Linking Knowledge Search to Innovation Performance in Culinary SMES Sector: The Mediating Role of Digital Orientation

Published: Sep 27, 2024

Abstract:

Purpose: The purpose for this research is to explore the role of digital orientation in moderating the effect of knowledge search on innovation performance in culinary SMEs in Rembang Regency.

Methodology: The type of research is quantitative using an explanatory research approach. The number of research samples is 82 culinary SMEs in Rembang Regency by using the purposive sampling method.

Results: The research findings show that knowledge search has a significant effect on innovation performance. However, digital orientation cannot moderate the effect of knowledge search on innovation performance.

Limitation: The use of limited sampling only in the Rembang regency so the findings cannot be generalized. In addition, the number of samples used in the research was too small therefore the scope of the research was limited. In this study, the research variables in the model only include 3 variables so that the research model is limited.

Contribution: Based on the results of this research, culinary SMEs must improve their knowledge search capabilities therefore the innovation can be created optimally and also the implications of knowledge search can build a knowledge base for SMEs. In addition, these results can also be used for future research using the same research model.

Keywords:
1. Culinary SMEs
2. Knowledge Search
3. Innovation Performance
4. Digital Orientation
Authors:
1 . Susanti Dwi Ilhami
2 . Damayanti Damayanti
How to Cite
Ilhami, S. D., & Damayanti, D. (2024). Linking Knowledge Search to Innovation Performance in Culinary SMES Sector: The Mediating Role of Digital Orientation . Jurnal Akuntansi, Keuangan, Dan Manajemen, 5(4), 417–426. https://doi.org/10.35912/jakman.v5i4.3430

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References

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    Amanah, N., Sena, B., Suhendra, B., Yatim, A., & Zaki, S. A. (2023). Empowering Society and Culinary MSMEs for Sustainable Development Goals Initiatives in West Java. Journal of Sustainable Tourism and Entrepreneurship, 5(1), 309–328.

    Audretsch, D. B., Belitski, M., & Chowdhury, F. (2024). Knowledge investment and search for innovation: evidence from the UK firms. Journal of Technology Transfer, 1–24. https://doi.org/10.1007/s10961-023-10045-7

    Azari, M. J., Aspelund, A., & Eide, A. E. (2020). Knowledge integration in international SMEs–The effects on firm innovation and performance. Cogent Business and Management, 7(1), 1–24. https://doi.org/10.1080/23311975.2020.1849890

    Burgers, J. H., Arundel, A., & Casali, G. L. (2024). Effect of knowledge search depth, user co-creation and moderating factors on the outcomes of service innovations by European public sector organizations. Public Management Review, 26(3), 746–769. https://doi.org/10.1080/14719037.2022.2118820

    Cen, J., Fu, F., Yang, Y., Yan, J., & Li, J. (2023). Distant or Local? The Roles of Knowledge Search on General Purpose Technology Innovation in Emerging Industries. Journal of Innovation and Knowledge, 8(2), 100331. https://doi.org/10.1016/j.jik.2023.100331

    Chaochotechuang, P., Daneshgar, F., & Mariano, S. (2020). External knowledge search paths in open innovation processes of small and medium enterprises. European Journal of Innovation Management, 23(3), 524–550. https://doi.org/10.1108/EJIM-01-2019-0013

    Damayanti, D., & Rikah, R. (2022). The Role of Internal and External Knowledge Capability in SMEs Business Model Innovation during the Covid-19 Pandemic. 2nd International Conference on Business & Social Sciences, 1–8.

    Dantsoho, M. A., Adamu, A. A., Yazeed, M., Abdullahi, N., Ringim, K. J., & Umar, S. (2020). Digital Orientation Scale: Development and Validation. 2020 International Conference on Data Analytics for Business and Industry: Way Towards a Sustainable Economy, ICDABI 2020, October. https://doi.org/10.1109/ICDABI51230.2020.9325678

    Dung, K. D. (2024). Leadership , proactive behavior and innovative work behaviors of teachers in Barkin-Ladi. Annals of Management and Organization Research (AMOR), 6(1), 13–24.

