of the v-value or critical ratio is 2.870 ≥

1.967 or P value of 0.004 ≤ 0.05, H1 is accepted,

it is concluded that: Entrepreneurial ability has a

positive influence on the innovation ability of

companies in the textile sector. Industry in Banten

Province. The hypothesis is acceptable. The

above hypothesis is in accordance with the results

of the study (Cao, Kang, & Lim, 2017b). The

results show that entrepreneurial ability has a

significant influence on the company's dynamic

ability; the ability of company integration and

innovation ability has a significant influence on

company performance, organizational learning

capabilities do not have a significant influence on

company performance. The ability of

entrepreneurs to capture opportunities has a

significant influence on company performance,

and entrepreneurial innovation ability has a

significant influence on the company's financial

performance but does not have an impact on

market performance.

H2: Known the results of data analysis, where the

value of the v-value or critical ratio of 5,083 ≥

1.967 or P value of 0, 00 ≤ 0.05, H2 is accepted,

it is concluded that: Co-creation that influences

the company's innovation capability in the textile

industry in the Banten Province hypothesis can be

accepted. The above hypothesis is in accordance

with the results of the study (Fatemeh Hamidi,

2017) said that the results of structural equation

modeling showed a T-value of 2.159 for creation

at a significance level of 0.95. Because the result

is greater than 1.95, the relationship between co-

creation and innovation capability is accepted.

Therefore, it refers to the path coefficient of

0.0.381, co-creation affects the ability of

innovation in large companies. The results of

structural equation modeling show a T-value of

4.444 for innovation capability at a significance

level of 0.95. Because the results are greater than

1.95, the relationship between innovation

capabilities and company performance is

accepted. Thus, referring to the path coefficient of

0.592, innovation capabilities affect the

performance of companies in large companies.

The third hypothesis is about the impact of co-

creation on company performance. The results of

structural equation modeling show T-values of

26,229 for co-creation on the company's

performance at a significance level of 0.95.

Because the result is greater than 1.95, the

relationship between co-creation and company

performance is accepted. Therefore, it refers to the

path coefficient of 0.808, the characteristics of co-

creation affect the performance of companies in

large companies. Thus it can be claimed that co-

creation affects the company's performance more

than other factors in the sample community.

Because of the structure, type, and method of

partnership, dimensions have similarities and

differences from other studies.

H3: The results of the analysis, explaining the value

of the v-value or critical ratio is 5.288, ≥ 1.967 or

P value 0.000 5 0.05, then H3 is accepted, it is

assumed that there is a negative entrepreneurial

ability to the performance of companies in the

textile sector in Banten Province and the

hypothesis is acceptable. The hypothesis above in

accordance with the results of the study (Kartika

and Soenami, 2017) produces a very significant

output in improving performance using 4

perspectives, including finance, customers,

business processes, growth, and learning.

H4: The result of data analysis is known, where the

value of the v-value or critical ratio is 1.093 ≤

1.967 or P value is 0.093 5 0.05, H4 is accepted,

concludes that: "co-creation that does not affect

the performance of the company in the textile

industry in Banten Province, the hypothesis can be

In accordance with his research (Yazdanparast,

Manuj, & Swartz, 2010), that customer

involvement to carry out logistical activities in

achieving environmental performance (Chu Kai

Chat, 2015). Co-creation in company

performance is not able to increase a

comprehensive understanding of the impact of

value in terms of logistics performance that still

lack means that there is no strong influence

between co-creation on company performance.

H5: The results of data analysis are known, where the

value of v-value or critical ratio 2.059 ≥ 1.967 or

P value 0.040 5 0.05, H5 is accepted, the ability of

innovation has a positive influence on the

performance of companies in the textile industry.

In Banten Province, the hypothesis is acceptable.

Research on this hypothesis is consistent with the

results of research from (Dalvand, Moshabaki, &

Karampour, 2015) stating that operational

capabilities and export performance are approved

and it shows that the impact of operational

innovation capabilities on export performance is

more than effective innovation, the ability of

operational innovation has a positive effect in

export performance.

