The Role of Co-Innovation and Absorptive Capacity on Speed of Innovation and Its Impact on New Product Performance in the Small Sector Industry

Fadhlan Ridhwana Sujana; Fansuri Munawar; Kahfi Gunardi; Ardi Susanto

doi:10.55047/jekombital.v5i1.1219

Authors

Fadhlan Ridhwana Sujana* UIN Siber Syekh Nurjati Cirebon, Indonesia
Fansuri Munawar Universitas Widyatama, Bandung, Indonesia
Kahfi Gunardi UIN Siber Syekh Nurjati Cirebon, Indonesia
Ardi Susanto UIN Siber Syekh Nurjati Cirebon, Indonesia

DOI:

https://doi.org/10.55047/jekombital.v5i1.1219

Keywords:

Absorptive Capacity, Co-Innovation, New Product Performance, Small-Sector Industry, Speed of Innovation

Abstract

Co-innovation is essential in the innovation literature, particularly for small-sector industries. This study examines how co-innovation, absorptive capacity, and speed of innovation influence new product performance. A cohort of 134 participants, drawn from disparate industries encompassing handicrafts, textiles, and food and beverage, was surveyed to garner data. Partial least squares structural equation modeling was employed to subject the research hypotheses to examination. A pronounced, affirmative direct association between co-innovation, speed of innovation, and new product performance was evidenced by the results. A considerable moderating influence exerted by absorptive capacity upon the co-innovation, new product performance relationship was subsequently unearthed. The cultivation of co-innovation practices with a multiplicity of partners; suppliers, competitors, customers, and industrial enterprises, is underscored as vital for securing a wider array of resources capable of enhancing new product performance. Moreover, businesses must possess the capacity to assimilate and reconcile newly acquired knowledge with their extant knowledge base, so that it might be exploited to fullest effect.

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