    Duong, P. A. N., Voordeckers, W., Huybrechts, J., & Lambrechts, F. (2022). On external knowledge sources and innovation performance: Family versus non-family firms. Technovation, 114, 102448. https://doi.org/10.1016/j.technovation.2021.102448

    Durst, S., Edvardsson, I. R., & Foli, S. (2023). Knowledge management in SMEs: a follow-up literature review. Journal of Knowledge Management, 27(11), 25–58. https://doi.org/10.1108/JKM-04-2022-0325

    Ehls, D., Polier, S., & Herstatt, C. (2020). Reviewing the Field of External Knowledge Search for Innovation: Theoretical Underpinnings and Future (Re-)search Directions. Journal of Product Innovation Management, 37(5), 405–430. https://doi.org/10.1111/jpim.12549

    El-Achkar, A. M. N., Leme, V. B. R., Soares, A. B., & Yunes, M. A. M. (2019). Life satisfaction and academic performance of elementary school students. Psico-USF, 24(2), 323–335. https://doi.org/10.1590/1413-82712019240209

    Ferlito, R., & Faraci, R. (2022). Business model innovation for sustainability: a new framework. Innovation and Management Review, 19(3), 222–236. https://doi.org/10.1108/INMR-07-2021-0125

    Ferreras-Méndez, J. L., Fernández-Mesa, A., & Alegre, J. (2016). The relationship between knowledge search strategies and absorptive capacity: A deeper look. Technovation, 54, 48–61. https://doi.org/10.1016/j.technovation.2016.03.001

    Ibarra, D., Bigdeli, A. Z., Igartua, J. I., & Ganzarain, J. (2020). Business model innovation in established SMEs: A configurational approach. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 76. https://doi.org/10.3390/JOITMC6030076

    Ichdan, D. A., & Maryani, M. (2024). The impact of innovation , corporate social responsibility , environmental practices , and organizational culture on organizational sustainability. Annals of Management and Organization Research (AMOR), 5(4), 297–310.

    Kindermann, B., Beutel, S., Garcia de Lomana, G., Strese, S., Bendig, D., & Brettel, M. (2021). Digital orientation: Conceptualization and operationalization of a new strategic orientation. European Management Journal, 39(5), 645–657. https://doi.org/10.1016/j.emj.2020.10.009

    Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital Transformation: An Overview of the Current State of the Art of Research. SAGE Open, 11(3), 1–15. https://doi.org/10.1177/21582440211047576

    Kusa, N. D., & Danladi, N. Y. (2024). Entrepreneurial passion on the success of SME ’ s in Plateau State , Nigeria?: The role of entrepreneurial skills. Journal of Sustainable Tourism and Entrepreneurship, 4(3), 225–242.

    Liao, L., & Li, R. (2023). The Effect of R & D Investment and Knowledge Search on Innovation Performance: The New Evidence from High-Tech Enterprises in Guangxi. Journal of Human Resource and Sustainability Studies, 11, 579–602. https://doi.org/10.4236/jhrss.2023.113033

    Lihua, D. (2022). An Extended Model of the Theory of Planned Behavior: An Empirical Study of Entrepreneurial Intention and Entrepreneurial Behavior in College Students. Frontiers in Psychology, 12(January). https://doi.org/10.3389/fpsyg.2022.627818

    Liu, H., Li, J., & Liu, L. (2023). Linking Knowledge Heterogeneity with Project Performance in Digital Project Teams: The Role of Digital Capability and Knowledge Conversion. Journal of the Knowledge Economy, 22, 1771–1800. https://doi.org/10.1007/s13132-023-01353-2

    Lyu, C., Peng, C., Yang, H., Li, H., & Gu, X. (2022). Social capital and innovation performance of digital firms: Serial mediation effect of cross-border knowledge search and absorptive capacity. Journal of Innovation & Knowledge, 7(2), 100187. https://doi.org/10.1016/j.jik.2022.100187

    Malerba, F., & McKelvey, M. (2020). Knowledge-intensive innovative entrepreneurship integrating Schumpeter, evolutionary economics, and innovation systems. Small Business Economics, 54(2), 503–522. https://doi.org/10.1007/s11187-018-0060-2