Strategy Analysis for Increasing Business Performance through Innovation Capability in the Textile Industry

2231

The results of the feasibility testing of Structural

Equation Model can be explained in the table as

follows :

Table. 1 : Full model test results

Goodness

of Fit index

Cut off value

Analysis

results

Model

evaluation

Chi-

square

P=5% df 146

Chi-square

179,347 good

Significance

probability

≥ 0,05 0,000 good

RMSEA ≤ 0,08 0,302 good

GFI ≥ 0,90 0,533 good

AGFI ≥ 0,90 0,393 Marginal

CMIN/DF ≤ 2,00 12,311 good

Above can be concluded that overall the full table

model above is an acceptable model fit. As for

according to (Ghozali, 2012) overall goodness of fit

can be assessed based on a minimum of 4- 5 criteria

(absolute fit indices, incremental fit indices, and

parsimony fit indices) represented for the feasibility

of a model, thus the SEM analysis hypothesis

fundamental in this study acceptable which means

there is no significant difference.

The two structural equations produced by the fit

model can be formed as follows:

1. Structural Equation 1: Innovation capability =

2,870*entrepreneur capability + 5,083*co-creation +

0,480

2. Structural

Equation 2 : Performance firm =

5,288*entrepreneur capability + 1,093*co-creation +

2,059 innovation capability + 0,901

Based on two structural equations resulting from

this study, entrepreneurial ability variables have the

most dominant influence on company performance.

This is indicated by the path coefficient of 2,059

innovation capability compared to the coefficient of

co-creation 1,901. while the effect on innovation

capability, co-creation variable is more dominant, this

is indicated by the path coefficient 5.083 greater than

the entrepreneurial ability variable of 2.870.

The above research is very suitable for previous

research, such as the results of Julaeha's research,

2016), said the results of the study showed that there

were significant and insignificant variables.

Innovation ability does not have a significant effect

on company performance.

Strengthened by the results of the research

(Siyamtinah & Rahmani, 2011) the results of data

processing shows that the better the internal factors

that are owned by the company, then the ability of

innovation will increase, the improvement of

innovation capabilities will affect the improvement of

company performance. Likewise with the results of

the study (Mulyana & Sutapa, 2014) said the results

of the study showed quadruple helix (intellectuals,

government, business, civil society) had a significant

influence on creativity. Intellectual and business have

a significant influence on the ability of innovation,

innovation capabilities have a significant influence on

competitive advantage and performance.

Research results (Singhry, 2015) say innovation

capability is a full mediator regarding the relationship

between supply chain technology and supply chain

performance as well as supply chain collaboration

and supply chain performance. The results of the

study (Fatemeh Hamidi, 2017) say the results of the

study show that the implementation of co-creation is

partly mediated by the influence of the ability of the

innovation process.

5 CONCLUSIONS

Based on the results of the analysis of structural

model research and testing the goodness of fit, this

study yields the following conclusions :

1. For the variable capability to have a positive effect

on the innovation capability of the company in the

textile industry in Banten Province, the hypothesis

can be accepted at 2,870, as well as the co-crisis

variable that influences the innovation capability

of the company in the textile industry in Banten.

The hypothesis can be accepted at 5,083.

Similarly, the Entrepreneur capability variable

affects the performance of the company in the

textile industry in Banten Province and the

hypothesis can be accepted at 5.288. However, co-

creation that does not affect the company's

performance in the textile industry in the Banten

Province hypothesis can be accepted because the

value is 1.093 ≤ 1.967 so there is no effect. While

Innovation capability has a positive effect on the

performance of the company in the textile

industry in the Banten Province, the hypothesis

can be accepted 2,059.

2. The results of structural equations resulting from

this study, that the entrepreneur's capability

variable has the most dominant influence on

company performance. This is indicated by the

coefficient of the path of 2,059 innovation

capability compared to the path coefficient of co-

creation of 1,901. while the influence on the

innovation capability, co-creation variable is

more dominant, this is indicated by the coefficient

of the path of 5.083 greater than the entrepreneur

capability variable of 2.870.

ICRI 2018 - International Conference Recent Innovation

2232

3. The results of the calculation above the total effect

of entrepreneur capability and co-creation of the

innovation capability impact on improving the

performance of the company in the textile

industry in the province of Banten, this shows that

entrepreneur capability has a large total effect of

0.863 than co-creation of 0.132 on the

performance of companies in the industry textile.

Then the results of calculating the effect of the

total innovation capability and co-creation on

innovation capability, the results show the

influence of very large co-creation with a value of

0.492 compared to entrepreneur capability of

0.286. Thus, the variable entrepreneur capability

is much more dominant than the variable co-

creation and innovation capability in influencing

the performance improvement of the textile

industry companies in Banten Province.

REFERENCES

Alvarez, S. A., & Busenitz, L. W. (2001). The

Entrepreneurship Of Resource-Based Theory Sharon.

Journal of Management 27, 755–

775.https://doi.org/10.1177

Antoncic, B., & Hisrich, R. D. (2004). Corporate

entrepreneurship contingencies and organizational

wealth creation. Journal of Management Development,

23(6), 518–550.

https://doi.org/10.1108/02621710410541114

Asegaff, M. (2016). Knowledge Sharing Sebagai Sumber

Innovation dan Kinerja Pada Usaha Mikro Kecil Dan

Menengah ( UMKM ) Sektor Batik. Prosiding Seminar

Nasional Multi Disiplin Ilmu & Call For Papers

Unisbank (Sendi_U) Gl, ISBN: 978-, 769–777.

Bukhamsin, M. (2015). Investigating the Relationship

between Organizational Innovation Capability and

Firm Performance with Irish SMEs Investigating the

Relationship between Organizational Innovation

Capability and Firm Performance with Irish SMEs

Maryam Bukhamsin.

Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002).

Learning orientation, firm innovation capability, and

firm performance, 31, 515–524. Industrial Marketing

ISSN: 0019-8501

Camagni, R. P. (1995). The Concept Of Innovative Milieu

And Its Relevance For Public Policies In European

Lagging Regions. Papers in

Regional.Science.https://doi.org/10.1111/j.1435-

5597.1995.tb00644.x

Cao, Q., Kang, T., & Lim, Y. (2017a). The Effects of

Entrepreneurial Capability on the Dynamic Capability

and Corporate Performance of Chinese SMEs. Journal

of International Trade & Commerce (J. Int. Trade

Commer, 13(5), 217–237. Retrieved SSRN-

id3066717.pdf

Cao, Q., Kang, T., & Lim, Y. (2017b). The Effects of

Entrepreneurial Capability on the Dynamic Capability

and Corporate Performance of Chinese SMEs. Journal

of International Trade & Commerce (J. Int. Trade

Commer. ), 13(5), 217–237. ISSN 0020–7543

print/ISSN 1366–588X online ß 2012 Taylor & Francis.

http://dx.doi.org/10.1080/00207543.2010.538742

Chu Kai Chat. (2015). The Effects Of Value Co-Creation

On Sustainable Logistic Performance: From Lens Of

Logistics Service Provider In Malaysia. Dis Alvarez, S.

A., & Busenitz, L. W. (2001). The Entrepreneurship Of

Resource-Based Theory Sharon. Journal of

Management 27, 755–775.https://doi.org/10.1177

Antoncic, B., & Hisrich, R. D. (2004). Corporate

entrepreneurship contingencies and organizational

wealth creation. Journal of Management Development,

23(6), 518–550.

https://doi.org/10.1108/02621710410541114

Asegaff, M. (2016). Knowledge Sharing Sebagai Sumber

Innovation Dan Kinerja Pada Usaha Mikro Kecil Dan

Menengah ( UMKM ) Sektor Batik. Prosiding Seminar

Nasional Multi Disiplin Ilmu & Call For Papers

Unisbank (Sendi_U) Gl, ISBN: 978-, 769–777.

Bukhamsin, M. (2015). Investigating the Relationship

between Organizational Innovation Capability and

Firm Performance with Irish SMEs Investigating the

Relationship between Organizational Innovation

Capability and Firm Performance with Irish SMEs

Maryam Bukhamsin.

Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002).