    Martín-Lucas, J., & García del Dujo, Á. (2023). Knowledge-building in an environment mediated by digital technology: A case study in higher education. Education and Information Technologies, 28(3), 3267–3287. https://doi.org/10.1007/s10639-022-11304-0

    Massa, S., Annosi, M. C., Marchegiani, L., & Messeni Petruzzelli, A. (2023). Digital technologies and knowledge processes: new emerging strategies in international business. A systematic literature review. Journal of Knowledge Management, 27(11), 330–387. https://doi.org/10.1108/JKM-12-2022-0993

    Moya-Fernández, P. J., & Seclen-Luna, J. P. (2023). Evaluating the Effects of Information Sources on Innovation Outcomes: Are There Differences between KIBS and Manufacturing Firms from a Latin America Country? Journal of the Knowledge Economy, 15, 4024–4055. https://doi.org/10.1007/s13132-023-01305-w

    Nambisan, S. (2017). Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship. Entrepreneurship: Theory and Practice, 41(6), 1029–1055. https://doi.org/10.1111/etap.12254

    Roper, S., Love, J. H., & Bonner, K. (2017a). Firms’ knowledge search and local knowledge externalities in innovation performance. Research Policy, 46(1), 43–56. https://doi.org/10.1016/j.respol.2016.10.004

    Roper, S., Love, J. H., & Bonner, K. (2017b). Firms’ knowledge search and local knowledge externalities in innovation performance. Research Policy, 46(1), 43–56. https://doi.org/10.1016/j.respol.2016.10.004

    Saunila, M. (2020). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation and Knowledge, 5(4), 260–265. https://doi.org/10.1016/j.jik.2019.11.002

    Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach. In John Wiley & Sons Ltd. https://doi.org/10.1108/lodj-06-2013-0079

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    Svetina, A. C., & Prodan, I. (2008). How Internal and External Sources of Knowledge Contribute to Firms´s Innovation Performance. Managing Global Transitions, 6(3), 277–299.

    Tapang, F., & Mbarika, I. (2023). The effect of electricity reliability on the sustainability of SMEs in Fako Division of Cameroon. Annals of Human Resource Management Research, 3(1), 17–39. https://doi.org/10.35912/ahrmr.v3i1.1615

    Tongtong, S., & Xuejing, D. (2023). Research on the Impact of External Knowledge Search on Innovation in Technological Enterprises. Academic Journal of Business & Management, 5(16), 1–6. https://doi.org/10.25236/ajbm.2023.051601

    Younge, K. A., & Tong, T. W. (2018). Competitive pressure on the rate and scope of innovation. Journal of Economic Behavior and Organization, 150, 162–181. https://doi.org/10.1016/j.jebo.2018.03.026

    Yu, Y., Yuan, L., & Li, J. (2018). Knowledge search modes and innovation performance: The moderating role of strategic R&D orientation. Technology Analysis and Strategic Management, 31(6), 625–640. https://doi.org/10.1080/09537325.2018.1541172

    Zamiri, M., & Esmaeili, A. (2024). Methods and Technologies for Supporting Knowledge Sharing within Learning Communities: A Systematic Literature Review. Administrative Sciences, 14(1), 1–34. https://doi.org/10.3390/admsci14010017

    Zhang, H., & Hu, B. (2017). The effects of organizational isomorphism on innovation performance through knowledge search in industrial cluster. Chinese Management Studies, 11(2), 209–229. https://doi.org/10.1108/CMS-04-2016-0076

    Zhang, Yanli, Wang, D., & Xu, L. (2021). Knowledge search, knowledge integration and enterprise breakthrough innovation under the characteristics of innovation ecosystem network: The empirical evidence from enterprises in Beijing-Tianjin-Hebei region. PLoS ONE, 16(12), 1–16. https://doi.org/10.1371/journal.pone.0261558

    Zhang, Yu, Zhang, X., Zhang, H., & Lusi, A. (2022). The Influence of External Knowledge Searches on Enterprises’ Innovation Performance: A Meta-Analysis. Sustainability, 14(8081), 1–23. https://doi.org/10.3390/su14138081

    Zheng, X. (2024). The Impact of Digital Orientation on New Product Development Performance: Does Knowledge Intensity Matter? Sustainability (Switzerland) , 16(8). https://doi.org/10.3390/su16083420

    Zhu, Q. (2023). Digital Capability , Digital Orientation and Enterprise Innovation Performance. Financial Engineering and Risk Management, 6(8), 1–15. https://doi.org/10.23977/ferm.2023.060801

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  2. Amanah, N., Sena, B., Suhendra, B., Yatim, A., & Zaki, S. A. (2023). Empowering Society and Culinary MSMEs for Sustainable Development Goals Initiatives in West Java. Journal of Sustainable Tourism and Entrepreneurship, 5(1), 309–328.
  3. Audretsch, D. B., Belitski, M., & Chowdhury, F. (2024). Knowledge investment and search for innovation: evidence from the UK firms. Journal of Technology Transfer, 1–24. https://doi.org/10.1007/s10961-023-10045-7
  4. Azari, M. J., Aspelund, A., & Eide, A. E. (2020). Knowledge integration in international SMEs–The effects on firm innovation and performance. Cogent Business and Management, 7(1), 1–24. https://doi.org/10.1080/23311975.2020.1849890
  5. Burgers, J. H., Arundel, A., & Casali, G. L. (2024). Effect of knowledge search depth, user co-creation and moderating factors on the outcomes of service innovations by European public sector organizations. Public Management Review, 26(3), 746–769. https://doi.org/10.1080/14719037.2022.2118820
  6. Cen, J., Fu, F., Yang, Y., Yan, J., & Li, J. (2023). Distant or Local? The Roles of Knowledge Search on General Purpose Technology Innovation in Emerging Industries. Journal of Innovation and Knowledge, 8(2), 100331. https://doi.org/10.1016/j.jik.2023.100331
  7. Chaochotechuang, P., Daneshgar, F., & Mariano, S. (2020). External knowledge search paths in open innovation processes of small and medium enterprises. European Journal of Innovation Management, 23(3), 524–550. https://doi.org/10.1108/EJIM-01-2019-0013
  8. Damayanti, D., & Rikah, R. (2022). The Role of Internal and External Knowledge Capability in SMEs Business Model Innovation during the Covid-19 Pandemic. 2nd International Conference on Business & Social Sciences, 1–8.
  9. Dantsoho, M. A., Adamu, A. A., Yazeed, M., Abdullahi, N., Ringim, K. J., & Umar, S. (2020). Digital Orientation Scale: Development and Validation. 2020 International Conference on Data Analytics for Business and Industry: Way Towards a Sustainable Economy, ICDABI 2020, October. https://doi.org/10.1109/ICDABI51230.2020.9325678
  10. Dung, K. D. (2024). Leadership , proactive behavior and innovative work behaviors of teachers in Barkin-Ladi. Annals of Management and Organization Research (AMOR), 6(1), 13–24.
  11. Duong, P. A. N., Voordeckers, W., Huybrechts, J., & Lambrechts, F. (2022). On external knowledge sources and innovation performance: Family versus non-family firms. Technovation, 114, 102448. https://doi.org/10.1016/j.technovation.2021.102448
  12. Durst, S., Edvardsson, I. R., & Foli, S. (2023). Knowledge management in SMEs: a follow-up literature review. Journal of Knowledge Management, 27(11), 25–58. https://doi.org/10.1108/JKM-04-2022-0325
  13. Ehls, D., Polier, S., & Herstatt, C. (2020). Reviewing the Field of External Knowledge Search for Innovation: Theoretical Underpinnings and Future (Re-)search Directions. Journal of Product Innovation Management, 37(5), 405–430. https://doi.org/10.1111/jpim.12549
  14. El-Achkar, A. M. N., Leme, V. B. R., Soares, A. B., & Yunes, M. A. M. (2019). Life satisfaction and academic performance of elementary school students. Psico-USF, 24(2), 323–335. https://doi.org/10.1590/1413-82712019240209