Learning orientation, firm innovation capability, and

firm performance, 31, 515–524. Industrial Marketing

ISSN: 0019-8501

Camagni, R. P. (1995). The Concept Of Innovative Milieu

And Its Relevance For Public Policies In European

Lagging Regions. Papers in

Regional.Science.https://doi.org/10.1111/j.1435-

5597.1995.tb00644.x

Cao, Q., Kang, T., & Lim, Y. (2017a). The Effects of

Entrepreneurial Capability on the Dynamic Capability

and Corporate Performance of Chinese SMEs. Journal

of International Trade & Commerce (J. Int. Trade

Commer, 13(5), 217–237. Retrieved SSRN-

id3066717.pdf

Cao, Q., Kang, T., & Lim, Y. (2017b). The Effects of

Entrepreneurial Capability on the Dynamic Capability

and Corporate Performance of Chinese SMEs. Journal

of International Trade & Commerce (J. Int. Trade

Commer. ), 13(5), 217–237. ISSN 0020–7543

print/ISSN 1366–588X online ß 2012 Taylor & Francis.

http://dx.doi.org/10.1080/00207543.2010.538742

Chu Kai Chat. (2015). The Effects Of Value Co-Creation

On Sustainable Logistic Performance: From Lens Of

Logistics Service Provider In Malaysia. Dissertation,

Master Of Business Administration Universiti Sains

Malaysia.

Covin, J. G., & Slevin, D. P. (1989). Strategic management

of small firms in hostile and benign environments.

Strategy Analysis for Increasing Business Performance through Innovation Capability in the Textile Industry

2233

Strategic Management Journal,

10(1),75.87.https://doi.org/10.1002/smj.4250100107

Covin, J. G., & Slevin, D. P. (1991). A Conceptual Model

of Entrepreneurship as Firm Behavior.

Entrepreneurship Theory and Practice, 16(1),

7.26.https://doi.org/10.1177/104225879101600102.

The John F. Baugh Center for Entrepreneurship PO

Box 98011.Baylor University Waco, TX 76798-8011

Dadfar, H., Dahlgaard, J. J., Brege, S., & Alamirhoor, A.

(2013). The linkage between organizational innovation

capability, product platform development, and

performance: The case of pharmaceutical small and

medium enterprises in Iran. Total Quality Management

and Business Excellence, 24 (78), 819.834.

https://doi.org/10.1080/14783363.2013.79110

Dalvand, V., Moshabaki, A., & Karampour, A. (2015). The

impact of innovation capabilities on export

performance of firms. Applied Mathematics in

Engineering, Management, and Technology 3(2), 3(2),

295–308.

Dess, G. G., & Robinson JR, R. B. (1984). Measuring

organizational performance in the absence of objective

measures: the case of the privately field firm and

conglomerate business unit. Strategic Management

Journal, 265–273.

https://doi.org/10.1002/smj.4250050306

Drucker, P. F. (2015). Innovation and Entrepreneurship:

Practice and Principles. JSTOR, Published by Taylor

& Francis, Ltd. DOI: 10.2307/3380320 10(1), 105–

109.

Fatemeh Hamidi, N. S. G. (2017). Impact Of Co-Creation

On Innovation Capability And Firm Performance: A

Structural Equation Modeling. AD-Minister N, 30

(June), 74–90. https://doi.org/10.17230/ad-

minister.30.4

Feldman, M., & Desrochers, P. (2003). Research

universities and local economic development: Lessons

from the history of the Johns Hopkins University.

Industry and Innovation, 10 (1), 5–

24.https://doi.org/10.1080/136627103200006

Hippel, E. von, & Jin, C. (2009). The major shift towards

user-centered innovation: Implications for China’s

innovation policymaking. Journal of Knowledge-Based

Innovation in China, 1 (1), 16–27. https: // doi. org/

10.1108/ 17561410910912896

Hitt, M. A., Ireland, R. D., Camp, S. M., & Sexton, D. L.

(2001). Strategic entrepreneurship: entrepreneurial

strategies for wealth creation. Strategic Management

Journal,

22(67),479491.https://doi.org/10.1002/smj.196

Hogan, S. J., Soutar, G. N., McColl-Kennedy, J. R., &

Sweeney, J. C. (2011). Reconceptualizing professional

service firm innovation capability: Scale development.