  15. Ferlito, R., & Faraci, R. (2022). Business model innovation for sustainability: a new framework. Innovation and Management Review, 19(3), 222–236. https://doi.org/10.1108/INMR-07-2021-0125
  16. Ferreras-Méndez, J. L., Fernández-Mesa, A., & Alegre, J. (2016). The relationship between knowledge search strategies and absorptive capacity: A deeper look. Technovation, 54, 48–61. https://doi.org/10.1016/j.technovation.2016.03.001
  17. Ibarra, D., Bigdeli, A. Z., Igartua, J. I., & Ganzarain, J. (2020). Business model innovation in established SMEs: A configurational approach. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 76. https://doi.org/10.3390/JOITMC6030076
  18. Ichdan, D. A., & Maryani, M. (2024). The impact of innovation , corporate social responsibility , environmental practices , and organizational culture on organizational sustainability. Annals of Management and Organization Research (AMOR), 5(4), 297–310.
  19. Kindermann, B., Beutel, S., Garcia de Lomana, G., Strese, S., Bendig, D., & Brettel, M. (2021). Digital orientation: Conceptualization and operationalization of a new strategic orientation. European Management Journal, 39(5), 645–657. https://doi.org/10.1016/j.emj.2020.10.009
  20. Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital Transformation: An Overview of the Current State of the Art of Research. SAGE Open, 11(3), 1–15. https://doi.org/10.1177/21582440211047576
  21. Kusa, N. D., & Danladi, N. Y. (2024). Entrepreneurial passion on the success of SME ’ s in Plateau State , Nigeria?: The role of entrepreneurial skills. Journal of Sustainable Tourism and Entrepreneurship, 4(3), 225–242.
  22. Liao, L., & Li, R. (2023). The Effect of R & D Investment and Knowledge Search on Innovation Performance: The New Evidence from High-Tech Enterprises in Guangxi. Journal of Human Resource and Sustainability Studies, 11, 579–602. https://doi.org/10.4236/jhrss.2023.113033
  23. Lihua, D. (2022). An Extended Model of the Theory of Planned Behavior: An Empirical Study of Entrepreneurial Intention and Entrepreneurial Behavior in College Students. Frontiers in Psychology, 12(January). https://doi.org/10.3389/fpsyg.2022.627818
  24. Liu, H., Li, J., & Liu, L. (2023). Linking Knowledge Heterogeneity with Project Performance in Digital Project Teams: The Role of Digital Capability and Knowledge Conversion. Journal of the Knowledge Economy, 22, 1771–1800. https://doi.org/10.1007/s13132-023-01353-2
  25. Lyu, C., Peng, C., Yang, H., Li, H., & Gu, X. (2022). Social capital and innovation performance of digital firms: Serial mediation effect of cross-border knowledge search and absorptive capacity. Journal of Innovation & Knowledge, 7(2), 100187. https://doi.org/10.1016/j.jik.2022.100187
  26. Malerba, F., & McKelvey, M. (2020). Knowledge-intensive innovative entrepreneurship integrating Schumpeter, evolutionary economics, and innovation systems. Small Business Economics, 54(2), 503–522. https://doi.org/10.1007/s11187-018-0060-2
  27. Martín-Lucas, J., & García del Dujo, Á. (2023). Knowledge-building in an environment mediated by digital technology: A case study in higher education. Education and Information Technologies, 28(3), 3267–3287. https://doi.org/10.1007/s10639-022-11304-0
  28. Massa, S., Annosi, M. C., Marchegiani, L., & Messeni Petruzzelli, A. (2023). Digital technologies and knowledge processes: new emerging strategies in international business. A systematic literature review. Journal of Knowledge Management, 27(11), 330–387. https://doi.org/10.1108/JKM-12-2022-0993
  29. Moya-Fernández, P. J., & Seclen-Luna, J. P. (2023). Evaluating the Effects of Information Sources on Innovation Outcomes: Are There Differences between KIBS and Manufacturing Firms from a Latin America Country? Journal of the Knowledge Economy, 15, 4024–4055. https://doi.org/10.1007/s13132-023-01305-w