Industrial Marketing Management, 40 (8), 1264.1273.

https://doi.org/10.1016/

Hunger, T. L. W. • J. D., & Bamford, A. N. H. • C. E.

(2015). Strategic Management and Business Policy

Globalization, Innovation, and Sustainability. Book

references

Jay B. Barney. (2001). " View " a Useful Is the Resource-

Based for Strategic Management. Perspective

Research Academy of Management Review, 26(1), 22–

40. https://doi.org/10.5465/AMR.2001.4011928

Jia-Sheng, L., & Chia-Jung, H. (2010). In Relating

Innovative Capability And Sustained Competitive

Advantage. Journal of Business & Economics

Research, 8(9), 109–119.

Julaeha, S. (2016). Analisis Pengaruh Financial Aspect,

Human Capital, Dan Innovation Capital Terhadap

Kinerja Usaha Mikro Kecil Dan Menengah (Umkm)

Dengan Metode Partial Least Square (PLS) (Studi

Kasus Pada UMKM Di Wilayah Tangerang Selatan.

Jurnal Julaika FEB. Universitas Islam Negeri Syarif

Hidayatullah.

Kartika dan Soenami. (2017). Pengaruh Entrepreneurial

Orientation, Culture Organization Internal Factor

Terhadap Performance Organization Melalui Corporate

Entreprenuership Capability Pada Umkm Batik Tulis

Di Jawa Timur. Riset Akuntansi Dan Keuangan

Indonesia, 2(1), 1–18.

Kenneth, G. O. R., Janet, M., & Stanley, M. (2015).

Evidencing Enablers of Innovation Capabilities and

Their Effects on Organizational Performance

Evidencing Enablers of Innovation Capabilities and

Their Effects on Organizational. Strategic Journals,

2(1), 2184–2196.

Kraaijenbrink, J., Spender, J., & Groen, A. J. (2010). The

RBV: a Review and Assessment of its Critiques. MPRA

Paper, 36(1), 349–372.

https://doi.org/10.1177/0149206309350775

Kotler, Ph., Keller KL. 1997. Marketing Management

Thirteenth Edition. Book References Original ISBN.

978-013-600998-6

Lianto, B., Rinawiyanti, E. D., & Soeharsono, F. (2015).

Studi Keterkaitan Kapabilitas Innovation dan Kinerja

Innovation UKM Alas Kaki di Mojokerto. Journal

Innovation Dan Kewirausahaan, 4(1), 9–20.

Liao, S., Fei, W., & Chen, C. (2007). Knowledge sharing,

absorptive capacity, and innovation capability : an

empirical study of Taiwan ’ s knowledge. Journal of

Information Science

https://doi.org/10.1177/0165551506070739

Lin, R.-J., Chen, R.-H., & Ho, T.-M. (2013). Market

Demand, Green Innovation, and Firm Performance :

Evidence From Hybrid Vehicle Industry. Proceedings

of 2013 International Conference on Technology

Innovation and Industrial Management, 194–209.

Retrieved from http://www.toknowpress.net/ISBN/978-

961-6914-07-9/papers/S6_194-209.pdf

Magnusson, M. K., Arvola, A., Hursti, U. K. K., Åberg, L.,

& Sjödén, P. O. (2003). Choice of organic foods is

related to perceived consequences for human health and

to environmentally friendly behavior. Appetite,

40(2),109.117.https://doi.org/10.1016/

Maklan, S., Knox, S., & Ryals, L. (2008). New trends in

innovation and customer relationship management: a

challenge for market researchers. International Journal

of Market Research, 50(2), 221–240.

https://doi.org/10.1504/ijitm.2004.004783

Maria Pampa Kumalaningrum, R. P. (2014). Kapabilitas

ICRI 2018 - International Conference Recent Innovation

2234

Kewirausahaan Dan Kemampuan Dinamis

Perusahaan : Peran Medias Dari Pembelajaran

Organisasional. JRMB, 9(2), 99–111.

McMullen, J. S., & Shepherd, D. A. (2006). Action and the

Role Entrepreneurial in the Theory of the Uncertainty

Entrepreneur. Academy of Management Review, 31(1),

132–152. https://doi.org/10.5465/amr.2006.19379628

Miller, M. J. (1983). The Role of Happenstance in Career

Choice. Vocational Guidance Quarterly, 32(1), 16–20.

https://doi.org/10.1002/j.2164-585X.1983.tb01552.x

Mulyana, & Sutapa. (2014). Peningkatan Kapabilitas

Innovation, Keunggulan Bersaing dan Kinerja melalui

Pendekatan Quadruple Helix: Studi pada Industri

Kreatif Sektor Fashion. Jurnal Manajemen Teknologi,

13(3), 304–321.

https://doi.org/10.12695/jmt.2014.13.3.5

Nicolajsen, H. W., & Scupola, A. (2011). Investigating

issues and challenges for customer involvement in

business services innovation. Journal of Business and

Industrial Marketing, 26(5), 368–376.

https://doi.org/10.1108/08858621111144424

O’Cass, A., & Weerawardena, J. (2010). The effects of

perceived industry competitive intensity and

marketing-related capabilities: Drivers of superior

brand performance. Industrial Marketing Management,

39(4), 571–581. https://doi.org/10.1016/

Peteraf, M. A. (1993). The Cornerstones of Competitive

Advantage: A Resource-Based View. Strategic

Management Journal, 14(3), 179–191.

Piller, F. T., Ihl, C., & Vossen, A. (2010). A Typology of

Customer Co-Creation in the Innovation Process.

SSRN, 1–26. https://doi.org/10.2139/ssrn.1732127

Prahalad, C. K., & Ramaswamy, V. (2004). Co-creating

unique value with customers. Strategy & Leadership,

32 (3), 4–9. https://

doi.org/10.1108/10878570410699249

Prasetyo, E. (2015). Kesiapan Industri Tekstil Dalam

Mendukung Poros Maritim dan Peningkatan Daya

Saing. Prosiding Seminar Nasional Multi Disiplin Ilmu

& Call For Papers Unisbak, 978–979.

Rahab, Sulistyandari, S. (2011). The Development Of

Innovation Capability Of Small Medium Enterprises

Through Knowledge Sharing Process : An Empirical

Study Of Indonesian Rahab Assistant Professor

Management Department Jenderal Soedirman

University Indonesia Sulistyandari Faculty of Econ.

International Journal of Business and Social Science,

2(21), 112–123.

Ramaswamy, V. (2008). Co-creating value through

customers'experiences : the Nike case, 36 (5), 9.14.

https : // doi.org/ 10.1108/10878570810902068

Roser, T., DeFillippi, R., & Samson, A. (2013). Managing

your cocreation mix: cocreation ventures in

distinctive contexts. European Business Review, 25(1),

20–41. https://doi.org/10.1108/EL-01-2014-0022

Roudini, A., Hassan, M., & Osman, M. (2012). The Role of

International Entrepreneurship Capability on

International Performance in Born Global Firms. The

Role of International Entrepreneurship Capability on

International Performance in Born Global Firms,

2012(June), 126–135.

Russo-Spena, T., & Mele, C. (2012). “Five Co-s” in

innovating: A practice-based view. Journal of Service

Management, 23(4), 527–553.

https://doi.org/10.1108/09564231211260404

S.J.F. Ren, R. N. L. (2015). Enterprise ’ s WeChat Use and

its Impact on Firm Performance – From the Perspective

of Value Co-Creation. In Proceedings of the 2015 IEEE

IEEM with (Vol. 15, pp. 18–22).

Salem Khalifa, A. (2004). Customer value: A review of

recent literature and an integrative configuration.

Management Decision, 42 (5), 645.666. https : //

doi.org/ 10.1108/00251740410538497

Salim, S., Won, H., Nesbitt-Hawes, E., Campbell, N., &

Abbott, J. (2011). Diagnosis and Management of

Endometrial Polyps: A Critical Review of the

Literature. Journal of Minimally Invasive Gynecology,

18(5), 569–581.

https://doi.org/10.1016/j.jmig.2011.05.018

Sánchez-Fernández, R., & Iniesta-Bonillo, M. Á. (2007).