  30. Nambisan, S. (2017). Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship. Entrepreneurship: Theory and Practice, 41(6), 1029–1055. https://doi.org/10.1111/etap.12254
  31. Roper, S., Love, J. H., & Bonner, K. (2017a). Firms’ knowledge search and local knowledge externalities in innovation performance. Research Policy, 46(1), 43–56. https://doi.org/10.1016/j.respol.2016.10.004
  32. Roper, S., Love, J. H., & Bonner, K. (2017b). Firms’ knowledge search and local knowledge externalities in innovation performance. Research Policy, 46(1), 43–56. https://doi.org/10.1016/j.respol.2016.10.004
  33. Saunila, M. (2020). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation and Knowledge, 5(4), 260–265. https://doi.org/10.1016/j.jik.2019.11.002
  34. Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach. In John Wiley & Sons Ltd. https://doi.org/10.1108/lodj-06-2013-0079
  35. Statistik, B. P. (2024). Jumlah Usaha Menurut Kelompok di Kabupaten Rembang (Unit), 2021-2023. https://rembangkab.bps.go.id/id/statistics-table/2/NjMxIzI=/jumlah-usaha-menurut-kelompok-di-kabupaten-rembang.html
  36. Sugiyono. (2013). Metode Penelitian Kuantitatif Kuliatitatif dan R&D. Alfabeta Bandung.
  37. Svetina, A. C., & Prodan, I. (2008). How Internal and External Sources of Knowledge Contribute to Firms´s Innovation Performance. Managing Global Transitions, 6(3), 277–299.
  38. Tapang, F., & Mbarika, I. (2023). The effect of electricity reliability on the sustainability of SMEs in Fako Division of Cameroon. Annals of Human Resource Management Research, 3(1), 17–39. https://doi.org/10.35912/ahrmr.v3i1.1615
  39. Tongtong, S., & Xuejing, D. (2023). Research on the Impact of External Knowledge Search on Innovation in Technological Enterprises. Academic Journal of Business & Management, 5(16), 1–6. https://doi.org/10.25236/ajbm.2023.051601
  40. Younge, K. A., & Tong, T. W. (2018). Competitive pressure on the rate and scope of innovation. Journal of Economic Behavior and Organization, 150, 162–181. https://doi.org/10.1016/j.jebo.2018.03.026
  41. Yu, Y., Yuan, L., & Li, J. (2018). Knowledge search modes and innovation performance: The moderating role of strategic R&D orientation. Technology Analysis and Strategic Management, 31(6), 625–640. https://doi.org/10.1080/09537325.2018.1541172
  42. Zamiri, M., & Esmaeili, A. (2024). Methods and Technologies for Supporting Knowledge Sharing within Learning Communities: A Systematic Literature Review. Administrative Sciences, 14(1), 1–34. https://doi.org/10.3390/admsci14010017
  43. Zhang, H., & Hu, B. (2017). The effects of organizational isomorphism on innovation performance through knowledge search in industrial cluster. Chinese Management Studies, 11(2), 209–229. https://doi.org/10.1108/CMS-04-2016-0076
  44. Zhang, Yanli, Wang, D., & Xu, L. (2021). Knowledge search, knowledge integration and enterprise breakthrough innovation under the characteristics of innovation ecosystem network: The empirical evidence from enterprises in Beijing-Tianjin-Hebei region. PLoS ONE, 16(12), 1–16. https://doi.org/10.1371/journal.pone.0261558
  45. Zhang, Yu, Zhang, X., Zhang, H., & Lusi, A. (2022). The Influence of External Knowledge Searches on Enterprises’ Innovation Performance: A Meta-Analysis. Sustainability, 14(8081), 1–23. https://doi.org/10.3390/su14138081
  46. Zheng, X. (2024). The Impact of Digital Orientation on New Product Development Performance: Does Knowledge Intensity Matter? Sustainability (Switzerland) , 16(8). https://doi.org/10.3390/su16083420
  47. Zhu, Q. (2023). Digital Capability , Digital Orientation and Enterprise Innovation Performance. Financial Engineering and Risk Management, 6(8), 1–15. https://doi.org/10.23977/ferm.2023.060801