The concept of perceived value: A systematic review of

the research. Marketing Theory, 7(4), 427–451.

https://doi.org/10.1177/1470593107083165

Sauna, M., & Ukko, J. (2013). Facilitating innovation

capability through performance measurement: A study

of Finnish SMEs. Management Research Review,

36(10), 991–1010. https://doi.org/10.1108/MRR-11-

2011

Sharma, B., & Fisher, T. (1997). Functional strategies and

competitiveness: an empirical analysis using data from

Australian manufacturing. Benchmarking for Quality

Management & Technology, 4(4), 286–294.

https://doi.org/10.1108/14635779710195122

Singh, H. B. (2015). Effect of Supply Chain Technology,

Supply Chain Collaboration and Innovation Capability

on Supply Chain Performance of Manufacturing

Companies. Journal of Business Studies Quarterly,

7(2), 258–273.

Sisodiya, S. R., Johnson, J. L., & Grégoire, Y. (2013).

Inbound open innovation for enhanced performance:

Enablers and opportunities. Industrial Marketing

Management, http://dx.doi.org/10.1016/

Siyamtinah, & Rahmani, H. S. E. (2011). Model

Peningkatan Kinerja Melalui Kapabilitas. Seminar

Nasional Ilmu Ekonomi Terapan Fakultas Ekonomi

UNIMUS 2011, (1987), 251–262.

Storper, M. (1995). The Resurgence of Regional

Economies, Ten Years Later: The Region as a Nexus of

Untraded Interdependencies. European Urban and

Regional Studies, 2(3), 191–221.

https://doi.org/10.1177/096977649500200301

Tallman, S., & Fladmoe-Lindquist, K. (2002).

Internalization, Globalization, and Capability Based

Strategy. Califonia Management Review, 4(1), 116–

135. Retrieved from

http://faculty.poly.edu/~brao/tallman.pdf

Tijmes, A. H. (2010). Co-Creation and Firm Performance :

Innovation Succes Enhancing Effects and Motives for

Customer involvement. The University of Twente, the

Netherlands School.

Strategy Analysis for Increasing Business Performance through Innovation Capability in the Textile Industry

2235

Vargo, S. L., & Lusch, R. F. (2004). Evolving to a New

Dominant Logic for Marketing. Journal of

Marketing,68(1),1.17.

https://doi.org/10.1509/jmkg.68.1.1.24036

Wang, Z., Sharma, P. N., & Cao, J. (2016). From

Knowledge sharing to firm performance: A predictive

model comparison. Journal of Business Research,

69(10), 4650–4658.

https://doi.org/10.1016/j.jbusres.2016.03.055

Wilson, N., & Martin, L. (2015). Entrepreneurial

opportunities for Entrepreneurial capability and the

Capabilities Approach.

https://doi.org/10.5367/ijei.2015.0189

Woldesenbet, K., Ram, M., & Jones, T. (2012). Supplying

large firms: The role of entrepreneurial and dynamic

capabilities in small businesses. International Small

Business Journal, 30(5), 493–512.

https://doi.org/10.1177/0266242611396390

Yang, (2014), Entrepreneur Ability, Innovation

Competence and Enterprise Performance” Academic

Exploration, (10), 138-142

Yazdanparast, A., Manuj, I., & Swartz, S. M. (2010). Co-

creating logistics value : a service-dominant logic

perspective. The International Journal of

Logistics_Management_https://doi.org/10.1108/09574

091011089808

Yusr, M. M. (2016). Innovation capability and its role in

enhancing the relationship between TQM practices and

innovation performance. Journal of Open Innovation:

Technology, Market, and Complexity, 2010, 1–15.

https://doi.org/10.1186/s40852-016-0031-2

Zahra, S. A., Sapienza, H. J., & Davidsson, P. (2006).

Entrepreneurship and Dynamic Capabilities: A Review,

Model and Research Agenda. Journal of Management

Studies, 43(June).

https://doi.org/10.1111/j.1467.6486.2006.00616.

Zheng, Y., & George, G. (2010). The Dynamic Impact of

Innovative Capability and Inter-firm Network on Firm

Valuation : A Longitudinal Study of Biotechnology

Start-ups,593.609.https://doi.org/10.1016sertation,

Master Of Business Administration Universiti Sains

Malaysia.

ICRI 2018 - International Conference Recent Innovation

2236